Deliveroo Reveals Lost $ 309 Million in 2020 Before London IPO

LONDON – Deliveroo, Amazon-backed food delivery service, said it had lost £ 223.7 million ($ 309 million) last year in plans to float on the London Stock Exchange, which were released months.

Deliveroo’s losses are substantially lower than in 2019, when the London-based company recorded a loss of 317 million pounds. While the eight-year-old company is still in the red, its revenues rose to 4.1 billion pounds in 2020, up from 2.5 billion pounds in 2019.

A date for Deliveroo’s initial public offering has not been officially announced, but is likely in the next few weeks. Goldman Sachs and JP Morgan Cazenove have been appointed joint global coordinators.

According to reports, Deliveroo could be valued at about $ 10 billion in listing. Recently, it raised $ 180 million in new funds, giving it a valuation of $ 7 billion. Along with Amazon, Deliveroo is also supported by Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures and Accel.

In the company’s “Expected Intention To Float” file released Monday, Deliveroo CEO Will Shu said he “never set out to be a founder or a CEO” and “never read TechCrunch.”

“I’m not one of those Silicon Valley guys with a million ideas,” former analyst Morgan Stanley said in a letter. “I had an idea. An idea born of personal frustration. An idea I was obsessed with: I wanted to get great food from the amazing London restaurants.”

Deliveroo went from a failure almost in 2020, amid a revision of competition on Amazon’s minority investments, to operational profitability towards the end of the year due to the growing demand for online retrieval services, caused by the coronavirus blockade.

Today, Deliveroo claims to have more than 115,000 food merchants and 100,000 restaurants and millions of consumers in 12 countries. The filing shows that six million orders are placed on Deliveroo every month.

But Deliveroo “is just beginning,” according to Shu.

“Our ambitions have grown as we begin to truly understand and execute the opportunity before us in online food,” he said.

The filing includes details on the structure of Deliveroo’s dual-class shares, which will see Shu get 20 votes per share, while all other shareholders will be entitled to only one vote per share.

This structure, which will give Shu increased voting rights and greater control over the company’s management, will be in place for three years.

It comes after a government-backed review called for reforms to London’s listing regime, including the possibility of listing dual-class actions that were initiated by Google and Facebook.

Deliveroo intends to reserve shares worth £ 50 million for UK customers.

“We are proud to allow our customers to participate in a future float and have a chance to buy shares,” Shu said. “Your loyalty and personality have helped us build our business. I want you to have the chance to share in our future.”

Deliveroo said it will use IPO proceeds to improve its application, expand its “Editions” kitchens for delivery, and delve into on-demand food deliveries currently offered by supermarkets such as Waitrose, Co-op , Londis, Aldi and Carrefour.

Deliveroo also intends to give its pilots £ 16 million through a new “thank you fund” with a handful of loyal riders who will receive £ 10,000. Others will receive GBP 1,000, GBP 500, GBP 200 or GBP 100, depending on how many orders they have delivered. The average payment will be GBP 440.

Over the years, some of the company’s motorcyclists have complained about how much they are paid by Deliveroo and have campaigned to be classified as workers instead of contractors, making them eligible for things like sick pay and leave.

Amazon backed Deliveroo in May 2019, leading a $ 575 million round of financing in exchange for a 16% stake in the business.

In July 2019, the UK antitrust regulator, the Competition and Markets Authority, argued that Deliveroo’s cash injection from Amazon could reduce competition by eliminating the possibility of the e-commerce giant re-entering the market, while Deliveroo it could “cease to be distinct. “He froze the investment for almost a year while investigating.

To the disappointment of rivals Just Eat and Domino’s Pizza, the deal was approved by the CMA in August, after Deliveroo said it could give up business without capital.

– Additional reporting by CNBC’s Ryan Browne.