Deliveroo IPO – Worth a punt?

kinger101

Alexland said:

If anything I find comfort in the failure of this IPO that the market has not lost all sense.

You're not keen on the idea of tepid food being delivered by a sweaty guy in lycra?

Thrugelmir

RyanHello said:

Mr Sunak hailed Deliveroo as a "true British tech success story", saying: "We are looking at reforms to encourage even more high growth, dynamic businesses to list in the UK.

"So it's fantastic that Deliveroo has taken this decision to list on the London Stock Exchange."
- Rishi Sunak, March 4th 2021

Oops!

Just because the IPO was overpriced and business model currently doesn't accord with ESG credentials. Doesn't make the company "bad" per se.  

Thrugelmir

DoctorStrange said:

Am I missing something,  but with the new off-payroll rules (IR35) hitting the private sector next week,  isn't Deliveroo sitting on a massive risk of  HMRC calling for ENIC, PAYE and NIC for its riders, regardless of whether the Supreme Court ruling on Uber provides employment rights?

There's no way these "self employed" riders are "Outside IR35" IMO and the liability shifts to Deliveroo next week.

Amazon is fighting Unionisation in Alabama. If the door gets kicked in. Then Amazon (Bezos) may finally get his comeuppance. Bezos apparently has become personally involved. Amazon is a major stake holder in Deliveroo. Also sits on the UK's CBI taxation committee. You do have to question for whose benefit some corporate entities are actually working for. 

Nanpy

csgohan4 said:

rather invest in Abnb than this. Least the former has space to grow

There's plenty going to be heading Airbnb's way in the next few years. Running unlicensed hotels and tying up housing stock being the least of it. Those will be legislated for. 

Nanpy

Malthusian said:

underground99 said:

Yes, a family member is going through a house sale at the moment. The selling agent will maybe make a percent or so.  You might want to see if you can play hardball and get the buyer to stump up another £1k, but the agent is only going to make an extra tenner if he gets you that £1k and would much rather get the deal done without risking the sale, so he's probably minded to say 'let's just get it done' at the current price rather than getting you the best possible result achievable.

Taking the current price is the best possible outcome if the probable result of trying to get another £1,000 by playing silly buggers is that the buyer pulls out, leaving you with the 2nd best offer. Nobody wants to buy a house from someone who will probably cause them months of grief and try to gazump them, unless there's no other option.

There was something about this in the original Freakonomics book. Basically, maximising the value of the sale hurts the estate agent because they're investing time at a fixed cost for increasingly small returns.
And... these days, unless you're talking mega-properties, houses sell themselves and naturally find their price ceiling quite quickly. The estate agent doesn't have a lot to do. 

Eco_Miser

Nanpy said:

Malthusian said:

underground99 said:

Yes, a family member is going through a house sale at the moment. The selling agent will maybe make a percent or so.  You might want to see if you can play hardball and get the buyer to stump up another £1k, but the agent is only going to make an extra tenner if he gets you that £1k and would much rather get the deal done without risking the sale, so he's probably minded to say 'let's just get it done' at the current price rather than getting you the best possible result achievable.

Taking the current price is the best possible outcome if the probable result of trying to get another £1,000 by playing silly buggers is that the buyer pulls out, leaving you with the 2nd best offer. Nobody wants to buy a house from someone who will probably cause them months of grief and try to gazump them, unless there's no other option.

There was something about this in the original Freakonomics book. Basically, maximising the value of the sale hurts the estate agent because they're investing time at a fixed cost for increasingly small returns.
And... these days, unless you're talking mega-properties, houses sell themselves and naturally find their price ceiling quite quickly. The estate agent doesn't have a lot to do. 

A real life example of incentivising an estate agent: https://www.finumus.com/blog/how-to-sell-a-house

jamei305

Will any punters admit to cutting their loses, or are you all still hoping it'll be a Facebook?

Is the potential upside vs downside from 233p really greater than with some other investment you could transfer your money to?

bostonerimus

Anything unsolicited should be ignored.

Ash_Pole

jamei305 said:

Will any punters admit to cutting their loses, or are you all still hoping it'll be a Facebook?

Is the potential upside vs downside from 233p really greater than with some other investment you could transfer your money to?

Home delivery of everything is a growing market and Deliveroo is ideally placed to benefit, they can easily diversify into items other than takeaways. I'm holding. I just wish I had invested at the float price  

Thrugelmir

Nanpy said:

Malthusian said:

underground99 said:

Yes, a family member is going through a house sale at the moment. The selling agent will maybe make a percent or so.  You might want to see if you can play hardball and get the buyer to stump up another £1k, but the agent is only going to make an extra tenner if he gets you that £1k and would much rather get the deal done without risking the sale, so he's probably minded to say 'let's just get it done' at the current price rather than getting you the best possible result achievable.

Taking the current price is the best possible outcome if the probable result of trying to get another £1,000 by playing silly buggers is that the buyer pulls out, leaving you with the 2nd best offer. Nobody wants to buy a house from someone who will probably cause them months of grief and try to gazump them, unless there's no other option.

 The estate agent doesn't have a lot to do. 

Time and running an office costs far more than people assume though.