Blow for the City as online car retailer Cazoo snubs London in favour of New York

Announcement came as Deliveroo cut the price of its listing in London, which had been seen as a victory for efforts to modernise listing rules with the aim of tempting tech firms to the City, writes James Moore

Victory for Wall Street as UK car retailer Cazoo heads across the Atlantic (AP)

We explored all of our options including a potential UK IPO. The UK is an amazing place to build a business. But the IPO process in the UK is challenging for companies that are investing in high growth. Those companies are better understood by US investors.”

So said Alex Chesterman, founder of UK-based Cazoo, an online used car retailer, to the Financial Times as he announced plans to go public in New York via a Special Purpose Acquisition Company. They’re all the rage among tech companies because they make joining a stock market cheaper and easier. 

In response, the City, and maybe Rishi Sunak, said: “Ouch”. Or maybe “oof” is the right word. By way of explanation, that’s what comic book writers use to signify a punch to the gut that knocks all the wind out of the victim.