After disclosing that German rival Delivery Hero has taken a 5% stake in the company, food-delivery giant Deliveroo hit its highest share price since it floated on the stock market back in March. After announcing the news, shares in Deliveroo rose by as much as 10% to 360p in early trading on Monday. 

Delivery Hero is a direct rival to Deliveroo, running a takeaway delivery service across Europe, Latina America, Asia, and the Middle East. The company formerly operated the Hungry House brand in the UK, but sold it on to Just Eat in 2017. 

Niklas Oestberg, founder of Delivery Hero, turned to Twitter to say he had known Deliveroo founder Will Shu for many years and had huge respect for his business. Oestberg stated he had purchased the stake in Deliveroo because he believes the business was undervalued after being oversold at its IPO. In March, Deliveroo suffered a disastrous public market debut. Its shares slumped 30% on the first day of trade. 

Whilst the news of Delivery Hero’s 5% stake in the company has boosted Deliveroo’s shares, Delivery Hero investors were not as impressed. Delivery Hero’s stock dropped 1.8% in Germany. The company is currently valued at €32 billion, whereas Deliveroo is currently worth an estimated $6 billion.