Food delivery firm Deliveroo has announced that it expects to give £16 million of payments to employees as part of a thank you fund for riders globally as part of a potential future float.
Deliveroo stated that it "wants to recognise the invaluable role that riders have played in the journey to an expected listing and has therefore established the multi-million fund for riders who have delivered the most orders. The thank you fund, which would launch on the day of an IPO, will be available to active riders in all 12 markets in which Deliveroo operates, with riders eligible based on the number of orders they have delivered."
Deliveroo continued, "There will be payments of £10,000, £1,000 and £500, or local currency equivalents, to all riders who have worked with Deliveroo for at least one year and completed 2,000 orders receiving £200. The percentage of riders eligible for each of the different awards will be consistent across all markets, with a quarter of the rider fleet in Ireland benefitting from the thank you fund.
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"The average payment per eligible rider will be £440, and over one quarter of Deliveroo's global rider fleet are expected to benefit from the scheme. The payments as part of the fund 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 globally are set to receive the largest payment of £10,000. The company expects that over 36,000 riders globally will each receive cash payments."
Deliveroo added, "This comes after Deliveroo announced a new £50 million 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.
"Deliveroo offers riders self-employed work because this gives riders the flexibility they tell us they value above all else, alongside security. For example, Deliveroo was amongst the first on-demand delivery companies to offer all riders free accident and injury insurance. During the pandemic, Deliveroo has supported riders, with financial support if they are unwell and free protective equipment. This investment comes ahead of a potential initial public offering. The company is expecting increased growth in 2021 and beyond. Online food delivery is a large, growing market with low online penetration, which the company believes presents a significant opportunity."
Deliveroo Founder And CEO Statement
Deliveroo founder and CEO Will Shu stated, "Riders are at the heart of our business, and we want to reward their efforts that have helped Deliveroo become what it is today. Their commitment to great service has enabled us to grow and offer the best food delivery experience in the world. But over the last year riders have helped us do so much more than just deliver great food, having supported businesses and enabled vulnerable people or those self-isolating to stay safe indoors throughout a global pandemic. We're pleased to be able to say thank you."
London Stock Market Listing
The above announcement follows last week's news that Deliveroo is planning a London stock market listing that could value the food delivery firm at approximately $7 billion and mark the biggest new share issue in the UK in three years.
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