“DoorDash and Pizza Arbitrage,” about the time he realized that DoorDash was selling pizzas from his friend’s restaurant for $16 while paying the restaurant $24 per pizza, and proceeded to order dozens of pizzas from the restaurant while pocketing the $8 difference, stands as a classic of the genre.)

But it’s hard to fault these investors for wanting their companies to turn a profit. And, at a broader level, it’s probably good to find more efficient uses for capital than giving discounts to affluent urbanites.

Back in 2018, I wrote that the entire economy was starting to resemble MoviePass, the subscription service whose irresistible, deeply unprofitable offer of daily movie tickets for a flat $9.95 subscription fee paved the way for its decline. Companies like MoviePass, I thought, were trying to defy the laws of gravity with business models that assumed that if they achieved enormous scale, they’d be able to flip a switch and start making money at some point down the line. (This philosophy, which was more or less invented by Amazon, is now known in tech circles as “blitzscaling.”)

There is still plenty of irrationality in the market, and some start-ups still burn huge piles of money in search of growth. But as these companies mature, they seem to be discovering the benefits of financial discipline. Uber lost only $108 million in the first quarter of 2021 — a change partly attributable to the sale of its autonomous driving unit, and a vast improvement, believe it or not, over the same quarter last year, when it lost $3 billion. Both Uber and Lyft have pledged to become profitable on an adjusted basis this year. Lime, Bird’s main electric scooter competitor, turned its first quarterly profit last year, and Bird — which recently filed to go public through a SPAC at a $2.3 billion valuation — has projected better economics in the years ahead.

Profits are good for investors, of course. And while it’s painful to pay subsidy-free prices for our extravagances, there’s also a certain justice to it. Hiring a private driver to shuttle you across Los Angeles during rush hour should cost more than $16, if everyone in that transaction is being fairly compensated. Getting someone to clean your house, do your laundry or deliver your dinner should be a luxury, if there’s no exploitation involved. The fact that some high-end services are no longer easily affordable by the merely semi-affluent may seem like a worrying development, but maybe it’s a sign of progress.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Goldbelly Raises $100 Million During Pandemic-Driven Boom

When the pandemic started last spring, Di Fara, one of New York City’s storied pizza joints, had the same question as countless restaurants nationwide: How would it make any money when customers weren’t allowed through its doors?

One answer quickly emerged: Ship frozen (and slightly smaller) versions of its classic pies across the country in partnership with the eight-year-old e-commerce platform Goldbelly.

Sales picked up so much that Di Fara converted its two-year-old second location, in a food hall, to essentially be a Goldbelly production line. Margaret Mieles, the daughter of Di Fara’s founder, who had already struck an agreement with Goldbelly in December 2019, credits the platform with helping the pizzeria avoid layoffs.

It isn’t just iconic pizzerias that have relied on Goldbelly to survive lockdown orders. More than 400 of the 850 restaurants that sell food on Goldbelly’s platform have joined since the start of the pandemic, an influx that the company says has more than quadrupled sales over the past 12 months.

Parkway Bakery & Tavern in New Orleans, recalled dodging calls from Goldbelly representatives pitching the platform for more than a year, before relenting in September 2019. Even then, he said in an interview, he would ship perhaps 15 boxes in any given week.

Then pandemic lockdowns devastated the restaurant industry. More than 110,000 restaurants nationwide had permanently closed by December, the National Restaurant Association estimated, and a survey it conducted found that sales in October had dropped from a year earlier for 87 percent of the full-service survivors.

Mr. Kennedy shut Parkway in March 2020. When he restarted the business several months later, he began by shipping its signature po’ boy sandwiches through Goldbelly. At the height of the pandemic, Parkway shipped around 200 orders a week, doing roughly the same business that it had done prepandemic — only now its customers included people far from New Orleans.

“We got customers from Alaska calling us, asking us what to do for leftovers,” Mr. Kennedy said. “These are customers we would never have had.”

Some restaurants seeking alternate sources of revenue during the pandemic turned to local delivery services; total orders on DoorDash’s platform in 2020, for instance, jumped roughly threefold from the previous year.

