Food delivery platform Deliveroo is profitable for first time amid growing demand

Deliveroo, a startup we’ve followed closely since its early days, hit a significant milestone, turning a profit for the first time since its inception over a decade ago.

According to a report from CNBC, the Amazon-backed Deliveroo posted a net profit of £1.3 million ($1.65 million) in the first half of this year, a major shift from the £82.9 million loss it suffered during the same period last year. The company attributed this turnaround to a noticeable rise in consumer demand, with more frequent orders and improved customer retention.

Deliveroo’s gross transaction value saw a 6% increase, reaching £3.7 billion in the first half of the year. Revenue was up 2% to £1,028.2 million, with a slight 2% bump in orders processed, totaling 147.4 million, CNBC reported.

Following the release of these results, Deliveroo’s shares jumped 8% to £1.37 in London by late morning trading. However, the stock remains well below its IPO price of £3.90. It’s worth recalling that the company’s shares dropped by as much as 30% on their debut day back in 2021.

CEO and co-founder Will Shu expressed cautious optimism, noting the ongoing uncertainties in the market but acknowledging positive trends in consumer behavior across most of their markets.

Earlier this year, Deliveroo saw a shift in its ownership landscape when Delivery Hero, a German food delivery giant, sold its stake in the company. Delivery Hero acquired a 5.09% share in Deliveroo three years ago in a bid to expand its European presence, a move that has now been reversed.

Founded in 2013 by Will Shu and Greg Orlowski, Deliveroo operates in over 20 countries, including major markets like Australia, France, Germany, and the United Kingdom. The company generates revenue by charging restaurants a commission and applying a fee per order to customers. Now active in more than 500 towns and cities across 14 markets, Deliveroo continues to solidify its presence on the global stage.