Deliveroo reveals plans to launch £50 million Community Offer and £16m ‘Thank You Fund’ for riders

by | Mar 8, 2021

  • Deliveroo expected to make £50m of shares available to its customers in a future IPO as part of a Community Offer
  • The company is aiming to give £16m of payments to riders in all markets who have delivered the most orders
  • Over one quarter of Deliveroo’s global rider fleet are expected to benefit from the new Thank You Fund
  • In May 2018 Deliveroo made every full time employee an option-holder in the company, so employees will also benefit from any future flotation  

Deliveroo today announces that, in a potential forthcoming IPO, it will make £50 million of shares available to its customers in a “Community Offer”. Riders and restaurant partners are able to participate if they have Deliveroo customer accounts.

The company is also planning to create a new £16 million ‘Thank You Fund’ for riders who have done the most deliveries. The move reflects Deliveroo’s desire to give back to those that have supported the company.

Customer shares

Deliveroo is set to announce a new Community Offer in which the company has put aside up to £50m of shares which will be allocated to customers. Deliveroo has dubbed the offer, ‘Great food with a side of shares’.

From tomorrow, any Deliveroo customer who has placed an order will be able to register their interest in applying for shares in any future floatation via their Deliveroo app. All they will need to do from Monday is visit the app, or download it, and follow the instructions.

Deliveroo has partnered with PrimaryBid, a platform that connects companies to their community on public offerings. To take part, Deliveroo customers can on Monday register their interest in having access to Deliveroo shares in future via the PrimaryBid website. If a float is confirmed in the future, customers will later be able to apply for shares via the PrimaryBid website. Each customer will be able to apply for up to £1,000 of shares.

Deliveroo is allocating a total of £50m of shares to customers. By having a maximum value of shares available for consumers, the company aims to ensure that a significant number of customers can participate, but the company cannot guarantee that everyone who applies for shares in future will be allocated shares, as demand is unknown. If there is extremely high demand for shares and the company is oversubscribed, Deliveroo will prioritise existing loyal customers, but will make sure a mixture of new and existing customers benefit.

Rider reward

Deliveroo intends to recognise the central role that riders have played in the company’s success. The company has established a £16 million cash reward programme for riders, the ‘Thank You Fund’, which will be given to over one quarter of Deliveroo’s global rider fleet.

The Thank You Fund, which would launch on the day of a listing, will be available to riders in all 12 markets in which Deliveroo operates, with riders eligible based on the number of orders they have delivered.

There will be payments of £10,000, £1,000, £500 and £200, or local currency equivalents, with all riders who have worked with Deliveroo for at least one year and completed 2,000 orders receiving £200. The average payment per eligible rider will be £440.

The cash payment will be calculated by reference to the number of orders completed by each eligible

rider, with the largest payments being made to those riders who have completed the highest number of orders in each market. Hundreds of active riders are set to receive the largest payment of £10,000. Over half of those receiving this sum are in the UK, some of whom began riding with Deliveroo alongside CEO Will Shu soon after the company launched.

This comes after Deliveroo announced a new £50m Communities Fund to support local communities in which the company operates, restaurant partners and Deliveroo riders. The Fund will be put in place after any potential future IPO. The investment is pledged over five years and Deliveroo will consult on specific initiatives to invest in.

Will Shu Founder and CEO Deliveroo said: 

“Our customers have played a central role in supporting our growth and we wanted to give them the chance to share in the next stage of our journey. Far too often normal people are locked out of IPOs, and the only participants are the institutional investors. I wanted to give as many customers as possible the chance to become shareholders, which is why we’re making available £50m of shares available to them, alongside our restaurant partners and riders.

“I want to thank our riders who have been working with us for years, delivering great food and such a fantastic experience for our customers. They have been central to our growth and will continue to be. Some of these riders have been with us since the start and I’m delighted that they can share in the excitement of the company’s next chapter.”

Related articles

Argentina devalues peso, slashes public spending

Argentina devalues peso, slashes public spending

(Sharecast News) - Argentina's new hard-right government has devalued its currency by more than half in its first package of economic measures that include slashing public spending. The plans, unveiled by economy minister Luis Caputo in a televised address, also...

OPEC+ agrees to cut output by a further 1m barrels a day

OPEC+ agrees to cut output by a further 1m barrels a day

(Sharecast News) - OPEC+ members have reportedly agreed to cut oil production by a further one million barrels a day. In an online meeting, the cartel of oil producing nations- led by Saudi Arabic - said the production cuts would begin early next year. According to...

Gold and oil prices jump on geopolitical unrest

Gold and oil prices jump on geopolitical unrest

(Sharecast News) - Commodity prices continued to rise on Friday, as tensions escalated across the Middle East. Gold, traditionally seen as a safe haven asset, pushed past $1,980 an ounce, with Comex gold futures adding nearly 1% at $1,980.60, the highest since May....

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x