But like Mr. Kennedy, many also turned to Goldbelly to ship their pork shoulder dinners, bagel brunches and huckleberry cheesecakes to locations as far away as Hawaii. (Goldbelly doesn’t consider services like DoorDash to be rivals, since its food generally takes at least a day to arrive and requires cooking).

grilled eggplant parm — something that previously would never have been served at the Michelin-starred restaurant — in part because it would do well on Goldbelly.

Spectrum Equity, the investment firm that is leading the new financing round, reached out to Goldbelly last year as it saw how the company was able to connect local restaurants with a national audience.

“The pandemic has really accelerated trends that were already happening,” said Pete Jensen, a managing director at Spectrum, adding that Goldbelly’s growth has been “extraordinary.”

Mr. Ariel said the fresh capital — raised at an undisclosed valuation — would help Goldbelly expand further, including by hiring more staff and augmenting new offerings like livestreamed cooking classes with celebrity chefs, including Marcus Samuelsson and Daniel Boulud. The company is looking to have more than 1,000 restaurants on its platform by year-end.

The goal, Mr. Ariel said, is to make Goldbelly the biggest platform on which restaurants make money outside of in-person dining, while expanding their brands nationally.

Streetbird is on the Goldbelly platform.

But others, like Ms. Mieles of Di Fara, said they remained committed to the service. “I think, honestly, Goldbelly is here to stay,” she said.

View Source

Mystery Boxes With Mail-Order Pets Set Off a Backlash in China

HONG KONG — The mystery pet boxes are listed on e-commerce platforms in China as a bargain, priced at little more than a few dollars, and they often contain cuddly animals ready to be mailed straight to your doorstep.

The recipients of the pet “blind boxes.” typically don’t know exactly what’s inside — other than the fact that it’s a dog, a cat, a hamster or an unhatched turtle egg. Though the unauthorized transport of live animals across the country is illegal, that hasn’t stopped vendors from openly holding cheap sales and promising fast deliveries. The practice has become increasingly popular.

But many of the animals have ended up dead or suffering from infections or organ damage during the winding journey through China’s postal system after they have been dispatched by breeders.

dead animals among 13 packages at a depot in eastern China, headed to a village in Jiangsu Province, set off a furor. It was the second instance this month, after about 160 crates containing puppies and kittens were found by animal rescuers in a Chengdu shipping facility.

Video footage of the earlier episode posted by the rescuers of the malnourished animals piled into plastic-wrapped crates circulated widely online, casting harsh scrutiny on the industry and prompting internet users to denounce the maltreatment of the animals.

“We could hear them crying in discomfort,” the Chengdu Love Home Animal Rescue Center wrote on Weibo, the Chinese social media platform, last week after its volunteers worked to feed and revive the animals.

Last September, an animal rescue group said that 5,000 dogs, cats and rabbits were found abandoned in perforated cardboard boxes at a shipping warehouse in Henan Province. As volunteers rushed to rescue the surviving animals, they found that about 4,000 had already died.

Blind boxes promise the thrill of the unexpected and the chance to own a coveted collectible or particular breed of dog at a lower-than-market price. In the past few years, vendors on China’s e-commerce platforms have lured consumers with photos of figurines, comic books, clothes or makeup products. One of the largest manufacturers of blind-box figurines, Pop Mart, entered the Hong Kong stock market in 2020.

China banned the live transport of dogs and cats across provincial boundaries in 2011 without a health certificate signed by a government-approved vet at the animal’s place of origin.

Peter Li, a China policy specialist at the Humane Society International and an associate professor of East Asian politics at the University of Houston-Downtown, said that the mystery pet box phenomenon was not only a “gross inhumanity,” but also a public health risk.

“The fact that China’s surveillance system has failed to capture the illegal trade is because it looks like a normal business operation,” Dr. Li said in an email.

“Those involved in the mystery box ‘business’ are encouraging irresponsible pet ownership, irresponsible consumption habit and encouraging disrespectful behaviors toward nonhuman animals,” he said. “Shipping companies and delivery services have the duty not to handle shipment that is ethically questionable, legally liable and socially toxic.”

He added that while animal-protection groups in mainland China have been encouraging the adoption of rescue animals, the mystery-box model is a supply-driven trade, driven by breeders with too many animals who seek to lure younger customers with the promise of expensive breeds of pets at low prices.

