![]() ![]() "Our clients' expectations of how we incorporate ESG (environmental, social and corporate governance) into our decision making have changed hugely over the last decade and so we feel our clients are supportive of our approach. "As long-term investors, we're looking to invest in businesses that aren't just profitable, but are sustainable – employee rights and employee engagement are an important part of that," an Aberdeen Standard spokesperson told CNBC. ![]() Two of the U.K.'s largest asset managers also said this week that they won't buy Deliveroo shares.Īberdeen Standard and Aviva, which manage over £800 billion between them, said they're concerned about how Deliveroo treats its riders. "We take our role as a responsible steward of our clients' capital very seriously and engage with a number of companies in this sector on ESG concerns, like the rights of employees and proposed share class structures." "We see increasing signs of countries and governments reviewing the gig economy status," they added. "We are unlikely to participate in the IPO via our active or index funds," a spokesperson for Legal and General told CNBC on Friday. It cited concerns around the gig economy that Deliveroo operates in and the company's share ownership structure, which gives CEO Will Shu over 50% of the voting rights. However, the U.K.'s largest fund manager, Legal and General Investment Management, which manages over £1.3 trillion in assets, said it probably won't be involved. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower “Everyone at Deliveroo is excited that Amazon, the most customer-obsessed and innovative company in the world, has chosen to invest in Deliveroo’s future.Best Debt Consolidation Loans for Bad Credit This investment will help us to overcome immediate and long-term challenges, allow us to continue to improve our service for customers, enable us to develop new innovations and offer people even greater choice. “The unprecedented health crisis we all face has disrupted businesses across the country. ![]() In response to Just Eat’s criticism, Deliveroo said: “This investment is a key part of Deliveroo’s plan to provide an even better service to customers, riders and restaurants and, as we’re a British company, this will be a boost to the UK economy. The CMA is due to make its final decision on the deal by June. READ MORE: Just Eat and given approval for £6bn merger just days after Deliveroo and Amazon tie-up It comes just days after high street pizza behemoth Domino’s issued a 33-page submission, highlighting concerns about the “negative impact on competition, and ultimately on consumers, of Amazon’s investment in Deliveroo”.ĭomino’s, which unlike its rivals Pizza Hut and Papa Johns does not work with Deliveroo, questioned why the company could not seek investment from any other investors which would pose less risk to competition. “While Just Eat Takeaway does not question the very serious and perturbing nature of the Covid-19 crisis, it does not believe that this creates a “carte blanche” to assume permanent, irreversible negative impact on businesses, particularly those who are in the business of delivering food to people at home in circumstances that align with social distancing rules,” Just Eat said. READ MORE: Domino’s Pizza slams Amazon-Deliveroo tie-up citing “serious concerns” over competition However Just Eat, which was given its own approval by the CMA for a £6 billion merger with rival just days after its Decision on Deliveroo, argued this was based on an “extremely narrow” period not representative of the company’s financial health. Last month the CMA gave provisional approval for Amazon’s cash injection into Deliveroo after it said it would go bust without the cash due to losses incurred by the coronavirus crisis. The delivery giant has become the latest major name to heavily criticise the CMA’s ruling, branding it a “U-turn” and alleging it was based on “incorrect or misleading data”. Just Eat has panned the Competition and Markets Authority’s (CMA’s) decision to approve Amazon’s £400 million investment in its rival Deliveroo. ![]()
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