Deliveroo posts strong third-quarter sales as it sees recovery in order numbers

19 October 2023 , 11:00

677     0

The company is celebrating what it's calling a "strong performance". (Image: PA Wire/PA Images)

Deliveroo, the food delivery giant, has seen a rise in sales due to a strong performance in the UK and Ireland. The London-based multinational business reported a 5% increase in sales by gross transaction value (GTV) across the group in the third quarter, boosting revenues by 3% to £487 million.

The company celebrated a "strong performance" in the UK and Ireland, where GTV increased by 9%. However, the number of orders across the group fell slightly by 1% to 69.7 million, an improvement on the 6% drop seen at the half-year stage.

The group noted that price inflation is "moderating", but still pushed GTV per order up 5% to £24.30. Deliveroo doesn't set menu prices for the restaurants on its platform, but it does set delivery fees based on the journey's length or difficulty for the rider.

Founder and CEO Will Shu said the group is making "clear progress in promoting value within the app, which remains so important given the tough consumer backdrop". He added: "We continue to deliver strong performance in the UK and Ireland and I'm encouraged by the improving growth trends in key international markets,"

UK and Ireland revenues for Deliveroo have risen by 7% to £297 million, with order numbers up by 3%. This is due to the company's efforts to improve service, such as reducing missing items and late orders. They've also introduced new features like "premium" delivery and the option to add groceries to a restaurant order.

Apple TV release MLS Season Pass worldwide and announce free opening weekend

However, the international division of the group is recovering at a slower pace, with GTV down 1% and order numbers reduced by 5%. As inflation rises, people are cutting back on non-essential spending, leading to a drop in order numbers.

Despite this, Deliveroo has been expanding consumer options and reducing costs, which is aiding its profitability. The company raised its full-year earnings outlook in August to between £60 million and £80 million, and maintains that it is on track to meet this guidance.

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Steve Charnock