|Bid||6,550.00 x N/A|
|Ask||6,554.00 x N/A|
|Day's range||6,520.00 - 6,728.00|
|52-week range||5,345.00 - 10,050.00|
|Beta (5Y monthly)||0.33|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg) -- The Spanish government is preparing strict labor law changes that could mean food-delivery platforms have to formally employ the couriers they rely on.Under rules expected to be proposed as soon as this week, companies such as Uber Eats, Deliveroo and Barcelona-based Glovo may be forced to offer wages, social security and unemployment benefits to 30,000 platform couriers working in the euro area’s fourth-largest economy, a labor ministry spokesperson said on Tuesday.It’s not been decided yet if the proposal would next head to congress for approval or be issued via an executive decree, meaning it could take several months to take effect if unopposed.“This regulation settles the legal debate of whether these workers are self-employed or not because it presumes labor dependency,” said Maria Luz Rodriguez, a Castilla-La Mancha University law professor and former deputy labor minister who reviewed a draft of the regulation.Spanish Labor Minister Yolanda Diaz said in December the new framework will codify Spain’s Supreme Court ruling last year that delivery startup Glovo had labor ties with its riders and was not merely an intermediary.The move will be seen by other countries as a test case for how lawmakers respond to the growing power of delivery apps and the responsibility they have for their workers. A fight has already reached California’s Supreme Court over the same issue and the European Commission is expected to publish its recommendations for EU-wide legislation later this month.Read more: Uber, Lyft Drivers Sue to Overturn California Ballot MeasureBusinesses reliant on not having to officially employ their couriers would be exposed during a period of intense market consolidation and interest from public markets. Glovo Chief Executive Officer Oscar Pierre said in January he intends to take his company public with an initial public offering sometime in the next three years; Deliveroo is also said to be planning an IPO.Companies like Uber say their businesses only function because its drivers, in Uber’s case, are free to choose to work when and where they please, and for whatever hours they need. Unions say the trade-off is that workers miss out on essential benefits such as health insurance or sick pay.Read more: Uber CEO Promises Gig Workers Better Rights Ahead of EU Laws“Delivery platforms are concerned about the future of the sector and the effect that forced employment could have on couriers, who have clearly expressed their rejection to it,” according to a statement from an association of platforms that includes Deliveroo, Glovo and Uber Eats.Booming DeliveriesCoronavirus lockdowns helped push the value of the food-delivery app industry to $45 billion last year as households relied more frequently on companies such as Delivery Hero and Grubhub, according to Morgan Stanley.But even before the pandemic, food delivery was big business in Spain. Orders jumped nearly 70% in 2019 from a year earlier, generating about 700 million euros ($848 million) in business for apps and restaurants, according to Adigital, an industry body that represents the main delivery platforms.Adigital also said in October that direct employment as expected to be proposed by the Spanish government threatens the delivery platforms’ business model and could leave as many as two-thirds of Spain’s food-delivery riders without a job.“If the legislation is approved these companies will have to endure higher costs for their sales because of salaries and social security contributions, which means their gross profit will be lower,” said Bloomberg Intelligence Analyst Diana Gomes.Among delivery apps, an exemption will be Just Eat Takeaway.com NV because the Amsterdam-based company uses its own staff, delivery companies or employees of restaurants to take food to customers. Patrik Bergareche, the company’s managing director in Spain, welcomed the regulation.“It has been very hard to compete when the rules are not the same for everyone,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Finnish startup Wolt has raised $530 million and is preparing for a potential 2022 stock market listing in its effort to rival the big players in a surging food delivery industry. The Series E round led by Iconiq Growth brings the total raised by Wolt to $856 million, the company said in a statement Monday. New backers joining the round included KKR & Co., Tiger Global Management, DST Global, Prosus NV and Coatue Management.Food delivery companies have been flooded with cash from investors betting the pandemic brought a permanent shift in consumer habits. U.K. startup Deliveroo raised $180 million this month, while in the U.S. DoorDash Inc. is valued at $61 billion after its public trading debut in December.Last year Wolt’s revenue tripled to a preliminary $345 million with a net loss of $45 million. It wants to complete preparations for an initial public offering this year so its shares can begin trading as early as the end of the first half of next year, said Miki Kuusi, Wolt’s chief executive and co-founder.“With this round, we’re able to take a much more long-term approach when it comes to thinking about investments and thinking about opportunities,” said Kuusi. “We’re going to continue to expand to new countries and new cities. We’re going to continue to expand in retail.”Wolt, which launched in 2015, is available in 23 countries and more than 120 cities. In the past year, it’s expanded services beyond restaurant takeaway to delivering groceries and retail goods like pharmaceuticals. Last May, as the pandemic battered economies across the world, the company raised 100 million euros ($122 million) in a round led by Goldman Sachs Growth Equity to prepare for an economic downturn. Expansion PlansKuusi said Wolt hasn’t even spent any of those funds, but is now building up a war chest and focusing on growth over profitability. He said the pandemic has accelerated the shift toward food delivery by six to eight months. The sector has been consolidating as players fight for market share. Last year, Just Eat Takeaway.com NV bought U.S.-based Grubhub Inc., while Uber Technologies Inc. bought Postmates Inc. “We definitely want to build this as a stand-alone company, that’s also one of the reasons why we raised this round,” Kuusi said.Wolt has focused on mid-tier markets, branching out from Helsinki to places like Stockholm and Tel Aviv. In 2020, the company entered Berlin and Tokyo.Returning investors in the latest funding round included 83North, Highland Europe, Goldman Sachs, EQT Ventures and Vintage Investment Partners. (Updates with more detail on funding round at end)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- DoorDash Inc.’s shares fell on Thursday after short-seller Citron Research described the food delivery company’s initial public offering as the “most ridiculous” of the year and said the stock is worth a fraction of its current price.Direct competitors, including Grubhub Inc., Uber Technologies Inc. and the recently acquired Postmates, are typically valued at three to six times sales, Citron said in a research report. DoorDash was trading at 19 times. However, accounting standards can vary from company to company.DoorDash should be worth $40 a share, Citron said, citing intense competition in the market for food delivery, lack of brand loyalty from customers and potential government regulation. That would represent a 74% decline from Thursday’s closing price.DoorDash has gained 51% since its debut last week. It fell 2.4% to $154.21 on Thursday. DoorDash declined to comment.The market debut of DoorDash was one of the most anticipated of 2020, already a banner year for startups going public. Back in June, private investors had valued the San Francisco-based company at $16 billion. When it opened for trading on Dec. 9, its fully diluted value topped $68 billion.DoorDash, the largest food delivery app in the U.S., faces strong competition, notably from Uber and Grubhub. Uber tried to acquire Grubhub this year, until Just Eat Takeaway.com NV intervened. Uber bought Postmates instead.Now DoorDash is eyeing delivery beyond just meals. The company started ferrying around convenience store items such as toilet paper this spring, which puts it in closer competition with giants such as Amazon.com Inc.(Updates with DoorDash’s closing share price.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.