After securing its first annual profit last year, Deliveroo has reported a “strong” first-quarter performance after seeing order growth in both the UK and overseas.
The takeaway food and grocery delivery platform saw a 9% increase in gross transaction value (GTV) for the period to 31 March, with a 7% rise in orders. Group revenue was up 8% to £518m.
In the UK, Deliveroo saw both its GTV (+9%) and orders (+7%) increase “ahead of the market”, while its international operation also grew by 9% and 7% respectively, thanks to increased demand in the UAE and Italy which offset by ongoing softness in the French market.
Deliveroo maintained its full-year guidance and expects adjusted EBITDA to fall between the range of £170m and £190m.
Chief Executive Will Shu commented: “I am really pleased with our strong start to the year, marked by a 9% year-on-year increase in GTV and 7% growth in orders. This represents a further acceleration from the fourth quarter.
“We made good strides in both UKI and International, and this improvement is a reflection of our relentless focus on enhancing our customer value proposition (CVP). Our CVP investments to date are proving successful, as demonstrated by the accelerating growth in order volumes and our monthly active consumers. We continue to have confidence in delivering our guidance for 2025 whilst, like many others, remaining mindful of the uncertain macroeconomic environment.”
Last month, Shu stated that he expects grocery shopping to eventually overtake takeaway food orders on Deliveroo.
The company launched its grocery business in 2018 and has since amassed a broad selection of retail partners, including Morrisons, Co-op, Sainsbury’s, Waitrose, Whole Foods, Nisa, and SPAR. The company’s grocery business reached 16% of gross transaction value (GTV) and saw strong double-digit growth in 2024.
NAM Implications:
- Key standout has to be that Deliveroo must be approaching saturation coverage…
- …in areas where it operates.
- (Key will be optimising the potential of grocery shopping…)
