​Deliveroo Achieves £20M Reduction in Compensation Costs

In a strategic push to enhance service quality, Deliveroo has announced a significant decrease in compensation expenses, amounting to a savings of more than £20 million in the past year. The company attributes this success to its concerted efforts with restaurant partners and delivery personnel to minimise order errors. Despite the vast majority of deliveries being executed flawlessly, a fraction had previously eroded consumer confidence due to issues such as missing items or delays.

A key area of improvement highlighted by Deliveroo is the substantial decrease in incidents where orders were marked as delivered but not received by customers, known as "OMDNR". This issue saw a remarkable reduction of approximately 65% in 2023, contributing to substantial savings in compensation costs.

Financially, Deliveroo witnessed a considerable reduction in its losses, which narrowed down to £31.8 million from a substantial £294.1 million in the preceding year. While the total order count in the UK and Ireland saw a modest increase of 1%, reaching 159.2 million, the gross transaction value, which includes the complete cost of food, delivery, and fees paid by consumers, grew by 7% to an average of £26.30. This growth is attributed mainly to the inflation in food prices.

Furthermore, Deliveroo expanded its market presence by enhancing its retail offerings and encouraging customers to include household items in their orders. By the end of the year, the company had partnered with over 8,000 grocery stores across the UK and Ireland. Despite these advancements, restaurant chains Tortilla and KFC discontinued their partnerships with Deliveroo due to disagreements over commission fees.

Will Shu, the founder and CEO of Deliveroo, expressed his pride in the company's achievements over the year. He emphasised the importance of service quality and value for money in building and maintaining consumer trust. He remains optimistic about Deliveroo's potential for future growth within the industry.

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