Asset manager passes on Deliveroo over job insecurity

[LONDON] British asset management firm Aviva Investors said Wednesday it does not want to invest in Deliveroo's upcoming IPO due to the job insecurity of the meal delivery platform's riders.

Delivery platforms such as Deliveroo have come under mounting pressure over paying riders as freelancers rather than workers.

David Cumming, chief investment officer at Aviva, told the BBC's Today that the classification means that riders "don't necessarily get basic rights for minimum wage, sick leave or holidays".

He said that was one of the reasons that Aviva Investors, which manages £365 billion pounds (S$673.1 billion) in assets, won't be investing in Deliveroo.

The eight-year-old delivery platform hopes for a market capitalisation of between £7.6 billion and £8.8 billion when it lists its shares next month in London.

Mr Cumming said investors were taking social responsibilities "a lot more seriously".

A NEWSLETTER FOR YOU

Monday, 3.30 pm

Garage

The hottest news on all things startup and tech to kickstart your week.

Sign Up

He also noted the risk for investors that Deliveroo could be forced to reclassify its "self-employed" riders as workers.

That just happened for ride-hailing app Uber, whose drivers won a favourable ruling from Britain's Supreme Court.

Deliveroo's 100,000 riders deliver meals for 115,000 restaurants in 800 cities across the world.

The company, which aims to expand to delivering groceries in partnership with supermarkets, currently has Amazon as one of its leading investors.

AFP