News for hackers. Stuff that matters.

A comment on Deliveroo shares drop 30% on UK IPO listing. Parent comment

Re:Deliveroo shares drop 30% on UK IPO listing by mytailorisrich on Wednesday March 31, 2021 @09:28AM (#26647000)
> They take around 30% of restaurant revenue

I see many people complain about the commission they charge to restaurants, but how much restaurants save by not having to serve customers on premises?

After all, if restaurants sign up to work with Deliveroo they must have done their homework and concluded that they were still in the black.

[ Parent | on HN ]
Re:Deliveroo shares drop 30% on UK IPO listing by maxehmookau on Wednesday March 31, 2021 @09:57AM (#26647351)
> After all, if restaurants sign up to work with Deliveroo they must have done their homework and concluded that they were still in the black.

Or a VC backed firm with zero profits was created with a sole purpose of securing enough market share that any restaurant that doesn't hand over their 30% is immediately squeezed out of the market.

I'm not saying it's illegal, but it's crappy and the stock market has apparently had its say. At least for now.

[ Parent | on HN ]