Deliveroo's Prospective IPO

[Gio G]

Got an email overnight, as I am sure many have, asking if I would want to register for IPO participation.. Anyone fancy a nimble on this?

Will they still be as successful once lock-down is over?

G

[Benbay001]

Gio G said:

Got an email overnight, as I am sure many have, asking if I would want to register for IPO participation.. Anyone fancy a nimble on this?

Will they still be as successful once lock-down is over?

G

If they havnt been successful during lockdown, i doubt they will be afterwards.

Plus, what do they really have vs justeat, ubereats etc?

Having said that, it will probably 2x on the day of the IPO like every new tech stock.

[Bam89]

Worked there for a short period and have got a few shares, didn't stick around long enough to get my full entitlement vested but can imagine there will be a lot of people who'll never need to work again as a result.

Hopefully they go sky high on IPO!

[supersport]

Assuming it's the same everywhere, head into town at the moment and it's full of Roos.

I understand they have been profitable in 2020.

[valiant]

Will Uber’s employment case have an impact on these ‘gig economy’ jobs? Increased employment costs could hurt.

[Bam89]

valiant said:

Will Uber’s employment case have an impact on these ‘gig economy’ jobs? Increased employment costs could hurt.

At the very least, its got to be a consideration for any prospective investor, which is often enough

[hyphen]

Gio G said:

Will they still be as successful once lock-down is over?

G

No, ofcourse not.

A lot of food places are also putting up "20% discount for collection" posters on their windows, so they aren't so keen on paying the fees.

After there investment into Deliveroo in 2019, I was surprised Amazon didn't buy it.

Edited by hyphen on Tuesday 16th March 13:09

[Bam89]

Yep, assuming their fees have stayed pretty stable its usually around the 30% mark for the smaller independent places, so a 20% discount still leaves them better off

[red_slr]

£50m in shares on initial offering? Seems like a drop in the ocean to me and fairly pointless unless I have the wrong end of the stick.

[Petrus1983]

Any links?

[rdjohn]

Following todays Uber announcement, Deliveroo must be another target for moving their workers from the gig economy to the real world.

[vulture1]

I just don't see the point of deliveroo or just eat as an employee

[hyphen]

vulture1 said:

I just don't see the point of deliveroo or just eat as an employee

They pay you money.

[NickCQ]

supersport said:

I understand they have been profitable in 2020.

They lost £224 mm in FY 2020 on £1.2 bn in net revenue.
8% gross margin with addbacks, excluding share-based compensation and so on.

https://www.ft.com/content/2c99cc71-54ab-46a6-bfa2...

[okgo]

They dropped the ball not getting that exclusive on McDonalds.

[valiant]

NickCQ said:

supersport said:

I understand they have been profitable in 2020.

They lost £224 mm in FY 2020 on £1.2 bn in net revenue.
8% gross margin with addbacks, excluding share-based compensation and so on.

https://www.ft.com/content/2c99cc71-54ab-46a6-bfa2...

You’d have thought that 2020 would be a profitable year as everyone is/was stuck at home.

Would falling revenues be a concern now that the world is slowly opening up again?

[NickCQ]

valiant said:

You’d have thought that 2020 would be a profitable year as everyone is/was stuck at home.

If your business is not profitable on a unit economic basis you can't make it up in volume (i.e. selling a dollar for 90 cents).
That said, it's possible that the net loss figure includes a lot of non-cash charges from giving senior staff stock options pre-IPO. Or they might have invested a lot in marketing that would all go through the P&L in year 1 but show benefits in future years.

[hyphen]

okgo said:

They dropped the ball not getting that exclusive on McDonalds.

More than that - not getting exclusives on independent places. Getting an exclusive with the likes of McDonalds or one they do have, Nando's means negotiating very low fees with them. Whereas getting a exclusive deal with a indie would mean reducing the margins less.

Instead the majority of places have their own website + 3 or 4 platforms, and the 'hardcore' takeaway customer will have signed up to JE/Uber and Deliveroo. And each one will be emailing the customer with 10%/20%/£10 off offers, so there is no loyalty.

And as the driver delivering changes all the time, no relationship being built there from the lonely customer who visits the local newsagents every day to talk.

There is also an unexpected discrepancy where the same menu from the same place is cheaper on Just Eat than Deliveroo, indicating the food vendors are being charged more by Deliveroo and passing on the cost to customers.

[okgo]

I don't use anything other than deliveroo because I pay for their premium service which means I get free delivery, which pays for itself over a short period of time.

McDonalds is the only notable client deliveroo don't have, it is the ONLY reason I ever use Uber Eats, and I'm sure many people are the same, Uber eats is ste in comparison, but they will deliver me a mcdonalds breakfast because clearly walking .4 of a mile is too far for me when hungover. Deliveroo actually really missed a trick in not getting that.

No idea on Just Eat, I think that's a provincial thing, nobody I know uses that.

[hyphen]

okgo said:

No idea on Just Eat, I think that's a provincial thing, nobody I know uses that.

You may want to google them... they are huge and they ended the McDonalds exclusive deal with Uber by also signing McDonalds up. They often partner with other logistic firms; in your area, those Stuart guys on their bikes.

When you have half an hour spare, see if the prices for your regular eateries are the same on JE. JE has a upmarket feel to their app/website, waitrose with waitrose prices. Just Eat has a no frills Tesco appearence to theirs, no posh photo's like Deliveroo.

Edited by hyphen on Wednesday 17th March 11:56