Deliveroo has seen its shares fall again after it was reported that millions of people working for the app could be reclassified as employees after an EU labour rights plan.
The food delivery giant saw its share price fall as much as 5.7 per cent on Friday to 248 pence.
The EU commission is putting pressure on countries to reclassify 4.1 million gig economy riders as company employees.
Ride-hailing firms and food delivery companies are set to be hit hardest by the impending laws.
The proposal will be published December 8 and will be “grist for the mill of those wanting the gig economy to be eradicated,” Jefferies analyst Giles Thorne and colleagues wrote in a note to clients on Friday.
The news comes after Deliveroo’s founder Will Shu was forced to sell £47 million in shares to settle an outstanding tax liability bill.
Deliveroo has navigated a tricky 12 months with its shambolic London IPO, seeing its highly anticipated floatation causing the company’s valuation to drop by 25 per cent in a single day.
The news of Shu and Miller’s shedding of shares has prompted the share price to tumble by 4.79 per cent to stand at 276p per share.