Deliveroo saw order volumes more than double to 71 million in the first three months of 2021 but warned that growth would “decelerate as lockdowns ease”.
In its first trading statement since its disappointing initial public offering (IPO) last month, which saw around £2 billion wiped off its market value, Deliveroo has reported runaway trading.
In the three months to March, Deliveroo said order volumes jumped a whopping 114 per cent, while total transaction volumes rose 130 per cent to £1.65 billion, a dramatic increase from the £715 million it made in the same period a year earlier.
The figures were largely driven by lockdown-demand with Deliveroo seeing a 121 per cent increase in orders to 34 million in the UK, which remained under strict lockdown measures for the period.
However, with lockdown measures easing this week this runaway growth is expected to wane, though Deliveroo says the extent of the slowdown remains “uncertain”.
“The truth is that we don’t know how things will turn out in the UK and how much these new consumer behaviours will stick, but we are really positive,” its founder and chief executive Will Shu said.
The delivery giant is also still contending with a growing backlash from riders, who staged a strike last week demanding better pay and workers rights.
This has had a knock-on effect for investors who are keeping a close eye on developments within the gig-economy sector following Uber’s announcement it would grant all 70,000 UK drivers workers’ rights.
Deliveroo, which is yet to turn a profit, has previously said that it would struggle to keep its head above water if it had to change the way it pays its riders.
“This is our fourth consecutive quarter of accelerating growth, but we are mindful of the uncertain impact of the lifting of Covid-19 restrictions,” Shu added.
“So, while we are confident that our value proposition will continue to attract consumers, restaurants, grocers and riders throughout 2021, we are taking a prudent approach to our full-year guidance.”