Deliveroo losses accelerate to £298m as it pumps more cash into growth plans
Takeaway delivery specialist Deliveroo has posted a £298million pre-tax loss for the year after pumping more cash into its rapid growth plans.
This compares with a £213million loss in 2020, but the London-headquartered firm stressed that it has a long-term plan for profitability.
It told investors on Thursday that it’s aiming to reach breakeven in core earnings in the next two years – by mid 2023.
Revenues for 2021 increased by 57% to £1.8 billion, driven by the increase in sales transactions, which increased by 70% across the business. The London-based delivery firm also reported a 67% increase in transaction value to £6.6 billion in 2021, driven by a 73% increase in order numbers.
Touching on its heavy losses for the past year, the firm said they were driven by significant investment in marketing and technology improvements as it sought to keep momentum after being boosted by pandemic restrictions.
Despite this, the business anticipates some difficulties over the next 12 months, in the face of both inflation and the economic impacts from the conflict in Ukraine, saying that “consumers will be operating under a different spending environment.”
Deliveroo founder and CEO Will Shu said the company’s 2022 guidance reflects its caution on these factors and will “continue to follow developments closely”, adding that he is “confident in our ability to adapt financially to a rapidly changing macroeconomic environment”. He also said the company had “continued to make good progress in executing our strategy” and that he was proud of its performance and “excited about the opportunities ahead”.
After nine years, Deliveroo currently works with around 160,000 restaurants and grocery partner sites, as well as over 180,000 riders.
While it is headquartered in London, it operates across 11 markets, comprising Australia, Belgium, France, Hong Kong, Italy, Ireland, Netherlands, Singapore, United Arab Emirates, Kuwait and the UK.
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