- Deliveroo revealed that orders on its platform rose 7% in the first quarter
Deliveroo achieved a solid start to 2025 after securing its first annual profit last year, with order growth accelerating from the previous quarter.
The takeaway giant revealed that orders on its platform rose 7 per cent year-on-year in the January to March period, compared to 6 per cent over the prior three months.
Orders increased by 7 per cent thanks to robust demand in the UK and Ireland and strong performances in Italy and the United Arab Emirates.
Meanwhile, its gross transaction value (GTV) – the total worth of customer orders – jumped by 9 per cent at constant currency rates to £1.9billion, while turnover was 8 per cent up at £518million.
Following the result, Deliveroo now anticipates GTV percentage growth to be in the ‘high single-digits’ this year.
The London-based group also expects to make adjusted earnings before nasties of between £170million and £190million, supported by ‘targeted investments to capture future growth opportunities.’
On the way: Deliveroo revealed that orders on its platform rose 7 per cent year-on-year at constant currency levels in the January to March period
‘I am really pleased with our strong start to the year,’ said Will Shu, who co-founded Deliveroo in 2013 with fellow US national Greg Orlowski.
‘We continue to have confidence in delivering our guidance for 2025 whilst, like many others, remaining mindful of the uncertain macroeconomic environment.’
Deliveroo’s results come just weeks after the business reported its first-ever annual profit, posting earnings of £2.9million for 2024, compared to a £32million loss the previous year.
Since its founding, the company has recorded multiple years of losses due to huge staff, marketing, and technology costs from pursuing rapid expansion.
Deliveroo enjoyed an enormous boost from the Covid-19 pandemic when trading restrictions on hospitality venues led to a surge in people ordering meals online.
However, demand slowed significantly when those curbs loosened, and high inflation led to people cutting back on expensive takeouts.
The firm responded by withdrawing from some markets, including Australia and the Netherlands, and struck tie-ups with UK retail giants such as Screwfix, B&Q, and Morrisons.
It has also slashed costs by cutting jobs and marketing spending and optimizing its delivery network by rolling out multi-pick-up stacking and creating a check-in function for riders.
Adam Vettese, market analyst at eToro, noted that Deliveroo was investing in loyalty schemes to try and develop a ‘sticky customer base’ amidst hefty competition from Just Eat and Uber Eats.
He added: ‘Macroeconomic conditions still carry a degree of uncertainty, and when times are tough, splashing out on a Saturday night takeaway might not fit into the household budget anymore.
‘That said, Deliveroo has other verticals, such as grocery deliveries, to offset some of that risk.’
Deliveroo shares were 1.5 per cent higher at 132.1 on Thursday morning, although they remain around two-thirds down on their initial public offering price.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .