ANNUAL REPORT 2023
DELIVERING
VALUE
deliveroo plc Annual Report 2023
Our mission
Strategic Report
01 At a glance
02 Group highlights
03 Key financial highlights
04 Founder and Chief Executive
Officer’s letter
10 Investment case
12 Chair’s letter
14 Business model
16 Strategy
20 Key performance indicators
25 Stakeholder statement
29 Section 172(1) Statement
31 Sustainability review
42 People
47 Operating and strategic review
51 Financial review
56 Share information
58 Risk management and our
principal risks
67 Task Force on Climate-related
Financial Disclosures statement
75 Viability statement
76 Non-financial and Sustainability
information statement
Governance Report
77 Governance at a glance
78 Chair’s introduction to
governance
80 Board of Directors
83 Governance Report
91 Nomination Committee Report
94 Audit and Risk Committee Report
102 Directors’ Remuneration Report
128 Directors’ Report
134 Directors’ Responsibilities
statement
Financial Statements
135 Independent Auditor’s Report
143 Consolidated income
statement and statement
of comprehensive loss
144 Consolidated statement
of financial position
145 Consolidated statement
of changes in equity
146 Consolidated statement
of cash flows
147 Notes to the consolidated
financial statements
177 Parent Company balance sheet
177 Parent Company statement
of changes in equity
178 Notes to the financial statements
184 Five-year financial summary
185 Glossary
187 Glossary – Alternative
Performance Measures
189 Company and shareholder
information
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
Our business is a hyperlocal three-sided
online marketplace
At a glance
What we do
We connect consumers, riders and merchants across local
markets to bring people the food and products they love.
We are a global online platform, yet a very local business.
Our consumers, riders and merchants live and operate within
their local neighbourhoods. Through our sophisticated
logistics technology, we unlock a wealth of hyperlocal
choice, at the right price, with fast and reliable delivery.
Where we do it
We manage our business on a geographic basis. Our 10
markets are split into two geographical segments: the
UK and Ireland (‘UKI’) and International, comprising our
business in Continental Europe, Asia and the Middle East.
Our business split by geographic segment (% of GTV*)
UKI – 59%
UK
Ireland
International – 41%
France
Italy
Belgium
Hong Kong
Singapore
UAE
Kuwait
Qatar
* To supplement performance assessment, Deliveroo uses alternative
performance measures (‘APMs’), which are not defined under IFRS.
The first instance of each APM is indicated with an asterisk (*); definitions
and further details are provided on page 187.
Who we partner with
Restaurants
We work with some of the largest and best known
restaurants in each of our markets. Our partners span four
key segments: global quick service restaurants; national
casual dining chains; independent full-service restaurants;
and takeaways.
Grocery
We partner with some of the largest grocery retailers in the
world, as well as a large number of small independent grocers.
Retail
In November 2023 we launched our non-food retail offering,
Deliveroo ‘Shopping’, where we work with large and small
merchants in categories such as flowers, DIY, homeware,
electrical goods and health and beauty.
Advertising
We enable restaurant, grocery and retail partners to
advertise on our platform. These partners range from small
single sites to global enterprise companies. We also work
with partners in FMCG and entertainment (e.g. travel, TV and
music) who want to tap into our audience.
Consumers
Riders Merchants (Restaurants,
Grocers, and Retailers)
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
1Annual Report 2023 deliveroo plc
Group highlights
CVP enhancements
Throughout 2023 we made significant progress
developing our consumer value proposition
(‘CVP’). We launched a ‘premium’ delivery
option, allowing consumers to pay a small
fee to guarantee that their order is brought
directly to them, ahead of any other order.
We also rolled out top-up grocery functionality
that enables consumers to top up their
restaurant order with a grocery order through
the order tracking page. We continued to
enhance the selection available to consumers,
adding more merchant supply to the platform
and taking the total number of restaurant,
grocery and retail partners to around 183,000.
We also expanded delivery radii in certain
zones to improve selection for consumers and
allow merchants to reach more consumers.
183,000
merchants
vs 176,000 at the end of 2022
Service improvements
Service improvements and defect reduction
was a key Company priority in 2023. While the
overwhelming majority of orders goes smoothly,
a small percentage goes wrong, which can be
a real trust-buster for consumers. Eliminating
defects can drive retention, frequency and new
customer acquisition, as well as save us money
by reducing compensation costs. Throughout
2023, we substantially reduced poor service
outcomes such as missing items and late
orders. We also reduced the incidence of Orders
Marked as Delivered, but not Received (‘OMDNR’)
– the worst consumer experience where the
consumer did not receive their food at all – by
around 65%, generating annualised savings of
over £20m from reduced compensation costs.
65%
reduction in OMDNR generating £20m
annualised savings
Roll out of value
programme and
commercial architecture
We believe that building consumer trust
through a combination of price integrity and
a flawless delivery experience is key to driving
future growth for Deliveroo and our partners.
Therefore, in 2023 we developed tools to
incentivise merchants to provide fair prices,
alongside a great service. The first of these is
our value programme which rates the value
for money provided by each partner based on
mark-ups, quality and service. The restaurants
who are providing fair prices, high quality
and service see their traffic and visibility
increase, and participate in dedicated offers.
In parallel, our new commercial architecture
aligns our interests with those of our largest
merchants, consumers and riders. Merchants
are able to unlock lower commissions linked
to performance on trust-building metrics, for
example lower mark-ups and better operational
performance. These initiatives will ultimately
drive wins for consumers, riders, merchants
and us.
11 point
improvement in Net Promoter
Score (NPS)
Launch of new retail
proposition
While food remains the heart of what we do,
it is clear from app search term data and
purchases from our existing grocery partners
that consumers want us to deliver more than just
food. Therefore, in November 2023 we launched
our new retail ‘Shopping’ proposition, starting
in the UK and UAE. Our ambition is to bring the
neighbourhood to consumers’ doors, unlocking
on-demand delivery from retailers, such as local
florists, DIY stores and pharmacies, in addition to
the existing restaurants and grocers available
on the platform. With a Total Addressable Market
(‘TAM’) of £700 billion in markets where Deliveroo
operates, retail represents a very large potential
opportunity. Our target is to create a business in
the region of £700 million GTV by 2028.
£700 million
GTV opportunity by 2028
Shareholder returns
During 2023, the Board undertook a review
of our capital structure, growth opportunities
and required cash balances, both now and
in the future, and concluded that we had
structurally surplus cash. In March 2023,
we announced a share purchase programme
of up to £50 million to acquire Class A Ordinary
Shares. This programme was completed
in December 2023. In September 2023,
we announced a tender offer to return up
to £250 million to shareholders. This was
completed in full in October 2023, taking
the total return of capital announced and
completed in 2023 to £300 million.
£300 million
structurally surplus capital announced
and returned to shareholders in 2023
Growth of advertising
business
In 2023, we continued to scale our advertising
business, reaching an annualised revenue
run-rate of £77 million or 1.0% of GTV in Q4 2023
(Q4 2022: 0.6% of GTV). The vast majority of this
revenue currently comes from our sponsored
positioning and search results product for
restaurants and grocers. We continue to take
a consumer-first approach, wanting to strike
the right balance between helping merchants
drive incremental demand, while always
prioritising the consumer experience.
