Deliveroo reported its first full year of profit on Thursday, following a bruising few years for the food delivery sector that’s seen many make layoffs and exit international markets.
The London-based company made a profit of £2.9m in 2024, a stark contrast to the previous year in which losses hit £31.8m. Earlier this year, Deliveroo reported a 6% rise of gross transaction value (GTV) to £7.4bn in 2024.
The company, which listed on the London Stock Exchange in a disastrous £7.6bn float in 2021, cut 350 roles in 2023 as it looked to slash costs after being caught up in a hiring spree against competitors.
Further pullbacks were announced earlier this week, when Deliveroo said it was shutting down its Hong Kong operation after 10 years in the market. Alongside the UK and Ireland, the company is still active in eight other markets.
"Whilst the consumer environment remains uncertain, I am confident that we can continue to deliver growth by focusing on the levers in our control," founder and CEO Will Shu said.
The consumer delivery market has taken a battering in recent years as buyers shifted their purchasing behaviour as the world opened up following the pandemic.
Share prices of listed companies like Deliveroo and Just Eat Takeaway plummeted and the speedy grocery sector collapsed after raising billions of euros from investors.
But Deliveroo’s financials are the latest sign that the food delivery sector could be making a recovery. In February, Just Eat Takeaway was acquired by Dutch investment group Prosus in a €4.1bn deal, following wide ranging cost cutting measures.
Deliveroo has branched out from takeaway food delivery in recent years, with grocery delivery making up one sixth of GTV in 2024. The year also saw the company expand its offering to include the delivery of brands like lingerie company Ann Summers and homeware business B&Q.
