Just Eat shares tumble on credit card charges proposal

A British proposal to get rid of charges on purchases made with credit or debit cards is threatening Just Eat Plc’s second-biggest source of revenue, sending the shares tumbling from a record.

Shares of the food-delivery service slumped as much as 9.4 per cent on Wednesday, the most since the day after the Brexit vote. The UK Treasury said the new rule will come into effect in January, calling such fees charged by businesses including takeaway apps as “rip-off card charges.”

Just Eat, which competes with Uber Eats and Deliveroo, got about 13 percent of last year’s sales from payment card and administration fees, a March filing showed, the biggest contribution after commission revenues.

Just Eat shares were down 5.3 per cent in afternoon trading in London. The decline wiped off about a third of its 2017 gains, putting it on course for the smallest annual advance since its 2014 listing. The volume of shares traded on Wednesday was more than twice the daily three-month average.

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- Bloomberg