UK Deliveroo’s loss is expected to slow growth, swelling to £ 298 million

Deliveroo, a take-out delivery specialist, revealed that losses surged last year as he invested more cash in his rapid growth plans.

The company posted an annual pre-tax loss of £ 298m compared to a loss of £ 213m in 2020, but emphasized that it has a long-term plan for profitability.

He told investors Thursday that he is aiming to reach the break-even point for core earnings over the next two years.

The group said the big losses over the past year were caused by large investments in marketing and technological improvements as they tried to maintain momentum after being boosted by pandemic restrictions.

Deliveroo reported a 67% increase in transaction value in 2021 to reach £ 6.6 billion, with a 73% increase in orders.

Nonetheless, the company forecasts a slowdown in transactions this year as it expects a 15% to 25% increase across the platform.

Last year’s revenue increased 57% to £ 1.8 billion due to increased sales transactions.

The group said it benefited from the additional power of its UK business, which saw orders increase by 72%.

While about 19,000 restaurant sites have been added to the UK platform annually, the operation of grocery stores, which has expanded by more than two-thirds to about 6,000 sites, has also expanded.

Deliveroo also emphasized that this year it will face headwinds from inflation, the loss of economic stimulus, and the geopolitical and economic consequences of the Ukrainian conflict.

Will Shu, founder and chief executive officer of Deliveroo, said the company “keeps track of development closely.”

He added: “We continue to make good progress in implementing our strategy and are proud of our 2021 performance.

“Especially encouraging was our performance in the UK and Ireland, where we gained market share in a highly competitive environment and achieved profitability on an adjusted revenue basis. This is consumption. It highlights the strength of the value proposition of the person. “

PA media