More Brits ordering takeout in the UK and Ireland helped Deliveroo post growth in its third quarter, as it maintained its full year guidance.
The food delivery company booked gross transaction value (GTV) of £1.78bn, up six per cent year on year in constant currency, as orders jumped to 71.1m, up from 69.7m in the year-ago period.
In the UK and Ireland, GTV grew seven per cent year on year to £1.1bn. Order numbers ticked up two per cent as Deliveroo “made progress on our initiatives in a more stable but still uncertain consumer environment”.
Will Shu, founder and chief executive of Deliveroo, said the results “demonstrate another solid quarter of growth.”
He added: “UKI growth remains healthy, with improving order trends and overall we are pleased with the underlying growth in International, driven by the UAE and Italy.”
Hong Kong, however, remained a laggard due to a very competitive environment, Deliveroo said.
The company has maintained its full year guidance. GTV is expected to grow between five and nine per cent, free cash flow is expected to be positive.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the upper half of the £110m to £130m range.
“There are many exciting opportunities ahead for the on-demand delivery industry,” Shu said. “Deliveroo is well-positioned to capture the significant growth potential in an industry still early in its maturity.”
However, Albie Amankona, analyst at investment research firm Third Bridge, said Deliveroo’s edge with premium restaurants “seems to be fading as Uber Eats attracts more of the same top-tier spots”.
Amankona explained that Uber’s aggressive sales force, including incentives such as discounts, commissions, and free ad spend, are attracting new restaurants, “reducing Deliveroo’s exclusivity”.