British meal delivery company Deliveroo said its 2023 earnings would be 'slightly' ahead of the £60-80 million (€69.9-93 million) it had previously guided, while the total value of orders on its platform had risen by 3%, in line with its forecasts.
In the medium term, Deliveroo said in November it expected its gross value transaction (GTV) to grow by a mid-teens percentage each year, and reiterated its expectation that its earnings margin as a percentage of GTV would come in at over 4% by 2026.
Non-Food Retail
The same month, Deliveroo said it was expanding into non-food retail, betting on toys, electronics and other goods to help drive growth, after it reiterated 2023 profit guidance.
The group, which competes with Just Eat Takeaway.com and Uber Eats in markets in Europe, the Middle East and Asia, said it had launched 'Deliveroo Shopping' on its app, which will allow customers to buy non-food items, including D.I.Y. products through a partnership with hardware supplier Screwfix.
New Categories
By expanding into the new categories, Deliveroo, which has 162,000 restaurants and 20,000 grocery sites on its platform and operates a network of delivery riders, will increasingly find itself in competition with its shareholder Amazon.
The US company holds a 14.13% stake.
Medium Term
"There continues to be significant headroom for growth," Deliveroo's chief executive Will Shu said in a statement ahead of an investor day in December.
In October, Deliveroo said while food price inflation was moderating, the growth in gross transaction value (GTV) was supported by 'expanded selection, targeted promotions and service enhancements.'
"My confidence in our ability to drive growth and deliver on our goals for profitability and sustainable cash flow generation has never been stronger," founder and CEO Will Shu said.
Article by Reuters, additional reporting by Hospitality Ireland.
