Deliveroo quarterly sales rise but spend per order down
Food delivery platform Deliveroo saw sales rise in the first three months of the year, despite facing tough comparisons from a year earlier when restaurants were shut due to the Covid-19 pandemic.
More customers placed orders during the first three months of the year, although the amount spent per order fell.
Fewer, larger orders are more profitable for Deliveroo because its largest cost is its workforce of riders.
Across all markets Deliveroo operates in, gross transaction value (GTV) hit £1.8 billion in the three month period – up 11% on the same three months a year ago.
This included an 18% rise in orders to 82.4 million, although the amount spent per order fell 7% to £21.70 on average.
In the UK and Ireland GTV was up 12% to £956m, with orders up 20% to 40.7 million but, again, the average spend per order was down 7% to £23.50.
Founder and chief executive Will Shu said the growth came from launching new services on the platform and teaming up with new businesses.
“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,” Mr Shu said.
“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,” the CEO said.
“We continue to be excited about the opportunity ahead and our ability to capitalise on it,” he added.