Takeaway food delivery services are becoming more and more popular, and many traders are investing in companies such as Deliveroo because of this. This guide will teach you how to buy Deliveroo shares step by step. In addition, we’ll give you a short list of the pros and cons of investing in this delivery company, share a few tips on how to do it securely, and recommend a couple of reliable online investment platforms.
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What is Deliveroo?
Deliveroo (LON: ROO) is a British online food delivery company that connects users to a range of restaurants and food establishments in the UK and worldwide. Its platform is available as an iOS and Android app, as well as a website, and it allows users to browse menus, place orders, and have food delivered to a specified location.
Deliveroo has partnered with over 158,000 restaurants and 18,000 grocery stores across the globe, including both popular fast food chains such as McDonald’s (NYSE: MCD) and smaller establishments. In addition, the company has over 180,000 independent delivery riders collecting and delivering orders every day.
Recently, the company expanded its services, introducing subscription plans that allow users to save money on deliveries and enjoy other perks and benefits. However, these features are not yet available in all parts of the world.
How to buy Deliveroo shares: step-by-step
Buying shares in Deliveroo online is straightforward. All it takes is a few steps:
- Step 1: Choose a broker and register an account (we recommend eToro and Interactive Brokers);
- Step 2: Fund your account;
- Step 3: Research the company;
- Step 4: Decide how much you want to invest;
- Step 5: Place your order and buy Deliveroo shares;
- Step 6: Monitor your investment.
Step 1: Choose a broker
Before investing in Deliveroo shares, you have to register an account at a reliable investment platform. There are many such online platforms, but the ideal one will depend on your financial goals and preferred investment strategies. Some platforms are better suited for day trading, for example, while others accommodate traders interested in passive investing.
To buy shares in Deliveroo securely, consider these two brokers:
1. eToro
If you are not sure what platform to choose, it is always better to go for a flexible one, such as eToro, as it offers a wider range of investment options and trading tools to help you make a more informed decision. The eToro platform features:
- Commission-free stock trading;
- Over 2,000 stocks from 17 different exchanges;
- Fractional shares;
- Ready-made investment portfolios;
- Social trading.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
2. Interactive Brokers (IBKR)
Interactive Brokers is yet another reliable investment platform. It features:
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares;
- No minimum deposits;
- Additional income on fully paid shares;
- Lowest financing rates for margin accounts.
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IBKR pays up to 4.58% interest on cash balances of $10k or more
When choosing between the two platforms, consider factors such as:
- Fees: Lower fees are always welcome. eToro, for example, offers commission-free stock and exchange-traded fund (ETF) trading. Remember, though, that other qualities of the platform are just as important, such as the user interface, deposit limits, etc.;
- Security: Investing is, by default, risky, so security should be one of your top priorities. When choosing a platform, always make sure it is regulated by regulatory bodies such as the Financial Conduct Authority (FCA);
- The availability of trading tools: As you gain more experience and start looking for more complex investment options, you’ll likely look for additional trading tools to help you create more advanced trading strategies. If you’re new, however, you should stick with accessible and beginner-friendly stock trading platforms;
- Market data accessibility: Research is crucial when coming up with a good investment strategy, so market data availability is a must. If the platform does not make data accessible, avoid it;
- Fractional stock trading: Fractional trading lets investors purchase less than a whole number of shares. That is a terrific way to diversify your portfolio and develop a dollar-cost-averaging strategy.
Step 2: Fund your account
Once you’ve chosen a broker and made an account, you’ll be ready to transfer your funds to the platform. The available payment methods will vary depending on the broker. Usually, you can link your broker and bank accounts directly using a debit, credit, or prepaid card.
Sometimes, you’ll have to use third-party financial services, especially if you have to rely on a prepaid card or a voucher, as they are not linked to a specific bank account and are thus not entirely secure.
Step 3: Research the company
Before investing in Deliveroo shares, you will have to gather as much information as possible regarding its current stock prices, recent financial history, and so on.
Most importantly, you ought to look at the company’s annual and quarterly reports. If you can, pay special attention to key points like revenue sources, debt levels, and company expenses, all of which can affect stock prices. If you cannot find any reliable information, it would be best to hire financial assistance or look for other investment options.
Further, try evaluating the company’s management team. Look into its CEO and executives, and get a good overview of their accomplishments and current financial activities. If the company is not led by a capable team, it might not be successful in the long run, and your investments might prove less fruitful than expected.
Step 4: Decide how much you want to invest
Before committing to any shares, you must decide how much you want to invest. The exact numbers will, of course, depend on current stock prices and your available capital.
