Deliveroo shares plunge on market debut - business live

Rolling coverage of the latest economic and financial news

• Latest: Deliveroo shares tumble after IPO
• Shares floated at 390p, slumped to below 300p
• Analyst: Horrible start to trading
• Concerns about workers' rights and dual-class share structure blamed
• Top UK fund refuses to invest in Deliveroo amid City concern over riders' rights

Earlier:

• UK GDP revised up in Q3 and Q4 2020
• But 2020 still worst year since Great Frost of 1709

11.12am BST

The sight of investors shunning Deliveroo should force the company to rethink how it treats its workers, says UK unions chief Frances O'Grady.

Deliveroo has no excuse for the way it treats its workers.

It's a damning indictment of the company's exploitative business model that so many major funds have publicly shunned this float.

Related: UK's biggest fund manager expected to shun Deliveroo float

10.18am BST

The nicknames are pouring in.

As if Deliveroops' wasn't bad enough, AJ Bell investment director Russ Mould says:

Deliveroo has gone from hero to zero as the much-hyped stock market debut falls flat on its face. It had better get used to the nickname Flopperoo'.

Initially there was a lot of fanfare about the Amazon-backed company making its shares available to the public, including the ability for customers to buy stock in the IPO offer.

Sadly, the narrative took a turn for the worst when multiple fund managers came out and said they wouldn't back the business due to concerns about working practices.

There are multiple ways of looking at the business. Bulls will say the pandemic has made online food ordering part of everyday life and this trend will remain intact once life returns to normal. Bears will say it is a highly competitive space, Deliveroo doesn't make any money and that takeaway ordering volumes will ease once the pandemic ends.

Fast growth jam tomorrow shares are no longer in fashion as investors now prefer lowly-valued stocks that offer jam today. That meant Deliveroo was already fighting a headwind as soon as it hit the stock market."