![]() A move that is set to intensify competition in the same-day delivery market. I believe the news is actually a positive for some of these stocks and a negative for most.Ī couple of days ago, The Information reported that Amazon ( NASDAQ: AMZN) is supposedly set to ramp up its presence in the grocery-delivery market. What is happening? Why are these stocks declining significantly faster than the general market? This article will discuss Amazon's supposed entrance into the grocery delivery market in the US and Europe and the consequences for DoorDash, Instacart ( ICART ), Uber, Deliveroo and Just Eat Takeaway - companies that mainly operate in the US and Europe. Especially last month, stocks like DoorDash ( DASH ) have declined substantially. I think it is fair to say the sector is now officially in a bear market with companies like Uber ( UBER ), Deliveroo ( OTCPK:DROOF ) ( OTCPK:DLVEY ) and Just Eat Takeaway (GRUB) ( OTC:TKAYF ) selling 30-50% below their all-time highs. Since last month, all food delivery/grocery delivery stocks have experienced a significant decline in stock prices. “The unprecedented health crisis we all face has disrupted businesses across the country.400tmax/iStock Unreleased via Getty Images Food delivery/last-mile delivery stocks “This investment is a key part of Deliveroo’s plan to provide an even better service to customers, riders and restaurants, and, as we’re a British company, this will be a boost to the UK economy. Since the lockdown, the company has launched partnerships with grocery retailers Morrisons and Co-op, along with other independent retailers to help turn corner shops and newsagents into delivery businesses.īosses at tech firms, including Deliveroo, have written to the UK Government asking for access to funding during the crisis as the impact is felt throughout the economy.Įarlier versions of the lending schemes left some tech firms unable to apply, although on Thursday night the government unveiled its latest package of lending for medium-sized and larger companies in the UK to access loans.Ī Deliveroo spokesman said: “We are delighted the CMA has found that Amazon can invest in Deliveroo. “As a result, Deliveroo recently informed the CMA that the impact of the coronavirus pandemic on its business meant that it would fail financially and exit the market without the Amazon investment.”ĭeliveroo said it would use the deal and extra cash to help with short- and long-term challenges, particularly as it looks for new ways of working amid the Covid-19 pandemic. “While Deliveroo has sought to expand its supply of convenience groceries during the crisis, these sales are limited and have not made up for losses in its restaurants business. It said: “The ongoing lockdown in the UK has resulted in the closure of a large number of the key restaurants available through Deliveroo, and a significant decline in revenues. However, on Friday afternoon they said the “imminent exit of Deliveroo would be worse for competition than allowing the Amazon investment to proceed”.įollowing discussions with Deliveroo, the CMA waved the deal through. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |