Another one bites the dust. Just Eat Takeaway.com, a global behemoth in the food delivery space, has announced it’s pulling its secondary listing from the London Stock Exchange. Why? The administrative burden, complexity, and costs have made it untenable. If a giant like Just Eat can’t justify staying listed in London, what hope is there for smaller, growth-focused companies?

This isn’t an isolated incident. 

Over the past few years, we’ve seen a steady stream of companies waving goodbye to the LSE, opting for more nimble and cost-effective alternatives like Amsterdam or New York. These aren’t just corporate reshuffles; they’re warning signs of a deeper issue. The LSE, once the jewel in the crown of global financial markets, is struggling to keep up in a world where speed, efficiency, and innovation are paramount.

I’ve written before about the challenges facing the LSE, but this latest news highlights an urgent need for modernisation. The LSE’s bureaucratic processes are outdated, its compliance requirements overly cumbersome, and its costs prohibitive. For a company like Just Eat, with significant resources at its disposal, these challenges might seem like minor irritations. But for a smaller firm? It’s a potential death knell.

The LSE’s decline isn’t just about cost, though. Liquidity is drying up, trading volumes are falling, and its relevance in a globalised financial landscape is being questioned. Companies are increasingly seeking markets that offer agility and lower barriers to entry. They want to focus on growth, not drown in red tape. 

Can you blame them?

The solution isn’t rocket science. The LSE needs to wake up and realise that it’s not competing against itself in a vacuum. It’s up against the likes of Euronext, Nasdaq, and NYSE – markets that have adapted to the demands of a 21st-century economy. A thorough overhaul is required to:

1. Streamline Compliance – Reduce the administrative burden without compromising on governance or transparency.
2. Lower Costs – Make listing fees and associated expenses competitive for both large enterprises and SMEs.
3. Foster Liquidity – Attract more institutional investors and incentivise higher trading volumes to make the LSE a vibrant marketplace again.
4. Modernise Technology – Leverage technology to simplify processes for issuers and traders, creating a seamless and efficient ecosystem.

We can’t keep losing flagship companies to Amsterdam, New York, or anywhere else. The LSE must act decisively to reclaim its place as a leader in global finance. If it doesn’t, it risks becoming a relic of the past – a museum piece showcasing what used to be the heart of global capital markets.

This isn’t just about numbers on a screen or financial metrics. It’s about maintaining London’s status as a world-class hub for business and innovation. It’s about enabling the next wave of British companies to thrive on home soil rather than looking abroad for growth.

Just Eat’s departure is a blow, but it’s also a wake-up call. 

Let’s hope the LSE is listening.

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