LONDON: A trade union called for Deliveroo’s UK riders to strike when the meal delivery service floats on the stock market next month, saying on Sunday the action would highlight dissatisfaction with the company’s business model and approach to workers’ rights.
Deliveroo, whose turquoise-uniformed couriers delivering chicken kormas and American hot pizzas are a common sight in many British suburbs, is set for Britain’s biggest stock market debut in nearly a decade after setting a share price range that values it at up to $12 billion.
But some investment firms have said they will not participate in the initial public offering (IPO). Insurer Aviva for instance highlighted a lack of rights for riders as an investment risk as the company might be forced to change its business model.
Deliveroo said investor demand had continued to build since its roadshow began on Monday, and said the views of the union, which announced the strike, the Independent Workers’ Union of Great Britain (IWGB), did not represent the vast majority of riders.
The IWGB previously lost a legal challenge to Deliveroo in 2018. The case sought to secure rights such as the UK minimum wage for riders, but the court ruled riders were self-employed.
“Investing in Deliveroo means associating yourself with the exploitative and unstable business model,” IWGB President Alex Marshall said in a statement, adding the strike was planned for April 7, to coincide with the IPO.
Deliveroo launches London IPO after business surges in 2020Deliveroo raises $180 mln from investors, valued at $7 billion