Summary List Placement
$7 billion food delivery firm Deliveroo has confirmed it will float on the London Stock Exchange in 2021, kicking off a season of anticipated British tech IPOs this year.
Insider previously reported in January that Amazon-backed Deliveroo was targeting a London listing in April, with a valuation as high as $10 billion.
Deliveroo published updated financials for 2020 on Monday. Here are the key numbers:
- A loss for the year of £231.6 million ($309 million), a 30% improvement on 2019.
- Insider understands the firm saw a 54% increase in revenue to £1.2 billion ($1.7 billion).
- Underlying gross profit up 89.5% to £358 million ($495 million), from £189 million ($261 million) the previous year.
Deliveroo offers on-demand delivery of food, groceries, and alcohol via its app, taking a slice of order revenue from its partner restaurants and retailers. It also offers a monthly subscription, which gives regular takeaway customers a lower delivery fee. It does not employ its vast network of more than 100,000 delivery riders, who are instead categorized as independent contractors.
In its announcement, Deliveroo confirmed that it will offer a dual-class share structure that will hand its CEO and cofounder Will Shu more power than other shareholders.
Shu will be entitled to hold a class of shares that gives him 20 votes per share. Other shareholders will be entitled to one vote per share. That structure will remain in place for three years after Deliveroo floats.
Deliveroo now operates in 12 markets, having pulled out Germany and Taiwan. It has more than 115,000 restaurants on its platform. It was backed by Amazon in 2019.
This is a developing story…
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