Deliveroo is showing its rivals a clean pair of heels when it comes to signing up new restaurants according to JP Morgan, which has upgraded the delivery service to overweight.
All three are of the main courier groups – Deliveroo, Just Eat and Uber – are adding new outlets but JPM believes ROO has overtaken Just Eat in London and is catching up fast not only in Birmingham, Manchester and Leeds but also in smaller towns, traditionally a stronghold for JET.
Using their apps to see how many websites are listed, JPM estimates ROO leads in all UK tier 1 and 2 cities for restaurant selection with Uber a distant third.
Risks are now to the upside to the Deliveroo share price suggests the broker, which has raised its price target to 392p from 333p as well as upping its investment rating.
Just Eat is still rated overweight though the target price drops to 8,632p (8,635p).
Shares in Deliveroo rose 1.6% to 30.7.8p, while Just Eat added 1% to 5,121p.