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Deliveroo targets valuation of up to £8.8bn in share listing

Deliveroo- one of the popular online food delivery companies founded by William Shu in 2013, London, England. It operates in around 200+ locations across the United Kingdom, France, Belgium, Spain, Italy, Australia, New Zealand, Singapore, and so on……the new updates say Deliveroo is seeking a valuation of between  £7.6bn and £8.8bn when it lists its shares on the London stock market. 

The reports say it is planning to sell it at a price of between 390p and 460p. Also, it is set to be the biggest UK share listing in more than 7 years. 

On Monday, the company said the total value of orders in January and February had more than doubled from 2020. Also, the founder said- “huge” opportunities ahead. 

As during the covid pandemic, the meals have sored, and after the lockdown measures were first implemented a year ago and restaurants have been forced to shut. 

A huge platter of opportunities

The firm is yet to declare a profit and stated it would use the money raised to invest in the business for better growth and expansion. 

The way it has grown since its commencement is commendable. They also said, have enormous opportunities for expansion. “The way we think about it is simple: there are 21 meal occasions in a week- breakfast, lunch, and dinner seven days a week. Right now less than one of those 21 transactions takes place online. We are working to change that”. 

As per the share report, the firm will send around £1bn of new shares, and current stakeholders use the chance to sell some of their shares. Mr Shu said cash-in part of his 6.2% of shares in the firm, which could be worth.  

They also opened for the new benefits for its prospects. Any prospect who has placed the order, they’ll have a chance to purchase shares in the firm, with what the firm reveals “loyal” customers being given priority. 

The firm is also thinking for its employees and delivery drivers, and planning to reward its busiest riders with new bonuses of up to £10,000. They will also get the benefit of a share in a  £16m fund. 

Rights of Workers  and Competition

But on the other, some drivers working in the gig economy have taken industrial and legal action to refurbish their pay and other needed conditions. Also, the recent updates Demonstrated in one of our articles that the United Kingdom government has confirmed worker status for evolving the sector and letting them say what’s the benefits of any normal employee working in a company.  

And, Uber Eats and Just Eats are rivals of Deliveroo.  Whereas, Just eats has already announced its intention to ramp up operations in the United Kingdom. It has pledged to stop using the gig economy model and will offer all rights as per the act. However, in contrast to Deliveroo, it has so far been far away from any challenges by the court and most likely will continue with its self-employment model. 

Note: This news is based on millions of articles over the internet, Global Business Line does not take any responsibility for the facts and information mentioned in this news article.

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