Deliveroo said it had seen “encouraging signs” from its souped-up loyalty scheme and “strong growth” in grocery, as it announced its fourth quarter results.
The aggregator app saw total orders increase by 5% versus the same period last year in the UK, to 43.1 million. Its popularity in the UK was not reflected in international markets, however, where orders numbers were flat.
The company’s takings from UK orders – which it measures in gross transactional volume – was up 9% in the latest quarter compared to Q4 2023 to £1,195m. Deliveroo put this down to “further execution on our initiatives” helping to “drive improvements to frequency and retention despite continued uncertainty in the consumer environment”.
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Will Shu, founder and CEO of Deliveroo, said he was proud of the company’s progress through 2024.
“We enhanced our loyalty programmes, delivered strong growth in grocery and secured new partnerships to expand our retail selection, enabling us to bring even more of the neighbourhood to consumers’ doors,” he said.
“Our continued execution has driven improved frequency and retention in Q4, with order growth improving throughout the year in UKI,” he added. “Our execution has also continued to deliver profitable growth, with EBITDA expected to be towards the top end of our guided range. We see many exciting opportunities ahead with significant growth potential for Deliveroo.”
Last summer, Deliveroo launched an invitation-only subscription service that offers members priority delivery, dedicated customer care teams and access to restaurants unavailable to other users. The aggregator app’s Plus Diamond subscription – which costs £19.99 per month – also offers 10% credit back on orders of £30 and an on-time promise, where if an order arrives more than 15 minutes late customers get their money back. At the time of launch, Shu called it the “biggest innovation” in the Plus programme since its inception.
In September, the platform launched a major marketing campaign for Deliveroo Plus, and revealed it seeks to become a “Plus-first business” by 2026. Being a “Plus-first business” refers to Deliveroo’s ambition for the majority of orders to come from Plus subscribers. Deliveroo was the first in its sector to introduce a loyalty programme in 2017 and presently around 40% of orders come from Plus customers.
In overseas markets, Deliveroo said it had seen “continued strength” in UAE and Italy, and a “slight improvement” in France, “despite some ongoing market softness”.
“Hong Kong continued to be impacted by the difficult competitive environment,” it added.
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