Investors are no longer willing to watch losses and rising costs

Delivery Hero SE’s stock dropped over a third of its value, or around 5.1 billion euros ($5.9 billion) in a record decline on Thursday, as experts lamented elusive gains.

Peers Just Eat Takeaway.com NV and Delivery Plc. also dropped, adding to the year’s steep deficits.

Rapid decline in food delivery stocks

In the face of rising bond yields and increased interest rates, investors are reconsidering their affection for tech equities. But a larger change is emerging, with food delivery companies’ stock prices plummeting disproportionately to their tech peers.

During the lockdown, when restaurants were closed and people were compelled to buy food online, food delivery companies saw an increase in orders. Since the reopening of Western European economies, the fall has been rapid.

Since the outbreak, the stock prices of all three European food delivery firms have more than halved. It also raises the prospect of more rivalry from fast-food delivery firms such as Getir, Gorillas, Zapp, and Gopuff.