Just Eat Takeaway.com NV (LON:JET) and other takeaway delivery firms could experience a “short term demand uptick” as coronavirus caused people to spend more time at home, according to analysts at UBS.
“Early data from most markets impacted by [coronavirus] suggests an uptick in terms of meal delivery demand”, the Swiss bank said in a note on Thursday, although they want on to warn that over the longer term the companies could find themselves under pressure from supply chain disruption as the outbreak progressed.
“What happened in China illustrates some of the risks with supply disruption and safety concerns impacting volumes… A prolonged disruption could have a more lasting impact on the restaurant supply, particularly for outlets mostly dependent on dining-in”, UBS said.
Analysts also warned that a prolonged outbreak could also result in a shortage of delivery drivers, although this was less likely to be an issue in markets at the earlier stages of an outbreak.
Fears over longer-term disruption appeared to be at the forefront of investor’s minds, as JET shares slipped 7.6% to 5,595p in mid-afternoon trading.