DELIVEROO said orders returned to growth with a 2 per cent increase in the first quarter, driven by “strong progress” in the food delivery company’s international segment.
Users placed 73.5 million orders in the first quarter, up from 72.1 million in the same period last year, according to a statement on Thursday (Apr 18). Gross transaction value increased 6 per cent on a constant currency basis to £1.8 billion (S$3.1 billion).
“We made particularly strong progress international markets during the quarter, with notable improvements in France, United Arab Emirates and Hong Kong, and continued strength in Italy,” chief executive officer Will Shu said in the statement.
While orders were up 4 per cent in the international division, Deliveroo reported flat order growth in the UK and Ireland due to a “more stable but still uncertain consumer environment” in the region.
The London-based company kept its guidance for the year ahead unchanged. It expects earnings before interest, taxes, depreciation, and amortisation between £110 million and £130 million in 2024 and anticipates gross transaction value to increase by 5 per cent to 9 per cent on a constant currency basis, compared with a 3 per cent increase in 2023.
Rival Just Eat Takeaway.com said yesterday orders slipped in the first quarter, signalling continued weak demand for takeouts after the boom experienced during the pandemic. Since lockdowns ended, Deliveroo and its peers have focused on cutting costs and exiting non-core markets to boost profitability. BLOOMBERG
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