Deliveroo's gift: $69mln stock offer to customers, $22mln 'thank you fund' for riders

News of the offers emerged after the delivery company announced London listing plans last week

  
British food-delivery company Deliveroo operates across 12 countries, mostly in western Europe but also in Australia, Hong Kong, Singapore and the United Arab Emirates. Image used for illustrative purpose.

British food-delivery company Deliveroo operates across 12 countries, mostly in western Europe but also in Australia, Hong Kong, Singapore and the United Arab Emirates. Image used for illustrative purpose.

REUTERS/Charles Platiau

Delivery company Deliveroo will offer £50 million ($69.18 million) of shares to customers and launch a £16 million ($22.14 million) ‘thank you fund’ for riders as part of its $7bn (AED 25.7 billion) stock market listing.

The rider fund will only make payments to those who have worked with Deliveroo for at least a year and completed 2,000 orders. It will cover all 12 of the countries where the firm operates including the UAE and Kuwait.

£50 million in shares will be earmarked for customers, who will be eligible to apply for up to £1,000 of shares.

Will Shu, founder and chief executive of the Amazon-backed firm, said he wanted to give customers who had supported the business a chance to share in the next stage of its journey, to take investment to an audience outside traditional institutional investors. 

Any customer who has placed an order will be able to apply for the shares from tomorrow (Monday). Loyal customers will be given priority if the shares are oversubscribed, said the company. 

The company said it was also launching a £16 million would be a ‘Thank You Fund’ for its delivery riders, a quarter of whom would be eligible for payments of between £200 and £10,000, depending on the quantity of orders completed.

Shu said: “Riders are at the heart of our business, and we want to reward their efforts that have helped Deliveroo become what it is today. Their commitment to great service has enabled us to grow and offer the best food delivery experience in the world.

“But over the last year riders have helped us do so much more than just deliver great food, having supported businesses and enabled vulnerable people or those self-isolating to stay safe indoors throughout a global pandemic. We’re pleased to be able to say thank you.”

In a press release, Deliveroo said rewards for riders in the UAE and Kuwait would be amended slightly to recognise Deliveroo agency partners contribution to company growth.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

 imogen.lillywhite@refinitiv.com

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