Deliveroo’s CEO, Will Shu, has recently sold 9.4 million shares valued at nearly £15 million. This strategic move comes after the company recorded its first profit since going public.
Between September 12 and September 16, Will Shu divested 9.4 million shares, accruing £14.8 million. He indicated that the funds were directed towards personal property investments. Despite this substantial sale, Shu still holds 95.8 million shares in the company. It is worth noting that he does not engage in the company’s annual bonuses or long-term share award schemes.
This development follows Deliveroo’s significant turnaround, achieving its first profit since its IPO. Concurrently, the company has announced a £150 million share buyback. Over the past year, Deliveroo’s share price has surged nearly 30%, reflecting growing investor confidence.
For the six months ending in June, Deliveroo reported a profit of £1.3 million, a stark contrast to the £82.9 million loss it endured in the same period the previous year. The company also witnessed a 2% increase in order volume, with a total of 147 million orders. Additionally, its gross transaction value rose by 5% to £3.69 billion, spurred by easing food prices and a stabilising cost of living.
Founded in London in 2013, Deliveroo began with Shu, an American-born ex-banker, personally delivering pizzas. Now, it operates in ten markets with 140,000 delivery riders and partnerships with approximately 180,000 restaurants. Nevertheless, its journey as a public company has not been without challenges. Upon its high-profile IPO in April 2021, valued at £7.6 billion, the company’s share price plummeted by 30% on its first trading day due to concerns about its business model and the legal status of its riders.
Deliveroo experienced a boom during the pandemic, capitalising on the closure of hospitality venues. However, the subsequent cost of living crisis led to a decline in orders. To diversify, the company has ventured into non-food products, including a recent partnership to deliver home improvement goods in London within 25 minutes.
Despite Shu’s recent share sale, Deliveroo’s stock remained stable, closing slightly higher by ½p at 157¼p. This stability suggests investors are confident in the company’s strategic direction and financial health.
As Deliveroo continues to evolve, the market will closely observe its expansion plans and sustained profitability amidst competition.