1.0%
advertising revenue as a % of GTV
in Q4 2023
vs 0.6% in Q4 2022
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
2 deliveroo plc Annual Report 2023
Key financial highlights
1
2023
£7.1bn
Gross transaction
value (‘GTV’)*
+3%
2
vs 2022
6.8
6.3
7.1
21
22 23
£(38)m
Free cash flow*
(243)
(239)
(38)
21
22
23
£(11)m
Loss before income tax
(231)
(282)
(11)
21
22
£2.03bn
Revenue
+2%
2
vs 2022
1.97
1.74
2.03
21
22 23
£85m
Adjusted EBITDA*
1.2% as % of GTV
(45)
(100)
85
21
22
23
£726m
Gross profit
10.3% (as % of GTV)*
643
495
726
21
22 23
£0.7bn
Net cash*
1.0
1.3
0.7
21
22
23
1. Full discussion of financial statements on pages 143-183.
2. Year-on-year growth rate shown in constant currency*.
*To supplement performance assessment, Deliveroo uses alternative performance measures (‘APMs’), which are not defined under IFRS. The first instance of each
APM is indicated with an asterisk (*); definitions and further details are provided on page 187.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
3Annual Report 2023 deliveroo plc
Founder and Chief Executive Officer’s letter
Opening thoughts
2023 was a good year. It was a good year
from the vantage point of our results,
but also for laying the foundations of the
future. We continued to face a difficult
macroeconomic environment, but we focus
on what we can control, which has led to
strong financial and operational results.
• We delivered a strong profit performance with adjusted
EBITDA of £85 million, ahead of our guidance.
• We announced and completed a total £300 million of
capital return to shareholders, showing our confidence
in the progress made on profitability and cash flow.
• We continued to drive resilient GTV growth in the UKI (7% in
2023) and our growth in International markets improved
through the year.
• We made some big innovations in our consumer value
proposition (‘CVP’), comprising availability, selection,
service, price and brand, in particular through driving
value for money through focusing on price, improving
service through delivering more and more perfect orders,
and expanding selection by launching ‘Shopping’ (our non-
food retail offering).
• We continued to support our riders and merchants
through increasing their earnings opportunities and
growing their sales.
Will Shu
Founder and Chief
Executive Officer
This is great progress, but it is still early days for us in
capturing the full range of opportunities we have ahead.
We have always been focused on developing the best
hyperlocal CVP for consumers, which drives profitable
consumer engagement. We truly believe the key to unlocking
growth in the industry is through building consumer trust, and
we can do this through price integrity and building a flawless
delivery experience. I am very confident we will generate
strong, sustainable free cash flow and accelerate GTV growth.
Since I started this Company 11 years ago, I have never been
more confident in our strategy and the team we have to
deliver it. Our strategy for the coming years combines levers
to drive and capture growth, with levers to increase profit.
We will:
• stay true to our core hyperlocal approach, focusing first
on neighbourhoods with the greatest profit potential,
winning them, neighbourhood by neighbourhood;
• scale our new retail vertical, including unlocking new
consumer missions and expanding into new categories;
• continue to strengthen our CVP by tackling affordability
issues through price integrity and improving the reliability
of our service, so we bolster consumer trust;
• serve more consumer missions and ensure consumers
have a highly personalised experience, enabling them to
quickly and easily find what they want;
• double down on our loyalty programme, Deliveroo Plus,
to become a Plus-first business by 2026;
• grow our advertising business and continue to build on
our compelling proposition for advertisers; and
• continue to drive efficiencies across the business to
support profit growth, with a particular focus on driving
marketing efficiencies.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
4 deliveroo plc Annual Report 2023
A strategy is only as good as the people who are executing
on it. We have the strongest, most consumer-centric team
I have personally ever worked with – that is a reflection of
the capabilities and attitude of each and every one of them.
It is also a reflection of our Company Values, including ‘live
and breathe the marketplace’ and ‘obsess about operational
excellence’ and, perhaps most importantly, ‘play to win’. We
laid out a lot of this in our Capital Markets Event in November
2023. It is available on our website, and if you want to see our
great team in action via video, I would encourage you to take
a look.
Let me first spend time outlining the business progress we
made in 2023, before going on to the focus areas for 2024
and beyond, which ladder up to the strategy I described and
will allow us to deliver 4%+ adjusted EBITDA margin* by 2026
and mid-teens GTV growth in the medium term.
Business progress in 2023
Profitability gains
In 2023, we made significant progress on profitability both
in the UKI and in our International markets. This progress is
a result of the way we manage our markets hyperlocally,
building strong positions in the neighbourhoods with the
largest profit pools. In 2023, we reached £85 million adjusted
EBITDA (versus a £(45) million adjusted EBITDA loss in 2022),
representing a margin (as % of GTV) of 1.2%.
Four key factors underpinned this profit performance.
First, we reduced our delivery costs by taking steps to drive
efficiencies in our delivery network. We did this through
reducing the overall time riders spend on an order, for
example by incentivising merchants to make sure orders are
ready on time, which also improves riders’ experience as they
are not left waiting around for orders. We also continued to
develop our order stacking capabilities by launching multi
pick-up stacking – when we know the consumer experience
will not be harmed and it makes sense for the network, we
allow riders to pick up orders from multiple merchants and
deliver them to multiple consumers. Second, we delivered
more efficient marketing, particularly on digital marketing,
which drove significant savings. Third, we reduced our total
staff and other people costs, through initiating a redundancy
programme in February 2023 and significantly reducing our
use of contractors. Fourth, we grew our nascent advertising
business and advertising revenue reached 1.0% of GTV
in Q4 2023.
Importantly, we made progress on profitability whilst
continuing to significantly invest in our consumer proposition
to drive growth. Our focus remains to win local market share
positions, neighbourhood by neighbourhood.
Growth
Delivering growth was not easy in 2023. The macroeconomic
environment impacted people and businesses across the
world. Food price inflation outpaced wage growth (in some
cases by a factor of three) across Europe and in particular
the UK, which led to a cost of living crisis that continues to
impact consumer behaviour. In many of our key markets,
food price inflation continued to rise in the first half of the
year, though the rate of inflation began to moderate in H2.
We saw considerable uncertainty caused by the war in
Ukraine and conflict in the Middle East, with weak consumer
confidence and concerns about the state of the economy.
Despite that, our UKI business grew GTV 7% in constant
currency in 2023, while International returned to GTV growth
in Q4, driven by particular strength in Italy and the UAE. As
macro headwinds start to ease, and in particular with the
gap between food price inflation and wage inflation closing,
we are confident that we can drive an acceleration in GTV
growth to the mid-teens in the medium term.
We often get asked the question ‘Didn’t everyone who is
going to try Deliveroo already do that during the pandemic’?
In both 2022 and 2023, we continued to add large numbers
of new consumers, which while lower than the peak during
COVID-19 in 2021, by far exceeded the pace of additions in
any year pre-pandemic. This is due to the investments we
made in our consumer value proposition. We see significant
opportunity to drive further acquisition through continuing
to invest in our CVP, expanding into new grocery missions
(given we are still very early days here) and growing our
retail business (which I will come onto later).
A lot of people ask me – what drives growth in an industry that
is now fairly mainstream? The answer is quite simple. It comes
down to fair prices and an excellent delivery experience. The
best ecommerce marketplaces deliver great selection at
fair prices, and offer a defect-free, consistent service. Great
selection is ‘table-stakes’, but price and service are the
two pillars of our consumer value proposition that I believe
are the big building blocks of consumer trust. And building
consumer trust is the key to delivering high and sustainable
growth over the long term.
