Britain's Deliveroo ROO.L said on Tuesday 12 April that consumer spending could slow for the remainder of the year after the food delivery firm reported higher order values for the first quarter.
The warning comes as Europeans face a cost-of-living squeeze due to higher energy bills and soaring inflation, exacerbated by the Russia-Ukraine crisis.
The quarterly 12% growth in gross transaction value (GTV), the money value of all food orders on its platform, was higher compared to a year earlier, but shares fell 3% in early trading on Tuesday 12 April and analysts turned sceptical.
Get a FREE Digital Subscription!Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
"For a growth company like Deliveroo, this (quarterly GTV growth) is not a stellar figure. Actually, it is a warning that the rest of the year is going to be quite volatile," said AJ Bell analyst Danni Hewson.
During the peak of the pandemic last year, Deliveroo, which competes with the likes of Uber Eats UBER.N and Just Eat Takeaway TKWY.AS, had enjoyed strong orders from people stuck indoors.
"Consumer behaviour may moderate during the year, and this is reflected in our guidance," Deliveroo founder and chief executive Will Shu said even as the company stuck to its annual GTV growth of 15%-25% that it provided last month.
"We remain confident in our ability to adapt financially to any further changes in the macroeconomic environment."
Britain And Ireland GTV Percentage
Britain and Ireland account for nearly 54% of the company's overall GTV.
News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.