- Uber Eats rival Deliveroo is moving further along the IPO process, picking Goldman Sachs as lead bankers for a possible IPO, Sky News reported.
- A source confirmed to Business Insider in September that Deliveroo was exploring a float.
- Sky News reports an IPO would value Deliveroo at £2 billion ($2.6 billion).
- Deliveroo has said it went from near collapse prior to lockdown to profitability in May and June.
- Visit Business Insider’s homepage for more stories.
Amazon-backed food delivery firm Deliveroo has chosen Goldman Sachs to lead a possible IPO in 2021, Sky News reported.
The float is likely to value the company at more than £2 billion ($2.6 billion), per the report.
A source close to Deliveroo confirmed to Business Insider last month the startup was in early discussions about a float, though it’s possible the company will explore other options.
Deliveroo did not immediately respond to Business Insider’s request for comment.
This news comes two months after Amazon’s 16% stake in Deliveroo was cleared by the UK’s competition watchdog in August. Amazon had invested as part of a $575 million round in May 2019, but the cash was put on ice over competition concerns. Rival services, including Domino’s Pizza, lobbied against the deal, arguing that other delivery businesses would not be able to compete.
The deal was cleared in August 2020, but Amazon was hit with a £55,000 ($72,364) fine in September for causing “unnecessary delays to the CMA’s investigation” by submitting 189 documents after the initial deadline.
Deliveroo has consistently reported losses over the years as it tries to shore up market share against European market leader Just Eat, and Uber Eats. The Amazon investment and IPO chatter suggests a turnaround in its fortunes.
The company signaled that it has ballooned during the pandemic as demand for food deliveries soared during lockdown. In September, the app said it was hiring 15,000 new contractor delivery riders by the end of the year. The company has also stated it was profitable through May and June.