Deliveroo Readies London Public Offering

Like other delivery startups, Deliveroo has grown significantly during the pandemic.
CapitalWatch StaffOct 06,2020,22:31

Food delivery unicorn Deliveroo is eyeing an initial public offering in London early next year.

Deliveroo has hired Goldman Sachs for the deal, which is likely to value the company at more than £2bn, according to Sky News.

Like other delivery startups, Deliveroo’s services became especially popular during the pandemic. Under social distancing practices, many consumers switched to eating at home or office.

“It’s critical that we act fast to bolster previous action and introduce new measures of our own, so that restaurants can continue to do business, riders can continue to earn, and people in Hong Kong can continue to access great food in a safe way,” Deliveroo's Hong Kong general manager Brian Lo said in a media release.

Along with Foodpanda and UberEats, Deliveroo is one of three major food courier service providers in Hong Kong.

Launched in Hong Kong in 2015, Deliveroo is not only expanding its delivery crew to meet its growing demand but also its physical presence in the city by setting up more of its Editions kitchens.

According to Brian Lo, Editions Kitchen is a centralized kitchen where restaurant operators can lease space to prepare takeout food. Leasing allows such operators to minimize their costs, he said. Deliveroo takes a percentage of the orders.

Amazon (Nasdaq: AMZN) is one of the lead investors in Deliveroo with a total stake of 16%.

Headquartered in London, Deliveroo was founded in 2013 by Will Shu and Greg Orlowski. It operates in more than 200 cities in Europe, Australia, Singapore, United Arab Emirates, Kuwait, and Hong Kong. The company has not yet made a profit.

Topics:London IPO, Deliveroo