Thanks to cost savings, Deliveroo managed to halve its loss last quarter. The meal delivery company sees revenue rise thanks to price increases, even though the number of orders is falling.
Round of layoffs
In the second quarter, Deliveroo’s couriers delivered 145 million orders, a drop of 6 % compared to the 154 million a year earlier. Still, sales rose 5 % to 1.19 billion euros, thanks to higher average spending per order – a result of high inflation. Most importantly, the meal delivery company was able to cut its loss from 177 million euros last year to 96 million this year.
This is due to bold cost-cutting measures: the company recently laid off about 10 % of its workforce and withdrew some time ago from some difficult markets, including the Netherlands and Spain.
In order to achieve economies of scale, the courier service plans to deliver more groceries besides meals, in cooperation with food retailers such as Waitrose, Asda, Albert Heijn and Carrefour. In addition, the company sees potential in delivering non-food orders.