Technology

Deliveroo Sees Orders Rise 88% In Second Quarter

Share this article

Deliveroo said that orders jumped 88% to 78 million during its most recent quarter, however the food delivery firm has tempered its outlook for annual profit margins, as orders start to return to pre-pandemic levels.

In the company's second quarter, orders in the UK and Ireland grew 94% year on year to 38 million, while orders in the group's international segment grew 83% year-on-year to 40 million.

Gross Transaction Value

The company, which listed in London in March, said growth in its annual gross transaction value (GTV) — a measure of the total value paid by customers apart from tips — is expected between 50% and 60%, up from the previously forecast 30%-40%.

GTV grew 76% year-on-year at group level in the second quarter, it said, with UK and Ireland GTV rising by 87% and international GTV growing 65%

Further Investments

Deliveroo said that it 'sees an opportunity to make further discretionary investments into growth opportunities in the second half', and as a result of accelerating these investments in the second half of the year, 'along with an expectation that AOV reverts towards pre-COVID levels, we are confirming our full year gross profit margin guidance (as a % of GTV) and expect it to be in the lower half of our previously communicated range'.

The company maintained its annual gross margins forecast of 7.5% to 8%.

This is a second business update from Deliveroo after going public in a much anticipated stock market debut in March that saw its shares plunge 30%. The stock is currently down about 18% from its IPO price.

It recently announced plans to bolster its IT team with 400 new appointments in the UK.

Deliveroo is set to report its first-half results on 11 August.

News by Reuters, edited by ESM. For more Technology news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days

Copyright © 2022. All rights reserved. Developed by Square1 and powered by PublisherPlus.com