Categories
Business

Deliveroo orders double as customers continue to adopt the lockdown takeout habit Business News

Deliveroo saw orders through its app double in the first six months of the year as the lockdown helped boost sales.

Revenue jumped 82% to £ 922.5million, the food delivery company said in its first results since going public.

It delivered 148.8 million meals and grocery orders between January and June, more than twice as many as the same period a year ago.

However, he still lost money. Pre-tax losses fell from £ 128.4m to £ 104.8m over the period,

Deliveroo said the number of monthly active customers – a metric commonly used for apps and social media – increased 81% year-over-year to 7.8 million people.

The results do not cover the final weeks after the removal of most of the UK’s Covid restrictions. confinement.

Analysts questioned whether delivery services would suffer as restaurants, bars and other entertainment reopen.

Managing Director Will Shu said, “We are seeing strong growth and strong engagement in our market as bottlenecks continue to ease.

“The demand has been high among consumers. We have grown our consumer base, seen people continue to order frequently, and we now work with more food merchants than any other platform in the UK. “

But the company has warned that the boom it has enjoyed so far is likely to subside in the second half of the year.

Deliveroo expects sales to increase by 50-60% this year, in line with forecasts released in July.

Deliveroo, which Mr Shu founded in west London, said it now covers 72% of Britain’s population – ahead of a planned 67% coverage by the end of this year.

The company recently pulled out of Spain because “achieving a leading position in the market would require a disproportionate level of investment with very uncertain potential long-term returns”.

Deliveroo said the move was unrelated to the Spanish government ordering runners to be considered employees and not independent contractors.

The company has been criticized for its employment practices because its runners are paid at a fluctuating work rate. Research by the Bureau of Investigative Journalism found that up to a third of runners were paid less than minimum wage.

Mr. Shu said on Wednesday that “more runners are choosing to continue working with the company because they appreciate the work we offer.”

Despite the increase in sales, the Deliveroo share price fell 1% on Wednesday. Shares rallied on Tuesday after German firm Delivery Hero said it had taken a 5% stake worth £ 284million.

More about this article: Read More
Source: www.independent.co.uk
This notice was published: 2021-08-11 07:49:58

Leave a Reply

Your email address will not be published. Required fields are marked *