Deliveroo has reported narrowing losses and an increase in revenue in what the group described as a “resilient year of growth” amid tough macroeconomic conditions.

Deliveroo rider Cardiff

In the 52 weeks to December 31, 2023, the group saw losses reduce by £262m to £32m, with gross profit up 13% to £726.4m.

Revenues and gross transaction value (GTV) both increased by 3% to reach £2.03m and £7.06m respectively.

Adjusted EBITDA was up from £45m to £85m year on year, and the group said profit improvement was boosted by “efficiencies in the delivery network, optimisation of marketing spend, overheads savings and a higher advertising contribution”.

Deliveroo launched its shopping platform in November 2023, which has seen partnerships with the likes of Ann Summers and Screwfix. The group said its target is to create a retail business in “the region of £700m GTV by 2028”.

GTV growth is expected to be in the range of 5% to 9% and adjusted EBITDA to be between £110m and 130m this financial year.

Deliveroo founder and chief executive Will Shu said: “2023 was a good year for Deliveroo and I am proud of what we have delivered financially, operationally and for our consumers. Our focus on service and value for money continues to build consumer trust, which is fundamental to unlocking future growth in this industry. 

“Alongside this, our restaurant and grocery businesses are performing well, we launched our retail offering Deliveroo Shopping, and we are scaling our advertising business.

“Building on the strong progress we made in 2023, I’m excited about the further opportunities ahead. We have clear strategic priorities and initiatives in place to achieve our medium-term targets, and I am confident in our ability to deliver continued profitable growth.”