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Deliveroo reports fast revenue growth – including groceries – but pre-tax losses widen

Deliveroo now delivers groceries from supermarkets including Morrisons. Image courtesy of Deliveroo

Fast food delivery business Deliveroo, which has seen its grocery deliveries grow quickly over the last year, today reports strong sales growth in 2021 – but widening pre-tax losses. The business is also warning of the effects of economic challenges ranging from inflation to the Ukraine war.

Deliveroo revenues grew by 57% to £1.8bn in 2021 – reflecting a 70% rise in gross transaction value to £6.6bn – while pre-tax losses widened to £298m from £213m the previous year.

By the end of 2021, grocery deliveries accounted for 8%, by value, of orders placed on its app, and it had more than 11,000 grocery partner sites live across its markets. That’s up from 7,000 at the end of 2020. The company launched a 10 minute Deliveroo Hop service that is currently being operated with a number of partners in both the UK – where it is working with Waitrose – and Italy. As yet, says Deliveroo, this services is still in its early days.

It also teamed up with Amazon Prime to UK and Ireland Prime members free Deliveroo Plus membership for a year, with unlimited free delivery on orders over £25, and says results have been “impressive”, with the number of new subscribers exceeding initial expectations.

Deliveroo also says that its own research shows that 85% of its riders say they are satisfied or very satisfied with working with Deliveroo, while both attraction and retention rates were “robust” in 2021.

Deliveroo founder and chief executive Will Shu says the delivery business has grown its market share in a competitive environment – “highlighting the strength of our consumer value proposition” – and it has a path towards profitability. But he says that challenges lie ahead.

Shu says: “This year it is clear that all three sides of our marketplace in Europe will face headwinds due to inflationary pressures, the removal of economic stimulus and the broader geopolitical and economic impacts of the conflict in Ukraine. We will continue to monitor developments closely. Our 2022 guidance reflects our caution on these factors, but we are confident in our ability to adapt financially to a rapidly changing macroeconomic environment.”

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