Even among people who have bought mystery boxes of other items, but not pets, there was a recoiling at the idea of mailing animals.

Zhang Luyuan, a 33-year-old staff worker at a tourist attraction in the Chinese city of Fuzhou in Fujian Province, once indulged in blind-box purchases. “Those who buy blind boxes have a bit of wishful thinking and want to get what they want with less money,” he said by phone. But after spending $60 on a mystery box for what he thought were high-quality sport jerseys, he found subpar products inside.

“Since buying that blind box, I learned that meat pies won’t fall from the sky, and I have been buying the products the honest way,” he said, using an idiom similar to “there’s no free lunch.”

He said the delivery of living animals in mystery packages was tantamount to abuse, a lucrative way for breeders perhaps to get rid of those that are ill and unlikely to survive.

ZTO Express, the company behind both botched shipments of animals this month, could not be reached for comment. In a statement on May 4, it apologized for failing to enforce safety laws and said that it needed to “uphold correct life values.”

The company added that it would close the Chengdu delivery facility where the 160 crates were found, would cooperate with the police investigation and would enhance safety training. In another statement on Wednesday, ZTO said it had sought to regulate and reverse the delivery of live animals since May 5. The company added that the animals found in Suzhou were already being returned to their place of origin, but had been stranded at a shipment centers.

The police and postal authorities in Chengdu and Suzhou also could not immediately be reached for comment.

The backlash this month has prompted many breeders to remove their listings from popular e-commerce sites such as Pinduoduo and Taobao.

Li Ruoshui, a 19-year-old university student in Shanghai, said he had bought more than a dozen blind boxes of Harry Potter and anime figurines as gifts over the past two years.

“My sister really enjoys the surprise when opening the box, because you don’t know what you’re going to get,” he said in a phone interview. “I think that’s how blind boxes stand out from other products.”

But he said that the concept of blind boxes should never be extended to living animals, and questioned whether the customers who buy pet boxes actually want to take care of the animals inside or are doing it for the novelty.

“I will never buy pet boxes,” he said. “I like small animals, and transporting them in blind boxes is very unsafe and increases the chances of their abandonment.”

Liu Yi contributed research from Beijing.

View Source

‘A Land Grab’ for a Piece of New York’s Marijuana Business

It has been only five weeks since New York State legalized the use of recreational marijuana. The board that will oversee the rollout has yet to be appointed, let alone rules set for how licenses will be issued to cannabis businesses. The sale of legal pot in the state is still a year away. And, of course, marijuana remains illegal on the federal level.

But already the rush is on to get a piece of what could be a $4.2 billion industry in the Empire State.

Brokers are talking to landlords about leasing storefronts to dispensaries. Representatives of out-of-state cannabis businesses are flying in to scope out properties. And suppliers of medical marijuana are expanding in the hope that they will be able to branch into recreational sales.

Agricultural land upstate is now marketed as being “in the green zone” for hemp farming or the construction of grow houses for cultivating marijuana.

may soon change.

heated discussions among local officials, some of whom “can’t fathom the idea of the devil’s lettuce businesses within their borders,” said Neil M. Willner, co-chair of the cannabis practice at Royer Cooper Cohen Braunfeld, a New York City law firm.

But the pandemic may have softened the stance of some officials, given the jobs and tax revenue that cannabis businesses can generate after the protracted health crisis has decimated both. The state estimates that the new industry could bring it $350 million in annual revenue and create 30,000 to 60,000 jobs.

Meanwhile, funding is pouring into the industry in anticipation of possible federal legalization, some lenders will now do business with cannabis companies, and real estate investment trusts have sprung up to serve marijuana interests.

an increase in purchasing over leasing in the past year.

“Going forward, when banking becomes more normalized for us — when we have the opportunity to get real estate debt in the way traditional industries do — we would have a preference for owning real estate,” said Barrington Rutherford, senior vice president of real estate and community integration at Cresco Labs, a cannabis company with operations in several states.

law firms, consultants, insurance agents and accountants specializes in helping clients jump through regulatory hoops. A listing service that is the industry’s answer to Zillow offers a wide range of real estate, from $65,000 lots in an industrial park in Lexington, Okla., to a $109 million, 45,000-square-foot grow house in San Bernardino, Calif.

