Deliveroo’s Q3 report highlights significant growth driven by increased orders in the UK and Ireland.
- The company’s gross transaction value (GTV) rose by six per cent year-on-year, reaching £1.78bn.
- Order volumes increased to 71.1 million, a slight rise from 69.7 million the previous year.
- The UK and Ireland saw a seven per cent increase in GTV, totalling £1.1bn.
- Deliveroo faces challenges in Hong Kong but remains optimistic about future growth.
Deliveroo has demonstrated a robust Q3 performance, primarily supported by the growing demand for takeout services in the UK and Ireland. The company’s gross transaction value (GTV) has risen to £1.78bn, marking a six per cent increase year-on-year when adjusted for constant currency. Order volumes have also seen a rise, totalling 71.1 million, compared to 69.7 million in the previous year, as reported by City AM.
In the UK and Ireland, Deliveroo’s GTV experienced a notable seven per cent increase, reaching £1.1bn year-on-year. Although the order volume saw a modest two per cent rise, the company has made strides in improving its initiatives within a more predictable yet still uncertain consumer market. Founder and CEO Will Shu expressed satisfaction with the company’s performance, stating that these results “demonstrate another solid quarter of growth.” Shu’s confidence is reflected in his remarks on market trends: “UKI growth remains healthy, with improving order trends, and overall we are pleased with the underlying growth in International, driven by the UAE and Italy.”
Despite these successes, Deliveroo is conscious of the intense competition in certain regions, particularly Hong Kong. The company’s ability to maintain growth amid competitive pressures highlights its strategic resilience. Deliveroo’s positive outlook is backed by its full-year guidance, which projects GTV growth between five and nine per cent and anticipates positive free cash flow. Moreover, the company forecasts adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to align with the higher range of the projected £110m to £130m.
Will Shu remains bullish about the prospects of the on-demand delivery sector, citing “many exciting opportunities ahead” due to its nascent stage. Deliveroo’s strategic positioning is aimed at capitalising on this growth potential. However, challenges persist, as noted by Albie Amankona, an analyst at Third Bridge. Amankona pointed out that Deliveroo’s competitive edge, established through partnerships with premium restaurants, is diminishing as Uber Eats aggressively courts similar partners with enticing offers such as discounts and lower commissions.
Deliveroo’s Q3 growth underscores its strategic success in key markets, although competitive pressures remain.
