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Deliveroo Shares Slump Over 20% on Debut in London

Published 31/03/2021, 08:06
Updated 31/03/2021, 08:11
© Reuters.

By Geoffrey Smith

Investing.com -- Shares in Deliveroo (LON:ROO) slumped on their debut on the London Stock Exchange, as concerns about governance and profitability overshadowed the biggest IPO of the year so far in Europe.

By 5:05 AM ET (0905 GMT), Deliveroo shares were quoted at 305 pence, some 22% below their IPO price. The shares were priced at the bottom of their marketing range, at 390p, after a number of high-profile U.K. institutions chose not to subscribe.

A recent Supreme Court decision forcing ride-hailing company Uber (NYSE:UBER) to treat its gig-economy drivers as workers has cast doubt over Deliveroo's own path to profitability, given that it, too, depends on a legion of low-paid contract riders and drivers.

Latest comments

nice
On a customer level, not a very good company to interact with. So glad of Deliverflop.
If they had left it any later it would have flopped completely. With lockdown ending the future for home delivery of meals must surely be on the decline. If Deliveroo couldn't make a profit during the pandemic what hope do they have in the future. I reckon the shares will be 50% down by the end of May.
Excellent news! Maybe we will see more companies who treat their workers badly getting valued properly. Also, if they couldnt make a profit when their customers were forced to be at home by government orders - how will they make a profit after people go out again. Watch Cazoo’s launch in the states for another profitless IPO
Terrible timing for an ipo
Don't think they could wait any longer. their revenue will get hit hard after lockdown, they had to take the risk and cash in on their inflated results.
Everyone got hammered down by the corrections. Knowing that current offered too will go a lot lower the following day,no need to buy the hype. A lot of people learn their lessons from the OTC shares with SEC suspensions and other shares got delisted and liquidated. Is it even safe to place your money in the markets ?
what are the margins they are going to work with it's very much a non profitable business if the IPO was in 2020 just at the beginning of the pandemic this would have done well but people are waiting to get out and be in restaurants no more high demands for ordering food at home
Going out to eat will be the story of 2021+ people have had enough of home delivery food!
Wait until the restrictions are really lifted, contagion rate goes up and we get into another lockdown. It is not a question if it will happen or not, but if it will be sooner than later...
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