Deliveroo achieves breakeven in second half

Founder and CEO Will Shu said Deliveroo had delivered "significant improvements in profitability in a difficult macroeconomic environment".

The loss-making company, which pulled out of Australia and the Netherlands in 2022, had previously expected its earnings margin for the year to be between -1.2% and -1.5%. Picture Denis Minihane.

Popular meal delivery company Deliveroo said it achieved breakeven in adjusted earnings in the second half of 2022, boosting its margin for the year to a better-than-expected -1%, adding that it expected continued improvement in 2023.

The company said on Thursday the gross transaction value (GTV) of its orders for its continuing operations increased 6% to £1.8bn (€2.05bn) in the fourth quarter, as item price inflation offset a 2% drop in order numbers.

Founder and chief executive Will Shu said Deliveroo had delivered "significant improvements in profitability whilst also still delivering growth in a difficult macroeconomic environment".

"Amidst an uncertain outlook for 2023, we remain confident in our ability to adapt financially and to make continued progress on our path to profitability," he said in a trading update.

The loss-making company, which pulled out of Australia and the Netherlands in 2022, had previously expected its earnings margin for the year to be between -1.2% and -1.5%.

It said it had increased its share of key markets such as Britain, France and Italy in the year.

The company, which competes with Just Eat Takeaway and Uber Eats, will report its 2022 results on March 16.

Just Eat also reported on end-of-year sales this week, saying the company saw customers place fewer orders than expected in its latest quarter amid rising living costs and a slowdown in growth for the online food sector.

The total value of orders placed on Amsterdam-based Just Eat’s platform during the fourth quarter was €7.1bn, the company reported, compared to an average analyst estimate of €7.3bn.