Consumers are having less food delivered to their homes due to the rising cost of living. Deliveroo halves its expected turnover growth, as people everywhere are becoming more aware of what they spend.
Consumers become more cautious
High inflation and rising consumer prices mean that consumers are currently spending less on non-essential items, such as takeaways. Especially compared to last year, when people had more home deliveries due to Covid restrictions, delivery platform Deliveroo reports people are becoming significantly more reluctant.
Due to these unfavourable conditions, Deliveroo is lowering its expectations for the whole year. Originally, the London-based meal delivery company expected people to order as much as a quarter more, but now the company is only counting on 4 to 12 % gross revenue growth.
Last quarter, growth had already begun to slow down and the average order value fell, while costs increased: according to the Financial Times, prices for a takeaway have risen by an average of 8 % since the beginning of the year.
Deliveroo, which operates with 190,000 independent couriers in eleven countries, is still making a strong case that it can financially adapt to the “rapidly changing macroeconomic environment” by improving gross margin, managing marketing spend more efficiently and tightly controlling costs.