Full steam ahead for Deliveroo, even post-Covid

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The reopening of the hospitality industry hardly seems to affect Deliveroo. In the past three months, the significant growth continued, leading the British meal delivery company to increase its annual forecast.

 

Seasonal effect

Between July and September, Deliveroo's gross transaction value increased by 54 % to 1.6 billion pounds (1.9 billion euros). Just over half of that was realised in the United Kingdom and Ireland. Deliveroo received over 74 million orders, compared to 54 million during the same period last year. The average order value did drop by 6 %, while th average order frequency remained stable: customers order 3.3 times per month.

 

Compared to the first half of the year, when Deliveroo amply exceeded the expectations, there is a slight deceleration in growth. Deliveroo set record after record in the past year and a half, but now that trend has come to an end: the gross transaction value in the third quarter was slightly lower than April to June. According to the company, this is mainly a seasonal effect.

 

Partnerships

Last month, the meal delivery company struck a deal with Amazon, enabling all British and Irish Amazon Prime members to sign up for a free one-year Deliveroo Plus membership. This membership lets customers enjoy free delivery on all orders over 25 pounds or 25 euros. Since the launch of this partnership, the number of Deliveroo Plus subscribers in the UK and Ireland has already doubled.

 

In addition to meal delivery, grocery delivery is also becoming an increasingly prominent feature of Deliveroo. In recent months, express courier services have moved into that market en masse, so Deliveroo could not afford to stay behind. In cooperation with supermarket chain Morrisons, 'Deliveroo Hop' was launched last month, delivering groceries within ten minutes.

 

The new express delivery service complements Deliveroo's fast-growing on-demand grocery delivery service, already delivering from over 10,000 partner stores worldwide. In Belgium, the company collaborates with Carrefour.

 

Outlook

Deliveroo expects to continue growing strongly throughout the remainder of the year and is raising its annual forecast. The company now expects a full-year increase in gross transaction value of 60 to 70 % instead of 50 to 60 %.