Delivery Hero takes stake in rival Deliveroo

Online food delivery firm Delivery Hero has bought a 5% stake in its rival Deliveroo.

The move by the German company comes as delivery firms look to build on recent growth driven by sales during lockdowns.

A race into new markets like groceries has also led to a number of cross-shareholdings in the sector.

But some analysts are unsure how much of the online delivery business will persist as restaurants reopen.

That hasn't stopped Delivery Hero's from investing, though.

It also owns a 7% stake in another rival - Just Eat Takeaway.com - and a 37% holding in Spain's Glovo.

Delivery Hero's investment pushed Deliveroo's share price up as much as 10% in early trade on Monday (August 9) - its highest level since listing on the stock market in March.

Delivery Hero was founded ten years ago and now operates in about 50 countries.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting