Meal delivery group Deliveroo maintained its full-year financial guidance on Thursday, as it reported a 5% rise in third-quarter gross transaction value, helped by an improving trend in customer orders.
The group, which has 183,000 restaurants and 20,000 grocery sites on its platform, said orders fell 1% in its third quarter, having been down 6% in the first half.
Deliveroo said while food price inflation was moderating, the growth in gross transaction value (GTV) was supported by 'expanded selection, targeted promotions and service enhancements.'
The group, which competes with Just Eat Takeaway.com and Uber Eats in markets in Europe, the Middle East and Asia, kept its guidance for full-year GTV growth in the low single digits, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £60-80 million (€68-€91.6 million).
"My confidence in our ability to drive growth and deliver on our goals for profitability and sustainable cash flow generation has never been stronger," founder and CEO Will Shu said.
Shares in Deliveroo are up 43% so far this year.
Rational Profitability Model
Meanwhile, Europe's biggest meal delivery company Just Eat Takeaway.com raised its full-year core profit outlook on Wednesday, citing growth in Britain, Ireland and Northern Europe.
It forecast adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of about €310 million for 2023, up from its previous guidance of about €275 million.
Following a boom in food deliveries during the pandemic, the sector is seeking to transition to a rational profitability model even as they invest more in marketing to avert a churn in customers.
Article by Reuters, additional reporting by Hospitality Ireland.