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Deliveroo sees growth in Q3 despite inflation, cost-of-living crisis

Deliveroo sees growth in Q3 despite inflation, cost-of-living crisis

British online food delivery firm, Deliveroo, has reportedly unveiled that it saw stable growth in the three months to September, while it looked to extend the company’s offerings in the UK as well as the Middle East.

The firm reported a year-on-year growth in the third quarter with its gross transaction value (GTV) per order going up 6%, despite sales going down 1% due to low consumer confidence and ongoing inflation in the UK.

In fact, growth in the UK and Ireland was better than its other international markets, where GTC rose 11%, while the overall international growth was down by 2%.

However, Europe and the Middle East still reported stronger growth despite the offset in a few parts of Asia that were affected due to Covid-related restrictions.

The high Q3 performance news comes as the delivery major continues to expand through new initiatives like the Hop collection service, with new sites opened in central London, and extending services to 125 Boots stores along with over 1,000 McDonald’s stores in the UK.

Deliveroo is also set to launch in Qatar, which will be hosting the 2022 World Cup.

However, for the rest of the fiscal year, the company has lowered its growth forecast from the previously announced range of 4-12% to 4-8%.

Will Shu, founder and CEO, Deliveroo, stated that since June, the on-year GTV growth trend remained comparatively stable despite the uncertainties in global economies.

Shu added that the company worked on aligning itself financially with the current operating environment throughout this year, while also continuing on its path to profitability, adding that it now expected the second half adjusted EBITDA margin for this year to surpass its previous guidance.

This comes a day after the on-demand delivery app confirmed its exit from the Netherlands, which was first notified earlier this year.

In a statement, Deliveroo claimed that to maintain and achieve a top-tier position in the country’s market, a hefty investment will be required, with uncertain long-term potential returns, adding that the market only accounted for 1% of its total GTV in H1 this year.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.