Top 5 Food Delivery Stocks to Buy in 2021

3. Deliveroo Holdings Plc (LSE: ROO.L)

Deliveroo Holdings Plc (LSE: ROO.L) is a London-based online food delivery service founded by Will Shu in 2013. It operates in over 200 locations across thirteen countries, including most of Western Europe. The company went public late last month where the company forecast a valuation of more than $12 billion but instead witnessed a very low-key IPO and shares tumbled more than 31% afterwards. The company makes money by charging restaurants and customers fees for food delivery charges. 

The company is backed by Amazon, the largest e-commerce trader in the world. Even though the company is as yet unprofitable, the shares of the firm are rising as retailers start to trade. As Amazon plans to expand in the food service industry, the firm can expect healthy investments to turn fortunes around. The pandemic-driven surge for the delivery business has helped Deliveroo stay afloat, but it needs more to compete with bigger firms like UberEats, Grubhub and DoorDash that dominate the market across the world.

Big banking names like JP Morgan, Goldman Sachs, Bank of America and Citigroup worked on the IPO of Deliveroo that fell way short of expectations. Even though shares prices were lowered, interest remained minimal. However, the founder of the firm, Will Shu, is undeterred, and says the company’s fee per delivery is rising on a year-on-year basis, and that his previous experience of proving doubters wrong will spur him to take the firm to greater heights.