The Deliveroo share price will be in focus after the landmark decision by Uber’s drivers to unionise. The company’s share price have been in a narrow range in the past few days. They ended the day at 260p, where they have been in in the past few days.
What happened: Uber has been under pressure in the past few years. The company has faced significant legal challenges in London. And yesterday, the company struck a deal that will see its 70,000 drivers join the GMB union. This move will give the drivers more voice about their work conditions and pay. It also poses additional risks to Uber’s business model.
This decision is important for Deliveroo since the company uses a similar model to Uber. The company uses thousands of contractors who are yet to unionise. Therefore, in the near term, the company could also be in pressure to allow its workers to join a union. Indeed, this was one of the risks that the company pointed when it was going public. In a statement, the head of GMB said:
“When tech private hire companies and unions work together like this, everyone benefits – bringing dignified, secure employment back to the world of work. We now call on all other operators to follow suit.”
The two-hour chart shows that the Deliveroo share price has been in a slow upward trend. This has seen the stock rise from 231p on May 17 to 260p. The shares have formed a narrow ascending channel that is shown in purple. It has also moved slightly above the 25-day and 15-day moving averages. It is also slightly below the important resistance at 271p.
Therefore, in my view, the outlook for the shares is neutral. The stock could jump to the resistance at 271p or retreat to 250p.
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