Deliveroo to reward its drivers as it prepares to list

Published On: March 8, 2021Categories: Latest News2.9 min read

Over one quarter of Deliveroo’s global rider fleet are expected to benefit from the new £16million ‘Thank You Fund’, which will launch on the day the company goes public

Food delivery chain Deliveroo has announced that it will be rewarding its drivers with up to £10,000 each as a thank you when it floats on the UK stock market.

It is also offering customers a chance to get in on the market launch with an exclusive opportunity to purchase stocks.

Over one quarter of Deliveroo’s global rider fleet are expected to benefit from the new £16million ‘Thank You Fund’, which will launch on the day the company goes public.

There will be payments of £10,000, £1,000, £500 and £200, or local currency equivalents.

Every rider who has worked with Deliveroo for at least a year and has completed 2,000 orders will receive £200, and the average payment per eligible rider will be £440.

The cash payment will be calculated by reference to the number of orders completed by each eligible rider.

The largest payments being made to those riders who have completed the highest number of orders in each market, with hundreds set to receive the largest payment of £10,000.

Over half of those receiving this sum are in the UK, some of whom began riding with Deliveroo alongside CEO Will Shu soon after the company launched.

Rider Louise Tindell said: I was truly surprised and amazed when I found out about the reward – I really wasn’t expecting it at all. With the money, I plan on buying my sons two new bikes (they love racing), and then the rest will go towards helping my family.

Deliveroo is also allocating a total of £50m of shares to its customers for when the company lists on the UK stock market.

Any customers who have placed an order with Deliveroo will have the chance to buy up to £1,000 of shares each.

From tomorrow, customers will be able to register their interest in applying for shares via the app.

Since the total number of shares is limited, the company cannot guarantee that everyone who applies for shares will be allocated them.

Deliveroo says that if demand is high it will prioritise existing loyal customers, but will make sure a mixture of new and existing customers benefit.

Usually, these initial public offerings (IPOs) are reserved for bankers or private investors with £1million-plus accounts.

But like the Maggie Thatcher’s shares sales of the 1980s, Deliveroo looks to get families into investing.

But financial experts warned shares can be volatile – and investors could lose money, particularly if demand for takeaways fades when the lockdown ends.

It is not yet clear what Deliveroo will be valued at and so what price of each share will be as that will be decided over the next few weeks as Deliveroo gauges how much big investors are willing to pay.

But it is expected that the company, which includes Amazon as one of its earlier investors, will be valued at over £7billion.

Will Shu, founder and CEO of Deliveroo, said: Far too often normal people are locked out of IPOs, and the only participants are the institutional investors.

I wanted to give as many customers as possible the chance to become shareholders, which is why we’re making available £50m of shares available to them, alongside our restaurant partners and riders, he said.

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. 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, Shu said.

Deliveroo works with over 115,000 restaurants and grocery partners, as well as 100,000 riders around the world.

The pandemic has more than doubled demand for takeaway deliveries as lockdowns shut restaurants.

About the Author: Jonathan Adams

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