Nearly £1bn lost | Deliveroo value 'PLUMMETS' after worker rights concerns

On Monday it was revealed that Deliveroo’s much-anticipated IPO projections would be cut by nearly £1billion – or 30% of the expected financial compensation – over concerns regarding the treatment of couriers.

According to reports by CNBC, several large-scale investors, including largest UK fund manager Legal and General Investment Management, alleged that they would be shunning the IPO on April 7 over concerns around workers’ rights within the organisation, and Deliveroo’s ongoing disagreements with its workers’ union.

Whilst Deliveroo was quick to comment that the alterations to share expectations were due to ‘market conditions’, the overall expected price is now in the bottom third of the ranges confirmed the previous week.

In addition to Legal and General Investment Management, the likes of Aberdeen Standard, M&G Investments and Aviva Investors have also expressed concern about Deliveroo’s worker rights after the Independent Worker’s Union for Great Britain noted that some Deliveroo riders could well be earning less than £2 an hour.