Deliveroo achieves first profit in ‘major milestone’ for delivery app
8 August 2024, 11:24
The company said it had seen encouraging signs in terms of consumer behaviour as food price rises continued to ease.
Deliveroo has revealed it made a profit of £1 million over the first half of this year in a “major milestone” for the previously loss-making delivery platform.
The company said it had seen encouraging signs in terms of consumer behaviour as food price rises continued to ease.
It posted a profit of £1.3 million for the first half of the year, swinging from a loss of £82.9 million this time last year.
The number of orders placed over the period increased by 2% to total 147 million.
Gross transaction value per order – which means the average cost of people’s food baskets plus delivery fees – was £25, up from £24.20 the prior year.
This was primarily driven by higher item prices, which are set by restaurants and shops, even though the rate that prices are rising continues to slow.
In the UK and Ireland, total spending jumped by 7% at constant currency, partly driven by customers placing orders more frequently.
Will Shu, Deliveroo’s founder and chief executive, said it has seen success through loyalty programmes and discounts for customers.
“We’ve had really great work from our team to keep people coming back,” he told the PA news agency.
“Deliveroo Plus, our subscription service, has been doing well and we’ve had a really good reception to the launch of Plus Diamond.
“We are always assessing the consumer environment and right now we are really seeing a benefit in investing in promotions and discounts.”
Deliveroo said it benefited from partnerships with restaurant brands such as Pizza Pilgrims and Wingstop, as well as more grocery options and brands such as Ann Summers and B&Q selling products through the app.
Mr Shu said achieving a profit was a “major financial milestone” for the company.
“I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focused on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers,” he said.
Shares in the firm were up by more than 7% in early trading on Thursday.
