Deliveroo’s latest financial results reveal a marked growth in the UK and Ireland, largely driven by an increase in takeout orders.
- Deliveroo’s gross transaction value (GTV) has risen by six per cent to £1.78bn in the latest quarter.
- The number of orders escalated to 71.1 million from 69.7 million over the past year.
- In the UK and Ireland specifically, GTV saw a seven per cent increase, reaching £1.1bn.
- The company maintains an optimistic outlook despite challenges, particularly in Hong Kong.
Deliveroo’s recent financial report highlights significant growth in its operations, driven by a surge in demand for food deliveries in the UK and Ireland. The company’s gross transaction value (GTV) in the latest quarter topped £1.78bn, reflecting a six per cent increase when viewed in constant currency terms.
Order volumes for Deliveroo witnessed an upward trend, climbing to 71.1 million orders from 69.7 million recorded in the corresponding period of the previous year. This uptick underscores the growing appetite for takeout services among consumers.
The most pronounced growth was observed in the UK and Ireland, where the gross transaction value climbed by seven per cent to reach £1.1bn. Despite the modest two per cent rise in order volume, Deliveroo continues to make strides in an environment described as more stable but still uncertain.
Deliveroo’s founder and CEO, Will Shu, expressed satisfaction with the quarterly performance. He noted that “UKI growth remains healthy, with improving order trends.” Shu highlighted progress internationally, particularly in the UAE and Italy, while acknowledging the competitive challenges in Hong Kong.
Looking forward, Deliveroo remains confident in its annual projections, which include an anticipated gross transaction value growth of between five and nine per cent. The company also forecasts adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to reach the higher end of the £110m to £130m range.
Analyst Albie Amankona from Third Bridge remarked on Deliveroo’s competitive edge, which has traditionally been secured through alliances with premium restaurants. However, this is under threat as competitors, like Uber Eats, employ aggressive strategies, including offering discounts and complimentary advertising, to attract top-tier establishments.
Deliveroo’s performance over the recent quarter shows robust growth, bolstered by UK consumer behaviour, yet challenges in global markets highlight the competitive landscape of the food delivery industry.
