Deliveroo still booming despite restaurant return

People are still ordering millions of takeaways despite restaurants reopening across the country.

Deliveroo, delivery service, food

Deliveroo expressed that the takeaway service is still booming despite the return of restaurants and the lifting of lockdown restrictions.

The company noted that although the average order size is falling, down from £24.20 a year ago to £23.80. The food delivery service reported a 59% increase in UK orders between July and September, partly owing to new partnerships with Amazon and Morrisons.

“We expect further strong performance in the remainder of the year,” said Will Shu, founder and chief executive.

Deliveroo had 35.8 million orders in the UK and Ireland, compared with 22.6 million in the same period in 2020. Taking account of international orders, the figure climbed to 74.6 million, up from 45.4 million, a 64% rise. The company said that the average customer ordered 3.3 times a month between July and September “despite the widespread removal of lockdown restrictions”.

The company was boosted by a deal with Amazon to offer to Amazon Prime customers free access for a year to its premium subscription service, Deliveroo Plus.

That resulted in a doubling of members of the delivery firm’s service, which offers free unlimited delivery on orders above £25.

Deliveroo also said it benefited from a new rapid grocery service, known as Deliveroo Hop, launched in partnership with Morrisons in September.

Mr Shu expressed that “We [Deliveroo] remain excited about the opportunity ahead and our plans to deliver better value to our consumers, help our restaurant and grocery partners to grow, and provide further opportunities for riders.” 

In August, the firm published its first set of results since floating on the stock market in March this year. It revealed it had narrowed its pre-tax losses to £104.8m, as against £128.4m a year earlier.