Remember
Step 5: Place your order and buy Deliveroo shares
Once you’ve decided on the exact amount you’d like to invest, you’ll be ready to place your order. If you’ve decided on eToro, simply:
- Log into your eToro account;
- Use the search bar to enter the Deliveroo ticker symbol (ROO.L);
- Specify the desired amount of shares you wish to buy;
- Execute the trade.
Note
Step 6: Monitor your investment
Investing in stocks is a highly active trading approach. It demands engagement and patience on the investor’s part if they wish to achieve their financial goals and make a profit.
To make well-informed investment decisions, it is crucial that you keep monitoring the market and reevaluating your strategy. If you already own Deliveroo shares, be sure you follow the company’s performance, press releases, social media responses, user reviews, etc.
Should I buy Deliveroo shares?
Buying company shares is risky, so various factors will determine whether you should buy Deliveroo shares, including your personal preference, available capital, risk tolerance, and the state of the market.
Keep in mind that investing in just one company is a bad investment strategy. To protect yourself from potentially diverse stock price movements, it is always better to spread your investments across different assets, ideally in different classes.
Further, be sure to evaluate potential risks that Deliveroo might face down the line. To do that, ask yourself questions such as the following:
- Are there any regulatory and governance changes in the company?
- Are there any labor issues, and what do workers have to say about the work environment?
- What do market analysts say about the company’s growth potential?
Also, before investing, you should conduct a fundamental and technical analysis to understand what to expect from price fluctuations.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Common mistakes to avoid when investing
No matter how careful you are, you are very likely to make a mistake down the line the more you get involved with the trading market. However, by observing other investors’ mistakes, you can reduce the chances of loss greatly. Most inexperienced investors make mistakes such as:
- Lack of research: Many investors fail to do enough research before moving on with their investments. Research should encompass both the individual company you are investing in and the larger industry of which it is a part;
- Letting emotions dictate how they invest: While your gut feeling can sometimes be correct, it usually is not, so relying on it is not a sound investment strategy;
- Investing before you are ready: The stock market is volatile, and stock prices go up and down all the time. That means losses are more than likely. If you have debts or a mortgage, for example, investing is not a good idea;
- Buying penny stocks: Penny stocks go for as little as little as £1 or lower. Such prices might sound tempting, but just because you can buy hundreds of these stocks, it does not mean you will make any significant profits.
How to sell Deliveroo shares?
Buying and selling go hand-in-hand, so selling your Deliveroo shares might become a good option at some point.
When selling with eToro, for example, all you have to do is go to the broker’s website, head over to the page with your Deliveroo shares, specify the amount you’d like to sell, and click on the Sell button.
Pros and cons of buying Deliveroo shares
Pros
- Catering and food delivery services are becoming more and more popular, which might present good investment opportunities;
- Deliveroo has a good market presence in the industry, with tens of thousands of partners worldwide;
- The company has been partaking in some humanitarian initiatives lately, which might influence public sentiment.
Cons
- The company had a rough start when it was first listed on the London Stock Exchange, so its track record is not spotless;
- The company does not pay dividends;
- There have been complaints in regard to rider working conditions and lack of safety instructions.
Conclusion
Deliveroo had a bit of a rough start when it was first listed on the London Stock Exchange, but it’s been growing steadily since then as a part of the general food delivery service boom. If the industry continues growing, investing in Deliveroo shares might be a lucrative choice.
However, when investing in shares, it is important that you do a lot of research and deal only with funds that you can afford to lose. Take all potential risks into account, keep a careful eye on Deliveroo in the news and media, and come up with a good investment plan.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about Deliveroo
What is Deliveroo?
Deliveroo is a British online food delivery company that connects users to a range of restaurants and food establishments in the UK through a mobile app and website. It lets users browse menus, place orders, and have food delivered to specified locations.
How to invest in Deliveroo?
The best way to invest in Deliveroo is to buy its shares on a trusted online investment platform such as eToro.
How to buy shares in Deliveroo?
To buy shares in Deliveroo, use a third-party investment platform, such as eToro.
Should I buy shares in Deliveroo?
Whether you should buy shares in Deliveroo depends on your risk tolerance, trading experience, and financial goals. Remember that investing in a single stock is rather risky, so consider diversifying your portfolio if you choose to invest.
Where to buy Deliveroo shares?
The best way to buy Deliveroo shares is through a reputable investment platform such as eToro.
How to buy Deliveroo shares UK?
You can buy Deliveroo shares in the UK through an investment platform such as eToro.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