* To supplement performance assessment, Deliveroo uses alternative performance measures (‘APMs’), which are not defined under IFRS. The first instance of
each APM is indicated with an asterisk (*); definitions and further details are provided on page 187.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
5Annual Report 2023 deliveroo plc
Founder and Chief Executive Officer’s letter continued
Business progress in 2023
continued
Strengthening our CVP
I wrote in my letter last year that one of our focus areas for
2023 was to ensure consumers can access fair prices so
they feel as though they are getting good value. In 2023,
I am pleased to say that we made a lot of progress on
improving value for money and addressing food price
mark-ups on our platform. We did this through direct levers,
such as targeted promotions, and indirect levers, such as
offering incentives to merchants who opt to provide fair
and transparent prices in combination with providing great
service. One flagship initiative we launched to promote fairer
pricing on our platform is our new value programme, where
merchants are now assessed on three categories – price
mark-ups, consumer ratings, and service. If merchants opt
for lower price mark-ups (compared to their dine-in prices)
and perform well across the other categories of metrics,
they get featured in our ‘Deliveroo’s Choice’ in-app carousel
to promote their value. However if merchants opt for high
price mark-ups and do not perform well on the other
metrics, they get reduced in-app visibility. I am conscious
that some of these actions might be controversial, but there
is no doubt in my mind that long-term they are the best for
consumers, riders, merchants, and Deliveroo.
Service was also a key focus in 2023. This is about
consistently delivering a great end-to-end experience.
Last year we prioritised fixing defects so we could deliver
more and more perfect orders. We paved the way in
ensuring our merchants also provide good service based
on eliminating defects that are within their own control, and
have now included defect targets within larger merchants’
commission frameworks - this highlights just how much
we care about getting consumers perfect orders. One of
the things I was proudest of last year was how we all but
eliminated the worst defect possible – ‘OMDNR’ or ‘Order
Marked Delivered, Not Received’. This is when a consumer
pays for their order but does not receive it, which is
unacceptable. It happens during the ‘rider to consumer’
leg of the order journey and is really difficult to solve
because it could be genuine (i.e, rider has difficulty finding
a consumer’s address), or foul play on the consumer or
rider side. We put together a cross-functional team to solve
OMDNR and set ourselves an incredibly punchy goal, which
we hit. How? Because of the sheer determination, attention
to detail, and relentlessness of the team. In 2023, we also
launched a feature to boost service – ‘premium delivery’ –
which gives consumers the option to pay an additional fee
(£2.49 in the UK) to ensure their order is delivered directly to
them (rather than their rider potentially dropping off another
order on the way).
On selection, we expanded our supply of merchants with
an additional c.5,000 restaurants, c.2,000 grocery stores
and a growing number of retail stores globally, including
adding brands such as Domino’s in the UAE, Subway in Hong
Kong and Five Guys in Singapore. We continued to enhance
our use of data to help our local sales teams prioritise those
prospects we know will bring most benefit to the hyperlocal
consumer value proposition. We also dramatically increased
the selection that consumers see by expanding delivery
areas to give them greater choice. This means consumers
can now order from a wider selection of merchants from
further afield, and not just those that are available in their
local neighbourhoods.
Supporting riders and merchants
The work we offer our riders – where they can choose when
and for how long they want to work – gives them access to
incremental earnings quickly. They can immediately take
their cash out once they have completed an order. Given
the widespread cost of living pressures, I am proud that
we can support our rider community at a time when strong
earnings are key. Through growing our grocery business
and launching retail, we were able to offer riders even more
earnings opportunities by boosting the number of orders
outside of traditional meal times. Through developing
our order stacking capabilities, including pick-ups from
multiple merchants, we can offer riders more stacked
orders so they can earn more money quicker than they
had previously been able to. Giving our riders opportunities
outside of working with Deliveroo is really important to us,
and in 2023, we ran a scholarship programme for riders in
Italy, and partnered with City & Guilds in the UK where we
offered up to 15,000 riders the opportunity to boost their
careers by undertaking training and learning new skills.
We also launched new partnerships with garages for our
rider community in Hong Kong to help them repair essential
kit, and in the UK we offered them access to discounts and
perks, such as free drinks at Caffè Nero. In 2023, we had
135,000 riders in our fleet globally and continue to see
strong rider application pipelines and rider retention rates,
which shows we have an attractive proposition.
For merchants, we continued to drive order volume to
their sites to boost revenue, so they could offset some of
the higher costs from food price inflation, energy costs,
and rents due to rising interest rates. In 2023, we launched
a partnership with Bestway in the UKI to give merchants
discounts on everyday essentials, such as soft drinks, flour,
rice, dairy products – all items that have been impacted by
food price inflation.
We also supported SMEs (small and medium-sized
enterprises) in the UK through launching a new training
academy. This is a dedicated platform, in partnership with
Enterprise Nation, which offers tailored courses including
hiring talent, digital marketing, social media, sustainability
and managing finances.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
6 deliveroo plc Annual Report 20236
Focus areas for 2024
Expanding into retail
In November 2023, we announced our expansion into
retail through the launch of our ‘Shopping’ proposition,
initially in the UKI and UAE. Until then, we had been focused
on delivering food from restaurants and grocers. Food
remains at the heart of what we do, but we will always put
our consumers first and build our offering based on what
we know they want. And it is now clear that our consumers
want to order non-food, retail products from our platform.
Our data shows that they were already buying them from
our grocery merchants, and were also searching for retail
products in our app organically.
In 2024, our focus is to scale our retail vertical by entering
into new markets with a strong consumer proposition. We
will add selection to the platform, which includes both larger
retailers and smaller independents. We will continue to iterate
on the in-app experience by building new features that allow
consumers to easily discover and purchase products from
their favourite stores. We will expand into new categories to
serve different occasions – for example, we launched our
‘gifting’ feature last year which uses AI and machine learning
models to quickly scan through thousands of items on the
platform to curate a selection of suitable products. The
opportunity ahead is huge – retail represents a £700 billion
total addressable market (‘TAM’) in the geographic markets
we operate in, and I am really excited to see us grow this new
vertical in 2024.
Bolstering consumer trust
In 2024, we are going to focus our efforts on driving
improvements to the price and service pillars of our
consumer value proposition.
Boosting value for money for consumers will continue to be
a huge focus. We are rolling out our value programme across
key markets so we reward and highlight merchants in our
app who set fair delivery pricing. We have seen particularly
promising results of this initiative in the UK in value for money
Net Promoter Scores (‘NPS’), so I am excited to see the impact
it will have on consumer trust as we roll the programme out
across other markets.
On service, we will continue to fix defects with a particular focus
on those that merchants directly cause or contribute to - for
example orders that arrive with items missing, or orders that are
cancelled or rejected by merchants. Whilst getting to the root
cause of a defect is critical in eliminating them, the three-sided
marketplace in which we operate means that sometimes issues
do happen. A key area we will continue to focus on in 2024 is
therefore the recovery experience, to ensure consumers are
being treated fairly if they experience issues.
