Deliveroo has today revealed continued growth and investment in its latest Group financial accounts. In 2017, sales increased significantly due to rapid expansion and even more people wanting amazing food delivered on demand.
Worldwide sales grew to £277m for the year to 31st December 2017, a jump of 116% (2016: £128.5m). Gross profit also increased to £64.3m (2016: £1.1m) and gross margin has gone from less than 1% to 23%, underlining the strength of the company's growthl. The growth in gross profit can be attributed to growing maturity in existing markets, improved services and growing order volumes.
In 2017 Deliveroo’s European markets saw 99% year-in-year revenue growth, while all other markets saw 207% year-in-year growth.
Deliveroo invested heavily, increasing operational expenses by 73%, investing £106m more than in 2016. In the year to 31 December 2017, net assets also increased 120% to £372m (2016: £169m).
Investment has continued in 2018 and the company has continued to grow. Deliveroo has just announced that it will be moving in to its 13th market, Taiwan, in the coming weeks, and expects to move in to more new markets in coming months. The company can reveal today that it is now working with 50,000 restaurants and 50,000 riders across the world.
In 2017, Deliveroo hit several milestones:
- Deliveroo launched its 200th city - Orléans, France. The company now operates in 500 towns and cities worldwide.
- During the period, the company recruited 300 engineers, creating one of the UK’s biggest technology hubs.
- Deliveroo also moved into its new Cannon Street head office, in the heart of London’s financial district
- Deliveroo acquired US-based tech firm Maple for £11m to help restaurants improve efficiency and drive growth.
- The business rolled out late-night deliveries and launched Deliveroo Plus, a subscription service that gives customers unlimited free deliveries, which is now being rolled out globally.
- The first Deliveroo Editions kitchen was opened in London in April 2017. Further sites have now opened in France, the Netherlands, Singapore, Australia, Dubai and Hong Kong. By the end of this year Deliveroo will have 250 kitchens worldwide.
The rapid growth and success of Deliveroo was recognised in 2017, when the company came top of the Financial Times 1000 list of fastest growing European companies, achieving the highest compound annual revenue growth over the three years to end of 2016. Deliveroo also topped the Deloitte UK Fast 50 and EMEA Fast 500 awards.
Deliveroo’s success has in turn driven growth in partner restaurants. Analysis by Capital Economics published in 2017 found that Deliveroo helped create 7,200 jobs across the restaurant industry since launching in the UK in 2013, and increased revenues of restaurants and their wider supply chain by £460 million. It also revealed that Deliveroo’s operations helped to add £372m in value to the UK economy in the 12 months to June 2017.
Deliveroo has previously revealed the top dishes ordered during 2017. These include Le Big Fernand from Big Fernand in Lille, Burritos from Dublin’s Boojum and the Five Guys Cheeseburger in London. Aside from burgers and burritos, 2017 saw the growing popularity of picture-perfect Hawaiian poké bowls and brightly coloured buddha bowls were also a big hit.
In 2017, losses before tax were £184.7m (2016: £129.1m), following a year of major investments. The revenue growth in 2017 outstrips that of the increase in net loss, underlining Deliveroo’s growing profit margin. This can be attributed to growing maturity in existing markets, improved services and growing order volumes.
Will Shu, co-founder and CEO of Deliveroo, 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. We are changing the way people eat and helping restaurants to expand to new areas and in new ways.
“I am proud that Deliveroo now works with 50,000 restaurant partners and 50,000 riders worldwide, as well as our millions of fantastic customers. I’m looking forward to expanding even further with them in the years to come.”
The company’s growth and investment in innovation continues in 2018:
- ‘Marketplace+’ was launched, enabling restaurants to use their own rider fleets and use Deliveroo riders, dramatically extending restaurants’ delivery services.
- Deliveroo invested £10m in offering all riders free accident and injury and third party liability insurance.
- Deliveroo has changed its app to be more environmentally friendly, with cutlery no longer coming with every order, reducing the use of plastics.
- Deliveroo announced an integration with Google Maps across 10 countries throughout Europe and the Asia Pacific regions.