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Deliveroo’s Stock Market Debut Is a Flop. Should You Still Buy?

The food-delivery app was valued at $10.5 billion. But its float was plagued by ethical concerns. Here’s what to consider before buying.

A takeaway food courier, working for Deliveroo, cycles past food outlets in London.

A takeaway food courier, working for Deliveroo, cycles past food outlets in London.

Photographer: Hollie Adams/Bloomberg
Updated on

The initial public offering of Deliveroo Holdings Plc is proving to be something of a disappointing delivery.

The food-delivery company’s shares tumbled as much as 31% within minutes of its debut in London on Wednesday, in contrast to the 86% surge that U.S. peer DoorDash Inc. posted in New York just a few months earlier. Airbnb Inc., another gig economy darling, had more than doubled on its first day of trading in December.