Deliveroo pre-tax losses increase to £184m

Deliveroo’s pre-tax losses increased to £184.7m in 2017 – up from £129.1m in 2016 – as it invested an additional £106m in the business.

Sales at the food delivery business grew to £277m, up 116%, with gross profit growing to £64m.

Deliveroo reported its European markets saw 99% year-in-year revenue growth, while all other markets saw 207% year-in-year growth.

In 2017 the company increased operational expenses by 73%, with net assets increasing 120% to £372m (2016: £169m).

It raised almost c£380m in fundraising, with the last Series F round turning Deliveroo into a ‘unicorn’, with a valuation in excess of £1.5bn.

During the period, the business also acquired US-based tech firm Maple for £11m to help restaurants improve efficiency and drive growth; rolled out late-night deliveries and launched Deliveroo Plus, a subscription service; and opened its first Editions delivery-only kitchen in London.

In 2018, the company has launched Marketplace+, to compete with Just Eat; announced plastic reduction initiatives; and integrated with Google Maps.

Will Shu, co-founder and chief executive of Deliveroo, said: “Our growth is matched only by our ambition. We want to become the world’s definitive food company and we have invested heavily in innovation, technology, people and restaurants. We are changing the way people eat and helping restaurants to expand to new areas and in new ways.

“I am proud that Deliveroo now works with 50,000 restaurant partners and 50,000 riders worldwide, as well as our millions of fantastic customers. I’m looking forward to expanding even further with them in the years to come.”