Sales soar but losses grow for Deliveroo after expansion
DELIVEROO, which has around 160 riders in Belfast, has reported another year of soaring sales, but losses also ballooned as the firm invested in expansion.
Revenue rose 116% to £277m in 2017 as gross profit grew from £1m to £64.3m, according to annual results.
But pre-tax losses widened from £129.1m in 2016 to £184.7m as Deliveroo counted the cost of what it called “major investments” which totalled £100m.
The food delivery firm justified the loss by stating that revenue growth in 2017 outstripped the increase in net losses, underlining Deliveroo’s growing profit margin.
Deliveroo has recently been the subject of intense takeover spec- ulation, with reports suggesting that Uber is preparing a $2bn-plus (£1.5bn) deal for the firm.
Deliveroo’s European operations saw revenue grow 99% year on year, while all other markets booked a rise of 207%.
The company also said yesterday it now works with 50,000 restaurants and 50,000 riders across the world following a launch in Taiwan.