Europe’s food delivery sector continued to be in the spotlight on Tuesday, as Deliveroo Holdings fell further after a rough first day of trade, while Delivery Hero rose as an investor increased its stake.
declined nearly 2% in London in its second day of trade, after slumping 26% in its initial day of trade. The loss-making company has been criticized after reports about the low pay of its couriers. One rival, Just Eat Takeaway
also fell in Amsterdam trade.
But Delivery Hero
rose 4% in Frankfurt after Prosus
increased its stake by 8% to 25%. Prosus said it was acting after being diluted by Delivery Hero’s acquisition of Woowa, South Korea’s biggest food delivery app.
Separately, Spain’s Glovo raised €450 million to give it a valuation of €2 billion, according to The Wall Street Journal. Delivery Hero participated in the funding round and has previously agreed to buy Glovo’s Latin American operations.
The broader European stock market edged higher, as investors react to President Joe Biden’s infrastructure spending plan, which called for over $2 trillion in spending to be paid for by increases in corporate taxes.
There are also key U.S. economic data over the next two days, with a manufacturing report due on Thursday and the nonfarm payrolls report out on Friday, when markets in Europe and the U.S. will be shut in observance for Good Friday.
The Stoxx Europe 600
rose 0.4%, after gaining 8% in the first quarter.
U.S. stock futures
Also on the move, shares of Atos
dropped 14% after the technology consulting firm said its auditors found accounting errors at two U.S. subsidiaries, which account for about 11% of last year’s revenue. The auditors found “several matters relating to internal control weaknesses over financial reporting process and revenue recognition” and a “risk of override of controls in this respect.”