Deliveroo IPO

[MrBamboo]

Hi All,

Just wondered if anyone has any thoughts on investing into the Deliveroo share floatation ??
To apply for them you have to create a PrimaryBid account.

Cheers,

[Markus]

Like most other tech IPO's which this is being dubbed, it will have an amazing first day and probably come back down to earth on the second day.  The only people who will make a killing out of this are the underwriters and founders/shareholders like George Osborne's partner.

As for the share itself, I won't be going anywhere near it.  It almost folded before being bailed out investment from Amazon (I believe around 16% of the business). Add to that the issue that Uber has whether the people that deliver food are actually self-employed or workers (which would cost them money if they are deemed workers as they would have entitlement to sick pay etc). Last issue that they are yet to turn over a profit despite the pandemic being an ideal gauge of how successful this could be with all the restaurants all being closed.

I'd rather put my money in to Airbnb even though the stock is at the top of its valuation at present.

[MrBamboo]

Thanks Markus, i know very little about the stock market so any advice is gratefully received.
Sounds like one to leave alone !

[Paris69]

Like most other tech IPO's which this is being dubbed, it will have an amazing first day and probably come back down to earth on the second day.  The only people who will make a killing out of this are the underwriters and founders/shareholders like George Osborne's partner.

As for the share itself, I won't be going anywhere near it. It almost folded before being bailed out investment from Axxxxxx (I believe around 16% of the business). Add to that the issue that Uber has whether the people that deliver food are actually self-employed or workers (which would cost them money if they are deemed workers as they would have entitlement to sick pay etc). Last issue that they are yet to turn over a profit despite the pandemic being an ideal gauge of how successful this could be with all the restaurants all being closed.

I'd rather put my money in to Airbnb even though the stock is at the top of its valuation at present.

+1. Absolutely spot on...

[Markus]

Thanks Markus, i know very little about the stock market so any advice is gratefully received.
Sounds like one to leave alone !

You're welcome.  If a food delivery business can't turn over a profit in a pandemic when the general public is sitting at home and has furlough money to burn (the majority of deliveroo customers are in the U.K) you know there are underlying issues at play.  They have also set aside money in relation to the status of their drivers.

I like Airbnb  as regardless of whether this year we choose to have a staycation within the U.K or go overseas in the summer, Airbnb will be busy.  Add to that the stimulus package signed off by Biden, tech stocks are going to be attractive in my eye.  This is just my opinion of course and not financial advice.  Do as you see fit.  I should have gone in at Rolls Royce at $88 a share in America as it is $123 a share at present (5% up over the last day alone) but I listened to naysayers on this forum.  Listen to your gut, do your research and don't invest more than you can afford to lose.  Good luck 

[Jimmyredcab]

Probably not the best time to invest in the Gig economy now that the courts have ruled these workers are not self employed. 



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[Markus]

What a catastrophe of a share listing for the LSE.  The stupidity of those that pined to get this listed in the LSE is outstanding.

I wonder if I will receive a Deliveroo discount code for their shares later? 

[lostandfound]

Still early doors - flotation could still be pulled. Will be interesting when the shares are able to be traded on April 7th.

[Squire Haggard]

I wont be using Deliveroo. I would rather order directly than go through a new imposter middle man. I wont be buying shares in them either.

[Gordon Bennett]

I see the shares have dropped somewhat on debut. I applied for, and received a £grand's worth but I can't sell them until 7th April. I presume many private investors will rush to sell on 7th and price will drop even more. I don't really care, would have been nice to make a fast £100 but I'll just sit on them now.
My shares are held in some sort of group broker thingy and it will cost me £5 to trade (sell or transfer them to my broker) for first 12 months. I'll just bide my time.
I have a sense that many of the big financial institutions are deliberately fucking the price up by talking up Deliveroos dodgy HR approach and they will fill their boots with the shares once they've driven price down. I do realise there are valid concerns about their use of "gig workers" but c'mon.... these institutional investors have no fucking morals whatsoever so it's a bit rich them citing ethical concerns for swerving the stock.

[lostandfound]

I see the shares have dropped somewhat on debut. I applied for, and received a £grand's worth but I can't sell them until 7th April. I presume many private investors will rush to sell on 7th and price will drop even more. I don't really care, would have been nice to make a fast £100 but I'll just sit on them now.
My shares are held in some sort of group broker thingy and it will cost me £5 to trade (sell or transfer them to my broker) for first 12 months. I'll just bide my time.
I have a sense that many of the big financial institutions are deliberately fucking the price up by talking up Deliveroos dodgy HR approach and they will fill their boots with the shares once they've driven price down. I do realise there are valid concerns about their use of "gig workers" but c'mon.... these institutional investors have no fucking morals whatsoever so it's a bit rich them citing ethical concerns for swerving the stock.

Interesting comments - thanks. Thinking I might pick up a few just as a punt.

