Meal Delivery Company Deliveroo Plummets at Stock Market Debut in London

0 23,879

Meal delivery company Deliveroo fell hard on Wednesday during the IPO in London. Several investors had already objected to how the company deals with its deliverers in the IPO run-up.

 

The European stock markets showed little movement after the price gains the day before. Investors mainly looked forward to the European inflation figures and the American pay slip processor ADP jobs report. The significant investment plan of US President Joe Biden was also awaited.

Deliveroo plummeted 26 percent to 2.88 pounds. Before the IPO, the meal delivery company already lowered the introductory price to £ 3.90 per share due to criticism of working conditions. According to the British Independent Workers’ Union, the company’s delivery workers’ wages and working conditions have deteriorated.

As a result of the corona pandemic, companies like Deliveroo have benefited significantly from restaurants’ closure, forcing people to stay at home and therefore order more food. Competitor Just Eat Takeaway fell more than 2 percent, making it the most significant drop in the AEX.

Hennes & Mauritz (H&M) lost more than 1 percent in Stockholm. The Swedish clothing chain suffered a loss in the first quarter due to the store closures due to the corona measures. For the rest of the year, H&M is more positive and foresees a strong recovery.

Leave A Reply