Deliveroo reveals that it lost $ 309 million before the London Stock Exchange in 2020

LONDON —Deliveroo, the Amazon-backed food delivery service, revealed that it recorded a loss of £ 223.7 million ($ 309 million) last year in plans to float on the London Stock Exchange published on Monday.

The losses of Deliveroo are significantly less than in 2019 when the London head office recorded a loss of £ 317 million. While the eight-year-old company is still in the red, its revenue has climbed to £ 4.1 billion in 2020, compared to £ 2.5 billion in 2019.

A date for Deliveroo’s first public offering has not been officially announced, but it will likely be in the next few weeks. Goldman Sachs and JP Morgan Cazenove have been appointed as the joint global coordinators.

According to reports, Deliveroo could value about $ 10 billion on the stock exchange listing. It recently raised $ 180 million in new funding, giving it a $ 7 billion valuation. In addition to Amazon, Deliveroo is also supported by Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures and Accel.

Deliveroo CEO Will Shu said Monday in the submission of the company “Expected Intention To Float” that he “never wanted to be a founder or a CEO” and that he “did not read TechCrunch”.

“I’m not one of the Silicon Valley types with a million ideas,” the former Morgan Stanley analyst said in a letter. “I had one idea. One idea was born out of personal frustration. An idea I was fanatical about: I wanted to get great food at amazing London restaurants.”

Deliveroo nearly failed in 2020 amid a competitive edge over Amazon’s minority investment, to operating profitability by the end of the year, thanks to the rise in demand for coronavirus online takeaway services.

Today, Deliveroo claims to have more than 115,000 food retailers and 100,000 restaurants and millions of consumers in 12 countries. The submission shows that six million orders are placed on Deliveroo every month.

But according to Shu, Deliveroo is “still going on”.

“Our ambitions have increased as we truly understand and execute the opportunity we present in online food,” he said.

The submission contains details about Deliveroo’s two – class share structure, in which Shu will receive 20 votes per share, while all other shareholders will be entitled to only one vote per share.

This structure, which will give Shu improved voting rights and more control over the direction of the company, will apply for three years.

This comes after a government-backed review called for reform of the London listing regime, including the ability to list two-tier shares banned by Google and Facebook.

Deliveroo plans to discuss £ 50m worth of shares for UK customers.

“We are proud to enable our customers to participate in a future float and have the opportunity to buy shares,” Shu said. “Your loyalty and use has helped build our business. I want you to have a chance to share in our future.”

Deliveroo has said it will use IPO revenue to improve its app, expand its “Editions” kitchens and delve deeper into on-demand deliveries, currently offered by supermarkets such as Waitrose, Co-op, Londis, Aldi and Carrefour.

Deliveroo also plans to give £ 16 million to its riders through a new “Thank You Fund”, with a handful of loyal riders paying out £ 10,000. Others will receive £ 1000, £ 500, £ 200 or £ 100, depending on how many orders they have delivered. The average payout is £ 440.

Over the years, some of the managers of the firm have complained about how much they are paid by Deliveroo and they strive to be classified as workers instead of contractors, making them eligible for things like sick pay and holidays.

Amazon supports Deliveroo in May 2019 and is leading a $ 575 million financing round in exchange for a 16% stake in the business.

In July 2019, the British antitrust regulator, the Competition and Markets Authority, argued that Deliveroo’s cash injection from Amazon could reduce competition by removing the possibility that the e-commerce giant would re-enter the market, while Deliveroo ‘could stop otherwise to be. “It froze the investment for almost a year while it was being investigated.

To the disappointment of competitors Just Eat and Domino’s Pizza, the deal was approved by the CMA in August after Deliveroo said it could go without the capital.

– Additional reporting by CNBC’s Ryan Browne.