LONDON — Shares in food delivery platform Just Eat briefly jumped on Friday morning after it was ruled that ride-hailing app Uber will no longer be allowed to operate in London, its biggest UK market.
Shares climbed aggressively just after 11.00 a.m. BST (6.00 a.m. ET), jumping roughly 20 pence per share to a high of £6.9350.
The rationale behind the jump seems to be that traders believed that the ruling from Transport for London — which said Uber was not “fit and proper” to hold a licence — will have an impact on Uber’s food delivery business Uber Eats, which is a direct competitor to Just Eat.
This is not the case, with the ruling impacting only Uber’s core ridesharing business. Traders seem to have realised their mistake in fairly short order, with their shares in Just Eat falling off its highs fairly quickly.
Here is the chart showing the jump and subsequent pull back:
TfL said Uber was not “fit and proper” to hold a licence, and said the firm’s approach to reporting serious driver offences, approach to driver medical and safety checks, and use of its secret “Greyball” software to dodge transport officials all contributed to its decision.