For the first time in its 12-year existence, British meal delivery service Deliveroo has made a profit. The company owes the good performance to a strategy that is increasingly committing to grocery delivery.
Turnaround
On a turnover of 2.1 billion pounds (2.5 billion euros), up 5%, Deliveroo posted a profit of 2.9 million pounds (3.6 million euros) last financial year. That is a sharp turnaround compared to the 32 million pounds (38 million euros) loss in 2023. The delivery company also generated positive cash flow for the first time.
Deliveroo says the better figures are thanks to a strategy that goes beyond delivering meals. Grocery delivery already accounts for 16% of revenue. The company also entered into partnerships with non-food retailers such as Ann Summers, B&Q, The Perfume Shop and Not On The High Street. In total, runners delivered 7.4 billion pounds (8.8 billion euros) worth of meals and groceries.
In addition, the courier service withdrew from several unprofitable markets. Deliveroo still operates in 10 countries, with the largest business in Britain and Ireland, together accounting for 60% of sales.
