London (AFP)

The food delivery platform Deliveroo has chosen London for its long-awaited IPO, to the relief of the City, which has been subject to strong European competition since Brexit.

Deliveroo, known for its application for ordering dishes from restaurants, does not specify in its press release on Thursday the date of the operation.

But this choice, announced the day after the publication of a report commissioned by the government pleading for a relaxation of the City's stock market rules, brings a breath of fresh air to the British financial center in the face of European competitors energized by Brexit. .

London is indeed increasingly worried about the growth of places like Amsterdam, which is managing to attract young technology companies.

The Dutch city even supplanted London for the first time in European equity trading in January.

Deliveroo explains that it intends to opt for a system with two types of shares for three years, so that management retains control of the strategy while selling part of the capital.

The company observes that this measure is already in effect in the United States, Hong Kong and Europe.

This mechanism is not yet in place in London for the most sought-after market compartments but it is one of the main proposals of the report by the former European commissioner for financial services Jonathan Hill, which will be examined very quickly the Minister of Finance Rishi Sunak.

The latter, quoted in the press release, also described the announcement of the day as "fantastic" and confirms that he wants to launch "reforms to encourage even more high-growth and dynamic companies to list in the United Kingdom".

Several companies whose activity has soared with the pandemic have already gone public since the start of the year, such as the online greeting card group Moonpig and the famous shoe brand Dr Martens.

This decision by Deliveroo to choose the UK market is not entirely a surprise since the company was founded in London in 2013 by Will Shu, who is also managing director.

He was also at the time the first delivery man in the district of Chelsea, in west London.

- Supported by Amazon -

"Choosing London underlines Deliveroo's commitment to making the UK its long-term home," the statement said.

Deliveroo had announced in January that it was now valued at more than $ 7 billion after a new fundraising.

The company, headquartered in London, works with 115,000 restaurants in 800 cities around the world and has some 100,000 delivery people in 12 markets, recognizable by the towering green backpacks they wear while cycling the streets.

It employs 2,000 people around the world and has made a name for itself by delivering ready-made meals, but now intends to diversify and deliver food shopping via partnerships with supermarkets.

The restrictions put in place in the face of the pandemic have increased demand for its services.

Deliveroo does not give exact figures but indicates that 2020 has been a year of growth and has been profitable for more than six months.

The company even whetted Amazon's appetite.

Last August, the British competition authority gave the green light for the retail giant to acquire a 16% stake in Deliveroo.

Its unbridled growth over the years has, however, been accompanied by questions about its social practices.

The company has often been singled out for the precariousness of the employment contracts of delivery men, which has earned it a protest movement from its couriers in France and a court conviction in Spain.

In the United Kingdom, delivery men are awaiting the decision of the London Court of Appeal which must say whether they can benefit from a collective agreement in order to have better working conditions.

© 2021 AFP