Deliveroo has lost another important investor for its upcoming public offering as the company faces backlash over workers’ rights.

According to a report by the Financial Times, on Thursday the UK’s biggest fund manager Legal and General Investment Management said it was “unlikely to participate” in the IPO.

Yesterday’s decision came as the Bureau of Investigative Journalism published a report that revealed that while the company’s boss stands to make £500 million in the upcoming IPO, Deliveroo riders can earn as little as £2 an hour during shifts.

The newspaper also said that several investors had raised concerns over the proposed shareholder structure, which will give the food delivery company’s founder more voting power. While some of them see potential regulatory risks associated with an increased focus on the gig economy by global governments.

Alongside Legal and General, M&G, Aberdeen Standard Investments and Aviva Investors have told the Financial Times they will avoid the platform’s listing, which is happening next week, while a number of smaller investors involved in UK stocks will also shun the IPO.

Last week Deliveroo confirmed its plans to float on the London Stock Exchange and has announced it will sell approximately £1 billion worth of new shares. The listing has been predicted to be the biggest in over seven years.

The IPO will value the food delivery giant at $7 billion, despite expectations that will still post a loss of £223.7 million pounds for 2020, a reduction from the £317.3 million 2019.

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