· The Company moves from a position of losses in 2019 to demonstrating profitability in 2020
· In 2019, the company's revenue from operations was up 62% to £771.8m
· Deliveroo operates in almost 800 towns and cities after expansion in 2020
· Deliveroo now works with 140,000 restaurants and over 110,000 riders globally
· Globally, Deliveroo's order volumes increased by 64% in 2019
Deliveroo today provides an update on its growth in 2020 as full accounts for 2019 are filed.
Strong investment leads to sustained growth in 2020
Deliveroo invested heavily in 2019 to drive improvements to its service. During 2019 the company expanded to 200 new towns and cities worldwide. Deliveroo launched 'Pickup', a new click and collect service for customers and a new revenue stream for restaurants. The company launched 'Cash Out' for riders, enabling them to receive earnings more quickly. In May 2019 the company announced a new $575m Series G funding round, which is being used to develop our tech capabilities and improve our customer experience.
In 2019, investment saw revenue from operations up 62% to £771.8m, delivering order volume growth of 64% over the year; losses were £319.9m due to investment. This investment was supported by stronger profitability margins, with gross profit widening to 24.4%, up from 19.2% in 2018.
2020: a year of growth and expansion
Following a year of investment in 2019, 2020 has been a year of growth for Deliveroo. Deliveroo has been profitable for over 6 months at the operating level in 2020. The company is profitable in 11 of 12 markets and has continued to see improved unit economics in 2020.
In the face of unprecedented challenges posed by the pandemic in 2020, Deliveroo has continued to invest and expand:
· Deliveroo rapidly grew its on-demand grocery offering, partnering with major supermarket brands including Waitrose, Sainsbury's, Morrisons, Aldi and Carrefour. The company now works with more than 1,500 grocery partners, including single-site local stores, delivering from 4,300 sites globally. 135 new grocery brands, including major supermarkets, joined the platform in 2020.
· Over 46,000 restaurants have joined the platform in 2020, and the company now works with more than 140,000 restaurant partners globally.
· The company doubled the number of riders it works with and now provides work to over 110,000 riders across 12 markets.
· Deliveroo expanded into 187 new towns and cities and is now active in almost 800 in total across the world.
· Deliveroo invested to improve the efficiency of the service so the average delivery time has been reduced to 28 minutes. Investment has delivered new features for riders and additional support during the pandemic.
Deliveroo has supported the three sides of its marketplace during the pandemic. Deliveroo has invested to support restaurants, for example with marketing campaigns to support local restaurants, reduced onboarding fees, faster payments and new services such as Table Service, as well as charging 0% commission on Pick Up orders. For consumers, Deliveroo invested in expanding its on-demand grocery service, and for riders has provided increased support.
An increasingly active and loyal customer base
In 2020, Deliveroo has seen increased engagement from customers. The number of monthly active users on the platform is up and during this period Deliveroo has seen increased orders per customer, as well as the acceleration of customers ordering through Deliveroo's unique Plus subscription programme.
The online food delivery sector remains relatively new, which the company believes presents an enormous opportunity ahead for growth. Every consumer has an average of 21 meal occasions each week, but the company estimates that fewer than one of those is transacted online today. Deliveroo is focused on improving the experience for consumers to increase use of the platform across more meal occasions; having the best proposition for riders, offering them the flexible work they value and the security they deserve; and continuing to provide new tools to help restaurants to grow.
In 2021 the company expects to:
· More than double the number of Editions sites it operates worldwide
· Expand its on-demand grocery offering, which is the fastest growing part of the business
· Offer restaurant partners its new 'Signature' service, enabling customers to order delivery via restaurants' own channels
· Provide greater benefits for Deliveroo Plus customers and bringing Plus to new geographies
Commenting, Deliveroo CEO and founder Will Shu said:
"This year we have seen rapid consumer adoption of online food delivery, with more people ordering more frequently. Covid has accelerated strong underlying trends and there is an enormous opportunity ahead. At Deliveroo we are relentlessly focused on developing the leading proposition for consumers, riders and restaurants. We will be investing in expanding delivery-only kitchens, expanding on-demand grocery, developing new tools to help restaurants grow their businesses and giving consumers increased choice. We aim to be the definitive food company, offering riders the flexible work they value, consumers the ability to order whatever they want wherever they want it and restaurants access to new revenue streams and a wider customer base."