I fully believe that if we can provide consumers with fair prices,
whilst also delivering more and more perfect orders, we can
build consumer trust and dramatically impact the long-term
growth of our business. You might think, well, of course that is
how you drive growth, but the key is actually how you do it. It is
a series of small, marginal improvements driven by technology.
By driving these gains, we make a big difference to consumers.
But rarely is there a silver bullet, rather it is the collective efforts
of many people, every single day.
Selection and in-app experience
At the heart of our consumer value proposition is the
selection of merchants we offer. Consumers should be
able to find and order exactly what they want, which
means offering the widest breadth of selection possible
(without having merchants on our platform that very
clearly deteriorate the consumer experience).
In 2024, we will continue to apply our hyperlocal model which
identifies and prioritises selection that drives leadership
in areas of high profit potential. Since 2018 when we
entered the on-demand grocery space, we have focused
predominantly on smaller baskets – up to £30, with grocers
having on average 3,000 Stock Keeping Units (‘SKUs’) listed on
our platform. We will now expand to serve more consumer
missions, and in 2024, we will be going after mid-sized
baskets – £30-£60 shops, with selected grocers having up
to 10,000 SKUs listed on our platform. We will not be targeting
scheduled, large weekly shops, rather we are enabling more
grocery missions by allowing consumers to increase their
basket size. Given our expansion into retail, we will also be
adding more and more selection to the platform across
categories such as toys, homeware, DIY, and electronics.
While growing selection is great for consumers, it is not
enough to simply have the selection listed on our platform.
Our goal is to ensure consumers have a highly personalised
and relevant experience, enabling them to quickly and easily
find what they want. In 2024, we are going to double down on
the in app experience and are investing across three pillars.
First, we are going to enrich our data structure and metadata
around merchants and items. This will give us a much more
granular view on exactly what is in an order, so we can make
much better decisions on how we deliver it. For example, if we
can clearly identify ‘running shoes’ as a type of shoe, we can
create merchandising specifically for the category ‘running
shoes’. Second, we are going to invest in deeply understanding
what our consumers’ preferences are and what their intent is
when they come to Deliveroo. Finally, we are investing heavily in
merchandising, and in my opinion the biggest opportunity lies
in this space. We want to make sure we are displaying content
to consumers in a way that makes sense for their mission;
for example, for retail, consumers are likely more item led,
but for restaurants, they are likely more merchant led.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
7Annual Report 2023 deliveroo plc
Founder and Chief Executive Officer’s letter continued
Focus areas for 2024 continued
Doubling down on Plus
I am particularly excited about the growth of Deliveroo Plus.
Our subscription model is available across eight markets
and has two tiers – Plus Gold and Plus Silver. We have seen
particularly compelling financial and retention characteristics
from our Plus subscribers – so much so that by 2026,
we intend to become a Plus-first business with the majority
of our orders coming from Plus subscribers.
In 2024, we are investing significantly to grow the Plus
programme across three areas in particular. First, we will
explore new ways to offer value to Plus subscribers, for
example through new discounts and member perks that
are funded by us or merchants. In 2023, we tested a range
of new member benefits including an on-time promise
guarantee on Plus Gold, where consumers are proactively
compensated for late orders, and discounts on grocery
orders in certain markets. We will continue to explore
new discounts and member perks across our Plus tiers in
2024. Second, we will design fully targeted propositions
that actually cater to individual user needs, given we
know so much about our Plus subscribers. We are going
to personalise the Plus experience, with the aim of making
every subscriber feel like we give them a uniquely tailored
proposition. Third, we will continue to grow the programme
across our markets so we drive value from our existing
collaborations with Amazon Prime (UKI, France, Italy and UAE)
and Revolut (UKI, France and Italy), Gojek (Singapore) and
Bank of China (Hong Kong).
I am confident that we are uniquely well placed to capitalise on
this growth opportunity. We have over 7 years of experience
in the subscription programme space, we have strong user
demographics, and we have a one-of-a-kind tiered programme.
Growing our ads business
Our advertising journey started a little over two years ago and
since then, we have enabled restaurants, grocers, FMCG and
other complementary consumer brands (e.g. entertainment)
to tap into our unique audience. We have seen significant
growth in merchants and brands advertising on our platform,
with around 70,000 partner sites running campaigns and
approximately 300 global FMCG advertisers throughout 2023.
We are continuing to scale our advertising business, which
is a key profit driver over the medium term. We provide an
attractive platform for advertisers to connect with our large
premium consumer base. Consumer experience remains
paramount, even though we continue to deliver strong returns
for our advertisers. Our technology powers our advertising
solutions, so it allows us to protect the consumer experience
by serving them with only the most relevant content.
We are targeting advertising revenue of >2% of GTV in 2026.
To achieve this, we are continuing to grow the types of
formats and number of ads shown (using science to ensure
we do not compromise the consumer experience), alongside
driving advertiser returns and experience to increase
adoption and penetration. In 2024, we will launch new
advertising formats, and the ability for advertisers to deliver
more engaging and emotional messaging to consumers
through better targeting capabilities, brand-led display
formats, and storefront shopping experiences.
Deliveroo’s DNA
We are still very early on in our journey and I am incredibly
confident in our ability to deliver. That is because of the team
we have in place. Each and every one of them exhibits a
set of characteristics that are inherently in Deliveroo’s DNA.
We are consumer obsessed, and seek to truly understand
the experience of those in our marketplace who engage
with our platform. We are innovators, and have pioneered
industry-leading products and features; we continue to
push the boundaries on what we build, no matter how big or
small. We are operators – since day 1 of starting this business,
I have seen how the team methodically drives efficiencies
in our network and forensically solves order defects. We are
relentless, and thrive and adapt to unforeseen situations. These
characteristics are reflected in our new Company Values that
we launched in 2023. Even more importantly, they are reflected
in many practical ways, from how we think and approach tasks,
to how we work with our riders and merchants, and how we go
about building new features and products.
11 years after the Company was founded, I am sometimes
asked if I am still as excited about the Company as when
it first started. The short answer is: I am. There is a huge
opportunity that lies ahead of us - we operate in a large
total addressable market and all our verticals are still so
under-penetrated. We have also spent the last few years
developing a series of critical operational building blocks
which have given us solid foundations for future expansion.
That is why the Board, the Executive Team and I are all aligned
on and excited about transforming the way consumers
shop and eat, bringing the neighbourhood to their door
by connecting consumers, restaurants, shops and riders.
Will Shu
Founder and Chief Executive Officer
13 March 2024
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
8 deliveroo plc Annual Report 2023
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
9Annual Report 2023 deliveroo plc
2
Investment case
1
Consistent strengths
Large underpenetrated markets
Three key consumer verticals of restaurant, grocery and
retail represent a combined TAM of £1.5 trillion, with only
c.12% of spend currently online.
Strong cohort fundamentals
Consistent growth from increasing average order
frequency in existing cohorts and adding large new
cohorts each year; post-COVID-19 and inflationary impact
now beginning to normalise.
Efficient logistics network
Hyperlocal density and focus on reducing ‘rider experience
time’, allowing us to optimise delivery costs and enable
riders to increase earnings opportunities.
Disciplined market focus
Strong local positions prioritising the largest profit pools
in a market; track record of portfolio management to
focus on markets with the most attractive long-term
potential returns.
