Aberdeen Standard, Aviva Investors, BMO Global, CCLA, LGIM and M&G, one of the largest investment institutions in the UK, are expected to be offered to the London Stock Exchange on April 4. Deliverooannounced that they will not invest in due to their concerns about employee rights.
The company, which delivered food orders via the smartphone application via courier service, was expected to reach a valuation of approximately 8.8 billion pounds before the announcement of the said investment institutions.
Following the announcement of 6 major investment firms in the UK, Deliveroo announced that the price per share will be between £ 3.90 and £ 4.10. Thus, the company’s total valuation expectation fell from £ 8.8 billion to £ 7.9 billion.
Investors are concerned about the future lawsuits that the company may face due to the fact that employees are shown as self-employed, minimum wage, annual paid vacation and retirement rights, and the heavy compensation that may arise as a result.
“OUR COMPANY DEMAND ATTENTION FROM INSTITUTIONS IN DIFFERENT LOCATIONS OF THE WORLD”
In the statement made by Deliveroo, it was stated that “Our company receives considerable demand from institutions around the world”.
Founded in the capital London in 2013, the company works with approximately 115 thousand restaurants and 30 thousand bicycle courier in France, Spain and the Netherlands, especially in England.
Investors are concerned that the legal process regarding workers’ rights with drivers of Uber, which previously provided taxi services via smartphone application, will set a precedent for Deliveroo.
The British Supreme Court had ruled on February 19, 2021 that Uber should show all its drivers as employees of the company. In the decision, it was stated that Uber drivers cannot be accepted as self-employed, they should be defined as employees of the company.
On March 17, 2021, Uber announced that 70,000 drivers in the UK would be given rights such as a minimum wage guarantee and paid annual leave.