Deliveroo celebrates major milestone for delivery app

The company said it had seen encouraging signs in terms of consumer behaviour

Deliveroo shares were higher due to reports of takeover interest (Deliveroo/PA)

Deliveroo has revealed it made a profit of £1 million over the first half of this year in a “major milestone” for the previously loss-making delivery platform.

The company said it had seen encouraging signs in terms of consumer behaviour as food price rises continued to ease.

It posted a profit of £1.3 million for the first half of the year, swinging from a loss of £82.9 million this time last year.

The number of orders placed over the period increased by 2% to total 147 million.

Gross transaction value per order – which means the average cost of people’s food baskets plus delivery fees – was £25, up from £24.20 the prior year.

This was primarily driven by higher item prices, which are set by restaurants and shops, even though the rate that prices are rising continues to slow.

In the UK and Ireland, total spending jumped by 7% at constant currency, partly driven by customers placing orders more frequently.

Deliveroo said it benefited from new restaurants on the platform, such as Pizza Pilgrims and Wingstop, as well as more grocery options and brands such as Ann Summers and B&Q selling products through the app.

Will Shu, Deliveroo’s founder and chief executive, said achieving a profit was a “major financial milestone” for the company.

“I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focused on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers,” he said.

Shares in the firm were up by more than 7% in early trading on Thursday.