Food-delivery startup Deliveroo’s London Stock Exchange debut is off to a bad start, with shares falling by almost a third in the early hours of trading on the back of the company being pressured by top investors and trade unions over workers’ rights.
The London-based tech unicorn had priced the 384,615,384 shares on offer at £3.90 at the opening bell. However, the share price dropped to £2.73 within the first hour of trading. This meant that roughly £1.5bn of its value had fallen to the wayside.
The news comes as Deliveroo is facing increased pressure from trade unions, employees and investors to overhaul its gig economy-based model. Instead of categorising couriers as self-employed contractors, more market stakeholders are encouraging the startup to categorise its riders as workers with all the benefits that would entail.
Last week, several top investors said they’d refrain from investing in the initial public offering (IPO) because of the gig economy model.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData