How to buy and short Deliveroo shares

How to trade Deliveroo shares

Trading Deliveroo stock means that you’re speculating on the price movements of the company’s share price without owning the underlying assets. If you think that the share price will rise, you’ll ‘buy’ (go long) and if you think it will fall, you’ll ‘sell’ (go short).

With us, you can trade Deliveroo shares in these steps:

1. Create an account or log in
2. Search for ‘Deliveroo’ on our trading platform
3. Select ‘buy’ to go long or ‘sell’ to go short in the deal ticket
4. Set your position size and take steps to manage your risk
5. Open and monitor your position

When trading with us, you’ll use leveraged derivatives such as CFDs.

Trading with leverage means that you can get full exposure while only committing a deposit called margin. It’s vital that you manage your risk as leverage can magnify both your possible profits and losses to the full value of your position.

Discover more about the impact of leverage on trading

See our full trading costs and charges

How to short Deliveroo shares

You will use CFDs when shorting Deliveroo shares with us. Short-selling is a way for you to potentially profit (or make a loss) from a drop in share price by selling (going short on) the underlying shares rather than buying (going long).

With us, you can short-sell in these steps:

1. Create an account or log in
2. Search for ‘Deliveroo’ on our platform
3. Select ‘sell’ in the deal ticket
4. Choose your position size
5. Open and monitor your position

If you think that the Deliveroo share price will drop, you’d take a short position. If your prediction is correct, you’d make a profit. If incorrect, you’d make a loss.

Remember, CFDs are leveraged, meaning you’d pay an initial deposit that’s a percentage of the full value of your position, but both possible profits and losses are magnified to the full value of your trade.

Learn more about short-selling

How to close your Deliveroo position

You can close your Deliveroo trade in these steps:

1. Log in and go to your share trading account
2. Go to the positions tab and select ‘Deliveroo’
3. Select ‘sell’ in the deal ticket
4. Choose your position size
5. Close your position

A brief history of Deliveroo

Deliveroo was founded in 2013 by Will Shu and Greg Orlowski, with critics reportedly saying that English people wouldn’t want good food to be delivered. Around the middle of the year, Shu worked as Deliveroo’s first ‘rider’ to test the process in London.

In 2014, Deliveroo raised about £200 million that was critical to its expansion and launched in a second city, Brighton.

In 2019, Deliveroo received a £459 million funding boost from Amazon. That same year, it was estimated that the company would contribute around £4 billion in economic output in the UK. However, order numbers started to decrease rapidly following lockdowns and 15% of its workforce had to be laid off.

Deliveroo hinted at a 2020 initial public offering (IPO) following the collapse of short-lived talks about a merger with Uber. The company eventually listed on the LSE as Deliveroo Holdings on 31 March 2021, with a valuation of £7.6 billion. The price per share was set at £3.90 for the IPO.

What’s the Deliveroo business model?

The Deliveroo business model is based on having food orders put through on its app or website, and then delivering the meals to customers’ doorsteps. Once the payment is made, the order is placed with the restaurant and the user can track the progress of their order – Deliveroo aims to deliver in under 30 minutes. Delivery is made by Deliveroo riders, who stay stationed within 2.2 kilometres of the restaurants they sign up for.

The company has partnered with more than 80,000 restaurants. Users can look up and order from restaurants on Deliveroo based on their location. Headquartered in London, it services the UK, Ireland, France, the Netherlands, Belgium, Spain, Italy, UAE, Kuwait, Singapore, Hong Kong, Taiwan and Australia. Deliveroo has helped in creating more than 60,000 jobs.

Deliveroo share price: how to analyse Deliveroo shares

You can analyse Deliveroo shares using two methods – technical and fundamental analysis – however a combination of the two is usually more useful.

• Technical analysis comprises of chart patterns, technical indicators and historical price action that can help you predict future price movements
• Fundamental analysis entails elements such as a company’s net revenue, profit and loss statements, as well as wider macroeconomic factors, that can help you in determining likely share price movements