Just Eat fears see Footsie end the day flat

The FTSE 100 ended the day flat, having been dragged down by Just Eat shares on competition fears from Deliveroo.

The index closed lower by 0.1 point at 7,703.71 points after a near 5% or 40p drop in Just Eat’s stock price to 810p, making it the worst blue chip performer.

It follows an announcement by rival Deliveroo that restaurants will now have the choice of fulfilling orders using their own drivers.

Eateries previously had to use Deliveroo’s fleet.

The move will pit Deliveroo directly against Just Eat, which only offers a platform for restaurants to sell and deliver food with their own drivers.

David Madden, a market analyst at CMC Markets, said: “Just Eat shares are in the red after Deliveroo confirmed ambitious expansion plans yesterday.

“Deliveroo hopes to sign up 5,000 new eateries, and it will offer assistance to restaurants that have their own delivery staff, but need additional drivers during busy periods.

“The aggressive expansion plans have eroded investor confidence in Just Eat, as dealers feel it will dent profit.”

Sterling staged a mild recovery against the US dollar, to trade about 0.05% higher at 1.337.

The UK currency originally slumped in the wake of data showing inflation holding steady at 2.4% in May.

But investors later turned attention to the US Federal Reserve meeting, which is expected to deliver another interest rate hike.

Against the euro, the pound was down 0.3% at 1.135.