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Deliveroo Upgrades Full-Year Forecast After Strong Third Quarter

Published on Oct 20 2021 9:22 AM in Technology tagged: Trending Posts / Deliveroo

Deliveroo Upgrades Full-Year Forecast After Strong Third Quarter

Food delivery company Deliveroo upgraded its full-year growth forecast on Wednesday after the gross value of its orders in the third quarter increased 58% year-on-year, despite lockdown measures easin...

Food delivery company Deliveroo upgraded its full-year growth forecast on Wednesday after the gross value of its orders in the third quarter increased 58% year-on-year, despite lockdown measures easing in most of its markets.

The British company, which had performed strongly during lockdowns, said it expected its gross transactional value to rise by 60-70% this year, up from its previous forecast of 50-60%.

'Good Progress'

Founder and chief executive Will Shu said Deliveroo made good progress in the quarter, including launching a new rapid grocery delivery service called Deliveroo Hop.

"While we are mindful of current and potential macroeconomic disruptions and uncertainties, we expect further strong performance in the remainder of the year and we are increasing our full year GTV growth guidance," he said.

The value of Deliveroo's orders in the quarter increased to £1.59 billion, with the number of orders increasing 64% to £74.6 million.

Dorders Decline 

On the 11 Ausgust, the company said that the average size of each order declined by 4% to £21.4,000, Deliveroo said.

Deliveroo said the value of orders on its platform more than doubled in the first half, with no material impact from the wider reopening of restaurants in its biggest market, Britain, in the second quarter.

Chief Executive Will Shu said growth had remained strong for both restaurant and grocery orders even as pandemic-related curbs eased.

"Demand has been high amongst consumers," he said in a statement on Wednesday. "We have widened our consumer base, seen people continuing to order frequently and we now work with more food merchants than any other platform in the UK."

The company, which connects customers with over 136,000 restaurants and 9,000 grocery stores in Britain and 11 other countries, said its gross transaction value (GTV) rose 102% to £3.386 billion ($4.68 billion).

News by Reuters edited by Donna Ahern, Checkout. For more Technology news click here. Click subscribe to sign up for the Checkout print edition.

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