Deliveroo is making headlines with its first-ever annual profit, signaling a shift for the company. Founded in 2013 by Will Shu, Deliveroo started its journey in London and has since grown into a significant player in the food delivery market. After years of losses due to heavy investment, the company finally posted a profit after tax of £2.9 million ($3.8 million) last year, recovering from a loss of £31.8 million in 2023. This growth comes despite the company exiting Hong Kong amidst stiff competition.
According to their recent earnings report, Deliveroo’s revenue increased by 2% to nearly £2.1 billion, with a similar growth seen in orders. Shu expressed optimism about continuing this upward trajectory, even as economic conditions remain shaky. The company plans to support its restaurant partners and expand into grocery and retail sectors, aiming to cater to changing consumer needs.
Deliveroo operates in multiple countries, including the UK, Ireland, France, and Italy. However, it’s faced challenges in some markets. It has previously exited Australia, the Netherlands, and Spain— the latter after Spain recognized delivery riders as employees, not freelancers. This situation has sparked ongoing debate about worker rights in the gig economy.
In late 2023, the UK Supreme Court ruled that Deliveroo riders do not have collective bargaining rights, stirring further discussions around employee treatment and company responsibilities. The debate intensified after Deliveroo’s rocky stock market debut in 2021, which was the largest in London in a decade, valuing the company at £7.6 billion. Unfortunately, shares plummeted by almost one-third on launch day, primarily due to concerns over how the company treats its self-employed riders.
Experts like Susannah Streeter from Hargreaves Lansdown noted the milestone of profitability is significant, but warned of a challenging road ahead. As companies like Deliveroo grow, the conversation about worker rights and economic sustainability becomes increasingly important.
Deliveroo’s journey reflects broader trends in the gig economy, where labor laws are evolving. Across Europe, many countries are reevaluating how gig workers are classified and treated, leading to changes that could reshape the industry.
As the food delivery market continues to evolve, the balance between profit and responsibility will be crucial. Keeping an eye on developments will be important for both consumers and critics as this industry navigates its future.
For more insights on how gig economy laws are changing, you can refer to the European Commission’s report on digital labor.
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Source linkDeliveroo, tens of thousands, profit after tax
