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Deliveroo Reports Order Growth in First Quarter of 2025
Online food delivery platform Deliveroo has announced a 7% increase in order volume during the first quarter of 2025. This marks a positive start to the year for the company, building on its first annual profit achieved in the previous year. The order growth in Q1 2025 represents an acceleration compared to the 6% increase seen in the preceding quarter.
Strong Performance in Key Markets
The company stated that this 7% rise in orders was driven by robust consumer demand in the UK and Ireland. Additionally, strong performances in international markets such as Italy and the United Arab Emirates contributed significantly to the overall growth.
Key Financial Highlights
Alongside order growth, Deliveroo reported significant financial progress:
- Gross Transaction Value (GTV): Increased by 9% at constant currency rates, reaching £1.9 billion. GTV represents the total value of customer orders processed through the platform.
- Turnover: Saw an 8% increase, reaching £518 million.
Positive Outlook for the Year
Following these encouraging first-quarter results, Deliveroo has updated its financial outlook for the remainder of 2025. The company now anticipates GTV growth to be in the ‘high single-digits’ for the full year.
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The London-based delivery service also projects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to fall within the range of £170 million to £190 million. This positive forecast is underpinned by strategic investments aimed at capitalizing on future expansion opportunities.
Building on Annual Profitability
These latest results follow Deliveroo’s recent announcement of its first-ever annual profit, with earnings of £2.9 million for 2024. This marked a significant turnaround from a £32 million loss in the previous year.
Since its inception, Deliveroo had experienced several years of losses as it prioritized rapid expansion, incurring substantial expenses in staffing, marketing, and technology.
Pandemic Impact and Adapting to Changing Conditions
Deliveroo experienced a substantial surge in demand during the Covid-19 pandemic as restrictions on dining at restaurants led to a significant increase in online meal ordering.
However, as these restrictions eased and inflation rose, consumer spending on takeaway meals decreased. In response to these shifting market dynamics, Deliveroo strategically withdrew from certain markets, including Australia and the Netherlands.
The company also forged partnerships with major UK retail chains such as Screwfix, B&Q, and Morrisons to diversify its offerings. Furthermore, Deliveroo implemented cost-saving measures, including workforce reductions, reduced marketing expenditure, and optimization of its delivery network through features like multi-pick-up stacking and a rider check-in system.
Analyst Perspective
Market analyst Adam Vettese from eToro commented on Deliveroo’s strategy of investing in loyalty programs to foster a dedicated customer base in a competitive market dominated by rivals like Just Eat and Uber Eats.
Vettese noted the continued uncertainty in macroeconomic conditions, suggesting that discretionary spending, such as takeaway meals, could be vulnerable during economic pressures.
However, he also pointed out that Deliveroo’s expansion into grocery deliveries provides a valuable diversification strategy to mitigate some of this risk.
Stock Market Reaction
Following the release of these results, Deliveroo shares experienced a modest increase of 1.5 per cent, trading at 132.1 on Thursday morning. Despite this recent uptick, the share price remains significantly below its initial public offering (IPO) level.