Deliveroo narrows losses as order value rises

Deliveroo saw a 13 per cent jump in gross profit in 2023 after losses of £294 million in the previous year.

In its full-year preliminary results, the delivery app said the average amount spent on orders had increased due to higher grocery price inflation.

The gross transaction value per order rose by around six per cent from £22.90 to £24.30 the previous year.

The company said it had made “significant progress on profitability”, with EBITDA jumping to £85 million compared with a £45 million loss in 2022. Sales also increased by three per cent to around £2 billion.

“Our focus on service and value for money continues to build consumer trust, which are fundamental to unlocking future growth in this industry,” said Will Shu, founder and chief executive of Deliveroo. “Alongside this, our restaurant and grocery businesses are performing well, we launched our retail offering, Deliveroo Shopping, and we are scaling our advertising business.

He added: “Building on the strong progress we made in 2023, I'm excited about the further opportunities ahead. We have clear strategic priorities and initiatives in place to achieve our medium term targets, and I am confident in our ability to deliver continued profitable growth."

At the beginning of the year, Deliveroo announced that gross transaction value had increased by four per cent in the last quarter of 2023. It attributed this improvement to working with certain restaurants to lower markups and stronger operational performance.

Last year, Deliveroo said it would cut nine per cent of its workforce as part of cost-cutting measures.

In a message to its employees, chief executive Will Shu explained that in recent years the delivery service has grown its headcount “very quickly” as a response to “unprecedented growth rates supported by Covid-related tailwinds”.

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