LONDON, June 24 (Reuters Breakingviews) - Finally, some good news for Deliveroo (ROO.L) . A UK court ruled on Thursday that the London-based food delivery company’s riders are not employees, meaning it doesn’t owe them benefits like holiday pay. Deliveroo’s shares rose by 9%, taking its market value to 5 billion pounds ($6.9 billion).

The problem is that the dispute over gig workers’ rights isn’t going away. In other countries like the Netherlands , courts have ruled that Deliveroo’s riders are employees. Uber Technologies (UBER.N) recently lost read more a related court case in London. The European Commission will later this year release recommendations on potential gig-economy legislation.

Those looming threats may explain why Deliveroo is still trading roughly one-third below its initial public offering price, set in late March read more . Its current share price implies an enterprise value to 2021 sales multiple of just over 2 times, compared with almost 13 times for U.S. peer DoorDash (DASH.N) , using Refinitiv data. A palatable appetiser hardly guarantees an equally satisfying meal. (By Karen Kwok)

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