Last week’s flotation at Deliveroo amidst concerns from investors about the sustainability of how workers are treated was a disappointment for the business. Their business model based on paying low wages to ‘self-employed’ employees, was brought into widespread question by many institutional investors who abstained from investing.
Today sees many of those employees set to strike over pay and conditions as the company faces increasing pressure over its employment practices. The union of Independent Workers of Great Britain is holding socially distanced protests in five locations across England today.
The protests will take place in London, Sheffield, York, Wolverhampton and Reading.
Last week’s flotation saw the stock opening on Thursday at £3.90 and close the same day at £2.82 some 28% down.
The floatation proved so unpopular that launch underwriters, Goldman Sachs bought up £75 million of shares to prop up the price.
Today sees £50 million worth of shares allocated specifically to 70,000 Deliveroo customers allowed to begin trading their stock from today. The stock is currently at £2.89 up 3% on the day.
The treatment of workers has been brought into sharp focus in recent weeks especially in terms of low pay. As the real money men and women understand sustainability is very much in the mind’s eye of their customers, UK consumers.
Copyright: All content in Hospitality & Catering News is protected by copyright.
News from the hospitality and catering industry is also being featured extensively in our Facebook and twitter social media accounts with the opportunity to engage with others in hospitality and share your views.
Hospitality & Catering News: Deliveroo delivery riders set to begin strike action today over low pay. – 7 April 2021 – Deliveroo delivery riders set to begin strike action today over low pay.