New York listing not on the cards, Deliveroo boss says as it nears profitability

The boss of Deliveroo has said he is not considering a US listing despite a spate of firms ditching the London stock market for New York or a private equity takeover in search of higher valuations.

Nasdaq-listed delivery rivals like DoorDash and Grab have attracted valuations at higher multiples than London-listed Deliveroo, but CEO Will Shu said the prospect of a higher share price overseas was not on his mind.

“I don’t focus on that too much,” he told the Standard.

“We’re a UK headquartered company but the UK is also our biggest market and we want to be in a market where analysts and investors are able to use our product.”

Last week, several major listed companies unveiled plans to depart the London Stock Exchange in deals worth a combined £10.2 billion as the crisis facing the exchange shows signs of deepening.

Wealth management firm Mattioli Woods on Friday became the latest firm to quit the public markets after it recommended a £432 million private equity offer, joining the proposed departures of Spirent Communications, which had been listed for decades, British bank Virgin Money, packaging firm DS Smith and logistics firm Wincanton.

Other firms such as office business IWG have begun exploring options to move their primary listing to New York, while some blue-chips including Direct Line and Currys have rejected private equity takeovers.

The moves add further pressure on the government and exchange operator LSEG to show it can stem the continued hemorrhaging of London-listed companies going private or switching to foreign stock exchanges in search of higher valuations.

It comes as Deliveroo looks on course to hit its first full year profit in 2024 after losses in the previous year contracted significantly.

The Cannon Street-based business posted a small loss of £32 million in 2023, well down on the £294 million loss the previous year, as revenues nudged up to top £2 billion for the first time.

But Shu downplayed the prospects of a regular dividend for shareholders in the near-term. He told the Standard: “We’ve thought about the best use of capital and our balance sheet will be under review. But we have no immediate plans for the future.”

Its shares fell 2.5% to 111p.

In December the firm sought to expand its customer offering with the launch of “Deliveroo Shopping”, allowing app users to order items like toys, DIY tools, electronics and beauty products. Shu said dog treats had been the most-ordered product so far, followed by soy wax candles.