Germany's Delivery Hero has taken a 5.09% stake in online food delivery rival Deliveroo , driving the British company's share price to its highest since listing on the stock market in March.
Shares in Deliveroo, which disclosed the holding in a stock market notice on Monday, rose more than 6% to 345 pence. They were priced at 390 pence in its initial public offering (IPO).
Online food platforms such as Delivery Hero, Deliveroo, Uber Eats and Just Eat Takeaway.com have benefited from a surge in demand during pandemic lockdowns, but some analysts question how much of that business will persist as restaurants reopen.
A race into new markets and early moves towards consolidation have resulted in a number of cross-shareholdings in the sector.
Operational In About 50 Countries
Founded in 2011, Delivery Hero operates in about 50 countries worldwide, with particular strength in Asia, where it owns the foodpanda brand.
It does not operate in Britain - Deliveroo's largest market - after selling its Hungryhouse business to Just Eat in 2016.
However, after later consolidation in Germany, it does own a 7.4% stake in Just Eat Takeaway.com.
It also owns a 37% stake in Spain's Glovo, which is considering its own listing in about three years.
News by Reuters edited by Donna Ahern, Checkout. For more Technology news click here. Click subscribe to sign up for the Checkout print edition.