Deliveroo delivers sales rise on ‘strong’ UK performance
The London-listed multinational business posted a 5 per cent constant currency rise in sales by gross transaction value (GTV) across the group in the third quarter, helping revenues rise 3 per cent to £487m.
It highlighted a “strong performance” in the UK and Ireland, where GTV jumped 9 per cent.
Orders by number across the group remained under pressure, falling 1 per cent to 69.7 million, but the performance marked an improvement on the 6 per cent fall seen at the half-year stage.
The group said price inflation is “moderating”, but still pushed GTV per order up 5 per cent to £24.30 on a constant currency basis.
Deliveroo does not set menu prices for the restaurants on its platform, but it does set delivery fees based on how long or difficult the journey will be for the rider.
Founder and chief executive Will Shu said the group is making “clear progress in promoting value within the app, which remains so important given the tough consumer backdrop”.
“We continue to deliver strong performance in the UK and Ireland and I’m encouraged by the improving growth trends in key international markets,” he said.
Revenues in the UK and Ireland lifted 7 per cent to £297m and order numbers rose 3 per cent as the company continues to benefit from recent efforts to improve service, such as minimising missing items and late orders.
It has also rolled out new features, such as “premium” delivery, where people can pay to have their order prioritised, and the option to top up a restaurant order with groceries. Some 8,000 grocery shops are listed on the platform.