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Technology

Delivery Hero Drops Out Of Germany's Blue Chip Index

Food delivery firm Delivery Hero is set to drop out of Germany's blue chip stock index DAX, replaced by consumer goods maker Beiersdorf from June 20, stock market operator Deutsche Boerse has said.

Just over a year after being relegated from the DAX, the Nivea cream maker and Hansaplast wound care Beiersdorf is set to replace Delivery Hero on the index, Deutsche Boerse said.

"For years, Delivery Hero has been writing losses and basically doesn't operate any business or service in Germany it self," Oldenburger said.

However, there had been long discussions about the food delivery company's DAX suitability, said CMC Markets analyst Konstantin Oldenburger.

Read More: Delivery Hero Expecting 2022 Revenue Growth As Investments Pay Off

Gorillas Streamlines Operation

Recently, Gorillas, in which Delivery Hero is an investor, said that it planned to reduce its workforce by 300, cutting its administrative staff in half, as it seeks to focus on boosting profitability.

The startup, founded in 2020 in Berlin, has tripled the size of its business since October when it raised €860 million, but it has not been profitable amid an uncertain economic outlook.

"Risk has become irritating for investors, and nobody wants uncertainty right now. That makes it pretty hard to raise money right now," Sumer told Reuters in an interview. "When we go public, we want to do it as a profitable company."

He added that Gorillas aims to focus on Germany, France, Britain, the Netherlands and the United States, which make up 90% of the startup's business, and it was reviewing options for its smaller operations in Italy, Spain, Denmark and Belgium.

News by Reuters, edited by ESM. For more Technology news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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