Will Shu, the co-founder and CEO of Deliveroo, recently made headlines by selling nearly £15 million worth of shares in the food delivery company.
This move comes shortly after Deliveroo reported its first-ever profit.
Between September 12 and September 16, Shu sold 9.4 million shares, totaling £14.8 million, according to a recent stock market disclosure.
Personal Investments and Company Holdings
The sale was reportedly to cover personal property investments.
Shu, who started the business over a decade ago, still retains a significant stake in Deliveroo, holding on to 95.8 million shares and an additional 15 million restricted stock units.
Notably, Shu does not participate in the company’s annual bonuses or long-term share award schemes.
Deliveroo’s Financial Turnaround
In August, Deliveroo announced a profit of £1.3 million for the first half of the year, a dramatic turnaround from a loss of £82.9 million during the same period last year.
The company also initiated a £150 million share buyback program.
This financial rebound is partly attributed to a 2% increase in total orders, reaching 147 million.
Positive Consumer Trends
Deliveroo observed encouraging trends in consumer behavior, with food price rises slowing down.
The gross transaction value per order rose to £25, up from £24.20 the previous year, driven by higher item prices set by restaurants and shops.
In the UK and Ireland, spending increased by 7% at constant currency, bolstered by frequent customer orders.
Expansion and Market Presence
The company benefited from adding new restaurants to its platform, including Pizza Pilgrims and Wingstop, as well as expanding its grocery options with brands like Ann Summers and B&Q.
Deliveroo’s growth story began in 2013 when Shu and his childhood friend Greg Orlowski started by delivering pizzas to friends.
The company now operates in ten markets with 140,000 delivery riders and 180,000 restaurants.
Recovery from Past Challenges
Once dubbed ‘Flopperoo’ due to a troubled stock market debut in 2021, Deliveroo has recently experienced a revival.
The pandemic boosted business when restaurants closed, leading to increased online orders.
However, the company faced challenges as it invested heavily in marketing and technology, and sales slowed as people returned to pubs and restaurants.
Future Prospects and Takeover Speculations
In June, Deliveroo was mentioned as a potential takeover target, with reports indicating interest from San Francisco-based rival DoorDash.
Negotiations, which began in May, reportedly ended due to disagreements over price.
Analysts believe this could be the beginning of more takeover talks, given the strong financial and strategic appeal of Deliveroo.
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