Why Amazon-backed food delivery app Deliveroo flopped in its market debut

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Deliveroo shares plunged around 30% shortly after the London Stock Exchange opened on Wednesday, leaving some early backers disappointed.

. That rivalry has added to concerns about the ability of Deliveroo to grow its margins and eventually become profitable.

While London is pushing for this type of structure to be permitted on the premium segment of its stock exchange — which makes firms eligible for inclusion in benchmark indexes like the FTSE 100 — top investment firms have complained that this may risk watering down investor protections. "The narrative took a turn for the worst when multiple fund managers came out and said they wouldn't back the business due to concerns about working practices," Mould added. "This is likely to have spooked a lot of people who applied for shares in the IPO offer, meaning they are racing to dump them."

 

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UK does not favor gig economy

Because they listed in London?

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