Deliveroo's Prospective IPO
Discussion
Venisonpie said:
This does happen sometimes. As a single occupant of my flat mistakes usually go in my favour!
I don't know if this is how they always do things but my bag simply had a 4-5 digit number on it rather than my name. Obviously there are going to be f
k ups if the food isn't labelled correctly to match the recipient. Mr Whippy said:
DonkeyApple said:
The only thing preventing house inflation is wage inflation though. If there was to be wage inflation then house prices would be released to inflate x times more.
All else being equal. But it probably won't be equal. If interest rates go up then it certainly won't matter how much salaries rise by, no one will be daring to go big on debt if interest rates are creeping the opposite way.Might happen, might not. Just saying
Either way rates rising would blow things like Deliveroo out of the water, and all the other speculative/hype driven stuff out there.
Any kind of significant rate rise would be cataclysmic for property prices though.
Oakey said:
Venisonpie said:
This does happen sometimes. As a single occupant of my flat mistakes usually go in my favour!
I don't know if this is how they always do things but my bag simply had a 4-5 digit number on it rather than my name. Obviously there are going to be fk ups if the food isn't labelled correctly to match the recipient. Some places I have collected from appear to be in utter chaos and I am not surprised they get orders wrong.
greggy50 said:
You can see on the rider app what food is meant to be delivered. However the issue is that most restaurants hand you a sealed up bag so they is no way of checking...
Some places I have collected from appear to be in utter chaos and I am not surprised they get orders wrong.
If I put in a refund request, does the driver get penalised? I'm not entirely convinced it was his fault but rather the place I ordered from. Some places I have collected from appear to be in utter chaos and I am not surprised they get orders wrong.
gibbon said:
And still going south, roughly 30% off as i type this.
The model is based on wage / employee responsibility arbitrage, and is too politically exposed imho.
Personally, I think they offer a valuable social service under their existing model as it's not full time nor skilled work but a viable source of easy infill work for people seeking to add flexible income to situations such as low income from primary work or while in education etc. The model is based on wage / employee responsibility arbitrage, and is too politically exposed imho.
I also don't see a particular upside for the client either as the current structure instantly filters out the weak, the incompetent and the idle.
I would take the view that the 'gig' economy is important to a level and that if aspects are to be targeted that maybe there are more beneficial users to be targeted. Maybe starting with multinationals that perpetually utilise agency workers or abuse zero hour contracts.
That aside, timing the IPO to coincide with the potential lifting of lockdown seemed to suggest an air of desperation to get it done ASAP before numbers got worse. Plus, opening at the bottom of the price range was hardly going to get anyone excited to jump in.
The question today is whether a 30% discount to the issue price is fair value, still over priced or represents a good entry point. That's probably still answered by the primary question as to how can the company get to profitability if it hasn't been able to do so over the last 12 months of having a cash rich client base with no competition?
DonkeyApple said:
The question today is whether a 30% discount to the issue price is fair value, still over priced or represents a good entry point. That's probably still answered by the primary question as to how can the company get to profitability if it hasn't been able to do so over the last 12 months of having a cash rich client base with no competition?
Maybe if they could get an exclusive delivery on all UK delivery of everything ready to eat food for 10 years.I think the idea any business can find profitability if you throw money at it for long enough is evaporating fast.
dirtbiker said:
Well, that's my allocation confirmation in: 64 shares at £3.90 each. Can't help but think this wasn't a great roll of the dice but we shall see!
Out of interest, what was your thought process behind buying shares? I stayed away given lack of profitability during lockdown, when they arguably should have been making lots of money given the lack of restaurants open, and the Uber gig economy issues but interested to know what reasons others had for investing.AyBee said:
Out of interest, what was your thought process behind buying shares? I stayed away given lack of profitability during lockdown, when they arguably should have been making lots of money given the lack of restaurants open, and the Uber gig economy issues but interested to know what reasons others had for investing.
my guess: Bob/Paul/Mike etc.. said they are buying some so I didn't bother doing my own research. I will buy and sell out for a nice tidy profit using my commission free app, it's easy money, right?AyBee said:
Out of interest, what was your thought process behind buying shares? I stayed away given lack of profitability during lockdown, when they arguably should have been making lots of money given the lack of restaurants open, and the Uber gig economy issues but interested to know what reasons others had for investing.
