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100p. One of the worst IPO company.
Is it worth 20p a share. This is a failing company - it makes loss after loss - destroying shareholder value. It's a glorified city bike schemes with some food thrown on top!
All of the ingredients are there for us heading into a recession, but although discretionary spending will reduce, it will never halt completely!
"Even if Just Eat, Deliveroo & Uber fail it will not be because the market has vaporised overnight." Really? It's a strange world where it's cheaper to order a takeaway meal than cook one yourself but that won't last long! Retail sales are plunging and discretionary spending could halt completely. It might even become fashionable NOT to spend money. Is it possible for an Economy to disappear up its own rectum?
Roo has an extremely competitive delivery offering in an extremely competitive market. There is also a low cost of entry at a really basic level - for instance Granville in Open All Hours! But, every grocery delivery he fulfils is one that Roo does not, so he does represent low-level competition. Hence the attack by big well-capitalised companies, attempting to unify a highly fragmented market.
The regulatory regime across multiple markets is a series of tightropes, but where there are rules there are companies that will test them out/ or break them, and sail close to the wind. All that happens with a judgement like this is that Roo and its competitors will change tac, but it is fundamental to their business model that they minimise costs & they will keep hammering away at the rules regardless.
Roo has proven it's agility in markets & if there is a judgement like this, I trust them to appeal it, react quickly, close their operations in that market if necessary.Essentially any judgement like this also impacts the business models of the competition as well. Ultimately do people want a variety of products delivered to them seconds after they order them - the answer is yes!
Do countries such as France want young fast-growing companies to succeed - of course they do! French consumers are not unusual in that they will also want a food order in their hand seconds after ordering! Will a company that answers all delivery questions at the least cost, and within the Law succeed - it is very likely! The ultra high-speed delivery market is here to stay. Even if Just Eat, Deliveroo & Uber fail it will not be because the market has vaporised overnight.
you missed out the important bit ....
"The company said the decision related to a previous version of its operating model and has no bearing on how it now conducts business."
"Deliveroo PLC (LSE:ROO) was fined alongside two of its former executives by a French court for abusing the freelance status of the food delivery platform's workers.
The ex-managers were given a suspended one-year prison term and fined €30,000 (US$32,380) each and Deliveroo was fined €375,000 (US$405,000) and told to publish the ruling on its French home page for one month, according to Reuters.
Deliveroo said it is appealing the decision. "
https://www.proactiveinvestors.co.uk/companies/news/980073/deliveroo-guilty-of-abusing-workers-rights-french-court-rules-980073.html
I added at 107p with a 112p average ..... with petrol so expensive making short trips in the car and finding somewhere to park becomes less attractive .... home delivery becomes a real alternative
Over time I reckon the idea is to try and push more and more people who live in urban cities to give serious thought to giving up having a car where it is possible and just hire one when they need it or even hire a van by the hour etc .... reduce traffic and use delivery options instead ..... reduce city pollution and traffic and turn more urban streets into play and communal areas with benches, trees, running tracks, etc... has been successful in cities like Berlin,Barcelona etc where within the EU there are pollution targets to be met
Errrrrmmm.......
https://www.business-live.co.uk/enterprise/deliveroo-sales-rise-customers-grow-23664985
RNS OUT
Buy the dip....sell the Tip .....
markets are selling into any short term rises at the moment ..too much uncertainty
Should see this back over 124 today....
PC - you are right out at end of every month.
getafgrip
It is a standard declaration ..nothing more..nothing less.... same here as anywhere else
The RNS today is interesting because Deliveroo's Investor Relations Department has felt it necessary to clarify that the Class A Shares under the FCA's Disclosure Guidance and Transparency Rules, carry one vote each & any holdings of certain % levels of shares have to be disclosed based on the A shares. It sounds like this might be a formal clarification related to an interested 3rd party.
recovery , big big buys
So come back in 2 years folks…
What was going on after hours on Friday?
Losses are inevitable....given the desire to expand market share and invest in the business..... especially in such a competitive sector.....you cant build a brand without the investment needed in it....
2022 is definitely going to be more challenging if things head towards a recession .....but...a lot of the investment is there in place now, ready for any 2023 upturn in the economies in general.... the last thing they need though is to lose customers they have just worked hard to attract
Took the hit and sold my disastrous ipo punt. Like the brand but can’t see how they will reach breakeven and beyond with all the inflationary pressures.
There may be some scope for a quick few % here in the coming weeks, not sure what will happen longer term though :)
Sold out on this small spike. Had a punt at below 110p so just a little profit but I agree this is dire. No wonder the instits refused to buy in the Ipo. Those who bought are about 60 per cent down and with such losses and a slowdown on the way.....they say.... I do not see any reason to buy here. I cannot even think what the price could be in the next year or so but a 90 per cent loss on the launch price would not surprise as these losses pile up.
"Takeaway delivery specialist Deliveroo has revealed that its losses ballooned last year as it pumped more cash into its rapid growth plans.
The company posted a £298 million pre-tax loss for the year, compared with a £213 million loss in 2020, but stressed that it has a long-term plan for profitability.
It told investors on Thursday that it aimed to reach breakeven in core earnings in the next two years.
The group said its heavy losses for the past year were driven by significant investment in marketing and technology improvements as it sought to keep momentum after being boosted by pandemic restrictions.
Deliveroo reported a 67% jump in transaction value to £6.6 billion in 2021, driven by a 73% increase in order numbers.
Nevertheless, the firm predicted a slowdown in transactions over the current year, as it expects a rise of between 15% and 25% across its platform.
Revenues for last year increased by 57% to £1.8 billion, driven by the increase in sales transactions.
The group said it benefited from further strength in its UK business, where orders increased by 72%."
https://uk.finance.yahoo.com/news/deliveroo-says-reach-core-earnings-071928253.html