Deliveroo is to hand out £10m of shares to 2,000 employees – but not the thousands of couriers who deliver takeaway food for the company.
All permanent staff, present and future, at all seniority levels will receive shares but couriers will miss out because Deliveroo classes them as self-employed contractors rather than employees.
Will Shu, the chief executive and founder of Deliveroo, said the move was “his way of thanking staff at the company; a way of making sure this truly is our company in every way”.
He said: “Employees at Deliveroo have made the company what it is today and what sets us apart is our immense hunger to win, strong focus and care, and a clear vision for the future.
“Our phenomenal growth and success has been made possible thanks to the hard work, commitment and passion of the people who make this company what it is, and that deserves recognition, which is why I want all employees to be owners in Deliveroo and to have a real stake in the company’s future as we expand and grow.”
The share handout is seen as a first step towards a potential flotation for the company, which is valued at more than $2bn after a fundraising round last year. However, Sky News, which first revealed the share handout, said a stock market listing, in New York or London, was unlikely for at least 18 months.
The float would crystalise a huge fortune for Shu, a former investment banker, and potentially mean big handouts for those staff who receive shares.
Shu, a former investment banker who set up Deliveroo from his London flat in 2013, increased his salary to £124,999 in 2016 when he handed out close to £4.5m in share bonuses to directors and other head office staff, despite a 300%-plus widening in losses, according to accounts filed at Companies House.
The latest share handout comes as Deliveroo faces legal action over treatment of its workers. About 20 couriers, supported by the law firm Leigh Day, are seeking compensation for not receiving holiday pay as they say they are employees and not, as the company argues, self-employed contractors.
The Independent Workers Union of Great Britain (IWGB), which is attempting to raise £50,000 to continue its separate legal action over workers’ treatment at Deliveroo, said the share handout was a “stunt”.
“This announcement is just one more example of Deliveroo’s self-serving publicity stunts. They pretend to be a decent employer while compelling thousands of riders to work without any rights and trying to intimidate their union out of action with the threat of legal costs,” Jason Moyer-Lee, the general secretary of the IWGB, said.
