Rewards for drivers: Deliveroo plans billion-euro IPO

Sunday, March 7th, 2021

Rewards for drivers
Deliveroo plans billion-euro IPO

Food delivery services such as Deliveroo do not have a good reputation – for example because of the poor pay their drivers pay. With the IPO planned for Monday, the company wants to grow. His most successful employees should also receive a gift of money.

The online delivery service Deliveroo wants its drivers to share in the proceeds from the IPO. A total of 16 million pounds (18.6 million euros) are planned for this, as reported by the BBC and Sky News broadcasters. Successful distributors who have worked for the company for at least a year are said to receive rewards of between £ 200 and £ 10,000.

In addition to institutional investors, customers should also be able to purchase shares worth up to £ 1,000 from this Monday. A total of £ 50 million is earmarked for them. "Far too often normal people are excluded from IPOs, and the only participants are the institutional investors," said Deliveroo boss Will Shu. "I wanted to give as many customers as possible the chance to become shareholders."

Still without profits

Like other delivery services, Deliveroo has been criticized for badly paid drivers. The company had announced that it would go public in London. The company, which was founded in 2013, is valued at at least 7 billion pounds.

Deliveroo, which withdrew from Germany in the summer of 2019, has not yet made a profit. For 2019, the company reported a significant jump in sales of 62 percent to £ 771.7 million. The pre-tax loss rose at the same time from 243.3 million to 317.7 million pounds. However, delivery services are considered the winners of the corona crisis with lockdowns and restaurant closings. In Germany, the food delivery service Delivery Hero made it into the leading index.