Deliveroo expects growth to wane in a post-pandemic world
Deliveroo expects its growth to slow down in a post-pandemic world, when customers will once again be able to visit restaurants in-person.
The takeaway delivery app expects that in a post-pandemic world, its gross transaction value (GTV) is likely to grow between 30 and 40 per cent for the year, down considerably from GTV growth of 130 per cent in the first three months of 2021, when lockdown restrictions were still in place.
“It is difficult to say how much of this growth has been driven by the special circumstances of the current lockdown restrictions in some of our markets,” Deliveroo said in an update this morning.
“The company continues to operate in an uncertain environment given that the timing and impact of these restrictions being lifted in the coming weeks and months remain unknown. Deliveroo expects the rate of growth to decelerate as lockdowns ease, but the extent of the deceleration remains uncertain.”
Appetite for Deliveroo remained strong in the first three months of 2021. The number of orders made via the app grew 114 per cent, marking the fourth consecutive quarter of growth for the group.
Some 71 million orders were placed through the app in the first three months of 2021, representing a 114 per cent increase in order numbers from the same period last year.
The business also saw its average monthly active consumers grow to 7.1 million, up from six million in the previous quarter, and up 91 per cent on the same period last year.
Deliveroo’s gross transaction value (GTV) for that quarter was £1.6bn, up from £715m in Q1 2020, an increase of 130 per cent.
Deliveroo founder and CEO Will Shu said: “Demand has been strong in both the UK&I 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. So, while we are confident that our value proposition will continue to attract consumers, restaurants, grocers and riders throughout 2021, we are taking a prudent approach to our full year guidance.”