Deliveroo to cut its staff in on $18 million equity
Written on the 17 May 2018 by Yasmin Bonnell
Staff at online food courier Deliveroo are reaping the fruits of their labour as the company today announced plans to make all employees shareholders in the company.
All 2,000 permanent staff currently employed in Deliveroo headquarters across 12 global locations, including Australia, will be given share options in the company worth a combined $18 million.
Delilveroo also plans to extend the offer to all future employees.
CEO and founder of Deliveroo Will Shu says it is "his way of thanking staff at the company."
"Employees at Deliveroo have made the company what it is today, and what sets us apart is our immense hunger to win, strong focus and care and a clear vision for the future," says Shu.
"Our phenomenal growth and success has been made possible thanks to the hard work, commitment and passion of the people who make this company what it is, and that deserves recognition which is why I want all employees to be owners in Deliveroo and to have a real stake in the company's future as we expand and grow."
While Deliveroo may be forking out for its permanent staff, the announcement comes in stark contrast to reports that the company is also currently entangled in legal action with unions and regulators around the world over its employment structure.
Some of Deliveroo's cycle couriers claim they should be considered as employees and receive minimum wage, describing the company's working practices as exploitive.
The riders are currently considered independent contractors meaning they aren't entitled to minimum rates of pay and unfair dismissal.
Last year, UberEATS was the defendant in a proposed class action lawsuit filed by a Florida driver who claimed the service unlawfully misclassifies its delivery drivers as independent contractors rather than employees.
UberEATS runs on a similar contracting model to Deliveroo.
Deliveroo is currently valued at over $2.6 billion. Earlier this year the company announced by the end of 2018 it will have created almost 600 new jobs in the tech space.
Author: Yasmin Bonnell