Food delivery company Deliveroo will hand its busiest riders bonuses of up to US$14,000 when it lists on the London Stock Exchange.
Company Founder and CEO Will Shu also said it will open its initial pubic offering to customers who will be able to buy up to US$1,400 shares, adding if demand for shares was high, Deliveroo would prioritise “existing loyal customers” before adding that it would “make sure a mixture of new and existing customers benefit”.
Riders will receive payments of around US$14,000, US$1,400, US$700 and US$300, if they have worked with Deliveroo for at least 12 months and completed 2,000 orders receiving around US$300.
“I want to thank our riders who have been working with us for years, delivering great food and such a fantastic experience for our customers,” said Shu, who founded Deliveroo in 2013 and was its first rider in Chelsea, West London, UK.
“They have been central to our growth and will continue to be. Some of these riders have been with us since the start and I’m delighted that they can share in the excitement of the company’s next chapter.”
Alex Marshall, president of the IWGB union, which represents gig economy workers in the UK, said the offer to riders was a diversion.
He told the Daily Mail: “If they wanted to thank these key workers, how about they guarantee minimum wage, a fair terminations process and basic workers rights?”
The company, which has never made an annual profit, is tipped to be valued at around US$7 billion when it lists.
The company’s most recent financial results, for the year to 31 December 2019, reported sales rose by 62 per cent to US$1 billion. It operates in the UK, the Netherlands, France, Belgium, Ireland, Spain, Italy, Australia, Singapore, Hong Kong, Kuwait and United Arab Emirates. Pre-tax losses though increased from US$337 million to US$440 million.
“Far too often normal people are locked out of initial public offerings and the only participants are the institutional investors,” Shu said.
“I wanted to give as many customers as possible the chance to become shareholders.”
Deliveroo’s decision to list in London was revealed as a government-commissioned review of the UK’s listing rules recommended a number of measures to make the country a more attractive place for companies to float.
Deliveroo confirmed it will issue dual-class shares, similar to Facebook and Google-owner Alphabet, the BBC reported.