Deliveroo has today confirmed its intention to float. The offer will comprise of new shares, raising gross proceeds of approximately £1bn.
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 UK 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.
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.
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.
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 UK.
'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 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 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 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.'