Greedy? Deliveroo founder Will Shu
Reasons abound to be wary of the Deliveroo float.
First off, its hiring of ex-Westminster types creates concern that it’s worried about regulatory curbs on its employment practices.
Second, the huge number of banks working on the IPO will make it hard to find dissenting voices in the City.
Third, it’s losing money, and only a year ago was claiming it could go bust without an Amazon bailout.
And that’s before you get into founder Will Shu’s Michelin-starred shares, which carry more voting weight than everyone else’s.
Or the fear that, post-Covid, restaurants will quit Deliveroo, leaving it a busted flush.
But I’m not so sure we need to worry overly about any of it.
It’s true Deliveroo seems weirdly close to government (when was the last time you saw an IPO win supportive quotes from the Chancellor?)
But so are many popular tech firms. Politicians think it makes them look cool to hang out with young millionaires in hoodies.
As far as potential Deliveroo shareholders are concerned, surely it makes it safer to have Downing Street onside.
The use of multiple investment banks is, sadly, nothing new in modern IPOs; and dual-class shares will become commonplace post-the Hill Review.
As for the post-Covid demise of home delivery apps, I just don’t buy it. “Ordering in” is one of those permanent, lockdown-learned behaviourial changes. Even for a technophobe like me.
Deliveroo will make big losses while it builds up its “moat”; a strong brand, good tech and dark kitchens making nosh.
But my bet is it will deliver jam tomorrow.
The concern is that Shu will be greedy about the price of his IPO. On that score, the PR hullabaloo he’s launched around it may not bode well.
