Deliveroo shares jump as Delivery Hero buys stake

Deliveroo shares jumped after online rival, Delivery Hero, bought a 5% stake in the group – worth £284m.

Shares jumped 11% to 360p on the news, which is the highest since the group went public earlier this year.

Delivery Hero is a German company that operates in about 50 countries and owns minority stakes in many platforms including Just Eat Takeaway.com.

When the news broke on its investment in Deliveroo, shares in Delivery Hero slipped 1.3% on the DAX index.

Delivery Hero’s boss Niklas Oestberg tweeted that “In no scenario would this be a bad investment long term”.

“I’m holding a huge respect for what he and his team have built,” Oestberg added.