Business

Deliveroo losses swell to £298m as it predicts growth slowdown

Losses at takeaway delivery firm Deliveroo have risen to £298m

TAKEAWAY delivery specialist Deliveroo has revealed its losses widened to almost £300 million in 2021 as it continues heavy investment into its growth plans.

The company said it posted a £298 million pre-tax loss for the year, compared with a £213 million loss in 2020, but stressed it has a long-term plan for profitability.

It came as the company reported a 67 per cent jump in transaction value to £6.6 billion, driven by a 73 per cent increase in order numbers.

The group also highlighted that it will face headwinds in the current year from inflation, the loss of economic stimulus and geopolitical and economic impacts from the conflict in Ukraine.

Will Shu, founder and chief executive officer of Deliveroo, said: "We have continued to make good progress in executing our strategy and I am proud of our performance in 2021.

"Particularly encouraging to me was our performance in the UK and Ireland, where we continued to grow our market share and achieved profitability on an adjusted earnings basis in a competitive environment - highlighting the strength of our consumer value proposition.

"At the same time, this year it is clear that all three sides of our marketplace in Europe will face headwinds due to inflationary pressures, the removal of economic stimulus and the broader geopolitical and economic impacts of the conflict in Ukraine.

"We will continue to monitor developments closely.

"Our 2022 guidance reflects our caution on these factors, but we are confident in our ability to adapt financially to a rapidly changing macroeconomic environment."

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