The brick-and-mortar side of cannabis real estate has also evolved.

As cultivation of marijuana has become more sophisticated, grow houses have expanded — they can be 150,000 square feet or more, with high ceilings, heavy-duty ventilation, lighting and security. Processing typically occurs in separate buildings with high-tech machinery.

dispensaries are increasingly stylish, offering a rarefied retail experience. Accomplished architecture and design firms have gotten into the act. There are even companies that specialize in kitting out dispensaries and other cannabis real estate.

And as marijuana gains broader public acceptance — and some celebrity glamour, with Jay-Z’s Monogram and Seth Rogen’s Houseplant — stores are opening in prominent locations near traditional retailers.

“We’re next to Starbucks in downtown Chicago,” Mr. Rutherford said. “In Philadelphia, the store we’re opening is a half block from Shake Shack and down the block from Macy’s.”

“We are building a portfolio of sites that would be enviable by any retail organization,” he added.

The New York State law also provides for licenses for “consumption sites,” and this is expected to give rise to clublike lounges and cannabis cafes. The prospect of such convivial settings has led to predictions that New York City may become the next Amsterdam.

These new storefront uses would appear to be a godsend for New York’s retail real estate market, where availability has increased and rents have fallen.

“A few years ago, when the market was stronger, it was harder to find landlords willing to play ball,” said Benjamin S. Birnbaum, a broker at the real estate services firm Newmark. “What’s changed, because of the pandemic, is that every landlord is willing to talk about it.”

in a recent CNBC interview.

Regardless of size, opening a dispensary can be complicated and expensive, in part because states have required that would-be retailers have control of a site, through a lease or option to lease, before they can apply for a license. But the number of licenses in some states is limited, with no guarantee a business will get one.

In Oregon, some applicants had to wait so long — one or two years, said Andrew DeWeese, a lawyer with Green Light Law Group in Portland — they eventually gave up and essentially sold their place in line.

“It’s a Catch-22,” said Kristin Jordan, a cannabis lawyer in New York City. “You want to secure real estate, but you don’t want to jump the gun.”

Still, the prospect of operating in New York, a state with more than 19 million residents and a major tourist destination, is so enticing that cannabis companies are getting their ducks in row.

Companies that have medical dispensaries, which have been operating since 2016, are in an enviable position because it is believed they will have an advantage in securing additional licenses.

Cresco Labs has four medical dispensaries in New York, including one in the Williamsburg neighborhood of Brooklyn. It is unclear whether the state will allow recreational marijuana to be sold at those locations, but Mr. Rutherford is hedging his bets, adding parking and in some cases expanding by leasing a storefront next door to an existing space.

“We are making sure those stores are ready for the future adult use market,” he said.

View Source

Amazon’s profits soar 220 percent as pandemic drives shopping online.

With the pandemic shifting sales online and consumers flush with stimulus checks, Amazon on Thursday reported $108.5 billion in sales in the first three months of the year, up 44 percent from a year earlier. It also posted $8.1 billion in profit, an increase of 220 percent from the same period last year.

The first-quarter results surpassed Wall Street’s expectations. Shares were up as much as 5 percent in aftermarket trading.

The most profitable parts of Amazon’s retail business boomed. Revenue from merchants listing items on its website and using its warehouses was up 64 percent, to $23.7 billion. Its “other” business segment, which is largely its lucrative advertising business, increased 77 percent, to almost $7 billion.

Amazon previously disclosed that 200 million people pay for Prime memberships, and subscription revenue for that service and others reached almost $7.6 billion in the quarter. In addition to paying Amazon $119 a year or $12.99 a month for free shipping and other perks, households with Prime memberships typically spend $3,000 a year on Amazon, more than twice what households without the membership spend, according to Morgan Stanley.

step down as chief executive later this year and transition into the role of executive chairman.

Amazon’s total work force dipped slightly between December and the end of March, falling by 27,000 to 1,271,000 employees globally. That was still 51 percent more workers than the same period last year. On Wednesday, Amazon announced it would increase pay for half a million workers and was hiring “tens of thousands” more.

