British food delivery company Deliveroo overtook the top-of-the-line GTV growth forecast of 60-70% during 2021 after recording growth of about a third in the fourth quarter despite a tough year-on-year comparison when the quarantine began a year ago, as food delivery companies’ performance has exploded during the COVID-19 pandemic, Deliveroo warns that the first quarter of 2022 will be the toughest comparison given that markets were in a lockdown during the first three months of 2021.
Average order value fell 5% year-on-year during the fourth quarter to 21.40 pounds ($29.12) to return to pre-pandemic levels, although it was slightly higher compared to the third quarter, and the rate of repeat orders by its 8 million active monthly customers increased from 3.3 times per month on average during the third quarter to 3.4 times per month during the fourth quarter.
Deliveroo, which competes with companies like Uber Eats and Just Eat Away, says its market share has grown after improving its offerings to customers, including an increase in grocery delivery options, which now represented 8% of total transaction value during the second half of 2021. Read more [Deliveroo Shares Rise After German Rival Acquires Stake] and [Uber and Deliveroo Face Strict New European Laws].
Shares of Deliveroo, which have lost more than half their value since listing at 390 pence in March 2021, rose 2.6% to 174 pence.
Which has not collected a profit yet despite its booming market, that it will maintain the guidance of the gross profit margin as a percentage of the total value of transactions ranging between 7.5-7.75%. Read more [Deliveroo orders are doubling as it seeks to redeem its value after its initial public offering].