[Private Parts]

Hands up all who thought Martha Lane-Fox had a good idea!
Her bank manager thought so too.
Sold my thousands and didn’t suffer.
Taught me a lot!

[Jimmyredcab]

I wont be using Deliveroo. I would rather order directly than go through a new imposter middle man. I wont be buying shares in them either.

Quite right Sir.

Deliveroo and Uber Eats take up to 35% from the restaurant PLUS they charge for delivery.

My local Chinese have their own delivery drivers, if you spend £10 or more then delivery is free.

Why make these Silicon Valley billionaires ever more wealthy. 


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[willie loman]

did institutional investors hold back for ethical reason? i thought it was due to the difficulties of evaluating the stock while hr issues are resolved.

[Colston36]

Like most other tech IPO's which this is being dubbed, it will have an amazing first day and probably come back down to earth on the second day.  The only people who will make a killing out of this are the underwriters and founders/shareholders like George Osborne's partner.

As for the share itself, I won't be going anywhere near it.  It almost folded before being bailed out investment from Axxxxxx (I believe around 16% of the business). Add to that the issue that Uber has whether the people that deliver food are actually self-employed or workers (which would cost them money if they are deemed workers as they would have entitlement to sick pay etc). Last issue that they are yet to turn over a profit despite the pandemic being an ideal gauge of how successful this could be with all the restaurants all being closed.

I'd rather put my money in to Airbnb even though the stock is at the top of its valuation at present.

It had a crap first day. Beyond risky.

[Squire Haggard]

Quite right Sir.

Deliveroo and Uber Eats take up to 35% from the restaurant PLUS they charge for delivery.

My local Chinese have their own delivery drivers, if you spend £10 or more then delivery is free.

Why make these Silicon Valley billionaires ever more wealthy. 


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[Payyourwaymate]

I got an email from deliveroo about the share listing, created a primary bid account. Read the summary of the prospectus and stopped when I saw their EBITDA and early investors involved. Personally, i think the only winners will be the early investors, software engineers with stock options to unload and underwriters with the fees for the IPO, not the retail investor. I could be wrong though.

[Adoniron]

did institutional investors hold back for ethical reason? i thought it was due to the difficulties of evaluating the stock while hr issues are resolved.

I think it was partly for ethical reasons, they didn't like the business model and the bad publicity it might attract. However they were also unhappy that the shares held by the founder would carry more voting rights than the shares available in the IPO. Apparently this is not unusual in the US, particularly for tech stocks, but is not common in companies listed on the LSE.

[Private Parts]

I got an email from deliveroo about the share listing, created a primary bid account. Read the summary of the prospectus and stopped when I saw their EBITDA and early investors involved. Personally, i think the only winners will be the early investors, software engineers with stock options to unload and underwriters with the fees for the IPO, not the retail investor. I could be wrong though.

Deliveroo got in early. There will be even more tears when the others try to prostitute themselves.
Nice idea but too many players
 

[chrishornx]

Why make these Silicon Valley billionaires ever more wealthy. 


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I thought Deliveroo was UK based and nothing to do with silicone valley  - live and learn

[Jimmyredcab]

I thought Deliveroo was UK based and nothing to do with silicone valley  - live and learn

William Shu is an American millionaire currently based in London.

The principle is the same, 35% of the cost of the meal goes to his company, plus a delivery charge.

Far better to support your local independent restaurant, in my very humble opinion.



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[chrishornx]

William Shu is an American millionaire currently based in London.

The principle is the same, 35% of the cost of the meal goes to his company, plus a delivery charge.

Far better to support your local independent restaurant, in my very humble opinion.



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still don't get the silicon valley link

[maxxblue]

still don't get the silicon valley link

Unlike the vast majority of companies on the London Stock Exchange (but not all), Deliveroo has launched with two different classes of share so that the owner retains control of the company - this is a common practice with silicon valley companies. 

[chrishornx]

Unlike the vast majority of companies on the London Stock Exchange (but not all), Deliveroo has launched with two different classes of share so that the owner retains control of the company - this is a common practice with silicon valley companies. 

i understand that procedure but how does deliveroo relate to silicon valley?

[maxxblue]

i understand that procedure but how does deliveroo relate to silicon valley?

The link is that Deliveroo and a lot of silicon valley companies (e.g Google) use the same dual-class share structure that is uncommon in the UK - that's it!

[chrishornx]

The link is that Deliveroo and a lot of silicon valley companies (e.g Google) use the same dual-class share structure that is uncommon in the UK - that's it!

but Deliveroo is floated on the UK Stock market and nothing to do with Silicon so a very tenuous link

[Colston36]

Unlike the vast majority of companies on the London Stock Exchange (but not all), Deliveroo has launched with two different classes of share so that the owner retains control of the company - this is a common practice with silicon valley companies. 

