Deliveroo’s loss widens as economic downturn hits order growth

The London-based food delivery company slashed its projections for order growth this year after customers were hit with higher energy bills and inflation.

Deliveroo reported a wider net loss in the first half after inflation and higher energy bills curtailed order growth.

The loss on adjusted earnings before interest, taxes, depreciation and amortisation was about £68m (€80m) in the first half of the year, compared to a loss of £26m (€30m) a year earlier, the company said in a statement. That was better than the average analyst estimate for a loss of £73m (€86m), according to a Bloomberg survey.

The company increased average customer fees and started selling ads on its app as part of efforts to increase revenue after delivery companies across the industry were hit with worse-than-expected slowdowns in order growth. Then in July, the London-based food delivery company slashed its projections for order growth this year after customers were hit with higher energy bills and inflation.

“How long this macro environment lasts for, I have no idea,” CEO Will Shu said in an interview. “What I’d say is the profitability gains are very apparent despite the top-line being weaker than we’d like. We’re taking market share gains in our key markets. The consumer value proposition has gotten much better.” 

Bloomberg