View Source

Amazon to raise pay for 500,000 workers.

Amazon will increase pay between 50 cents and $3 an hour for half a million workers in its warehouses, delivery network and other fulfillment teams, the company said on Wednesday.

The action follows scrutiny of Amazon from lawmakers and an unsuccessful unionization push that ended this month at its large warehouse in Alabama. In 2018, Amazon raised its minimum pay to $15 an hour. In recent months, it has publicly campaigned to raise the federal minimum to $15, too.

Amazon has been on a hiring spree during the pandemic. As more customers ordered items online, the company added 400,000 employees in the United States last year. Its total work force stands at almost 1.3 million people.

Amazon typically revaluates wages each fall, before the holiday shopping season. But this year, it moved those changes earlier, said Darcie Henry, an Amazon vice president of people experience and technology. The new wages will roll out from mid-May through early June. Ms. Henry said the company was hiring for “tens of thousands” of open positions.

Jeff Bezos, Amazon’s founder and chief executive, recently told shareholders in his annual letter that he recognized the company needed “a better vision for how we create value for employees — a vision for their success.” He said that Amazon had always striven to be “Earth’s Most Customer-Centric Company,” and that now he wanted it to be “Earth’s Best Employer and Earth’s Safest Place to Work” as well.

Amazon is scheduled to report quarterly earnings on Thursday.

View Source

China opens an inquiry into Meituan, a takeout-delivery titan.

China’s fast-moving campaign to rein in its internet giants is continuing apace with an antitrust investigation into Meituan, a leading food-delivery app.

The investigation, which the country’s market regulator announced with a terse, one-line statement on Monday, focuses on reports that the company blocked restaurants and other merchants on its platform from selling on rival food-delivery sites.

Earlier this month, the regulator imposed a record $2.8 billion fine on the e-commerce titan Alibaba for exclusivity requirements of this sort. In a statement on Chinese social media, Meituan said that it would cooperate with the authorities and that its operations were continuing as usual.

Meituan is a powerhouse in China. It made more than 27 million food-delivery transactions a day last year and reported around $18 billion in revenue, making it larger than Uber by sales. Meituan’s main rival in takeout delivery in China is Ele.me, a service owned by Alibaba.

Alibaba has been an early major target in China’s efforts to curb what officials describe as unfair competitive practices in the internet industry. But Beijing has made clear that it will be keeping a much closer eye on all of the sector’s biggest and richest companies.

Meituan was one of 34 Chinese internet firms that were summoned to meet with the antitrust authority this month. The following day, the regulator began publishing on its website statements from the companies, Meituan included, in which they vowed to obey laws and regulations.

View Source

At Last, Aid for Senior Nutrition That Offers More Than Crumbs

Long before the coronavirus hit, nutrition programs that served the nation’s older adults struggled to keep up with a growing demand. Often, they could not.

In Charlotte, N.C., and nine surrounding counties, for example, the waiting list for Meals on Wheels averaged about 1,200 people. But Linda Miller, director of the Centralina Area Agency on Aging, which coordinates the program, always assumed the actual need was higher.

She knew some clients skipped meals because they couldn’t travel to a senior center for a hot lunch every weekday; some divided a single home-delivered meal to serve as both lunch and dinner.

Some never applied for help. “Just like with food stamps, which are underused,” Ms. Miller said, “people are embarrassed: ‘I worked hard all my life; I don’t want charity.’”

5.4 million older recipients.

For years, advocates for older adults have lobbied Congress for more significant federal help. Although the Older Americans Act has enjoyed bipartisan support, small annual upticks in appropriations left 5,000 local organizations constantly lagging in their ability to feed seniors.

From 2001 to 2019, funding for the Older Americans Act rose an average of 1.1 percent annually — a 22 percent increase over almost two decades, according to an analysis by the AARP Public Policy Institute. But adjusted for inflation, the funding for nutrition services actually fell 8 percent. State and local matching funds, foundation grants and private donations helped keep kitchens open and drivers delivering, but many programs still could not bridge their budget gaps.

food insecure,” meaning they had limited or uncertain access to adequate food.

