EU rules crush food delivery companies.

The crash of the food delivery industry as a result of the new rules imposed by the European Commission.

FREMONT, CA:The food delivery industry was crushed once more on Monday, December 6, 2021, amid expectations that the European Commission will impose new rules that will require workers to be treated as employees rather than contractors. Deliveroo UK:ROO fell 8 percent while Delivery Hero XE:DHER and Just Eat Takeaway.com NL:TKWY GRUB both dropped 6 percent.

According to Citi analysts, the rule proposal, which the Financial Times reported could be announced as early as Wednesday, 8 December, would have the greatest impact on Deliveroo. They estimated that Deliveroo's gross profit would be reduced to between 12 percent and 18 percent. Analysts stated that Delivery Hero's limited European exposure implied a profit hit of 2 percent to 3 percent, and the majority of Just Takeaway's European riders are already employed. The broader Stoxx Europe 600 XX:SXXP index was trading higher on Monday, 6 December, as rising oil prices boosted energy companies such as TotalEnergies FR:TTE and Royal Dutch Shell UK:RDSB.

To be precise, the market isn't collapsing in the sense that the term crashing is equal to quantifiable market conditions. Stock and other asset declines are sometimes described in exaggerated terms that provide little real substance about the significance of the move. A crash has no exact definition, but it is usually described in terms of time, suddenness, and/or severity. On Saturday, 11 December, Jay Hatfield, chief investment officer at Infrastructure Capital Management, told MarketWatch that he might define a crash as a drop in an asset of at least 50 percent, which could happen quickly or over a year, but he acknowledged that the term is sometimes used too loosely to describe routine downturns. For example, he saw bitcoin's BTCUSD, -0.62 percent move as a crash.