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- Deliveroo selects London as the venue for expected future listing
- Commitment to London underscored by company's role in supporting 47,000 jobs in the UK since launching in 2013
- Plans expected to include a time-limited dual-class share structure closely aligned with the findings of Lord Hill's UK Listing Review to ensure stable execution of management's strategy and enable continued focus on ambitious long-term growth plans
Deliveroo today confirms that it has selected London as the venue for a future listing. CEO Will Shu founded the company in 2013 and was its first rider when it began operating in Chelsea, West London. After eight years of operations and rapid expansion around the globe, choosing London underlines Deliveroo's commitment to making the United Kingdom its long-term home.
2020 was a year of growth for Deliveroo in which it was profitable for over 6 months at the operating level over the course of the year. Given the significant growth potential in the online food delivery sector, the company is considering a potential listing in London to help deliver its ambitious growth plans to become the definitive online food company.
Supporting growth in the UK restaurant sector
Deliveroo's decision to list in London comes as a new report from Capital Economics reveals the significant contribution the company has made to the UK economy and restaurant industry since its launch.
The independent analysis reveals that Deliveroo has supported 46,700 jobs in the UK, including 38,300 in the restaurant sector since its launch in 2013. This is in addition to the thousands of self-employed riders who have worked with the company since launch and demonstrates the value Deliveroo's operations add to the UK economy.
Structured for sustained innovation and growth
As part of its growth priorities for 2021, Deliveroo is focused on ambitious plans, including expanding its Editions delivery-only kitchens; expanding on demand grocery; extending its Plus subscription service, bringing this to new geographies; and offering its Signature service to restaurants, enabling customers to order delivery via restaurants' own websites. The company will develop new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them food from more restaurants than ever before.
In a potential future float, Deliveroo is expected to adopt a time-limited dual-class share structure to provide Will Shu, founder and CEO, with the stability to take decisions to enable the company to execute on its long-term strategic vision in order to create long-term shareholder value. Such structures involve two different classes of shares with differential voting rights and are currently commonplace on exchanges in the US and Hong Kong, as well as within Europe.
The announcement of the expected dual class share structure follows the publication of Lord Hill's UK Listing Review, which found: "[Dual class shares] provide a way for the founder of the company to continue to be able to execute their vision for how the company should evolve and grow while still allowing others to share in that growth...Their vision and their ability to execute that vision is often part of the company's selling point."
Deliveroo's dual-class share is expected to closely align with the recommendations set out within the Lord Hill Review. The structure will be limited to three years, after which the company will move to a traditional single share class structure. Alongside the dual-class share structure, Deliveroo intends to have a strong commitment to corporate governance standards including a majority independent Board of directors as well as upholding diversity standards.
Rishi Sunak, the Chancellor of the Exchequer said: "The UK is one of the best places in the world to start, grow and list a business - and we're determined to build on this reputation now we've left the EU. That's why we are looking at reforms to encourage even more high growth, dynamic businesses to list in the U.K. So it's fantastic that Deliveroo has taken this decision to list on the London Stock Exchange. Deliveroo has created thousands of jobs and is a true British tech success story. It is great news that the next stage of their growth will be on the public markets in the U.K."
Will Shu, CEO of Deliveroo, said: "Deliveroo was born in London. This is where I founded the company and delivered our first order. London is a great place to live, work, do business and eat. That's why I'm so proud and excited about a potential listing here. At Deliveroo we want to be the definitive food company, bringing consumers the best choice of foods, giving restaurants new opportunities to grow their businesses, and providing riders with great work. We are always focused on developing the best proposition for consumers, restaurants and riders and look forward to bringing our service to new parts of the UK as we continue to grow."
Claudia Arney, Chair of Deliveroo, said: "Deliveroo is proud to be a British company, and the selection of London as its home for any future listing reflects Deliveroo's continued commitment to the UK. London is not just where Deliveroo was born, it is one of the leading capital markets in the world, with an incredible technology ecosystem, sophisticated investment community and a skilled talent pool. The time-limited dual class structure would provide Will and his team with the certainty needed to execute against their ambitious growth plan to become the definitive online food company. We welcome Lord Hill's recommendations to support modernisation of the market and continued tech sector growth in the UK."
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