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EIGHT investment firms have said that they will reject the chance to buy shares in Deliveroo over concerns regarding workers’ rights and the “gig economy” business model, it was revealed today.
Legal & General Investment Management, Aberdeen Standard, Aviva Investors, BMO Global, CCLA, Hargreaves Lansdown, M&G, and Rathbones said that they do not plan to invest in the food delivery operator.
Deliveroo said earlier this week that it is aiming towards a valuation of between £7.6 billion and £8.8bn on the London Stock Exchange.
But the fund managers said that they were put off the opportunity by factors including the “gig economy” structure, Deliveroo’s recent losses and the fact that founder Will Shu’s votes will be worth 20 times more per share than those of other investors.
On Thursday, Deliveroo faced further criticism over its practices as a study by the Bureau of Investigative Journalism and the Independent Workers’ Union of Great Britain (IWGB) found that as many as a third of the workers received less than the £8.72 minimum hourly wage for those aged 25 and over.
Deliveroo has said that couriers are paid more than £10 an hour on average, but analysis of 300 couriers’ invoices found more than half of the workers were paid less than that.
It found that one courier in Yorkshire was paid the equivalent of £2 an hour for more than 180 hours of work.
Alex Marshall, IWGB president and former courier, said: “We are pleased that eight investment firms and counting will not be investing in Deliveroo, all citing concerns over workers’ rights.
“We encourage any other potential investors to use their influence to steer Deliveroo towards a more humane business model.
“The UK government called Deliveroo a ‘British success story’. The real success story is that union pressure has made a huge company like Deliveroo untouchable by exposing their unethical business practices.
“Deliveroo is now the most protested [against] app-based platform in the world. But to complete the success story, we need better pay, rights and safety.”
Deliveroo couriers in Britain will be striking on April 7.
Mr Marshall added: “If people are looking for a good place to put their money, they should donate to our strike fund and invest in justice.”
Deliveroo said it has “received very significant demand from institutions across the globe.”
To help support the couriers standing up for basic rights, visit: ridersroovolt.com/DONATE.
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