Deliveroo plans $22m ‘thank you’ for riders to mark London listing
Amazon-backed British food delivery start-up Deliveroo plans to give £16 million ($22m) of payments to its riders around the world on the day of its £8 billion stock market listing.
The payments will be made from a “thank you” fund and will be sent to all of the company’s active riders in the 12 markets that Deliveroo operates in, including the UAE and Kuwait in the GCC, the company said yesterday.
Deliveroo will make payments of £10,000, £1,000 and £500, or equivalent amounts in local currency, and the number of orders delivered by riders will determine the amount they receive. All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200.
More than 36,000 riders around the world are expected to benefit from the payout. The company did not specify an amount its drivers in the UAE will receive from the fund.
Deliveroo has more than 110,000 delivery riders across its markets.
The £10,000 payment will be made to riders who have completed the highest number of orders in each market and hundreds of active riders are set to receive it.
The average payment for eligible riders will be £440, and more than a quarter of Deliveroo’s global rider fleet are expected to benefit from the initiative, the company said.
“Over the past year riders have helped us do so much more than just deliver great food, having supported businesses and enabled vulnerable people or those self-isolating to stay safe indoors throughout a global pandemic. We’re pleased to be able to say thank you,” said Will Shu, founder and chief executive of Deliveroo.
Last week, the online food delivery platform, founded in London in 2013, announced its intention to list on the London Stock Exchange.
That came after the UK’s plan to overhaul its stock market regulations in a post-Brexit shake-up.
Amazon-backed food delivery start-up Deliveroo will pay some of its riders up to £10,000 ($13,841) as part of its £8 billion stock market listing.
The payments will be made from a £16 million “thank you fund” on the day of the initial public offering, which is poised to be one of the biggest in Europe this year.
More than a quarter of active riders in 12 markets, including the UAE and Kuwait in the GCC, will be eligible, the company said yesterday.
Deliveroo expects more than 36,000 of its 110,000 riders worldwide to benefit. The average payment by the company to a rider will be £440.
Riders will receive payments of £10,000, £1,000 and £500, depending on the number of orders they have delivered.
Payments will be in sterling or in the currencies of the countries the drivers are in.
Those with the highest number of completed orders in each market will receive £10,000. The category has hundreds of riders.
All riders who have been with Deliveroo for at least a year and completed 2,000 orders will receive £200. The percentage of riders in each payment category will be consistent across all markets, the food delivery company said.
“Riders are at the heart of our business and we want to reward [them for] their efforts that have helped Deliveroo become what it is today,” said founder and chief executive Will Shu.
“Over the past year, riders have helped us do so much more than just deliver great food, having supported businesses and enabled vulnerable people or those self-isolating to stay safe indoors throughout a global pandemic. We are pleased to be able to say thank you.”
Deliveroo said last week that it would list on the London Stock Exchange after the UK unveiled plans to overhaul its stock market regulations in a post-Brexit shake-up.
The food delivery company, which was founded in London in 2013, said it would use a dual-class share structure recommended by former European commissioner Jonathan Hill.
Mr Hill called for an update of rules governing free floats, dual-class share structures and special-purpose acquisition companies.
The proposed changes would allow founders to retain control over their companies by giving them the deciding vote on important decisions such as corporate takeovers.
Deliveroo said its “potential future float” would provide Mr Shu “with the stability to take decisions to enable the company to execute its long-term strategic vision”.
The listing will be the one of the biggest IPOs in Britain in three years. Initial reports said it could take place this spring.
The start-up said its commitment to London was underscored by the 47,000 jobs it has supported in the UK since it started operations eight years ago, including 38,300 in the restaurant sector and thousands of self-employed riders.
Demand for services offered by Deliveroo, in which Amazon bought a 16 per cent stake last year, grew amid the pandemic and the company expects the trend to continue this year.
“Online food delivery is a large, growing market with low online penetration, which the company believes presents a significant opportunity,” said Deliveroo yesterday.
It plans to expand its “Editions” delivery-only kitchens and on-demand grocery business, as well as release technology to support restaurants and offer riders more work.
Deliveroo works with more than 140,000 restaurant partners in 800 cities.
Despite its success, the company has come under scrutiny in Britain, France and Spain, after freelance delivery riders complained about working conditions – reflecting wider concerns over their rights in the gig economy.