Business

Deliveroo losses narrow to £233.7m ahead of London float

Its trading update also showed a surge in customer demand, with the total amount of transactions processed growing by 64.3% from £2.5bn in 2019 to £4.1bn in 2020

Deliveroo has revealed a narrowing of its losses to £233.7m during 2020 while also confirming its London stock market floatation.

The food delivery app gave prospective investors an insight into its financial performance today (8 March,  as part of the launch of its Initial Public Offering (IPO).

Its trading update showed a surge in customer demand, with the total amount of transactions processed growing by 64.3% from £2.5bn in 2019 to £4.1bn in 2020.

Despite its underlying gross profit increasing by 89.5% from £188.7m to £357.5m during 2020, the group still posted an underlying loss of £233.7m up from £317.m in 2019. 

Deliveroo, which works with 115,000 restaurants, takeaways and grocery stores globally,  also said that if the IPO goes ahead it would consist of “new shares to be issued by the company and existing shares to be sold by certain existing shareholders”.

The company was originally founded in 2013 by current CEO Will Shu, and has since supported 46,700 jobs in the UK.

Shu said: “Today we operate in 12 markets right across the world. 115,000 food merchants, over 100,000 riders, millions of consumers.  Every single month, every single year, we focused on getting better – sometimes incrementally and sometimes by leaps and bounds – focusing on great food and being customer-obsessed.  

“I was sad to see many of our partners struggle – restaurants owners I’ve known for years face closure and ruin – all due to some terrible virus.  So we took action to help. We reached out, brought new technology to them, guided them through the new rules so we all stayed safe, provided more Editions kitchens, and made sure that they could get their food to their customers.”

He added: “Now we take the next big step in our journey by allowing everyone to have a share in our future. That’s why we are planning to take Deliveroo public here in London, the city where it all started – and we plan to offer our customers across the UK the chance to own a part of the business. 

“We are proud to be enabling our customers to participate in a future float and have the chance to buy shares. Your loyalty and custom has helped build our business. I want you to have a chance to share in our future.”

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