Deliveroo has officially announced its intention to go public today as it revealed plans to pay its riders bonuses of up to £10,000.
The delivery giant has finally revealed plans to launch an initial public offering (IPO) today and is understood to be aiming for a valuation of over £7 billion, the Financial Times reported.
Following months of intense speculation into what will be one of the biggest public listings of 2021, Deliveroo filed to list on the London Stock Exchange (LSE) under a “dual-class” share structure which will enable its founder Will Shu to hold on to more voting rights.
When it goes public, which could now be as soon as April, Deliveroo said it would set aside a £16 million fund to award its busiest drivers bonuses across its 12 markets.
Those who have worked for the firm for at least a year will receive a bonus of between £10,000 and £200 depending on how many orders they’ve delivered.
Deliveroo also said it would set aside £50 million in shares to enable its customers to invest in the company.
“Far too often normal people are locked out of initial public offerings and the only participants are the institutional investors,” Deliveroo founder and chief executive Will Shu said.
“I wanted to give as many customers as possible the chance to become shareholders.”
The filing also revealed the delivery giant’s most recent financial figures, reporting a net revenue rise of 54 per cent in 2020 to £1.2 billion, including a 65 per cent rise to £599 million in the UK and Ireland.
Despite around 6 million people ordering from 115,000 restaurants and stores every month last year, Deliveroo failed to turn a profit posting losses of £223.7 million.
It said this was due to investing heavily in expansion during the pandemic and warned investors that it “remains focused on investing in driving growth in a nascent online food market”.