In the first of the current year, there was more than doubling of value of orders on its platform, said the Food delivery company Deliveroo, as the company also said it did not experience any material impact of the reopening of restaurants in its biggest market, Britain, during the second quarter with the easing of pandemic restrictions.
Even with the easing of pandemic related restrictions, the company experienced strong growth in demand for both restaurant and grocery orders, said the company’s Chief Executive Will Shu.
“Demand has been high amongst consumers,” he said in a statement. “We have widened our consumer base, seen people continuing to order frequently and we now work with more food merchants than any other platform in the UK.”
The gross transaction value (GTV) of the company rose 102 per cent to 3.386 billion pounds ($4.68 billion) during the first half of the year, said the company whose platform links its users to more than 136,000 restaurants and 9,000 grocery stores in Britain as well as in 11 other countries.
A 5.09 per cent stake in Deliveroo was taken by German rival Delivery Hero last week which pushed up the share price of the British company to the highest point since its initial public offer (IPO) in March this year.
No talks had been held with Niklas Oestberg, the CEO of Niklas Oestberg, since the stake taking, said Shu.
“I think his view was: the stock’s undervalued, I’m gonna start buying, and I know the space super well,” Shu told the media. “This is in my view just a financial investment.”
Deliveroo has said that it is “optimistic but prudent” about the prospects of its shares,
Deliveroo expects its orders to continue to grow but expects that the average order value will slowly return to close to pre-pandemic levels, the company that competes with Uber Eats and Just Eat Takeaway.com, said.
The company last month reiterated its forecast, that is had upgraded last month, for the full year of 50-60 per cent growth in GTV and a gross profit margin for the full year in the lower half of the 7.5-8.0 per cent range.
Deliveroo said its revenues for the first half surge by 82 per cent at 922.5 million pounds, while it managed to narrow down its core operating loss to 27.0 million pounds from 30.3 million pounds for the same period a year earlier.
(Adapted from Reuters.com)