​Deliveroo on the Rebound: Recent Figures Signal Turnaround in Fortunes

​Deliveroo on the Rebound: Recent Figures Signal Turnaround in Fortunes

Posted by Emily on 21st Oct 2023

The UK's fondness for doorstep food delivery is returning, propelling a resurgence in sales for one of the foremost entities in the sector. Deliveroo, headquartered in London and operational across ten global markets, disclosed a 5 per cent increase in gross transaction value sales, considering a constant currency basis, during the three months concluding in September.

Turnover from the UK and the Republic of Ireland witnessed a 7 per cent ascent, reaching £297 million, with orders climbing by 3 per cent. This uptick directly results from the company's recent efforts to enhance its offerings. Collaborating with 183,000 eateries and 20,000 grocery venues, the platform boasts an expansive operational scale.

Will Shu, aged 43, the founder and CEO of the company, expressed, "Our performance fills me with immense satisfaction, and I must commend our team's meticulous execution, particularly our ongoing advancements in ensuring an effortless delivery journey. We've markedly progressed in underscoring value within our application - a crucial aspect, considering the challenging consumer environment.

"My assurance in our capacity for stimulating growth, achieving our profitability targets, and generating sustainable cash flows is firmer than ever before."

The consortium noted that while inflation in food prices is gradually relenting, the gross transaction value per order has surged by 5 per cent, arriving at £24.30. While Deliveroo doesn't dictate the menu prices for individual restaurants, it does vary its delivery charges, contingent on the complexity or duration of the delivery route.

Over the preceding two years, order frequency has sustained relative stability, ranging between 3.3 and 3.4 orders monthly. The count of average monthly active users dwindled to 6.9 million in the third quarter, a decrease from 7.1 million in this year's second quarter and down from seven million in the corresponding period in 2022. Order numbers group-wide receded by 1 per cent annually, landing at 69.7 million - an upturn, however, from the 6 per cent dip earlier in the year.

This recent briefing follows Deliveroo's determined initiatives to curtail incidents of missing components and tardy deliveries. Additionally, the firm has introduced novel features, such as supplementing a restaurant order with provisions sourced from any of the 8,000 grocery stores featured on the platform. A premium delivery choice is also available, allowing customers to fast-track their orders for an additional fee.

In August, Deliveroo revised its annual earnings forecast upwards, projecting figures in the region of £60 million to £80 million. The latest communiqué reaffirmed that the company is well-poised to fulfil this projection.

Deliveroo's shares remained static in the stock market, closing at 122¼p the previous evening.