Neuberger Berman's Strategic Build-Up in Deliveroo: A Bullish Signal for the Food Delivery Sector?

Let’s cut to the chase: Neuberger Berman’s recent moves in Deliveroo PLC are sending a clear message to the market. The firm, which now holds a 2.14% stake in the UK-based food delivery giant through a combination of cash-settled derivatives and swap transactions, is betting big on the sector’s long-term potential [1]. But is this a sign of a broader institutional shift, or just a niche play? Let’s break it down.

Neuberger’s Play: A Calculated Bullish Bet

Neuberger Berman’s position in Deliveroo has been anything but static. As of August 11, 2025, the firm reported 31,971,547 shares, up from 27,286,173 shares just four months earlier [1]. This aggressive accumulation—achieved via swaps at £177.51 per unit—suggests a strategic alignment with Deliveroo’s pivot toward profitability and its rumored final cash offer for shares [5]. While the firm’s Q2 2025 13F filings don’t list Deliveroo as a direct holding, its Takeover Code disclosures reveal a 2.14% stake, underscoring its confidence in the company’s ability to navigate EBITDA pressures and scale its global footprint [4].

This isn’t just Neuberger’s doing. BlackRock, for instance, has increased its stake to 7.97% via derivative instruments, while Norges Bank has trimmed its position to 1.35%, reflecting divergent views on risk [2]. Yet, the fact that major players like Societe Generale and Man Group are hedging with derivatives signals a cautious optimism. The sector isn’t without its challenges—Deliveroo’s EBITDA volatility and competitive pressures from DoorDash and Uber Eats are real—but the institutional playbook here is one of patience and strategic entry points.

Market Sentiment: Delivery Is Here to Stay

The food delivery sector isn’t just surviving; it’s thriving. According to a report by DoorDash, 51% of US consumers now consider delivery an essential part of their lifestyle, with Gen Z and Millennials driving the trend [1]. Repeat orders are up, loyalty programs are sticky (78% of customers favor restaurants with such programs), and daily specials are a key driver of engagement [1].

Globally, the market is on fire. The food delivery sector is projected to grow from $59.62 billion in 2024 to $183 billion by 2033, fueled by AI-driven logistics, ghost kitchens, and expanding middle-class access in emerging markets [3]. Deliveroo’s international expansion into Southeast Asia and Latin America positions it to capitalize on this growth, especially as third-party apps dominate 46% of US ordering habits [1].

The Bottom Line: A Sector Worth the Gamble?

Neuberger Berman’s stake in Deliveroo isn’t just a bet on a single stock—it’s a vote of confidence in the broader food delivery ecosystem. While institutional investors like Norges Bank are hedging their bets, others are doubling down, recognizing that the sector’s pain points (margin pressures, regulatory hurdles) are being offset by innovation and consumer stickiness.

For the average investor, this means one thing: the food delivery sector is no longer a speculative play. It’s a $183-billion-a-year industry with a clear path to profitability. Deliveroo, with its global reach and strategic partnerships, is well-positioned to lead the charge—if it can execute. And with Neuberger Berman and BlackRock in the corner, the odds are looking better by the day.

Source:
[1] Neuberger Berman's Stake in Deliveroo: A Deeper Dive [https://www.ainvest.com/news/neuberger-berman-stake-deliveroo-deeper-dive-2508/]
[2] Deliveroo plc: Institutional Moves Signal Strategic Entry Points Market Caution [https://www.ainvest.com/news/deliveroo-plc-institutional-moves-signal-strategic-entry-points-market-caution-2508/]
[3] Food Delivery Market Size | 2025 Global Analysis Report [https://www.businessresearchinsights.com/market-reports/food-delivery-market-117429]
[4] Neuberger Berman Group LLC's Disclosure of Position in Deliveroo PLC [https://www.ainvest.com/news/neuberger-berman-group-llc-disclosure-position-deliveroo-plc-2508/]
[5] Form 8.3 - Deliveroo PLC – Company Announcement [https://markets.ft.com/data/announce/detail?dockey=600-202508050909PR_NEWS_PRUKDSCL_0091-1]