Takeaway giant Deliveroo has revealed it trimmed its losses over 2023, as it said people paid more money for fewer orders amid a “fragile” consumer spending environment.
The group posted a £31.8 million loss for the year, significantly smaller than the £294.1 million loss reported for 2022.
This was helped by reducing business costs, including on marketing and making its delivery network more efficient, and as the cost of ordering a takeaway went up.
Staff costs rose by 3% compared with 2022, despite the firm axing 9% of its staff, around 350 roles, in the middle of the year as part of a redundancy programme.
But wage inflation pushed up the salaries of remaining employees, the group said.
Meanwhile, Deliveroo revealed that the number of orders decreased by 3% year-on-year to 290 million, which it said reflects the cost-of-living crisis putting pressure on consumer spending, particularly during the first half of the year.
But the annual gross transaction value (GTV), which means the total cost of people’s food baskets plus delivery and consumer fees, rose by 3% to £7.1 billion.
And the average cost per takeaway order increased by 6% from £22.90 to £24.30, which was due to price inflation and optimising consumer fees last year.
The business reported a slightly stronger performance in the UK and Ireland where the number of orders edged up by 1%, and GTV jumped by 8% year-on-year.
“Overall, while we see some signs of stabilisation in customer behaviour, we continue to face a fragile consumer spending environment,” the company said.
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 are fundamental to unlocking future growth in this industry.”
The takeaway giant, which operates in 10 countries and works with around 135,000 riders across the world, has faced court battles over the employment status and rights of its riders.
In the UK, the Supreme Court ruled last year that riders are not employees of Deliveroo, and therefore are not workers entitled to trade union rights such as collective bargaining.