Deliveroo has reported deepening pre-tax losses, despite more than doubling its sales over the last year, as it splashed out on “major investments”.
The food delivery service reported pre-tax losses of £232m, up from £199m the previous year, which it put down to “investing heavily in its service as it looks to expand its operations”.
It reported that gross profit jumped by 42% to £91m, which Deliveroo put down to increased order volumes and continued growth in its core markets. Global sales meanwhile also increased, posting a 72% jump year on year to £476m.
Deliveroo said this provided “further evidence of the strength” of its business model and hailed its “enhanced customer offer”.
It also highlighted the £450m investment led by Amazon in the business in May as further evidence of the longevity of its business model.
Boss Will Shu said: “Deliveroo is growing from strength to strength and expanding across our markets as more and more people want amazing food delivered straight to their door.
“We’re focused on our mission of becoming the definitive food company, and we’ve continued to invest heavily in expansion, technology and new products to meet this ambition. We are leading the field in innovation in food delivery, helping our restaurant partners to boost their sales and providing more well-paid work for riders.
“Deliveroo has come a long way in the past six years, but this is just the beginning. I can’t wait to work with new great local restaurants to deliver meals to millions of more customers around the globe.”
The food delivery service also announced plans to launch in another 50 towns and cities across the UK by the end of 2019, which it said would extend its reach to half of the UK’s population.
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