Deliveroo Reports Steeper Losses In Challenging Market Conditions

  • Deliveroo’s revenue was up 12% to £1.01 billion.
  • Gross transaction volume (GTV) increased 7% to £3.56 billion.
  • Reported a pre-tax loss of £147 million in H1 2022.

Deliveroo reported its half-year results on Wednesday, which saw a larger pre-tax loss in “challenging market conditions.”

However, Deliveroo shares have gained 3.68% this morning.

Revenue for the online delivery company was up 12% to £1.01 billion due to growth in commission revenue and consumer fees. In addition, revenue benefitted from its new advertising platform, which began to take off.

Meanwhile, gross transaction volume (GTV) increased 7% to £3.56 billion.

However, the company reported a pre-tax loss of £147 million in H1 2022, compared to a loss of £95 million in H1 2021. It seems Deliveroo needs to “deliver” some profits.

Deliveroo, which competes with Just Eat and Uber Eats, stated it is working towards a proposal to end operations in the Netherlands after the Netherlands accounted for only 1% of the group’s GTV in H1.

“So far in 2022, we have made good progress delivering on our profitability plan, despite increased consumer headwinds and slowing growth during the period,” said Will Shu, Founder, and CEO of Deliveroo.

Shu commented the company is confident it will see “further gains” from actions already taken.

Deliveroo reiterated its full-year guidance for 2022, with GTV expected to be in the range of 4% to 12%.

Consumer Metrics:

Source: Semrush

Deliveroo has seen tremendous growth since late 2017. And with lockdowns in 2020, the company saw a spike in organic traffic, and the momentum continued. However, with current inflation issues be aware of the slight decline in traffic to its website this year.

Source: Tradingview

Deliveroo shares have gained 3.68% following its half-year results. However, the stock has taken a significant hit in 2022, plummeting almost 55% due to inflationary issues.

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