Deliveroo shares fall 4% in latest setback as end of Covid restrictions loom closer 

Deliveroo's small shareholders suffered significant losses after its initial shares sale in London flopped on the first day of trading.  

Deliveroo shares fell 4%, the latest setback for the food delivery firm as investors were unimpressed by its growth figures during the pandemic just as restrictions are about to be lifted in Britain, its main market.  

The renewed shares fall comes after last month's fiasco when small shareholders suffered significant losses after its initial shares sale in London flopped on the first day of trading.  

Doubts have grown whether the firm can sustain the large increases in deliveries it posted during lockdowns when cafes and restaurants reopen. 

Concerns have also increased in Britain about the working conditions of its delivery riders.                   

The latest setback came as it said the number of deliveries more than doubled in the first three months of the year to 71 million. Around half of those deliveries were made in the UK and Ireland.

There was no guarantee that the strong growth in the first quarter will be sustained when the Covid restrictions end, however.

"The company continues to operate in an uncertain environment given that the timing and impact of these restrictions being lifted in the coming weeks and months remain unknown," the firm said.  

"Deliveroo expects the rate of growth to decelerate as lockdowns ease, but the extent of the deceleration is unknown," it said.