Deliveroo treads water in first quarter but still projects growth for 2024

Deliveroo said orders were flat, reflecting the stagnant market, and the consumer landscape was "more stable but still uncertain".

Deliveroo has said its takeaway service made a small amount of progress in the first quarter of 2024 amid a more stable consumer environment in the UK.

The London-listed food delivery company posted a six per cent rise in gross transaction value (GTV) to £1.83 bn, up from £1.75bn in the first three months of 2023. It reported a two per cent increase in total revenue on a constant current basis to £514m.

In the UK and Ireland, GTV growth was also six per cent year on year, although this was a slight drop from the previous quarter’s seven per cent growth. Deliveroo said orders were flat, reflecting the stagnant market, and the consumer landscape was “more stable but still uncertain”.

Will Shu, founder and chief executive of Deliveroo, said: “I am pleased with the start we have made to this year, building on the strong progress in 2023. The team has been relentlessly focused on delivering service and value for money, helping drive a return to order growth and continued growth in GTV.

“We made particularly strong progress in International markets during the quarter, with notable improvements in France, UAE and Hong Kong, and continued strength in Italy.

“In UKI, while the consumer environment remains stable but uncertain, our commitment to offering fair prices and a flawless consumer experience is building strong foundations for the future and will continue to differentiate our business.

“I’m excited about building the best consumer experience possible and am confident in our ability to drive profitable growth and sustainable cash generation,” he added.

Deliveroo has maintained its forecasts, expecting GTV growth to be between five and nine per cent, with adjusted pre-tax earnings of between £110 and £130m.

In 2023, Deliveroo recorded pre-tax earnings of £85m, up from a loss of £45m in 2022. Overall, the company’s loss for the period was £32m, compared to £262m last year.

Shares in the British company, which also operates internationally, have fallen 4.5 per cent since the start of the year. They are up nearly 19 per cent over the past year.