Deliveroo adds JP Morgan to recipe for £2.5bn London flotation

·2-min read

Deliveroo has added another Wall Street titan to the advisory line-up preparing to take the food delivery app public in London next year.

Sky News understands that Deliveroo has appointed JP Morgan to work alongside Goldman Sachs on a flotation that could be unveiled within months.

City insiders say the company, which was founded by Will Shu, its chief executive, just seven years ago, is drawing up plans to list as early as the first quarter of 2021.

A flotation would see the launch of public trading for shares in one of Britain's best-known technology 'unicorns' - companies worth at least $1bn.

Deliveroo is likely to be a beneficiary of the further month-long lockdown in England as consumers turn to takeaway food services, but had been forced to adapt its model in different countries amid rapidly changing restrictions imposed by governments throughout the COVID-19 crisis.

The company said this week that it would donate hundreds of thousands of free meals to the NHS, repeating an initiative it launched earlier in the year.

Deliveroo had previously signalled that it would add 15,000 riders to its fleet by the end of year, and has launched a number of additional services such as on-demand convenience and grocery partnerships with Waitrose, Morrisons and the Co-op.

Its preparations for going public contrast with the company's frustration as it awaited approval earlier this year from competition regulators for a major investment from Amazon.

The deal was eventually cleared after Deliveroo warned that its survival prospects were in doubt as a standalone company.

Deliveroo now has nearly 45,000 restaurants on its platform in the UK, and it has recently started allowing customers to reward riders after their delivery has arrived.

It has also announced the launch of a service called Brought to you by Deliveroo, which will allow customers to order food from restaurants' websites, but with the tech company fulfilling the orders' delivery.

During the summer, Deliveroo ended a nine-month search for a permanent finance chief by appointing Adam Miller, a former executive at the travel group Expedia, to the role - a move which stoked speculation about its IPO preparations.

Its brighter prospects come amid a torrid period for many of its restaurant partners, with hospitality chiefs warning that hundreds of thousands of jobs will disappear from the sector without further state support.

Deliveroo declined to comment.