£1.5tn
combined TAM for restaurant,
grocery and retail
Multiple opportunities
Further improving CVP
Strengthening consumer trust by promoting fair prices
and improving the in-app and delivery experience, and
increasing loyalty by expanding our Plus programme.
Adding new use cases and verticals
Scaling our retail vertical to meet consumer appetite for on-
demand, non-food retail products, expanding grocery into
mid-sized baskets and growing our advertising business.
Capturing delivery efficiencies
Smarter order stacking, merchandising and incentives for
merchants to control delivery costs without unduly harming
consumer or rider experience.
Marketing and overheads programme
Building on recent gains to increase marketing and
promotions efficiency, improve tooling and AI automation,
leverage location strategy and achieve third-party savings.
£1bn
annualised GTV run-rate for
grocery in Q4 2023
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
10 deliveroo plc Annual Report 2023
4
3
Strong foundations
Innovation in our DNA
Continuous drive to test and learn, a Company trait that led
to pioneering of delivery-only kitchens and on-demand
grocery, and the first subscription model in the industry.
Consumer obsession
‘Living and breathing the marketplace’ to understand
consumers, riders and merchants; high level of empathy
through primary research, and caring deeply when
things go wrong.
Operational excellence
Experienced leadership team with high attention to
operational detail, embracing repeatable processes
and automation, and building scalable technology.
Strong capital position
Net cash of £679m (Dec-23) provides the financial
resources to maintain and strengthen market positions
and pursue growth opportunities while providing
appropriate headroom.
£300m
structurally surplus capital
announced and returned to
shareholders in 2023
Sustainability commitments
Riding and thriving
Offer riders flexible work, attractive earnings, security and
learning opportunities.
Enabling healthy eating
Give consumers the best selection, availability and value in
healthier options, and the tools to help them make informed
choices.
Support for merchants
Provide merchants with tech, operations and innovation
to support sustainable, profitable growth.
Reaching net zero, reducing waste
Net zero on Scopes 1 and 2 by 2035, and Scope 3 by
2050 (2040 for delivery emissions). Reduce our food and
packaging waste and help merchants and consumers to
do the same.
Tackling food insecurity
Reduce food insecurity in our communities through
partnerships and direct action.
Diversity, equity and inclusion (‘DE&I’)
Attract and develop a gender-balanced and more equitable
workforce, reflecting our consumers and supporting DE&I
across our marketplace.
83%
global rider satisfaction
score in Q4 2023
83% in Q4 2022
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
11Annual Report 2023 deliveroo plc
Chair’s letter
Dear Shareholders
As I reflect on the past year and our progress as a company,
I am proud of how far we have come. Not only what Will has
achieved since starting Deliveroo 11 years ago but also
how we have evolved since our IPO in April 2021. As a Board
we committed to setting high standards of governance for
ourselves – to reflect the demands of a public company.
While we focus continuously on how we can do things
better, events over the past year in particular, underline
our confidence that we have the right platform in place
to achieve our ambitions.
Our progress
The Company continued to make significant financial and
operational progress during 2023. The following are important
highlights of our progress from the Board’s perspective.
Strong governance and team
Given the nature of Deliveroo, it was always going to be
important to balance rigour in how we do things as a public
company, with retaining the energy and entrepreneurial
spirit so integral to our success. We evolved our governance
and ways of working to a level appropriate for a UK plc,
supported by a talented and experienced Executive Team
which was enhanced during the year by the arrival in
February of Scilla Grimble as Chief Financial Officer. Scilla
has contributed significantly to our governance maturity
and as a business partner for Will and the Executive Team.
We also welcomed Shobie Ramakrishnan as a Non-Executive
Director from 1 January 2024, adding further commercial
and technology expertise to the Board.
Operational and financial performance
Strengthening our consumer value proposition continued
to be a key operational focus. We took important steps
forward in ensuring price integrity and value for money
on the platform, improving service through delivering
more and more perfect orders, and expanding merchant
selection. This operational progress underpinned our financial
performance. GTV and revenue grew by 2% year-on-year,
in constant currency, and adjusted EBITDA increased to
£85 million, compared to £(45) million in 2022. Free cash flow
improved to £(38) million – excluding £32 million of interest
income – compared to £(243) million in 2022.
Capital position
Deliveroo’s IPO raised primary proceeds to meet the
anticipated investment needs of the Group at that time.
Since then, the competitive environment has evolved, in part
driven by the shift in financial market conditions. We reached
adjusted EBITDA profitability ahead of plan and have made
good progress towards our goal of generating sustainable
positive free cash flow. Together, these factors prompted
the Board to re-evaluate the Group’s capital structure, cash
generation prospects and cash requirements, both now and
in the future. Following this review and engagement with
investors, the Board concluded that the Group had structural
surplus cash and therefore approved a return to shareholders
by way of a tender offer of £250 million. In addition to
the £50 million share buyback programme announced in
March 2023, this resulted in a total capital return of £300 million
announced and completed during 2023.
Claudia Arney
Chair
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
12 deliveroo plc Annual Report 2023
Progress on strategy
In 2023 we made further progress in developing our
strategy, defining a clear and credible path to our targets of:
• mid-teens GTV growth in the medium term by
strengthening our CVP (in particular on selection, price,
and delivery experience), expansion into larger basket
grocery, and launch of a new retail proposition; and
• expanding our adjusted EBITDA margin to 4%+ by 2026,
with multiple levers including scaling advertising and
driving delivery and marketing efficiencies.
In November, we hosted a Capital Markets Event (‘CME’) at
our London headquarters. We provided an insight into the
opportunities ahead of us and showcased the team and
operational focus that give us conviction that we can deliver
on our plans. I welcomed the opportunity to meet investors
at the CME and to engage with them on our plans and
our potential.
The launch of our new retail proposition is particularly notable.
We have seen strong demand signals from consumers that
they want to order non-food, retail products on-demand from
our platform, and we are excited by this opportunity given the
number of categories that we could serve.
Board changes and diversity
As Directors we have a duty to promote the long-term
success of the Company which includes ensuring that
it has a strong supply of talent for executive positions
and established succession plans for Board changes.
As noted, we welcomed Scilla Grimble who joined as CFO and
Shobie Ramakrishnan who joined as a Non-Executive Director.
Maintaining a diverse culture on our Board is very important.
We keep the balance of skills, experience and knowledge
under review, and we know that an experienced and diverse
Board most effectively supports our Executive Team as they
evaluate the strategic, operational and sustainability issues
and opportunities that affect the Company. We welcome
the Financial Conduct Authority’s (‘FCA’) new listing rule
requirements around diversity and inclusion reporting which
we report on for the first time. More information on how
we consider Board/Committee and Executive Management
composition is set out in the Nomination Committee Report
found on pages 92 to 93.
Our ESG progress
From my conversations with investors during the year, I know
how much environmental, social and governance (‘ESG’) issues
matter to them as well as to our marketplace, employees
and other stakeholders. Over the past two years we have
advanced our journey towards building a comprehensive
sustainability strategy through our six pillars which focus
on our support of the participants in our marketplace, our
employees and other stakeholders. We set out our progress
against the six pillars in the Sustainability review, as well as
our specific commitment to reduce our emissions and to
improve gender diversity in our organisation, as linked to our
executive remuneration in relation to the 2023 Performance
Share Plan (‘PSP’) awards. More detail on this can be found
in our Directors’ Remuneration Report on page 104 and the
Sustainability review on pages 31 to 41.
