Food delivery firm Deliveroo said it has selected London as the venue for its expected future listing, in what is expected to be a big boost for the city.
Deliveroo, who are expected to float this year, said its commitment to London is underscored by its role in supporting 47,000 jobs in the UK since launching in 2013.
The news follows a review by Lord Hill on London listings that recommended an overhaul of the rules to make it easier for the world’s most successful innovative firms to list and grow in the UK.
Deliveroo plans are expected to include a time-limited dual-class share structure closely aligned with the findings of the listing review to ensure “stable execution” of its strategy and “enable continued focus on ambitious long-term growth plans.”
Deliveroo had a positive year after more customers turned to the app for food deliveries during lockdown periods.
“2020 was a year of growth for Deliveroo in which it was profitable for over 6 months at the operating level over the course of the year,” the company said.
“Given the significant growth potential in the online food delivery sector, the company is considering a potential listing in London to help deliver its ambitious growth plans to become the definitive online food company,” added the tech giant.
London's selection for its listing is a significant boost to the capital, with there being concerns that companies would look to the US due to regulatory worries.
“It's fantastic that Deliveroo has taken this decision to list on the London Stock Exchange. Deliveroo has created thousands of jobs and is a true British tech success story. It is great news that the next stage of their growth will be on the public markets in the U.K.,” said Rishi Sunak, the Chancellor of the Exchequer.
