Deliveroo, a leading player in the meal delivery industry, continues to demonstrate resilience and growth in the third quarter. The company, with a network of 183,000 restaurants and 20,000 grocery sites on its platform, maintains its full-year financial guidance while reporting a 5% increase in gross transaction value (GTV) for Q3. This upward trend can be attributed to a rebound in customer orders, marking a shift from the challenges experienced earlier in the year.
In the first half of 2023, Deliveroo encountered a 6% decline in orders. However, during Q3, the company saw orders improve, with just a 1% reduction. The group has remained upbeat, emphasizing that while food price inflation is stabilizing, the growth in GTV is fueled by an expanded selection, targeted promotions, and service enhancements.
Deliveroo operates in a highly competitive market, facing rivals like Just Eat Takeaway.com and Uber Eats across multiple regions, including Europe, the Middle East, and Asia. Despite this competition, the company is committed to its guidance for full-year GTV growth in the low single digits.
Additionally, Deliveroo maintains its projected adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in the range of £60-80 million ($73-$97 million).
Founder and CEO of Deliveroo, Will Shu, expressed confidence in the company’s growth trajectory and its ability to achieve goals related to profitability and sustainable cash flow generation. The CEO’s optimism underscores Deliveroo’s unwavering commitment to enhancing its position in the highly dynamic food delivery industry.
Deliveroo’s recent performance exemplifies its adaptability and resilience in navigating challenges and leveraging opportunities within the evolving food delivery landscape. As consumer preferences continue to shape the industry, Deliveroo remains committed to providing innovative solutions and exceptional service for its customers and restaurant partners.