Looking ahead
In the coming year, we will focus on continuing to execute on
our strategy and investing to drive forward our key growth
initiatives, as well as continuing on the path to achieving
positive cash generation. I believe that we continue to have
great potential as a business and I am confident that we
have the maturity, resilience and strong leadership to realise
the exciting opportunities ahead.
I would like to thank our employees, partners, customers, riders
and shareholders for their continued hard work and support.
Yours sincerely,
Claudia Arney
Chair
13 March 2024
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
13Annual Report 2023 deliveroo plc
Business model
Our three-sided marketplace
Our consumer
value proposition
Availability
Being available when and where
consumers want to order, to
capture as many meal and
shopping occasions as possible.
Selection
Providing access to local favourites
and national chains, with exclusive
content in every neighbourhood.
Consumer experience
Delivering a seamless end-to-end
experience from in-app discovery
to reliable delivery to customer care.
Price
Providing access to a range of
food and product prices, fees and
promotions to meet expectations
of value.
Brand
Ultimately, consumers choose to
order from Deliveroo, so what we
stand for and our brand image
are critical to that decision.
For consumers
• Compelling consumer
value proposition
For riders
• Highly flexible work
• Attractive earnings
and security
For
merchants
• Logistics
• Incremental demand
generation
• New consumers
• Online tools to grow
business effectively
Hyperlocal
network
Our consumers, riders and
merchants live and operate
within local neighbourhoods.
Our technology
Our sophisticated
logistics technology
underpins all we
do and ensures the
three sides of the
marketplace interact
seamlessly together.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
14 deliveroo plc Annual Report 2023
Consumers
We unlock a wealth of choice
for consumers, providing fast,
reliable delivery of restaurant
food, groceries and retail products.
Our Plus subscription programme
further enhances consumer value
with free delivery (above a minimum
order value) and other benefits.
Merchants
Access to Deliveroo’s logistics,
innovations and more than seven
million monthly active consumers
(‘MACs’) provides merchants with
new ways to grow revenues, increase
brand value and maximise the profit
potential from online delivery.
Riders
We provide riders with attractive
earnings opportunities combined
with full flexibility over when and
where to work. Our free insurance
provides security, with accident
and third-party liability cover
globally and additional cover
in many markets.
290m
orders delivered in 2023
£7.1bn
GTV
enabled through our platform
in 2023
83%
global rider satisfaction score
in Q4 2023
1
Communities and
environment
We support communities through
charity partnerships and employee
volunteering. We also focus on
reducing plastic waste, food waste
and the carbon emissions created
by our operations, and supporting
the wider supply chain to implement
more sustainable practices.
Employees
We offer an inclusive environment
where individuals can evolve their
skills and experience and leave their
mark, in step with the rapid scaling
of our business. Our people have the
opportunity to be part of something
bigger through the impact we make
in our marketplace and communities.
Shareholders
We aim to balance continued strong
growth with progress to profitability,
and have set out our path to reach an
adjusted EBITDA margin (as % of GTV)
of 4%+ by 2026. Capturing growth
opportunities and driving towards
our target margins will create
substantial shareholder value.
>3m
meals donated to families
in need in 2023
7.4
out of 10 employee engagement
score in December 2023
2
£300m
structurally surplus capital
announced and returned to
shareholders in 2023
1. Figure based on Q4 2023 monthly survey results. During the reported period, c.23,000 riders completed the survey globally, representing c.17%
of riders who delivered an order across the quarter.
2. Figure based on December 2023 monthly Peakon employee engagement survey results.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
15Annual Report 2023 deliveroo plc
Strategy
We are on a mission to transform the
way people shop and eat, bringing the
neighbourhood to their door by connecting
consumers, restaurants, shops and
riders. We aim to achieve this by offering
the best proposition to all three sides
of the marketplace.
Deliveroo is unusual because it is a global online platform, yet it
is also a very local business – we call it ‘hyperlocal’. A consumer
in Bristol doesn’t care about restaurant selection or delivery
speed in Brighton; a rider in Milan doesn’t think about the
earnings opportunities in Naples; and a typical merchant in
Dublin isn’t trying to tap into demand in Dubai or Doha.
Looking at our business through a hyperlocal lens is key to our
strategy. We obsess about creating the best, differentiated
value propositions for all sides of the marketplace, and we
measure this neighbourhood by neighbourhood.
Our industry is early in its maturity with strong growth
potential, and a key part of capturing that growth is
improving and winning local market share positions.
In driving profitable growth, hyperlocal network effects
are more powerful than overall scale, and network
effects come from hyperlocal market share. As for any
company, overall scale helps to spread marketing costs
and overheads. But in our business, profit pool potential
is a function of population density, affluence, merchant
supply, and our local market share.
Deliveroo’s mission is to transform the way you shop and eat, bringing the
neighbourhood to your door by connecting consumers, restaurants, shops and riders
Drive growth Optimise returns Capital efficiency
Mid-teens GTV growth in the
medium term
4%+ adjusted EBITDA
margin by 2026
Maintain an efficient
capital structure
Compelling CVP Delivered efficientlyAcross key verticals
Selection Optimised deliveryRestaurant
Consumer experience Operating leverageRetail
Price/value Marketing efficiencyGrocery
Loyalty Investment disciplineAdvertising
1
2 3
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
16 deliveroo plc Annual Report 2023
1
Compelling
CVP
Pillars
• Selection: From the beginning, Deliveroo has been built
on offering great selection across all restaurants and
cuisine types. Expanding choice – including across
grocery and now non-food retail – continues to be a key
driver of increasing spend and retention with existing
customers , as well as adding new customers.
• Price/value: Ensuring value for money on our platform
is key to building consumer trust and supporting
frequency and retention. We promote fair prices
using direct levers such as targeted promotions for
consumers and indirect levers such as our value
programme, which rewards merchants who limit mark-
ups and deliver great service.
• Consumer experience: A great experience combines
in-app search and discovery, the delivery service
and care/recovery in case of any issues. We have
opportunities to improve across all three aspects, and
doing so improves consumer trust and is a key element
of unlocking further growth.
• Loyalty: Our Plus programme is a tiered subscription
plan now live in eight markets, offering members free
delivery and additional benefits. Plus customers spend
three times more than non-members and have stronger
retention, making this programme one of our most
valuable strategic growth assets.
Progress in 2023
• Selection: We expanded merchant supply with an
additional c.5,000 restaurants, c.2,000 grocery stores
and a growing number of retailers globally, including
adding brands such as Domino’s in the UAE, Subway
in Hong Kong and Five Guys in Singapore. We also
dramatically increased the selection that consumers
see by expanding delivery areas to give them
greater choice.
• Price/value: We improved value for money and
addressed food price mark-ups on our platform.
During 2023, we shifted marketing spend to increase
our targeted promotions. We also introduced our value
programme and commercial architecture for partners
in the UK – with promising results showing up in our
value for money Net Promoter Score (‘NPS’).
• Consumer experience: We prioritised fixing defects
so we could deliver more and more perfect orders.
One area of focus was orders classified as OMDNR –
when a consumer pays for their order but does not
receive it – which we reduced by around 65%.
