Deliveroo workers strike as shares rise on first day of open trading | Deliveroo

Deliveroo’s share price rose on its first day of open trading on Wednesday as hundreds of workers across England staged a strike protesting their treatment by the take-out platform .

Some 200 Deliveroo couriers joined a protest in London, marching between Deliveroo headquarters and Finsbury Square, according to strike organizers, the Self-Employed Union of Great Britain.

Deliveroo was listed on the London Stock Exchange last week, although trading was only open to large institutions until Wednesday. Deliveroo shares had gained 2.5% on Wednesday afternoon to hit 287p. The share price peaked at 291.7 pence previously.

However, they remained well below their opening price last Tuesday of 390p. Deliveroo’s valuation fell from an initial £ 7.5bn to less than £ 5.5bn after the opening and the company’s stock market float was hampered by criticism of its structure. ‘business and treatment of workers. Analysis by New Financial, a think tank, found that Deliveroo’s day one stock price performance placed it at 1,765th out of 1,775 initial public offerings on the London stock market.

Some of the city’s biggest investors, including Aviva Investors, Legal & General, Aberdeen Standard and BMO Global Asset Management, said they did not invest in Deliveroo in part because of the treatment it gave workers .

Several investors said the company’s insistence that workers be independent contractors rather than salaried employees made it vulnerable to regulatory measures. Uber, which operates Deliveroo’s rival Uber Eats, was forced to make concessions to workers it treated the same.

Investors also worried about intense competition from competitors such as Just Eat Takeaway, which could make it difficult for loss-making Deliveroo to make a profit, and an equity structure that gives Deliveroo founder Will Shu in control. of the company for three years.

Workers also staged smaller protests across England on Wednesday, including in Reading, Sheffield, Wolverhampton and York.

Speaking ahead of the march, Alex Marshall, IWGB president and former bicycle courier, said workers were protesting Deliveroo’s treatment of workers. “Deliveroo presents a false choice between flexibility and fundamental rights,” he said.

Deliveroo has denied treating the workers badly. He said a survey on Tuesday showed that 89% of the 8,500 runners polled said they were “satisfied or very satisfied” with the company and that flexibility was their priority.

A spokesperson for Deliveroo said: “This small, self-proclaimed union does not represent the vast majority of runners who tell us they appreciate the total flexibility they get when working with Deliveroo, as well as the opportunity to earn more. £ 13 an hour.

“We are proud that pilot satisfaction is at an all time high and that thousands of people apply to become Deliveroo pilots every week.”