Deliveroo saw an uptick in its shares as retail investors could trade stock bought from the company’s initial public offering (IPO). The slight rise, however, still couldn’t beat its IPO price. Additionally, drivers rally against Deliveroo is another obstacle for Deliveroo to unravel.
Deliveroo shares went up, but still comparably weak to its stock market debut price
Reuters reported a slight tip on Deliveroo shares on Wednesday 0924 GMT. The date was the first day of unrestricted trading, allowing retail investors to trade stock they bought from Deliveroo’s IPO.
Shares for Deliveroo managed to raise 2.3%, valuing its stock at 286.4 pence. Though, it is still around 25% lower than the IPO price. The big gap is caused by a steep fall in Deliveroo’s stock market debut in London just last week. The initial value was given at 7.6 billion pounds ($10.46 billion) with the price per share came at 390 pence.
Connor Campbell at Spreadex commented, “Though Deliveroo has risen…on the first day of trading available to retail investors, it’s too soon to tell whether this is a vote of confidence in the stock,” Reuters quotes. “The real test for the company is going to be the coming months, especially if a driver-strike does indeed go ahead,” the analyst continued.
Deliveroo riders plans on a strike against the company
Meanwhile, hundreds of Deliveroo riders reportedly are planning to go on a strike on Wednesday. Through the strike, the riders demand fair pay and basic workers’ rights, the Independent Workers’ Union of Great Britain (IWGB) elaborates.
In regard to this, Deliveroo responded to have given sufficient treatment to its workers. Deliveroo’s spokesperson revealed that a survey carried out on Tuesday showed that 88% of riders are happy with the company.
The spokesperson further explained through a statement, “This small self appointed union does not represent the vast majority of riders who tell us they value the total flexibility they enjoy while working with Deliveroo alongside the ability to earn over £13 an hour”.
Read also: This Startup is The Worst IPO in British History
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