Investors shy away from Deliveroo IPO amid wages report
The Independent Workers’ Union of Great Britain (IWGB) in conjunction with The Bureau, analysed and checked the data from more than 300 of Deliveroo’s 50,000 riders across the UK over the past to obtain the results
A number of potential investors are reportedly shying away from investing in Deliveroo shares ahead of its stock exchange debut, after a surveyed report claims that a third of its riders were paid less than minimum wage.
It comes as the Independent Workers’ Union of Great Britain (IWGB) in conjunction with The Bureau, analysed and checked the data from more than 300 of Deliveroo’s 50,000 riders across the UK over the past to obtain the results.
The survey found that one in three drivers made on average less than £8.72 which is the national minimum wage for those over 25, for their overall time per session in the app.
On one account, The Bureau found that a cyclist in Yorkshire who logged 180 hours, was paid the equivalent of £2 per hour which was “perfectly legal” under the company’s self employed contracts.
As such, investment firms Aberdeen Standard, Aviva Investors, BMO Global, CCLA, LGIM and M&G are all thought to have decided against partaking in the scheduled listing.
David Cumming, chief investment officer for equities and head of UK equities at Aviva Investors, told BBC Sounds: “We won’t be investing in Deliveroo for a number of reasons, there is a combination of investment risks and social issues that affect our judgement on whether to buy the shares or not.”
Despite the news, Deliveroo said it has still experienced “significant demand” for its stock.
A company spokesman told the BBC: “Demand has continued to build since then, including via our community offer, and we look forward to welcoming new shareholders next week alongside our currently highly respected existing investors.”
Catering Today has contacted Deliveroo for comment.
