Deliveroo to list on London Stock Exchange and launch fund to help restaurants reopen
Deliveroo has confirmed that after eight years of operations and expansion around the globe, it intends to list on the London Stock Exchange.
In a potential future float, Deliveroo is expected to adopt a time-limited, dual-class share structure, which allows company founders to continue to execute their vision for how the company should grow while still letting others share in that growth. Such structures involve two different classes of shares with differential voting rights and are common in the US and Hong Kong. The structure will be limited to three years, after which the company will move to a traditional single share class structure.
Chief executive Will Shu founded the company in 2013 and was its first rider when it began operating in London's Chelsea.
Post-IPO the group also said it intends to create a £50m fund to help restaurant partners reopen for dine-in services later this year and could include grants towards new outdoor seating areas or maximising indoor dining spaces, or marketing support.
The investment will be pledged over five years and could also be used to offer riders discounted e-vehicles and to support disadvantaged or vulnerable groups in local communities, including working with restaurants and local charities to deliver meals for free. This will also cover delivering free meals to frontline public sector workers.
Deliveroo's growth plans this year include expanding its Editions delivery-only kitchens, its on-demand grocery service and its Plus subscription service; and offering its Signature service to restaurants, enabling customers to order delivery via restaurants' own websites.
Shu said: "Deliveroo was born in London. This is where I founded the company and delivered our first order. London is a great place to live, work, do business and eat. That's why I'm so proud and excited about a potential listing here. At Deliveroo we want to be the definitive food company, bringing consumers the best choice of foods, giving restaurants new opportunities to grow their businesses, and providing riders with great work. We are always focused on developing the best proposition for consumers, restaurants and riders and look forward to bringing our service to new parts of the UK as we continue to grow."
Claudia Arney, chair of Deliveroo, added: "Deliveroo is proud to be a British company, and the selection of London as its home for any future listing reflects Deliveroo's continued commitment to the UK. London is not just where Deliveroo was born, it is one of the leading capital markets in the world, with an incredible technology ecosystem, sophisticated investment community and a skilled talent pool. The time-limited dual-class structure would provide Will and his team with the certainty needed to execute against their ambitious growth plan to become the definitive online food company."
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