Gig autonomy

25 March 2021 By Peter Thal Larsen Follow @Peter_TL

Some fund managers are shunning the food delivery group’s IPO over its treatment of workers. Unlike most ESG laggards, the $11 bln group is loss-making. Concern about labour rights and founder Will Shu’s super-voting stock are secondary to whether it can turn a consistent profit.

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Aviva Investors will not invest in Deliveroo’s upcoming initial public offering because of concerns over workers’ rights, the fund manager’s chief investment officer told the BBC’s Today programme on March 24.

David Cumming said the food delivery company’s workers “are currently classed as riders (which means) they don’t necessarily get basic rights for minimum wage, sick leave or holidays. We won’t be investing in Deliveroo for a number of reasons but that is one of them.”

Aberdeen Standard Investments on March 25 told the BBC it would also not invest in the IPO.

Deliveroo is courting investors for an offering that could value it at up to 8.8 billion pounds.

In the past two years, the company has set aside 107 million pounds in legal and regulatory provisions related to claims from delivery drivers in Italy and other countries.

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Aberdeen Standard Investments on March 25 told the BBC it would also not invest in the IPO.

Deliveroo is courting investors for an offering that could value it at up to 8.8 billion pounds.

In the past two years, the company has set aside 107 million pounds in legal and regulatory provisions related to claims from delivery drivers in Italy and other countries.

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