LONDON – Takeaway meals app Deliveroo today said it expects growth in orders to slow as Covid-19 lockdowns are eased and after demand more than doubled in the first quarter.
“Deliveroo expects the rate of growth to decelerate as lockdowns ease, but the extent of the deceleration remains uncertain,” said the company in a trading update following its poor stock market debut last month.
The British group that operates worldwide said orders surged 114% to 71 million in the first three months of the year compared with the first quarter of 2020, as the coronavirus pandemic fuelled demand for ordered-in food.
“We are delighted with Deliveroo’s first-quarter results,” said chief executive Will Shu in the statement.
“Demand has been strong in both the UK and Ireland, and international markets, driven by record new consumer growth and sustained engagement from our existing consumers.
“This is our fourth consecutive quarter of accelerating growth, but we are mindful of the uncertain impact of the lifting of Covid-19 restrictions… (and) we are taking a prudent approach to our full-year guidance.”
Deliveroo’s share price slipped 0.8% to 268 pence (RM15.23) following the update, and is still way below its initial public offering level.
The IPO on March 31 was London’s biggest stock market launch in a decade, valuing the 8-year-old group founded by Shu at £7.6 billion.
But, its IPO of 390 pence failed spectacularly, with the company losing 26% of its value on its first trading day after the group faced criticism from some institutional investors over the treatment of its self-employed riders.
Deliveroo maintains that its riders – around 100,000 across 800 cities worldwide – value the flexibility that the job affords. – AFP, April 15, 2021
