1851

Amazon-backed Deliveroo delivered a disappointing performance on Wednesday, shortly after its highly-anticipated IPO debut on the London Stock Exchange.&nbsp;Shares in the British delivery start-up, which were originally priced at £3.90, sank 30% to a low of £2.71. Although later recovering slightly to £2.89, the stock’s fall wiped an estimated £2 billion off the company’s valuation.Deliveroo’s IPO was one of the largest seen in the U.K. in years, although the company, like the <a href="https://1851franchise.com/doordashs-ipo-points-to-trouble-ahead-for-third-party-delivery-apps-2714281#editorials">other third party delivery apps to go public</a>, has yet to turn a profit.Founded by Connecticut native William Shu, the third-party delivery app&nbsp;made gains during the pandemic, when Brits increasingly relied on the start-up known for its superior restaurant options and swift delivery.Deliveroo’s poor performance on Wednesday raised concerns over whether the <a href="https://1851franchise.com/covid-19-vaccine-what-it-means-for-the-pizza-and-fast-food-boom-2714504">pandemic boom in food delivery</a> may be coming to an end as restaurants begin opening their doors again.“Has the shoe fallen out of the IPO market for “Stay at Home” COVID stocks?” said PMH Capital’s Paul Hill in a <a href="https://twitter.com/CapitalPmh/status/1377263423151603725?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet&utm_source=1851franchise.com&utm_medium=article&utm_campaign=deliveroo-ipo-ends-in-nose-dive-2715383" target="_blank" rel="nofollow">tweet</a> about the Deliveroo debacle.&nbsp;In February, U.S. peer Doordash’s stock <a href="https://www.cnbc.com/2021/02/25/doordash-dash-q4-2020-earnings.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=deliveroo-ipo-ends-in-nose-dive-2715383" target="_blank" rel="nofollow">fell as much as 40% </a>after the company published its first earnings report since its initial public offering.&nbsp;Other investors cited concerns about the gig economy in which Deliveroo operates, particularly its treatment of the estimated 50,000 cyclists and drivers who haul Deliveroo’s blue food boxes through busy city streets in the nearly 800 towns and cities the company serves.According to a<a href="https://www.bloomberg.com/news/articles/2021-03-25/deliveroo-hit-by-investor-rider-revolt-ahead-of-london-ipo?utm_source=1851franchise.com&utm_medium=article&utm_campaign=deliveroo-ipo-ends-in-nose-dive-2715383" target="_blank" rel="nofollow"> recent report </a>from Bloomberg, six major U.K. investors announced prior to the IPO that they would not buy shares in Deliveroo because of the way the company treats its workers. Deliveroo’s drivers and couriers are self-employed and therefore not eligible to receive minimum wage or sick pay.&nbsp;A <a href="https://www.washingtonpost.com/world/europe/britain-uber-supreme-court-workers/2021/02/19/5f9a0b24-729f-11eb-8651-6d3091eac63f_story.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=deliveroo-ipo-ends-in-nose-dive-2715383" target="_blank" rel="nofollow">recent ruling</a> by the U.K.’s Supreme Court that Uber drivers are workers who are entitled to minimum wage, among other benefits, was yet another concern for many investors, who see a similar trajectory for gig workers at companies like Deliveroo.Meanwhile, retail investors will have to wait to trade Deliveroo shares until conditional dealings end on April 7. And because Deliveroo’s IPO was conducted under conditional trading terms, the company can still cancel the IPO and void any trades of its stock before April 7.

Deliveroo IPO Ends in Nose Dive

1851 Franchise

Deliveroo shares fell 30% shortly after its London Stock Exchange debut amid concerns about its future profitability.

deliveroo-ipo-ends-in-nose-dive

United Water Restoration Group

image of united water restoration group growing and becoming stronger with cars and fleets

The Future of the Restoration Industry: How United Water Restoration Group Is Positioning Itself for Growth

united-water-restoration-group-franchise-restoration-industry

Caring Transitions

image of a man carrying boxes for a disabled person for caring transitions in a small town

The Need for Caring Transitions Services in Small and Rural Towns

caring-transitions-rural-small-town-services

Strategic Franchising

How To Build a Strong Franchise Brand Presence in Your Local Community

how-to-build-a-strong-franchise-brand-presence-in-your-local-community

Layne's Chicken Fingers

Photo with Layne's Chicken Fingers logo, Eric Reed, Kordell Snyder, and Justin Olivieri

Layne’s Chicken Fingers Supports Franchisees With Top-Notch Development Team

laynes-franchise-development-support

Children's Lighthouse

image of latisha king from children's lighthouse Franchise coaching initiative podcast image

Children’s Lighthouse Operations Support Leader Latisha King To Share How the Brand Supports Franchisees With Dedicated Business Coaches

childrens-lighthouse-franchisee-support-business-coach-program

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Extraordinary Brands Acquires CycleBar and Rumble, Shaking Up Boutique Fitness Franchising

extraordinary-brands-cyclebar-rumble-boxing-acquisition

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Planet Fitness Franchisees Donate $100K to Support Texas Flood Relief - 1851 Franchise

Planet Fitness Franchisees Donate $100K To Support Texas Flood Relief

planet-fitness-texas-flood-relief

McDonald’s Is the Latest Franchise To Bet Big on Beverages with 500-Store Premium Drink Test

mcdonalds-is-the-latest-franchise-to-bet-big-on-beverages-with-500-store-premium-drink-test

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Navy Veteran and Professional Artist Couple Open Caring Transitions in Texas

Navy Veteran and Professional Artist Couple Set Out to Build a Purpose-Driven Business With Caring Transitions in Texas

navy-veteran-and-professional-artist-couple-set-out-to-build-a-purpose-driven-business-with-caring-transitions-in-texas

Deliveroo IPO Ends in Nose Dive

MORE STORIES LIKE THIS