Search
Close this search box.

Deliveroo shows scale of its retail delivery expansion

Deliveroo is now moving beyond groceries to deliver health and wellbeing products and stationery. Image courtesy of Deliveroo/Boots

Deliveroo is now moving beyond groceries to deliver health and wellbeing products and stationery. Image courtesy of Deliveroo/Boots

Deliveroo today shows how it is continuing to expand its services to offer more retail deliveries on top of its core takeaway services. It says customer and order numbers grew strongly in the first quarter of its financial year.

The bike-based delivery service now delivers groceries from close to 13,000 shops in markets including the UK, Ireland and Italy – on top of its existing takeaway delivery business which now operates from more than 160,000 restaurants. A year ago it delivered from 11,000 grocery locations and more than 148,000 restaurants.

So far it has six Deliveroo Hop sites, offering 10 minute grocery delivery from dark stores in locations including London – in partnership with Waitrose, Manchester and Milan – in partnership with Carrefour. The company says: “Operating metrics have been very encouraging so far, with a strong consumer experience (including low incidence of substitutions and missing items) driving high consumer engagement and retention.”

In March, Deliveroo launched a new non-food trial in partnership with WHSmith that sees it deliver from a range of 600 work-from-home essentials and gifts in as little as 20 minutes. That adds to a partnership with Boots that now involves delivering from a range of 800 health and beauty products from 14 pilot shops. Deliveroo says results have been “very encouraging” so far.

In the first quarter of the year, Deliveroo customers placed orders with a gross transaction value (GTV) of £1.8bn on the app – 11% up year-on-year. That includes a UK and Ireland GTV of £956m – up by 12% YOY, and by 1% on the previous quarter. Order numbers rose by 18% to £82.4m, and in the UK and Ireland by 20% to 40.7m. GTV per order fell by 7% to £21.7 (£23.5 in the UK&I).

Deliveroo now has 8.1m (+16% YOY) monthly active customers – of whom 4.1m are in the UK and Ireland and 4m are international. Each placed an average of 3.4 orders a month in the first quarter – up from 3.3 a year earlier – with orders driven in part by the Deliveroo Plus subscription programme for offers unlimited free delivery for a fixed fee. Since September 2021 Amazon Prime members in the UK and Ireland have been able to sign up for a free Deliveroo Plus Silver membership that offers free delivery on orders over €25.

Looking ahead, the company says it expects full-year gross transaction volumes (GTV) to rise by between 15% and 25% this year and adjusted top-line earnings to fall by between 1.5% and 1.8% as a percentage of GTV.

Will Shu, founder and chief executive of Deliveroo, says performance was in line with the previous guidance and included double digit growth a year on from Covid-19 lockdowns in many of its markts. “I’m delighted that we continued to strengthen our offering for consumers this quarter,” says Shu. “We expanded existing relationships in grocery with Waitrose and Carrefour, widened our offer of 12-months free Plus subscription for Amazon Prime members to include France and Italy, and launched a new pilot with WHSmith in the UK. Consumer behaviour may moderate during the year, and this is reflected in our guidance. We remain confident in our ability to adapt financially to any further changes in the macroeconomic environment.”

Read More

Register for Newsletter

Group 4 Copy 3Created with Sketch.

Receive 3 newsletters per week

Group 3Created with Sketch.

Gain access to all Top500 research

Group 4Created with Sketch.

Personalise your experience on IR.net