Deliveroo sales double but losses also widen
By Caoimhe Toman
Date: Monday 01 Oct 2018
(Sharecast News) - UK start up Deliveroo announced in its annual results on Monday that its sales have more than doubled to £277m but losses at the company also ballooned to reach £185m.
The food delivery service reported revenues up 116% cent to £277m in 2017 but pre-tax losses widened to £184.7m from £129.1m in the same period in 2017 due to the costs of "major investments" which totalled £100m.
Co-founder and chief executive Will Shu said: "Deliveroo is growing rapidly around the world, driven by our passion to bring amazing food to people whenever and wherever they want it.
"Our growth is matched only by our ambition. We want to become the world's definitive food company and we have invested heavily in innovation, technology, people and restaurants."
The firm said that the revenue growth in 2017 outstripped the increase in net losses, underlining Deliveroo's growing profit margin.
The company said its gross profit rose £64.3m from £1.1m last year with a gross margin rising 23% from less than 1%.
The results come at a time of speculation regarding the company with rumours claiming Deliveroo might be bought by Uber for over $2bn.
The company also said on Monday that it now works with 50,000 restaurants and 50,000 riders across the world.
"We are changing the way people eat and helping restaurants to expand to new areas and in new ways. I'm looking forward to expanding even further with them in the years to come," said Shu.
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