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Just Eat shares fell eight per cent this morning after Amazon led a $575m (£450m) investment round in rival Deliveroo.

Read more: Deliveroo to 'invest heavily' in London tech with Amazon's £450m

Just Eat's shares dropped 8.3 per cent to 621p in early trading after the fund raising.

Analysts at Peel Hunt said that the Amazon investment in Deliveroo, coupled with Ubers initial public offering (IPO) last week, increased the pressure on Just Eat.

“After Ubers IPO last week that raised $8.1bn and now Amazons investment today – both in aid of the more expensive delivery side of the takeaway market – these two FAANG(U)s will put more pressure on Just Eat which has only recently started out on that journey,” analysts said.

Germanys Delivery Hero and Dutch offering Takeaway also saw shares slide six per cent today.

However, analysts at Liberum said fears were overdone, arguing that Just Eats dominant position would be hard for rivals to overcome.

“Just Eat's market leading position will be incredibly difficult to overcome, especially given its strength in smaller towns. What we do think is more likely than a serious threat from competitors is that Just Eat – and the other portals – are bought by bigger players looking to dominate the food delivery portal market,” they said.

Deliveroos investment round, including money from existing investors Fidelity Management, T Rowe Price and Greenoaks, takes its total capital raised so far to $1.53bn.

“Were impressed with Deliveroos approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options,” said Doug Gurr, Amazon UK countrRead More – Source

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CityAM

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