Deliveroo reports a significant growth in the third quarter of the year.
- Gross Transaction Value (GTV) rose to £1.78 billion, marking a 6% increase year-on-year in constant currency.
- Order volumes in the UK and Ireland increased to 71.1 million from 69.7 million in the prior year.
- A 7% increase in GTV was observed specifically in the UK and Ireland, reaching £1.1 billion.
- The company remains confident about future growth despite challenges in certain regions.
The food delivery service, Deliveroo, experienced notable growth in its third-quarter earnings, attributed largely to the UK consumer base. Gross Transaction Value (GTV) reached £1.78 billion, reflecting a growth of 6% on a year-over-year basis when adjusted for constant currency. In parallel, the number of orders increased from 69.7 million to 71.1 million, showcasing a robust expansion of the company’s operations.
In the UK and Ireland, Deliveroo reported a 7% increase in GTV, amounting to £1.1 billion. This positive trajectory is supported by a slight rise in order volumes, which went up by 2%. This growth signifies the firm’s ability to adapt and progress in what is described as a “more stable but still uncertain consumer environment.”
Deliveroo’s CEO, Will Shu, highlighted the strong performance by stating that the results “demonstrate another solid quarter of growth.” He emphasized the continued vitality of the market, indicating that “UKI growth remains healthy, with improving order trends,” and expressed satisfaction with the international growth driven particularly by the UAE and Italy.
Despite these encouraging results, the report acknowledged persistent challenges in Hong Kong where competition remains intense. However, Deliveroo remains optimistic about its annual projections, expecting GTV growth to fall between 5% and 9%, and forecasting positive free cash flow with adjusted EBITDA anticipated to reach the higher end of £110 million to £130 million.
CEO Shu’s comments projected a positive outlook on the future for on-demand delivery, stating, “There are many exciting opportunities ahead for the on-demand delivery industry.” He reaffirmed Deliveroo’s strategic positioning, noting its readiness to capitalize on the substantial growth potential within an industry still at an early stage of development.
While Deliveroo plans ahead, industry analysts like Albie Amankona of Third Bridge caution that Deliveroo’s competitive edge, particularly its partnerships with premium restaurants, is showing signs of erosion. Amankona pointed out that Uber Eats, employing aggressive strategies such as reducing commissions and offering discounts, is successfully attracting new high-quality restaurant partners, thereby diminishing Deliveroo’s exclusive alliances.
Deliveroo’s continued growth in the UK with cautious optimism for the future highlights its potential amidst evolving market dynamics.
