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Deliveroo to face more pressure as riders plan strike on Wednesday

Deliveroo Holdings PLC (LON:ROO) is to face another test on its employment issues as riders in the UK are expected to strike on Wednesday.

The Independent Workers’ Union of Great Britain (IWGB) said hundreds of its members will keep their bikes parked for fair pay, safety protections and basic workers’ rights.

READ: Deliveroo debut flops as investors are spooked by profit outlook on top of governance issues, analysts say

Socially distanced protests are also planned in London, York, Sheffield, Reading and Wolverhampton.

Supportive action is expected internationally in Australia, France, Netherlands, Ireland and Spain with local organisations, the union said.

“Deliveroo presents a false choice between flexibility and basic rights but the Uber ruling showed that here as well as abroad, workers can have both. That is the least they deserve and what the public expects for our frontline workers,” said Alex Marshall, president at IWGB and former bicycle courier.

The food delivery service saw its IPO flop last week amid criticism for its ESG standards.

There has been bad publicity after a governance scandal prompted big investors to declare publicly they wouldn’t subscribe for any shares, while its dual share structure, that will enable founder Will Shu to exercise more control over the business once it is listed, has also been a concern.

What’s more, the tech unicorn has remained loss-making despite a boom in takeaways when people were forced to stay home during lockdowns for the past year or so, so analysts are spooked by its profit outlook.

Shares were trading 1% lower at 278.99p on Tuesday before close, well below the 390p IPO price set just a week ago.

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