• Loyalty: We continued to add benefits to Plus, such as an
on-time promise providing £5 compensation if an order
arrives more than 15 minutes late. We also launched
a programme targeted at students in the UK, as well
as adding partnerships with Revolut in the UKI, France
and Italy, with Gojek In Singapore, and with Hong Kong
Telecom in Hong Kong.
Priorities in 2024
• Price/value: Promote price integrity by rolling out our
commercial architecture and value programme, taking
it beyond the initial launch with UK restaurants and
across our main markets and verticals.
• Consumer experience: Continue to strive for perfect
deliveries by reducing order inaccuracy (missing items),
cancellations and rejections.
• Loyalty: Strengthen our tiered Plus programme by
enhancing our offerings and introducing new ways
to inspire consumer loyalty, including providing
additional discounts and perks, and exploring
further partnerships.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
17Annual Report 2023 deliveroo plc
Strategy continued
2
Across
key verticals
Pillars
• Restaurant: We operate in large addressable markets
with significant growth potential across the entire
restaurant delivery business. We use data science to
capture opportunities on a hyperlocal level at scale,
and we align commercial incentives to improve the
consumer experience and drive growth.
• Grocery: We were one of the first platforms to launch
on-demand grocery, where penetration is low and there
is a clear demand for the speed and convenience we
offer. We are driving growth by expanding our selection
(additional partners and more SKUs), improving the
experience through new consumer and partner
technology, and expanding into larger basket missions.
• Retail: Consumer behaviour shows a clear appetite for
on-demand Retail through our platform. We are well
positioned to capitalise on the opportunity, leveraging
our grocery playbook and evolving our existing
technology and data capabilities to build a large
business with attractive unit economics.
• Advertising: We provide an attractive platform for
advertisers to connect with our large premium
consumer base. Our technology powers our advertising
solutions, allowing us to deliver strong returns for our
advertisers while protecting the consumer experience
by serving them with only the most relevant content.
Progress in 2023
• Restaurant: Over the last two years we have used our
machine learning models to assign a score that predicts
the performance of each restaurant on the platform,
helping us to curate a quality portfolio in the UK. This
has seen the number of ‘high quality’ restaurants grow
at double the pace of overall selection, with GTV from
these restaurants 2.5 times higher than lower scoring
restaurants. We have also rolled this out in all our
international markets, allowing us to improve restaurant
supply and gain leverage from technology investments.
• Grocery: We increased grocery to 13% of GTV in H2
2023 (vs 11% in H2 2022), helped by the introduction
of our new ‘top-up’ feature. We step-changed our
technology offering, for consumers (e.g. multi-level
aisle shopping, substitution preferences in-app) and
merchants (new picking app, in-stock API and improved
substitutions flow).
• Retail: We launched our ‘Shopping’ proposition, initially
in the UKI and UAE. Categories already launched include
pharmacy, flowers, toys and DIY, reflecting the low-
hanging fruit where emergency needs are most obvious
– but with lots of scope for further expansion.
• Advertising: We further scaled our business across
sponsored positioning and search results product for
restaurants and grocers, with ad revenue reaching 1.0%
of GTV in Q4 2023. We continue to take a consumer-first
approach, to strike the right balance between helping
merchants drive incremental demand, while always
prioritising the consumer experience.
Priorities in 2024
• Grocery: Serve more customer missions by expanding
into medium-sized baskets through range expansion
and enhanced technology.
• Retail: Begin to scale retail globally by partnering with
leading brands and local favourites to grow selection
and coverage, including launching in additional
markets beyond the UK and UAE. Boost consumer
awareness including through key seasonal retail
moments with marketing campaigns, promotions
and in-app merchandising.
• Advertising: Continued to scale by adding new formats,
increasing advertiser adoption across segments and
driving return on ad-spend (‘ROAS’) to improve retention
and pricing.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
18 deliveroo plc Annual Report 2023
Pillars
• Optimised delivery: Delivery costs are the largest
expense item in our Profit and Loss. We have a proven
record in driving efficiency in the delivery network,
enabling us to reinvest in our key growth drivers and
improve profitability, while also allowing riders to
maximise their earnings potential.
• Marketing efficiency: Our marketing activities are
focused on both new consumer acquisition and
increasing retention, frequency and spend of existing
consumers. We continually experiment to improve the
efficiency and effectiveness of our spend, helping us
to reduce our marketing cost as a % of GTV.
• Operating leverage: We support our market-facing
commercial and operational activities with a global
tech platform and central support functions. We have
multiple opportunities to drive efficiency and operating
leverage as we scale.
• Investment discipline: Our industry is still early in its
maturity and there remains ample room for growth.
We are disciplined in allocating capital to the most
promising opportunities where we can build strong
market positions offering compelling returns. Our
capital position provides the financial resources
to maintain and strengthen market positions and
pursue growth opportunities while providing
appropriate headroom.
Progress in 2023
• Optimised delivery: We drove efficiencies in our delivery
network by reducing the overall time riders spend on
an order, for example by incentivising merchants to
make sure orders are ready on time. We also continued
to develop our order stacking capabilities by launching
multi pick-up stacking – when we know the consumer
experience will not be harmed and it makes sense for
the network.
• Marketing efficiency: We reduced marketing spend
by 14% year-on-year through performance marketing
optimisation by improving our targeting and introducing
optimisation signals linked to individual customer value.
We’ve also enhanced our machine learning models in
customer relationship management that better predict
how consumers will respond to promotions, which
drove both cost savings and incremental GTV.
• Operating leverage: We completed a redundancy
programme removing 9% of employed positions across
the business, driving benefits not only through lower
headcount costs but also increased efficiency and
speed of decision-making. We also reduced costs
relating to contractors and customer care agents.
• Investment discipline: Following market exits in late
2022, we continued to focus investments across the
highest impact areas in the business.
Priorities in 2024
• Optimised delivery: Develop order stacking capabilities,
including pick-ups from multiple merchants, to improve
efficiency and offer riders more stacked orders so they
can earn more money quicker.
• Marketing efficiency: Increase marketing efficiency by
targeting and personalising promotions and increasing
co-funding by partners.
• Operating leverage: Drive further efficiencies through
improved tooling and automation, optimising third-
party spend and leveraging our location strategy.
3
Delivered
efficiently
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
19Annual Report 2023 deliveroo plc
Key performance indicators
Key to strategy and remuneration
1
Invest in key CVP levers
2
Focus on priority verticals
3
Increase operating efficiency
R
Remuneration metrics
Revenue and revenue take rate*
Financial KPIs
1
Revenue (£m)
£2,030m
+2%**
19
772
1,735
20
1,163
21
22 23
1,975
2,030
Revenue take rate (%)
28.7%
-10 bps YoY
19
30.6
27.5
20
29.2
21
22 23
28.8
28.7
Gross profit and margin
(as % of GTV)*
Description
Revenue is primarily generated from merchant
commissions, consumer fees, and merchant sign-up fees.
Further, a growing contributor is revenue generated from
our advertising proposition. Revenue take rate is revenue
divided by GTV. It is a widely used measure for understanding
the proportion of total value spent by consumers on our
marketplace that is captured by Deliveroo.
Performance – 2023
Revenue reached £2,030 million, a year-on-year increase of
2%**, mainly driven by the growth in GTV, as well as a growing
contribution from advertising revenue. The revenue take
rate was 28.7% compared to 28.8% in 2022, with the slight
year-on-year decline primarily attributable to an increase
in targeted promotions to provide value, such as the ‘£7
off 7” and buy-one-get-one-free campaigns, and a greater
proportion of grocery and pick-up orders within the mix.
