Deliveroo has returned to profitability as it’s growing partnerships with supermarkets and retailers helped to boost orders through the app.
The delivery platform reported a profit of £1.3m in the half to 30 June, up from the £82.9m loss it racked up the year before, which it attributed to “a good top-line performance driven by execution on strategy in a stabilising consumer environment”.
It said gross transaction value (GTV) was up 6% to £3.7bn and sales were up 2% to £1.02bn in constant currency as orders returned to growth at 2% to 147.4m.
Deliveroo reported a strong growth in its grocery category, which reached 14% of group GTV driven by an improved experience and awareness, and further penetration in mid-sized baskets (£30-£60).
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The platform has been expanding its retailer partnerships in the last year under its Deliveroo Shopping proposition and its current tie-ups include Co-op, Waitrose, Asda and Morrisons, as well as most recently B&Q and The Perfume Shop.
Deliveroo founder and chief executive Will Shu said: “I am pleased with the performance we have achieved this half, which was driven by effective execution of our growth and profitability initiatives. As a result, we reached two major financial milestones: positive free cash flow and positive profit for the period.
“We took important steps to make our customer value proposition even more compelling. We innovated our loyalty programme, Plus, with the biggest changes since we launched the programme in 2017 as we continue to make strides towards our ambition to be a Plus-first business by 2026.
“I’m also delighted that we have further improved our Net Promoter Score, a key indicator of consumer satisfaction. I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focussed on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers.
“Looking ahead, while there is continued uncertainty in the external environment, I am encouraged by the inflection we are currently seeing in consumer behaviour in many of our markets.
“The Deliveroo platform is more powerful than ever, and we remain responsive to the external environment while continuing to optimise our proposition for consumers, riders and merchants.”
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