Deliveroo IPO

With a possible valuation of up to £3.2 billion, the Deliveroo IPO – though unconfirmed – is one of the most anticipated listings of the year. Get all the details here and find out how you could trade the initial public offering.

Deliveroo IPO

With a possible valuation of up to £3.2 billion, the Deliveroo IPO – though unconfirmed – is one of the most anticipated listings of the year. Get all the details here and find out how you could trade the initial public offering.

Why trade Deliveroo's IPO with IG?

Speculate on Deliveroo

Take a position with our 'grey market' via CFD

Go short as well as long

Buy or sell based on your prediction of Deliveroo’s market cap

24 hours pricing

Trade 24 hours a day via the grey market

When could the Deliveroo IPO happen?

Deliveroo has not released an official date for its IPO, but there have been many reports of a listing in the later part of 2019 or early 2020.

How to trade the Deliveroo IPO

You can trade the Deliveroo IPO in two ways - before and after the listing.

Before the IPO

IG will be offering a 'grey market' via CFDs before the IPO is held, enabling you to speculate on WeWork's market cap before it lists.

The price of our grey market is a prediction of what Deliveroo's total market capitalisation will be at the end of its first day of trading

  • If you think it will be worth more than the price indicated, you can 'buy' the market
  • If you think that the price is an overvaluation, you can 'sell'

*The grey market for Deliveroo will be available later in the year.

After the IPO

Once Deliveroo's IPO is completed, we will close the grey market and add the company to our share trading service.

This means you can:

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What is Deliveroo’s business model?

Deliveroo is a food delivery app and website developed to help individuals or companies order their favourite meals to their doorstep. Users can look up and order from restaurants on Deliveroo based on their location.

Payment can be made on the platform in under a minute. Once the order is placed, the restaurant is notified, and the user can track the progress of their order. Delivery is made by Deliveroo riders on bicycles, who stay stationed within 2.2 kilometres of the restaurants they sign up for. Deliveroo aims to deliver in under 30 minutes.

How has Deliveroo been performing?

Only two years after launching, Deliveroo was already worth almost £500 million. In 2017, Deliveroo’s sales reached £277 million, while gross profit increased to £64.3 million from just £1 million the previous year. Unfortunately, by 2018, losses were up to £185 million – attributed to significant investment in expansion. The latest valuation of more than £1.6 billion is thanks to the extra funding it has received in recent years, which includes the £459 million boost from Amazon in 2018.

Deliveroo has created more than 60,000 jobs and partnered with more than 80,000 restaurants. Headquartered in London, it services the UK, Ireland, France, the Netherlands, Belgium, Spain, Italy, UAE, Kuwait, Singapore, Hong Kong, Taiwan and Australia.

Who are Deliveroo’s competitors?

Deliveroo’s competitors are Uber Eats, Just Eat, City Pantry and Hungryhouse, to name a few. Deliveroo is the third largest food delivery app in the UK, after Just Eat and Uber Eats. Just Eat held its IPO in April 2014 and was valued at £1.47 billion.

One thing that sets Deliveroo apart from its competitors is its delivery-kitchen concept, called Deliveroo Editions. Through comprehensive data gathering, it has identified gaps in the market and created pop-up restaurants in areas where people are not being serviced.

Deliveroo key personnel

There are five key executives on Deliveroo’s management team, as well as four members on the board of directors.

Deliveroo management team

Will Shu Co-founder and chief executive officer
Mike Hudack Chief technology officer
Rohan Pradhan Chief operating officer
Grant Smith VP product
Vince Darley VP growth

Deliveroo board of directors

Martin Mignot Board member
Benny Peretz Board member
Adam Valkin Board member
Darrel Cavens Board member

What was Deliveroo last valued at?

Deliveroo was last valued at £1.6 billion (in 2018). Its most recent investment – £459 million from Amazon – may have given the business the momentum it needs to reach its new valuation target of £3.2 billion.

Who are Deliveroo’s main investors?

Deliveroo’s main investors are Amazon, T Rowe Price, Fidelity Management and Greenoaks Capital. Others include Index Ventures, DST Global and General Catalyst. Deliveroo has 25 investors in total and has received £1.2 billion in funding to date.

How do IPOs work?

IPOs are released when a company decides to start selling its shares to the public. The company will decide how many shares it wants to offer, and the investment bank will decide on the initial price of the stocks based on supply and demand.

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FAQs

Who set up Deliveroo?

Will Shu and Greg Orlowski set up Deliveroo in 2013 after Shu had spent a few years developing his idea for the service.

How does Deliveroo make money?

Deliveroo makes money by charging both users and participating restaurants. Users are charged a delivery fee of £2.50, while restaurants pay a commission fee of up to 20% when users order from their menu via Deliveroo. The company also generates revenue by charging a fee for offering restaurant perks and promotions on its platform.

Why would Deliveroo want an IPO?

Deliveroo might consider an IPO to raise more funds or to improve its reputation among the public. There is no confirmed date for the IPO and many reports state that the focus is on growing the business and reaching new customers, not an IPO specifically.

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1Based on revenue excluding FX (published half yearly financial statements, June 2019).