DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Technology

'A Side Of Shares': Deliveroo To Offer £50m Of Stock To Customers

By Dayeeta Das
Share this article
'A Side Of Shares': Deliveroo To Offer £50m Of Stock To Customers

Deliveroo said shares worth £50 million ($69 million) would be earmarked for customers in its upcoming flotation, with the offer branded 'Great food with a side of shares'.

The Amazon-backed food delivery firm has announced plans to list in London, with a potential value of $7 billion making it the biggest market debut in Britain for three years.

The Next Stage

Founder and chief executive Will Shu said Deliveroo's customers had supported the firm's growth and he wanted to give them the chance to share in the next stage of its journey.

"Far too often, normal people are locked out of IPOs, and the only participants are the institutional investors," he said on Sunday.

"I wanted to give as many customers as possible the chance to become shareholders, which is why we're making £50 million of shares available to them, alongside our restaurant partners and riders."

ADVERTISEMENT

Deliveroo said any customer who had placed an order would be able to register their interest via the company's app from Monday.

Each would be able to apply for up to £1,000 of shares, it said, adding that loyal customers would be prioritised if the offer were oversubscribed.

Demand For Delivery Services

Russ Mould, investment director at online platform AJ Bell, said a year of lockdowns had fuelled demand for companies like Deliveroo and there was an expectation that habits formed during the pandemic would remain long into the recovery.

"All this suggests there is likely to be a bun fight for the £50 million worth of customer shares in Deliveroo at the IPO offer," he said.

ADVERTISEMENT

Deliveroo said it would also recognise the role played by its delivery riders in its success with a £16 million reward programme to be launched on the day of listing.

Cash rewards from £10,000 to £200 will be available to riders in Deliveroo's 21 markets based on the number of orders delivered. It said the average per eligible rider would be £440.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.