As it prepares to be acquired by US delivery giant DoorDash, Deliveroo has posted robust half-year results, following an improvement in the restaurant sector and strong growth in the grocery market.
Having posted its first-ever annual profit last year, interim results for the period to 30 June show the delivery platform generated a profit before any deal-related charges of £31.8m. However, including the DoorDash costs, the business incurred a loss of £19.2m, compared to a profit of £1.3m the previous year.
Adjusted EBITDA jumped 46% to £96m after marketing efficiencies and operating leverage drove margin from 1.9% to 2.5%.
Revenue climbed 9% to £1.1bn with order numbers growing 8% to 147 million, driven by “further execution on our growth initiatives and a more resilient than expected consumer”. Gross transaction value (GTV) increased by 9% to £3.79bn.
In the UK and Ireland, GTV grew 10% while its international business was up 9% after strength in the UAE and Italy offset weakness in France.
Deliveroo noted that its grocery delivery operation saw “strong double-digit growth” after it enhanced its customer propositions with new retail partnerships and benefits for its Plus subscribers.
Last month, it was revealed that Co-op had become the first grocer in the UK to partner with Deliveroo Express, the platform’s new white label on-demand delivery solution.
“The first half of this year was very positive,” said Will Shu, founder and CEO. “Our long-term focus on improving the CVP (consumer value proposition) is paying off. Consumer engagement is encouraging, with order frequency and retention continuing to improve across all cohorts.”
Providing an update on the DoorDash deal’s progress, the company stated that regulatory approval processes are well underway and that the transaction is expected to be completed in the fourth quarter of 2025.
Shu concluded: “I’m excited for what the partnership with DoorDash can bring in the future. They will be an excellent partner for everyone at the company, as well as for our consumers, merchant partners and riders.”
NAM Implications:
- Quick delivery needs saturation coverage…
- And Deliveroo is clearly aiming that way…
- …as they transition to new ownership.
- And potential access to extra muscle…
- …albeit an understandable cost-driven impact on profits.
- Deliveroo are performing well on home delivery metrics….
- …and are forming the right partnerships.
- All points that will not be lost on rivals…
