Deliveroo Thrives with Rising Revenue Amidst UK Market Challenges – Insights from PYMNTS.com

Consumer spending concerns in the United Kingdom didn’t stop Deliveroo from posting strong earnings in the fourth quarter. The online food delivery service reported rises in both revenue and gross transaction value (GTV), as highlighted in their recent press release.

During a call with analysts, CEO Will Shu emphasized the positive performance in the U.K., which is their largest market. He proudly noted, “In the U.K., we’re particularly pleased. GTV growth increased to 9% year on year, up from 7% in the third quarter.” Order growth also saw a 5% increase year on year.

Shu acknowledged the tough consumer environment but highlighted the team’s impressive execution. “It’s still quite uncertain in the U.K., but we’re proud of the performance,” he said.

Deliveroo also saw a strong boost in its quick commerce and grocery segments. Shu observed a shift towards faster deliveries and smaller orders, stating, “The grocery segment is definitely driving significant growth for the company.”

In France, Deliveroo noticed slight recovery after disruptions from the Paris Olympics, although there was still some market softness. Meanwhile, Hong Kong posed challenges due to intense competition. Shu remarked on its density of merchants and consumers, saying, “It’s a good market for us, but it has been tough for about a year.”

These positive results come amid struggles for other delivery companies. French startup Epicery closed its doors in December, and Just Eat Takeaway sold Grubhub to Wonder at a significant loss of 90%.