This explains the Silicon valley references well. Mr. Shu is from there and plays according to their rules. You - the investor - take the risk; he retains control no matter what.

[chrishornx]

This explains the Silicon valley references well. Mr. Shu is from there and plays according to their rules. You - the investor - take the risk; he retains control no matter what.

is he? He is an East coast boy who worked for SAC and Morgans before moving to London what is his Silicon valley link ?

[Bmunda]

Deliveroo is worth the investment for the gamble a quick £250 (=1 hrs), but consider £1bn lost just days before due to the Uber case, its in a market which if you're talking global market cap JustEat is years ahead (and making profit), market instability with signs of a crash, meaning those venture caps who've invested would have advised this to get some more £££...but ultimately if company can't pay its staff properly then its going to be struggle in the future when those unions/cases are passed.

[lostandfound]

Deliveroo is worth the investment for the gamble a quick £250 (=1 hrs), but consider £1bn lost just days before due to the Uber case, its in a market which if you're talking global market cap JustEat is years ahead (and making profit)

You made £250 in one hour? How - as the shares are not tradeable yet?

[Bmunda]

You made £250 in one hour? How - as the shares are not tradeable yet?

I wrote this too quick - £250 = 2 x 1 hour punts...

[lostandfound]

I wrote this too quick - £250 = 2 x 1 hour punts...

Thanks for the clarification. 

[David1970]

is he? He is an East coast boy who worked for SAC and Morgans before moving to London what is his Silicon valley link ?

As far as I can see he has no Silicon Valley links, can’t see why people would think that?

[chrishornx]

As far as I can see he has no Silicon Valley links, can’t see why people would think that?

No doubt Jimmy can explain

[Jimmyredcab]

More unrest at Deliveroo.



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[fudi_maar]

Not sure what the investment POV for this company is, but only a few days ago, I wanted to order a meal for the family from the local Chinese.
I opened both the take-away restaurants website, and the Deliveroo app, and picked the exact same items for our order to see if they were both identical.
Lo and behold the Deliveroo app was giving me a price of £38.50 and the restaurant site itself was doing it for £32.00.

[Markus]

Not sure what the investment POV for this company is, but only a few days ago, I wanted to order a meal for the family from the local Chinese.
I opened both the take-away restaurants website, and the Deliveroo app, and picked the exact same items for our order to see if they were both identical.
Lo and behold the Deliveroo app was giving me a price of £38.50 and the restaurant site itself was doing it for £32.00.

I'm sure you could have got discount codes to bring the price down but you did the right thing by supporting the restaurant directly.  Restaurants make a killing but so Deliveroo - 20% is what they charge the restaurant I believe.

[Squire Haggard]

I wont invest in Deliveroo, or this.... 

''Hedge fund manager David Einhorn warned of dangers for retail investors that he sees in the market, and one of his main examples was a tiny New Jersey deli with a market capitalization of more than $100 million.

The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for Hometown International, which has an eye-popping market value despite totaling $35,748 in sales in the last two years combined, according to securities filings.

“Someone pointed us to Hometown International (HWIN), which owns a single deli in rural New Jersey ... HWIN reached a market cap of $113 million on February 8. The largest shareholder is also the CEO/CFO/Treasurer and a Director, who also happens to be the wrestling coach of the high school next door to the deli. The pastrami must be amazing,” Einhorn said in a letter to clients published Thursday.''

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[Gordon Bennett]

I notice the Deliveroo share price has been creeping up steadily. I'm still nursing a paper loss and they have some way to go before I am even. I'm content to just sit on them and absorb their underperformance in my portfolio of shares that contains a good balance of winners and losers and is generally doing okay.

I bought into HydrogenOne IPO today. I've been looking to get into hydrogen for a few months and this trust thing seems a convenient way of spreading some risk amongst several players in the hydrogen field.

Why hydrogen? We had a heating engineer round servicing tge combi boiler and I asked him about government plans to rip 'em all out and have us bung heat pumps in. The gist of his reply was heat pumps were shit for 90% of UK houses, people will hate them and baulk at the cost. He said that natural gas was going to be supplied with hydrogen mixed into it to make it cleaner. Most modern combi boilers could burn this mix and older ones can be easily tweaked. I spent some weeks verifying all this and it stacks up (bloody hell heat pumps look fucking useless!). Obviously Hydrogen has other parts to play in the greening of the UK so I figured it's worth investing in hydrogen.

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[winkywanky]

Heat pumps only really work well in houses that were designed for them (mostly new-builds), mainly to do with thermal efficiency of the building.

Older houses very seldom cut the mustard and would need a lot of work doing to change that.

[Ali Katt]

Hi All,

Just wondered if anyone has any thoughts on investing into the Deliveroo share floatation ??
To apply for them you have to create a PrimaryBid account.

Cheers,

I don't think it's unique enough. I think just eat has more presence.