Deliveroo orders in the UK and Ireland exceeded £1bn for the first time as fast food deliveries enjoyed strong demand despite tougher economic conditions.
Gross transaction value, a measure of total order size, rose 9% to £1.03 billion in the region, despite order numbers remaining largely unchanged, while GTV for the group as a whole was also up 9% rose to £1.8 billion. Deliveroo said most of the profits were due to price inflation of items ordered.
The company also boasted an increase in profitability, with pre-tax earnings above previous forecasts and expectations of further improvement later in the year.
Will Shu, Founder and CEO of Deliveroo, said: “I am proud of the team that has delivered significant improvements in profitability while driving growth in a challenging macroeconomic environment.
“I’m extremely pleased that we’ve done this while improving our consumer value proposition, significantly increasing the selection of restaurants and grocers available on the platform.”
Shares in Deliveroo rose 6.2% to 98 pence. They’re up about 10% since the start of the year.
Alfie Pearce-Higgins, co-founder of gig work management app Rodeo, said: “After a year in which consumer spending took a hit from the cost of living crisis, Deliveroo 2022 finished in a stronger position than many of its competitors .
“Another major partnership with McDonald’s has also taken off. We believe this is already Deliveroo’s second largest UK partnership and may have accounted for more than 5% of UK orders in the fourth quarter.”
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