Deliveroo's founder has said the company's foray into grocery retail could eventually outpace takeaway orders, as the company reported its first annual profit last year.
Around a sixth of Deliveroo's revenue in 2024 came from retail and grocery delivery, but Will Shu expects that figure to grow to more than half.
He told the PA news agency: “I see no reason why this can't eventually outpace our core restaurant business.”
“There is a broader societal shift in how we perceive on-demand services that is driving a lot of these changes,” he added.
“People are giving up big weekly purchases and replacing them with several small purchases throughout the week,” he noted.
“People want to get their products faster.”
Grocery orders made up 16 percent of the company's total transaction volume last year, which includes the total value of users' shopping carts plus shipping costs.
The company continues to expand its offering beyond food, adding stores such as Ann Summers, The Perfume Shop and Not On The High Street.
Mr Shu said growth areas included DIY, health and pet food, pointing to recent partnerships with B&Q and Boots.
The forecast comes after Deliveroo reported a profit of £2.8 million (€3.3 million) in 2024, the first full year the company has made a profit since posting a loss of £31.8 million in 2023.
However, Mr Shu noted “uncertainty” in the consumer environment, saying changes to the minimum wage and employer taxes in the UK had increased costs for the shops and restaurants Deliveroo delivers from.
“That's quite a significant increase in their core costs,” he added.
He also said the group was seeing “good momentum” in the UK, but added: “We don't know what's going to happen in April. Are we going to see inflation again… Is that being passed on to consumer prices?”
Revenue and orders increased by 2% across the group, which includes Ireland, France, Italy and the United Arab Emirates.
Meanwhile, Deliveroo reported improvements in order frequency and customer retention.
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Mr Shu said the company was “relentlessly focused” on improving the customer experience, including by developing a loyalty program that allows people to sign up for benefits such as reduced shipping costs.
The founder also played down reports that he was planning to leave the company after selling shares worth around £15m last year
Sourse: breakingnews.ie
