Deliveroo Shares Fall 30 Percent in Market Debut
Investor concern regarding high growth companies is rising. Deliveroo was founded in 2013 by William Shu. The company was struggling to stay afloat until Amazon bought 15.8 percent of the company for $793 million.
Furthermore, there has been growing skepticism of the way drivers are treated in delivery companies. Uber and DoorDash have faced similar problems across the pond in the US. Several institutional investors decline to participate in the IPO for this reason among other concerns.
Deliveroo mainly operates in the UK, but also has operations in Europe, Hong Kong, and Taiwan. Prior to the massive sell-off that shed around £2 billion, Deliveroo was valued at £7.6 billion.