Last week we heard news that Deliveroo was a hot commodity in the food delivery business. As it turned out both Amazon and Uber had inquired about purchasing the company, with reports claiming Deliveroo asked for $4 billion - significantly higher than its $2 billion valuation. This week, however, Deliveroo has hit back at concerns its business model isn't viable, or that it's looking to sell itself to a larger company, by revealing its own financial margins.
Filing from the company indicate that last year Deliveroo's revenue rose from £128.5 million to £277 million, while gross profit grew from £1.1 million to £64.3 million. The company also did a lot of expansion last year, which increased the operating costs of actually having drivers deliver the food, increasing by 73 per cent. As it would happen Deliveroo's revenue growth outstripped operating increases, meaning there's now a 27 per cent margin - a rise from 0.6 per cent.
The figures are good news for Deliveroo and its investors, especially since figures that were released this time last year were widely criticised and accused the company of not having a business model. While I'm sure some people would to be bought out by a bigger company for more than they're worth, the fact that a business is growing is always good. Especially with Deliveroo allegedly planning on going public in the next couple of years. [The Telegraph]