DELIVEROO

Analysis of Deliveroo share price

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If you are one of the stock market investors with a keen interest in the service industry, perhaps you would like to invest in the Deliveroo share price online. To do so, you'll need to carry out relevant analyses of this value and therefore have the necessary knowledge for this. This is precisely what we offer here with some essential and reliable information about the company such as a detailed presentation of its activities and sources of income, its main competitors, its recent partnerships and its major strengths and weaknesses. We will of course, also explain how to set up a fundamental analysis of this stock with the list of elements that you will need to consider.

Latest news

Deliveroo: its IPO would value it at up to 10.25 billion euros

22/03/2021 - 13h30

Deliveroo, the meal delivery platform, will be going public in the next few days on the London market. This will allow it to be valued at up to 10.25 billion euros.

Elements that can influence the price of this asset:

Analysis N°1

First of all, you should closely follow the evolution of the demand of the meal delivery segment which may be boosted by certain events as was the case in 2020 and 2021 with the closure of restaurants and restrictions related to Covid.

Analysis N°2

The evolution of the working rhythms of employees who have less and less time to eat can also prove to be an interesting indicator for Deliveroo and should also be analysed.

Analysis N°3

You need to keep an eye on the direct and indirect competition that the Deliveroo group is currently facing. It could be competition from similar players such as Uber Eats or Just Eat, as well as other local competitors since restaurateurs are increasingly setting up their own delivery services which then prove to be less expensive for the customers.

Analysis N°4

You'll also need to take a close look at Deliveroo's commercial offer, which unfortunately still remains well below that of the competition. Bear in mind that Deliveroo's strategy targets a more upscale market than its competitors and that it is therefore overtaken by the latter's urban catering offers. The same is true for the geographic scope of its services in certain areas that are still poorly exploited.

Analysis N°5

Finally, also keep an eye on the publications of the group's results as well as the forecasts relating to its strategic objectives that you can compare. We recommend that you also take into account analysts' anticipation in this analysis.

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General presentation of Deliveroo

We suggest that you further deepen your knowledge of the Deliveroo group and its activities and sources of income. To better understand how this company can generate growth in the years to come, you absolutely must know its operation and its sector of activity.

The Deliveroo group is a British company specializing in the meal delivery sector. The company which delivers home cooked meals was created by Will Shu and Greg Orlowski and is currently present in many countries such as the United Kingdom as well as the Netherlands, France, Belgium, Ireland, Spain, Italy, United Arab Emirates, Australia, Singapore and Hong Kong.

Deliveroo customers can place their meal orders through the group's website as well as through a mobile app and directly from partner restaurants. The meals are then delivered by independent couriers by bicycle, scooter or car.

The model of the Deliveroo Company is a hyperlocal tripartite marketplace model because it connects local consumers, restaurateurs and grocery stores as well as delivery people, with the aim of making purchases in less than 30 minutes. Currently, the Deliveroo group has a diversified base of nearly 115,000 partner restaurants and grocery stores.

Analysis of Deliveroo share price
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The major competitors of Deliveroo

We now suggest that you go a little further by discovering who the Deliveroo group's current main direct competitors are on the market and their presentation:

Uber Eats 

Of course, market leader Uber Eats is a strong competitor to watch out for. It was launched in 2015 by Uber and is based in San Francisco, California. Here again, customers place their orders through the group's website or mobile app to partner restaurants and independent couriers take care of the delivery. The Uber Eats group is currently present all over the world including North America, South America, Europe, Australia, Asia and in some cities in Africa.

Just Eat

Another serious competitor of Deliveroo is Just Eat which is a British company also specializing in the delivery of ready meals. This group is listed on the London market and operates in nearly 16 different countries in Europe, Asia, Oceania and America.

Takeaway

Finally, the last competitor that you should watch out for in your sector analysis of Deliveroo is the Takeaway Group which is a Dutch company specializing in home catering with online ordering. Here, the company offers a website that lists the different accessible restaurants and their menus, allowing Internet users to order their meals online and have them delivered to their homes. The Takeaway Company has also developed in several countries, mainly in Europe. It is also listed on the Euronext Amsterdam market, in compartment A and is also included in two stock market indices the AEX index and the Next 150 index.


The major partners of Deliveroo

Luckily, the Deliveroo group does not only have enemies but also has some strategic allies in its market. Check out two recent examples of partnerships signed by this company.

Carrefour 

First in 2021, the group signed a partnership agreement with the French group Carrefour, which had already been present on the platform of its competitor Uber Eats for more than a year. This is a European alliance which intervenes while another competitor joins Uber Eats, namely the Casino group. This alliance comes at the time of the third confinement with the signing of a European partnership which now allows Deliveroo customers to order more than a thousand everyday products, mainly food products. These are collected in the brand's stores and then delivered within 30 minutes to the consumer. The service had already been launched in Spain and Italy during the second half of 2020 and was also deployed in March 2021 in Belgium. In France, it first in Paris and then around twenty other cities.

Microsoft 

Another partnership was signed in 2020 during the release of the new XBOX Series X / S consoles with a marketing campaign associating Deliveroo. This campaign was baptized HyngryGamers and consisted of an operation deployed on Deliveroo's website, app and social networks and made it possible to win prizes such as Game Passes, Deliveroo promo codes or even controllers. New members of the Deliveroo Plus program, which is billed at one euro per month, also received a one month of Game Pass Ultimate subscription worth € 13.

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The factors in favour of a rise in the Deliveroo share price:

Now let's take a look at the advantages and drawbacks of this stock with a quick summary of the strengths and weaknesses of the Deliveroo group.

First of all, the main strengths of the Deliveroo group are as follows:

  • The group operates in an innovative sector which is currently on the rise and has been boosted by the containment measures taken in various countries during the Covid-19 crisis.
  • The group is also developing more and more internationally, which suggests that Deliveroo has still significant growth potential abroad.
  • Deliveroo also has a significant market share in the UK in home meal deliveries and continually offers new products and services such as breakfast or alcohol deliveries.
The factors in favour of a drop in the Deliveroo share price:

Regarding the main weaknesses of the Deliveroo group, the following points should be taken into account:

  • First of all, the group's product portfolio remains relatively less varied and extensive than that of its main competitors because the company has implemented a more upscale strategy.
  • The second and last weak point of this company is its strong dependence on restaurateurs.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

When and how did the Deliveroo IPO take place?

It was on March 31st 2021 that the IPO of Deliveroo took place on the London market. The amount of this introduction was then set at a 390p share price, a valuation of nearly 7.6 billion pounds or 8.9 billion euros for the group. But on the day of its IPO, the price of this share dropped by 30% which reduced its valuation to 2 billion pounds.

Who are the major shareholders of the Deliveroo group?

The Deliveroo group has several large shareholders in its capital including Amazon Venture Capital with 12.6% of the shares, Index Venture SA with 7.92%, DST Global Management with 7.81%, Greenoaks Capital Management LLC with 6.97%, T Rowe Price Associates with 6.92 %, Fidelity Management & Research with 6.26%, Bridgepoint Advisers with 4.32%, Accel Partners with 4.23%, General Catalyst with 1.72% and T Row Price Associates with 0.40%.

How do you know if the Deliveroo share is interesting?

To know if the Deliveroo stock is an interesting stock to trade or buy, you need to carry out several types of analysis including a technical analysis which is based on the study of historical and current charts as well as a fundamental analysis which takes into account the events and publications most likely to impact directly or indirectly.

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