Because they got an email and felt special. AyBee said:
dirtbiker said:
Well, that's my allocation confirmation in: 64 shares at £3.90 each. Can't help but think this wasn't a great roll of the dice but we shall see!
Out of interest, what was your thought process behind buying shares? I stayed away given lack of profitability during lockdown, when they arguably should have been making lots of money given the lack of restaurants open, and the Uber gig economy issues but interested to know what reasons others had for investing.And yes, there's probably something in saying that part of it was getting an email and feeling special! £250 isn't exactly pocket money but won't be the end of the world if they don't do brilliantly either.
DonkeyApple said:
Personally, I think they offer a valuable social service under their existing model as it's not full time nor skilled work but a viable source of easy infill work for people seeking to add flexible income to situations such as low income from primary work or while in education etc.
I also don't see a particular upside for the client either as the current structure instantly filters out the weak, the incompetent and the idle.
I would take the view that the 'gig' economy is important to a level and that if aspects are to be targeted that maybe there are more beneficial users to be targeted. Maybe starting with multinationals that perpetually utilise agency workers or abuse zero hour contracts.
I agree with all of that, but that doesn't make the model not essentially a responsibility / wage arb, with a large political risk.I also don't see a particular upside for the client either as the current structure instantly filters out the weak, the incompetent and the idle.
I would take the view that the 'gig' economy is important to a level and that if aspects are to be targeted that maybe there are more beneficial users to be targeted. Maybe starting with multinationals that perpetually utilise agency workers or abuse zero hour contracts.
DonkeyApple said:
Personally, I think they offer a valuable social service under their existing model as it's not full time nor skilled work but a viable source of easy infill work for people seeking to add flexible income to situations such as low income from primary work or while in education etc.
I also don't see a particular upside for the client either as the current structure instantly filters out the weak, the incompetent and the idle.
I would take the view that the 'gig' economy is important to a level and that if aspects are to be targeted that maybe there are more beneficial users to be targeted. Maybe starting with multinationals that perpetually utilise agency workers or abuse zero hour contracts.
That aside, timing the IPO to coincide with the potential lifting of lockdown seemed to suggest an air of desperation to get it done ASAP before numbers got worse. Plus, opening at the bottom of the price range was hardly going to get anyone excited to jump in.
The question today is whether a 30% discount to the issue price is fair value, still over priced or represents a good entry point. That's probably still answered by the primary question as to how can the company get to profitability if it hasn't been able to do so over the last 12 months of having a cash rich client base with no competition?
They do have competition though, perhaps that's part of the problem. Uber eats and Just Eat aren't going anywhere and Uber Eats appear to be chucking a lot of marketing money at growing their market share. I also don't see a particular upside for the client either as the current structure instantly filters out the weak, the incompetent and the idle.
I would take the view that the 'gig' economy is important to a level and that if aspects are to be targeted that maybe there are more beneficial users to be targeted. Maybe starting with multinationals that perpetually utilise agency workers or abuse zero hour contracts.
That aside, timing the IPO to coincide with the potential lifting of lockdown seemed to suggest an air of desperation to get it done ASAP before numbers got worse. Plus, opening at the bottom of the price range was hardly going to get anyone excited to jump in.
The question today is whether a 30% discount to the issue price is fair value, still over priced or represents a good entry point. That's probably still answered by the primary question as to how can the company get to profitability if it hasn't been able to do so over the last 12 months of having a cash rich client base with no competition?
I'm glad I held back now, even if I did feel special to have been personally invited by deliveroo to take part 😀
If I don’t understand Deliveroo’s proposition given that they still don’t make a decent profit on 30% markup, I understand ubereats even less...
Prices are always cheaper on ubereats than deliveroo. Both for like for like menu items, but also for delivery cost.
And it’s very rare that I order on ubereats without a 25%/30%/50% off code, there’s always something in my inbox.
Deliveroo send me £2.50 once every month or two.
Ubereats must be eating massive losses to try and outsaturate deliveroo. I’d be very concerned with that if I l was an uber shareholder.
Prices are always cheaper on ubereats than deliveroo. Both for like for like menu items, but also for delivery cost.
And it’s very rare that I order on ubereats without a 25%/30%/50% off code, there’s always something in my inbox.
Deliveroo send me £2.50 once every month or two.
Ubereats must be eating massive losses to try and outsaturate deliveroo. I’d be very concerned with that if I l was an uber shareholder.
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