Deliveroo revenue rises by £200 million in 2018

Oct 2, 2019 · Deliveroo undertook huge expansion in 2018, launching in two new markets and doubling the number of towns and cities in which it operates

Dims

Deliveroo today reveals that the company’s financial accounts for 2018 show that sales rose by £200 million, as Deliveroo approached global revenue of almost £500 million in just its sixth year of delivering food to hungry customers.

Global sales rose to £476 million for the year to 31 December 2018, an increase of 72% (2017: £277 million). Gross profit jumped 42% to £91 million (2017: £64 million) following increased order volumes, an enhanced customer offering and continued growth in more mature markets.

The company has continued to invest heavily in its service as it looks to expand its operations and deliver even more amazing meals from great local restaurants. 2018 saw Deliveroo launch in two new markets - Taiwan in September, followed by Kuwait in November. The company also looked to deepen its offering within existing markets, opening in more than 250 new towns and cities.

Further key investments in 2018 included:

- Launch of Marketplace+, which enables restaurants with their own delivery fleet to access customers through Deliveroo. This helped add 7,000 partner restaurants to the platform within six months, 2,000 more than forecast.

- Investing £10 million in free insurance for riders to become the first company in the on-demand economy to offer this to riders to keep them safe whilst out on the road

- More than doubling investment in Deliveroo’s technology to £18 million

- Creating a ‘Rooversity’ which gives riders access to hundreds of online courses free of charge - each worth up to hundreds of pounds a year - to help them with their educational and professional development

Deliveroo’s track record of substantial growth was recognised in 2018, becoming the first company to top Deloitte’s UK Fast 50 two years in a row. Deliveroo also secured top spot in the Financial Times 1000 list of Europe’s fastest-growing companies.

The strength of Deliveroo’s growth and business model is reflected in the $575 million investment in the company in May 2019, led by Amazon, taking the total raised by Deliveroo to over $1.5 billion. This funding will be used to grow Deliveroo’s tech team, expand the company’s reach to new customers, develop new innovations in the food delivery sector and increase support for restaurant partners and riders.

Deliveroo’s commitment to growth and investment has continued in 2019:

- Deliveroo announced plans to launch in another 50 towns and cities in the UK in 2019, extending its reach to half the population

- The company acquired software design and development firm Cultivate to create a new tech hub in Edinburgh

- Deliveroo launched its Food Procurement service to enable restaurants to purchase cooking ingredients at reduced prices via bespoke deals negotiated by the company, and also extended its perks platform for restaurants to help reduce day-to-day business costs

- Deliveroo created a new payments feature for riders - ‘Cash Out’ - to allow riders to access their earnings immediately

- The company works with 80,000 restaurants and 60,000 riders globally

Deliveroo’s growth has helped restaurants increase their revenue at a time when the high street is facing a number of challenges. Independent analysis by Capital Economics reveals that Deliveroo enabled restaurant partners in the UK to boost their sales by £1 billion in 2018, including £320 million for independent restaurants. The study also found that the company has helped create 25,000 jobs in the restaurant sector since it launched in the UK in 2013. If Deliveroo were to continue adding restaurants to its platform at the current rate, the food delivery company’s operations would help create almost 70,000 restaurant jobs in the UK in 2020.

In 2018, losses before tax were £232 million (2017: £199 million). The rate of growth in Deliveroo’s global revenue (72%) and gross profit (42%) exceeded the rise in net losses (16%).

‘Deliveroo is growing from strength-to-strength and expanding across our markets as more and more people want amazing food delivered straight to their door.

‘We’re focused on our mission of becoming the definitive food company, and we’ve continued to invest heavily in expansion, technology and new products to meet this ambition. We are leading the field in innovation in food delivery, helping our restaurant partners to boost their sales and providing more well-paid work for riders.

‘Deliveroo has come a long way in the past six years, but this is just the beginning. I can’t wait to work with new great local restaurants to deliver meals to millions of more customers around the globe.’ - Will Shu, Deliveroo co-founder and CEO

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