Europe Markets Archives | Email alerts

Dec. 6, 2021, 7:44 a.m. EST

Food delivery companies crushed again on worries over EU rules

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Deliveroo PLC (ROO)
  • X
    Delivery Hero SE (DHER)
  • X
    Just Eat Takeaway.com N.V. (TKWY)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

The food delivery sector was crushed again on Monday, on expectations the European Commission will mandate new rules that will see workers treated as employees rather than contractors.

Deliveroo /zigman2/quotes/225812915/delayed UK:ROO +2.82% fell 8%, as Delivery Hero /zigman2/quotes/208380525/delayed XE:DHER +4.08% and Just Eat Takeaway.com /zigman2/quotes/201653805/delayed NL:TKWY +5.47% each fell 6%.

Analysts at Citi said Deliveroo would be most impacted by the rule proposal, which the Financial Times reported could be as announced as early as Wednesday. They said Deliveroo’s gross profit would be hit by between 12% and 18%. Delivery Hero’s limited European exposure implied a profit hit of 2% and 3%, and a majority of Just Takeaway’s European riders are already employed, the analysts added.

The broader Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +1.22% was trading higher on Monday, as oil price gains buoyed energy producers including TotalEnergies /zigman2/quotes/206172043/delayed FR:TTE +1.20% and Royal Dutch Shell .

/zigman2/quotes/225812915/delayed
UK : U.K.: London
£ 96.34
+2.64 +2.82%
Volume: 3.33M
May 17, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£1.74 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208380525/delayed
XE : Germany: Xetra
30.88
+1.21 +4.08%
Volume: 2.17M
May 17, 2022 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€7.45 billion
Rev. per Employee
€112,593
loading...
/zigman2/quotes/201653805/delayed
NL : Netherlands: Euronext Amsterdam
20.83
+1.08 +5.47%
Volume: 3.97M
May 17, 2022 5:39p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€4.25 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
438.97
+5.30 +1.22%
Volume: 0.00
May 17, 2022 11:03p
loading...
/zigman2/quotes/206172043/delayed
FR : France: Euronext Paris
52.33
+0.62 +1.20%
Volume: 7.08M
May 17, 2022 5:39p
P/E Ratio
9.03
Dividend Yield
5.27%
Market Cap
€134.94 billion
Rev. per Employee
€1.79M
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.