The CEO of Deliveroo, Will Shu, has commented on the impact of inflation on consumer behavior, noting that rising food prices have led some customers to view food delivery as a non-essential expense amidst the cost-of-living crisis. Shu highlighted the disparity between food inflation and wage inflation, which has squeezed consumer spending power. However, he expressed optimism that the pressure of inflation is gradually easing, approaching parity with wage inflation, which would benefit the company.
Regarding recent strikes by delivery riders over pay and working conditions, Shu stated that Deliveroo has not been significantly affected, as the majority of riders continued to work. He emphasized the company’s commitment to addressing rider concerns seriously, with initiatives such as a dedicated rider engagement team and collaboration with unions to ensure riders have a voice.
Deliveroo, operating in 10 countries with approximately 135,000 riders worldwide, has faced legal battles over the employment status and rights of its riders. In the UK, the Supreme Court ruled that riders are not employees entitled to trade union rights.
Additionally, Deliveroo launched the ‘Deliveroo Shopping’ feature, partnering with retailers to deliver various items beyond food, such as pharmacy products, toys, and pet care items. Shu highlighted popular items since the feature’s launch, including dog treats, soy wax candles, and hand cream.
In addition, Shu disclosed that the top-trending cuisines among Deliveroo customers have been American, Mexican, and Hawaiian food, reflecting diverse culinary preferences. Meanwhile, the most popular grocery items ordered through the app included bananas, eggs, and semi-skimmed milk, indicating a mix of staple and fresh produce preferences.
Deliveroo reported a narrower loss of £31.8 million for 2023, a significant improvement from the £294.1 million loss recorded in 2022. Despite a 3% decrease in the number of orders to 290 million, the annual gross transaction value (GTV), representing the total cost of food baskets plus delivery and consumer fees, increased by 3% to £7.1 billion. This growth was supported by a 6% rise in the average cost per takeaway order, from £22.90 to £24.30, attributed to price inflation and optimizing consumer fees.
Moreover, Deliveroo experienced a slightly stronger performance in the UK and Ireland, where the number of orders increased by 1%, and GTV surged by 8% year-on-year, indicating resilience and growth in these key markets.