Shares in Deliveroo slumped as much as 9.6 per cent this morning following reports of the European Commission’s proposed labour rule changes that would influence rider remuneration.
European rivals Just Eat and Delivery Hero also fell around 6 per cent on fears that the strict new rules could hamper their profitability.
It comes just days after Deliveroo stock sank 7.6 per cent when founder Will Shu sold off £47m of his company shares to pay a tax bill that arose from vested shares.
Adam Miller, the food delivery company’s chief financial officer, also shed close to £2m Class A stock, due to the conditions associated that required the pair to sell off shares to settle tax liabilities.
Despite bumper sales during lockdown, Deliveroo has faced a turbulent year after its worse-than-expected London IPO.
While the company raised £1.5bn for the listing, its highly anticipated March debut day saw the company’s value drop by over 25 per cent in a single day.
More to follow.