Food delivery firms drop €21bn in value as investors turn shy

Soaring inflation, increased competition, and the fall-off in the pandemic sales surge — challenges are coming at the sector from all sides

Shares in Just Eat dropped 35% in the last quarter.

In a market gripped by concerns over rising interest rates and soaring inflation, investors are avoiding European food delivery companies, turned off by their steep losses and determined efforts to expand.

Shares in Delivery Hero plunged 59% last quarter, the second-worst performance in Europe’s Stoxx 600 Index. Rivals including Just Eat Takeaway and Deliveroo dropped more than 35%. The three stocks wiped out a combined $23.7bn (€21.3bn), more than half their market value.