Item — HN Reader

This time the big investors (mainly Amazon) and the founder of Deliveroo have actually admitted their intention to sell before they list this stock.

Oh and that 'generous' £50m stock allocation they are offering the public [0] before the majority investors all sell, combined with a heavily loss making company AND the historic employee classification that the supreme court ruled against Uber [1] recently in the UK?

Cocktail for a blindingly obvious scam in broad daylight, and they know it. Just look at how $DASH turned out.

This is an easy no buy even when the scam has been admitted to the public and retail investors.

Take heed this advice.

[0] https://www.altfi.com/article/7672_deliveroo-ipo-kicks-off-w...

[1] https://www.bbc.co.uk/news/business-56123668

2 comments

> AND the historic employee classification

that "historic" event isn't what many people think it is.

1. there is a difference between worker and employee in the UK. they're not the same thing!

2. the UK Gov is fixing this whole situation by establishing a no-rights employment under IR35. as such, deliveroo and uber workers will not be entitled to employment rights, pensions, etc.

> blindingly obvious scam

what's the scam?

> the historic employee classification that the supreme court ruled against Uber

When IR35 changes come to life in April, this will not be relevant, as Uber and others can just issue in-scope contracts to workers and bypass employment laws altogether, legally.

Could somebody explain this? It looks to me that IR35 is changing against "disguised employment" specifically to get more income tax by declaring more people to be employees.

That is the guise under it was sold to the public. There is more info on this website: https://norightsemployee.uk/

edit: there is also a how-to guide for employers: https://norightsemployee.uk/step-by-step

In-scope contracts still mean there's a higher tax impact which means the delivery platforms will need to compensate.

Unlikely, because where do those workers go? It is the same in the IT market - contracts changed to in-scope without significant bump.