Deliveroo Shares Slump Over 20% on Debut in London By Investing.com

By Geoffrey Smith 

Investing.com — Shares in Deliveroo slumped on their debut on the London Stock Exchange, as concerns about governance and profitability overshadowed the biggest IPO of the year so far in Europe. 

By 5:05 AM ET (0905 GMT), Deliveroo shares were quoted at 305 pence, some 22% below their IPO price. The shares were priced at the bottom of their marketing range, at 390p, after a number of high-profile U.K. institutions chose not to subscribe.

A recent Supreme Court decision forcing ride-hailing company Uber (NYSE:UBER) to treat its gig-economy drivers as workers has cast doubt over Deliveroo’s own path to profitability, given that it, too, depends on a legion of low-paid contract riders and drivers.