Deliveroo downgrades growth forecast as economic woes intensify

Deliveroo has blamed “increased consumer headwinds” for a cut to its forecasts, marking the latest setback for the online food delivery company.

The London-based group on Monday said growth for its full-year gross transaction value (GTV) — a measure of the orders placed through its platform — would be between 4-12 per cent on a constant currency basis, more than halving its previous estimate of between 15 and 25 per cent.

Deliveroo, whose 190,000 drivers operate across 11 markets worldwide, said it was facing “a more cautious outlook” in economic conditions, and that its figures in the same quarter in 2021 were buoyed by consumers ordering more food due to pandemic-related lockdowns.

“Management is confident in the company’s ability to adapt financially to a rapidly changing macroeconomic environment, through gross margin improvements, more efficient marketing expenditure and tight cost control,” Deliveroo said in a statement.

In its second-quarter trading update, Deliveroo said it had generated £3.56bn in GTV during the first half of 2022, up 7 per cent year on year.

Deliveroo shares have struggled since their disastrous flotation in 2021, when £2bn was wiped off the company’s market value on the first day of trading, and are down almost 60 per cent in 2022.

The shares, which floated at 390p, fell 2.5 per cent to 83p in early trading on Monday.

Founded in 2013, the company delivers food from more than 160,000 restaurant partners and 13,000 grocery sites.