Meal delivery Deliveroo is worth less at the IPO in London than the company had originally hoped for. The fact that several investors object to the way the company deals with its deliverers does not seem to do the value of the company any good. The structure of the company, in which different voting classes will apply, also raises questions.
The meal deliverer previously expected to be worth up to 8.8 billion pounds when Wednesday’s walk to the stock market is made. That amount has now been reduced by £ 950 million.
Hundreds of deliverers are expected to retire on Wednesday at the time of the IPO, in protest against the company’s working conditions. According to a British trade union, Deliveroo will make a lot of money with the IPO, but the wages and working conditions of delivery workers have deteriorated.
Deliveroo said earlier that it wanted to pay out about £ 16 million worldwide to delivery companies at the IPO. Deliverers must then work for the company for at least a year and have delivered 2000 orders.
Deliveroo States in its IPO documents that the company’s results would be “negatively affected” if the model of delivery as self-employed persons had to be changed. In the Netherlands, among others, Deliveroo is fighting a legal battle over whether or not to hire delivery workers.