Deliveroo raises guidance for year despite orders slipping
Deliveroo upped its guidance for the year to a range of £60-80m, ahead of previous range of £20-50m, as the group shows signs of weathering the economic storm.
Total revenues rose five per cent to £1.02bn up from £972.9bn as the group increased the cost of payment fees it charges customers.
The food delivery business, which floated on the stock exchange in 2021, also said the number of orders made by customers declined by slightly by six per cent £145m to £154m in the same period last year.
In its UK and Ireland division gross transaction value (GTV) – the amount of money it made from orders – increased seven per cent to £2.bn.
Revenues in this region also grew 11 per cent to £601.9m as it was benefited from a higher contribution from advertising revenue
The business, which surged in demand during lockdown when restaurants were unable to trade normally, has struggled in recent months as customers scale back on takeaways orders during the cost of living crisis.
Will Shu, chief of Deliveroo said in the market update this morning “I am very pleased with our progress so far this year. We have delivered a strong financial performance despite challenging macroeconomic conditions.
“This has been achieved alongside continued improvements to our proposition for consumers, riders and merchants. In particular, for consumers we have continued to innovate, for example now offering a more personalised in-app experience and enabling consumers to top up their restaurant orders with grocery items.”
Shu wrote for Morning Wire last week on the value of London entrepreneurship.
“If we don’t champion entrepreneurship, we risk falling behind other global innovation hubs and losing talent, even though we have all the ingredients and creativity right here in London,” he wrote.