And that shortfall was before the pandemic. Once programs hastily closed congregant settings last spring, a Meals on Wheels America survey found that nearly 80 percent of the programs reported that new requests for home-delivered meals had at least doubled; waiting lists grew by 26 percent.

Along with money, the Covid relief legislation gave these local programs needed flexibility. Normally, to qualify for Meals on Wheels, homebound clients must require assistance with activities of daily living. The emergency appropriations allowed administrators to serve less frail seniors who were following stay-at-home orders, and to transfer money freely from congregant centers to home delivery.

Even so, the increased caseloads, with people who had never applied before seeking meals, left some administrators facing dire decisions.

In Northern Arizona, about 800 clients were receiving home-delivered meals in February 2020. By June, that number had ballooned to 1,265, including new applicants as well as those who had previously eaten at the program’s 18 now-shuttered senior centers. Clients were receiving 14 meals each week.

By summer, despite federal relief funds, “I was out of money,” Ms. Beals-Luedtka said. She faced the grim task of telling 342 seniors, who had been added to the rolls for three emergency months, that she had to remove them. “People were crying on the phone,” she recalled. “I literally had a man say he was going to commit suicide.” (She reinstated him.) Even those who remained started receiving five meals a week instead of 14.

diminish loneliness and help keep seniors out of expensive nursing homes. They also may help reduce falls, although those findings were based on a small sample and did not achieve statistical significance.

Interestingly, Dr. Thomas’s research found daily meal deliveries had greater effects than weekly or twice-monthly drop-offs of frozen meals, a practice many local organizations have adopted to save money.

Frail or forgetful clients may have trouble storing, preparing and remembering to eat frozen meals. But the primary reason daily deliveries pay off, her study shows, is the regular chats with drivers.

“They build relationships with their clients,” Dr. Thomas said. “They might come back later to fix a rickety handrail. If they’re worried about a client’s health, they let the program know. The drivers are often the only people they see all day, so these relationships are very important.”

a prepandemic evaluation found.

So while program administrators relish a rare opportunity to expand their reach, they worry that if Congress doesn’t sustain this higher level of appropriations, the relief money will be spent and waiting lists will reappear.

“There’s going to be a cliff,” Ms. Beals-Luedtka said. “What’s going to happen next time? I don’t want to have to call people and say, ‘We’re done with you now.’ These are our grandparents.”

View Source

Amazon’s Clashes With Labor: Days of Conflict and Control

In recent weeks, a heated discussion about whether Amazon’s workers must urinate in bottles because they have no time to go to the bathroom — a level of control that few modern corporations would dare exercise — has raged on Twitter.

“Amazon is reorganizing the very nature of retail work — something that traditionally is physically undemanding and has a large amount of downtime — into something more akin to a factory, which never lets up,” said Spencer Cox, a former Amazon worker who is writing his Ph.D. thesis at the University of Minnesota about how the company is transforming labor. “For Amazon, this isn’t about money. This is about control of workers’ bodies and every possible moment of their time.”

Amazon did not have a comment for this story.

Signs that Amazon is facing more pushback against its control have started to pile up. In February, Lovenia Scott, a former warehouse worker for the company in Vacaville, Calif., accused Amazon in a lawsuit of having such an “immense volume of work to be completed” that she and her colleagues did not get any breaks. Ms. Scott is seeking class-action status. Amazon did not respond to a request for comment on the suit.

Last month, the California Labor Commissioner said 718 delivery drivers who worked for Green Messengers, a Southern California contractor for Amazon, were owed $5 million in wages that never made it to their wallets. The drivers were paid for 10-hour days, the labor commissioner said, but the volume of packages was so great that they often had to work 11 or more hours and through breaks.

Amazon said it no longer worked with Green Messengers and would appeal the decision. Green Messengers could not be reached for comment.

An Amazon warehouse in the Canadian province of Ontario showed rapid spread of Covid-19 in March. “Our investigation determined a closure was required to break the chain of transmission,” said Dr. Lawrence Loh, the regional medical officer. “We provided our recommendation to Amazon.” The company, he said, “did not answer.” The health officials ordered the workers to self-isolate, effectively shutting the facility for two weeks. Amazon did not respond to a request for comment on the situation.

