For its first half to end-June 2024, Deliveroo said grocery reached 14% of group gross transaction value (GTV), with broad-based growth across markets driven by “improved experience and awareness” and “further penetration in mid-sized baskets” between £30 and £60. The on-demand delivery service focused on driving awareness and increasing selection through partnerships with brands in the UK and UAE, as well as launching new propositions in Kuwait and Hong Kong. It also noted seeing “encouraging early signs in consumer behaviour” following the introduction of a new premium tier in its Plus loyalty programme. Adjusted EBITDA jumped 57% to £62 million, while it posted £1 million in profit and free cash flow of £3 million.

Looking forward, GTV growth is expected to be in the range of 5%-9%, and adjusted EBITDA is anticipated to be in the upper half of the previously guided range of £110 million and £130 million.

“There is still much consumer demand within the market for rapid delivery of groceries, indeed as highlighted by Mintel's Online Grocery Retailing - UK, 2024 highlighting that overall 25% of online grocery shoppers now use rapid delivery services, and 16% use third-party platforms such as Deliveroo. The growth reported here by Deliveroo is further testament to this, and most interesting is that this growth is coming from 'medium sized baskets'. The majority of rapid delivery demand is small basket, but as our data shows 68% of rapid delivery users say they regularly use rapid delivery services to complete their full weekly shop. This group tends to be younger and in urban areas, groups where the necessary basket size to fulfill weekly needs is smaller, but shows the challenge not just for convenience, that further rapid delivery growth poses, but also for larger format stores and indeed core online grocery sites.”