Deliveroo Orders & Sales More Than Double
Deliveroo Orders & Sales More Than Double in First Quarter. Orders and sales more than doubled at Deliveroo in the […]
Deliveroo Orders & Sales More Than Double in First Quarter.
Orders and sales more than doubled at Deliveroo in the first three months of 2021, it said in a trading update. The number of customers using the delivery firm each month also hit a record 91% year-on-year to 7.1 million.
Deliveroo shares dived when it listed on the London Stock Exchange last month and fell 1.6% in early trading on Thursday.
The firm said in a statement it was unsure how much the growth was due to lockdown, but it still expects full-year sales to rise by 30% to 40%.
The firm is loss-making and as this was trading update did not offer guidance on future profits.
Founder and chief executive Will Shu said: “This is our fourth consecutive quarter of accelerating growth, but we are mindful of the uncertain impact of the lifting of Covid-19 restrictions.
“So while we are confident that our value proposition will continue to attract consumers, restaurants, grocers and riders throughout 2021, we are taking a prudent approach to our full year guidance.”
Deliveroo said that orders soared by 121% in the UK in the past three months to 34 million as the pandemic takeaway boom continued during the third national lockdown. In its overseas markets orders were up 108% to 37 million.
However, the company said it expects its current rate of growth “to decelerate as lockdowns ease”, although the extent of the slowdown remains “uncertain”.
The update comes weeks after the group’s flotation on the London Stock Exchange, which saw the value of its shares cut by a third in a week amid investor concerns over corporate governance and worker rights.
Deliveroo riders are self-employed, meaning they are not entitled to earn a minimum wage from the company, or holiday and sick pay.
However, in its update, the firm said rider satisfaction in the UK was at an all-time high of 89% at the end of March.
Michael Hewson, an analyst at CMC Markets, said: “This morning’s update is certainly encouraging, and shows the business is heading in the right direction.
“It remains to be seen whether it will be enough to tempt shareholders back on board after the losses [in the share price] seen since the beginning of the month.”