Deliveroo

Inflation makes people order less food: Deliveroo lowers annual forecast

The food delivery service also expects less growth for the year as a whole. The reason is the economic headwind to which consumers are exposed. Confidence among British consumers fell to a record low last month as they grapple with the rising cost of living.

After the boom in the corona pandemic, the British food delivery service Deliveroo is being slowed down by weaker demand. The Just Eat Takeaway.com and Delivery Hero competitor therefore cut its annual targets on Monday. Customers tightened their belts because of inflation, Deliveroo explained the weaker development.

“Management is confident in the company’s ability to adjust financially to a rapidly changing macroeconomic environment through gross margin improvements, more efficient marketing spend and tight cost controls,” the board said.

Management only expects a gross transaction value (GTV) of between four and twelve percent at constant exchange rates in 2022 instead of 15 to 25 percent. In the second quarter, GTV growth had already slowed to 2 percent from 12 percent in the first quarter. The shopping basket sizes have decreased compared to the lockdowns, it said.