The Deliveroo share price is up around 8% today as its Berlin-based rival Delivery Hero has built a 5% stake. The move comes at a time of consolidation in the sector, as companies compete for position in new sectors such as groceries.
Analysts at Jefferies said they believed the food delivery sector was entering what it called the “fourth age”.
They added: “The profile of an operator positioned to do well is one with delivery in its DNA, an aggressive and progressive attitude to leveraging delivery, and a first-mover advantage in grocery, preferably on the dark store model.”
Delivery Hero, already owns minority stakes in several other food delivery groups. These include UK listed Just Eat Takeaway.com, Spain-based Glovo and Latin America’s Rappi.
The two companies do not compete in the UK. The German firm sold Hungry House to Just Eat in 2016.
Deliveroo declined to comment. Delivery Hero said it was “always looking for new investment opportunities” and that it strongly believed “in the future potential of the delivery industry as a whole.” Both companies are set to update investors on current trading this week.
The share price increase today has helped Deliveroo recover from its poor floatation earlier this year, which saw the share price fall sharply.
Bluejay Mining share price surging
The Bluejay Mining share price increased by around 22% on Monday. This followed news that it had signed a joint-venture agreement with KoBold Metals to explore the Disko-Nuussuaq Project.
The exploration and development company, with projects in Greenland and Finland, says that under the terms of the Agreement, KoBold can earn 51% of Disko through a two-stage earn-in. Bluejay can maintain a 49% interest through proportionate funding of the project and will manage field operations during this period.
The Disko-Nuussuaq project mines nickel, copper, cobalt, platinum magmatic massive sulphide project in Central West Greenland.
Bo Stensgaard, CEO of Bluejay, said of the deal: “This Agreement is transformative for Bluejay. We are delighted to have a partner at the pinnacle of technical innovation for new exploration methods, backed by some of the most successful investors in the world.
Principal investors in KoBold include Breakthrough Energy Ventures, a climate & technology fund, overseen by Bill Gates, and whose investors include Michael Bloomberg, Jeff Bezos, and Ray Dalio. Other investors in KoBold include Andreessen Horowitz, the premier Silicon Valley venture capital fund and Equinor, the Norwegian state-owned multinational energy company.