And five U.S. senators wrote a letter to the company last month demanding more information about why it was equipping its delivery vans with surveillance cameras that constantly monitor the driver. The technology, the senators wrote, “raises important privacy and worker oversight questions Amazon must answer.”

View Source

Deliveroo Heads to I.P.O. as Challenges Pile Up

LONDON — The initial public offering for Deliveroo, the Amazon-backed food delivery service, is set to be Britain’s biggest this year, giving the company an initial market value of 7.6 billion pounds, or $10.4 billion. But the listing, whose announcement was quickly heralded as a post-Brexit victory for London’s financial sector, has since been rocked by accusations of poor pay for Deliveroo riders.

Major investors, meanwhile, said they would sit out the offering.

Trading is set to begin on Wednesday, with shares priced at £3.90 a share, the bottom of the target range that originally was as high as £4.60. Earlier this week the company said that it wanted to price the shares “responsibly” and that it had received “very significant demand” from investors.

Deliveroo, which is based in London and was founded in 2013, is now in 12 countries and has over 100,000 riders, recognizable on the streets by their teal jackets and food bags. Last year, Amazon became its biggest shareholder with a 16 percent stake, which will drop to 11.5 percent after the I.P.O. The Deliveroo listing is the latest test for gig economy companies, whose business model is increasingly under threat in Europe as legal challenges mount.

Two weeks ago, Uber reclassified more than 70,000 drivers in Britain as workers who will receive a minimum wage, vacation pay and access to a pension plan, after a Supreme Court ruling. Analysts said the move could set a precedent for other companies and increase costs. In mainland Europe, where Deliveroo also operates, the European Commission is reviewing the legal status of gig economy workers.

a joint investigation by the Independent Workers’ Union of Great Britain and the Bureau of Investigative Journalism was published based on invoices of hundreds of Deliveroo riders. It found that a third of the riders made less than £8.72 an hour, the national minimum wage for people over 25.

Deliveroo dismissed the report, calling the union a “fringe organization” that didn’t represent a significant number of Deliveroo riders. The company said that riders were paid for each delivery and earn “£13 per hour on average at our busiest times.” In Britain, Deliveroo has 50,000 riders.

“Our way of working is designed around what riders tell us matters to them most — flexibility,” Deliveroo said in response to the investigation.

DoorDash, the American food delivery company, went public in December to much fanfare. Its share price jumped 86 percent on the first day of trading, closing at $189.51. On Monday, DoorDash stock closed at $129.98.

Some of Britain’s largest asset managers, including Legal & General Investment Management, which manages more than £1.2 trillion in assets, have said they will sit out the I.P.O. amid concerns about shareholder voting rights and worker rights. Like many start-up companies, Deliveroo will have two classes of shares, which for as long as three years will give William Shu, a co-founder and the chief executive, 57 percent of the voting rights.

The offering has prompted a debate over whether companies with dual-class shares should be allowed to join the “premium listings” section of the London Stock Exchange, which would permit them to be part of indexes like the FTSE 100, forcing many index funds to buy them.

While the New York Stock Exchange and other major exchanges allow this kind of privilege to dual-class companies (consider Google or Facebook), the London exchange does not — although some would like it to.

Legal & General said it was urging Britain’s financial regulator to preserve the rule keeping dual-class companies out of the premium listings.

This would protect smaller investors “against potential poor management behavior, that could lead to value destruction and avoidable investor loss,” the asset manager said. This year has also brought “increasing signs of countries and governments reviewing the gig economy status.”

But a recent review of Britain’s listings rules that has been embraced by the government recommended that companies with dual-class shares be allowed into the premium listings, with some restrictions. The review is part of a series of efforts by the Treasury to find ways to enhance London’s appeal as a global financial center, after Britain’s divorce from the European Union sent some trading activity to cities like New York and Amsterdam. One of the Treasury’s goals is to make the London stock market more appealing to tech companies after a dearth of major listings in recent years.

Rishi Sunak, said that it was a “fantastic” decision and that Deliveroo was a “true British tech success story.”

“The U.K. is one of the best places in the world to start, grow and list a business — and we’re determined to build on this reputation now we’ve left the E.U.,” Mr. Sunak said.

Michael J. de la Merced contributed reporting.

View Source