Deliveroo chooses London to go public with a record valuation that could reach 10 billion dollars, according to the Anglo-Saxon press, compared to about 7 billion of the valuation achieved after the last investment round on 18 January. The British food delivery group announced the turning point, paving the way for what could be the largest IPO on the London market in the last 3 years. Deliveroo will also be one of the most capitalized tech companies in the FTSE 100, although the volatility of the market these days could lead to a drop in the price per share.
Deliveroo’s decision comes the day after the publication of a report commissioned by the London government it hopes a relaxation of the City’s stock exchange rules to meet European competition after Brexit. In announcing the listing, Deliveroo states that intends to offer shares of two different classes. This shareholding structure, which generally gives the founders greater weight in the vote of the shareholders, will be in effect for 3 years, the company specifies, during which it will give CEO Will Shu the stability to carry out long-term plans. This mechanism is not yet in place in London, but one of the main proposals in the report by former European Commissioner for Financial Services Jonathan Hill, which will soon be examined by Finance Minister Rishi Sunak.
The choice of the British market is not entirely a surprise, given that Deliveroo was founded in London in 2013 by Will Shu, who at the time was the first delivery boy in the Chelsea area, a chic neighborhood in the English capital. Today the company works with 115,000 restaurants in 800 cities around the world and has around 100,000 delivery people – the so-called riders – in 12 markets, recognizable by the massive green backpacks they carry while pedaling through the streets, while the hired employees are about 2. mila in the world.
The pandemic has caused digital platforms to explode in Europeof home delivery like Deliveroo, Uber Eats and Glovo, due to restrictions that force people to spend more time at home. But protests from riders have also increased, often underpaid and without any coverage. At the beginning of March, the Milan Public Prosecutor’s Office,after more than a year and a half of investigations on the cyclofactors of 4 delivery companies (JustEat, Glovo-Foodinho, Uber Eats and Deliveroo) he asked to apply the conditions of subordinate work to the 60,000 riders. Companies have 90 days to comply, otherwise they risk fines of 733 million euros.
The listing process is expected to begin in the coming weeks. The fresh resources will serve to diversify Deliveroo’s offering, which was born by delivering ready-made meals, but now also intends deliver food shopping through partnerships with supermarkets.