Uber Eats and Deliveroo competitor Delivery Hero reports stock price plunge after $433 million antitrust fine

The German food delivery company plans to “significantly increase” the cash it has set aside for a potentially higher-than-expected fine, it said in a statement on Sunday. The company has already set aside 186 million euros, it said.

The shares fell 18% on Monday, their biggest drop since April 26, and were trading at 20.33 euros at 2:44 p.m. in Frankfurt.

The expected fine relates to alleged illegal pacts to share markets, share confidential commercial information and poach employees of rivals, Delivery Hero said in a statement. The decision to increase the cash reserve for the fine was “based on recent informal engagement with the European Commission and subsequent detailed analysis,” it said.

The European Commission declined to comment on Monday.

The EU regulator has not yet published its findings on Delivery Hero, but officials have twice searched the company and its Spanish subsidiary Glovo in 2022 and 2023 for evidence of illegal pacts. It said it was concerned that food delivery companies were violating laws that “prohibit cartels and restrictive business practices,” but did not name the potential culprits.

Both Delivery Hero and Glovo confirmed they were raided at the time. Delivery Hero acquired a majority stake in Glovo in 2022.

The antitrust scrutiny comes at a time when the food delivery industry is facing intense competition and low profit margins.