Deliveroo to provide US$69m of inventory to customers, establish US$22m fund for riders
07 March, 2021
Deliveroo said shares value £50 million (US$69 million) would be earmarked for customers found in its upcoming flotation, with the give branded "Great foodstuff with a part of shares".
The Amazon-backed food delivery firm announced plans on Thursday (Mar 4) to list in London, with a potential value of US$7 billion making it the biggest industry debut in Britain for three years.
Founder and leader Might Shu said Deliveroo's customers had supported the firm's expansion and he wanted to give them the opportunity to share in the next stage of its trip.
"Far too often, normal persons are locked out of IPOs, and the simply participants are the institutional investors," he said on Sunday.
"I wanted to provide as many buyers as possible the chance to become shareholders, which explains why we're making £50 million of shares open to them, alongside our cafe partners and riders."
Deliveroo said any client who had positioned an order can register their fascination via the company's app from Monday.
Each can make an application for up to £1,000 of shares, it said, adding that loyal buyers will be prioritised if the offer were oversubscribed.
Russ Mould, expense director at online program AJ Bell, said a season of lockdowns had fuelled demand for corporations like Deliveroo and there is an expectation that behaviors formed through the pandemic would remain long into the recovery.
"All of this suggests there may very well be a bun battle for the £50 million worth of buyer shares in Deliveroo at the IPO present," he said.
THANK YOU FUND
Deliveroo said it could also recognise the function played by its delivery riders found in its success with a good £16 million (US$22 million) incentive programme to be launched on your day of listing.
The MANY THANKS Fund will be accessible to active riders in Deliveroo's 12 market segments, with riders eligible predicated on the quantity of orders they have delivered.
"You will have payments of S$18,500, S$1,850, S$925, with all riders who've caused Deliveroo for at least twelve months and completed 2,000 orders obtaining S$370," said the business in a news release.
Payments will come to be calculated by reference to the quantity of orders completed, with the largest payments likely to riders who've completed the highest number of orders in each market.
The percentage of riders eligible for each and every award will be regular across all market segments, it added.
The average payment for each and every eligible rider will be S$815, while hundreds of active riders globally are set to get the major payment of S$18,500, said Deliveroo.
The company expects more than one-quarter of Deliveroo's global rider fleet to benefit from the scheme, with an increase of than 36,000 riders globally receiving cash payments.
"Riders are at the center of our organization, and we want to incentive their efforts that contain helped Deliveroo turn into what it really is today," said Shu.
"Over the last 12 months riders have helped us do so much more than just deliver great foodstuff, having supported businesses and enabled vulnerable people or perhaps those self-isolating to remain safe indoors within a global pandemic. We're very happy to be in a position to give you thanks."
Source: www.channelnewsasia.com