This was partly offset by the positive impact of consumer
fee optimisation and advertising revenue.
Gross profit (£m)
£726m
+13%
19
189
495
20
348
21
22 23
643
726
Gross profit margin (%)
10.3%
+90 bps
19
7.5
7.9
20
8.7
21 22 23
9.4
10.3
Description
Gross profit is calculated as revenue less costs of
sales, which primarily comprises rider costs and credit
card fees. Gross profit margin (as % of GTV) is gross
profit divided by GTV. Gross profit margin (as % of GTV)
is considered a good measure of profitability at a
transactional level.
Performance – 2023
Gross profit reached £726 million compared to £643 million
in 2022, an increase of 13% in reported currency. Gross
profit margin (as % of GTV) was 10.3% compared to 9.4%
in 2022. The year-on-year improvement reflects increases
in GTV per order* and growing contribution from high-
margin advertising revenue, as well as efficiencies in the
delivery network that have helped to limit the inflationary
impact on cost of sales per order.
1. Deliveroo ceased operations in Spain in November 2021 and Australia and the Netherlands in November 2022. In accordance with IFRS 5, Australia and the Netherlands
have been classified as discontinued operations in 2023 and 2022, and results for 2021 have been restated (results for 2019 and 2020 have not been restated). Spain
has been classified as a discontinued operation in 2023, 2022 and 2021, and results for 2020 have been restated (results for 2019 have not been restated).
* To supplement performance assessment, Deliveroo uses alternative performance measures (‘APMs’), which are not defined under IFRS. The first instance
of each APM is indicated with an asterisk (*); definitions and further details are provided on page 187.
** In constant currency.
1
2
31
2
3
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
20 deliveroo plc Annual Report 2023
Adjusted EBITDA* and margin
(as % of GTV)*
Adjusted EBITDA (£m)
£85m
+£130m
Adjusted EBITDA margin (%)
1.2%
+190 bps
Description
Adjusted EBITDA represents loss for the year before
income tax charge/credit, finance costs, finance
income, depreciation and amortisation, impairments,
exceptional items* and provisions, and share-based
payments charge and national insurance on share
options. Adjusted EBITDA is considered to be a measure
of the underlying trading performance of the Group and
is used, among other measures, to evaluate operations
from a profitability perspective.
Performance – 2023
Adjusted EBITDA was £85 million, compared to £(45)
million in 2022, with the improvement driven by a
combination of gross profit improvement, efficiency
of marketing spend and a reduction in overheads in
2023. Adjusted EBITDA margin (as % of GTV) was 1.2%
compared to (0.7)% in 2022.
Net cash* and free cash flow*
Net cash (£m)
£679m
(32)%
Free cash flow (£m)
£(38)m
+£205m
19
230
1,291
20
379
21 22 23
1,000
679
Description
Net cash is a good measure of the assets that the business
has available to invest in its operations and fund growth.
Free cash flow is defined as net cash from operating
activities less: purchase of property, plant and equipment;
acquisition of intangible assets; payment of lease liabilities;
and interest on lease liabilities. It is used, among other
metrics, as a measure of cash inflow or outflow from the
Group’s operating and investing activities.
Performance – 2023
Net cash was £679 million at 31 December 2023, compared
to £1,000 million at 31 December 2022, with the majority of
the year-on-year movement driven by shareholder returns
of £309 million in 2023. Within the net cash movement, free
cash flow was £(38) million in 2023 compared to £(243)
million in 2022.
23
22
(45)
85
(100)
2120
(11)
19
(227)
23
22
(0.7)
1.2
(1.6)
2120
(0.3)
19
(9.0)
(28)
(10)
(38)
H1 23 H2 23
23
(239)
(243)
21 22
* To supplement performance assessment, Deliveroo uses alternative performance measures (‘APMs’), which are not defined under IFRS. The first instance of each APM
is indicated with an asterisk (*); definitions and further details are provided on page 187.
1
2
31
2
3
R
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
21Annual Report 2023 deliveroo plc
Key performance indicators continued
GTV* and GTV growth
Non-financial KPIs
Gross transaction
value (£m)
£7,062m
+3%
19
2,522
6,305
20
3,979
21
22 23
6,848
7,062
GTV growth in constant
currency (%)
3%
19
57
70
20
62
21 22
23
7
3
Description
Gross transaction value (‘GTV’) is the total value paid
by consumers, excluding any discretionary tips. GTV
comprises the total basket (net of any discounts) and
consumer fees, and is represented including VAT and
other sales-related taxes. It is a widely used measure
for understanding the total value spent by consumers
on our marketplace.
Performance – 2023
GTV reached £7,062 million, a year-on-year increase of
3% in reported currency and 3% in constant currency.
The primary driver of GTV growth in the year was a 6%
year-on-year increase in GTV per order. Year-on-year
GTV growth slowed in 2023, reflecting the increasingly
challenging macroeconomic environment, which has
impacted consumer behaviour and led to a decline in the
number of average monthly active consumers (‘MACs’).
Orders and GTV per order*
Orders (m)
290m
(3)%
19
119
284
20
174
21 22 23
299
290
GTV per order (£)
£24.3
+6%
19
21.3
22.2
20
22.9
21
22
23
22.9
24.3
Description
Orders represents the total number of orders delivered
from our platform, including from our Marketplace and
Signature offerings, over the period of measurement.
Order volume is considered a key driver of GTV and also
gives a measure of the Group’s scale. GTV per order is
GTV divided by orders. It is a measure of the average size
of each transaction on the platform, and is an important
driver of both GTV and commission revenue.
Performance – 2023
Orders were 290 million in 2023, a year-on-year decline of
3%. This was primarily driven by a lower average monthly
active consumer base in 2023, with average monthly
order frequency broadly stable year-on-year. GTV per
order grew by 6% in reported currency and constant
currency alike to £24.3 for the year. This equates to an
increase of 140p versus 2022 driven by item-level price
inflation and optimisation of consumer fees.
1
2
3
R 1
2
3
Key to strategy and remuneration
1
Invest in key CVP levers
2
Focus on priority verticals
3
Increase operating efficiency
R
Remuneration metrics
* To supplement performance assessment, Deliveroo uses alternative performance measures (‘APMs’), which are not defined under IFRS. The first instance
of each APM is indicated with an asterisk (*); definitions and further details are provided on page 187.
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
22 deliveroo plc Annual Report 2023
MACs and AOF Employee engagement
Monthly active
consumers (m)
7.1m
(4)%
Employee engagement
(score out of 10)
7.4
-0.4 pts YoY
19
3.1
7.0
20
4.6
21
22 21
20
23
22
7.4 8.1
7.5
7.1
7.8
Average order
frequency (monthly)
3.4x
+1% YoY
19
3.0
3.4
20
3.2
21 22 23 23
3.4 3.4
7.4
Description
Monthly active consumers (‘MACs’) is the number of
individual consumer accounts that have placed an
order on our platform in a given month. Average order
frequency (‘AOF’) is the average number of orders
placed by active consumers in a month. The number
of MACs multiplied by the AOF gives the average number
of orders per month, which in turn drives GTV.
Performance – 2023
In 2023, MACs averaged 7.1 million for the year as a whole,
compared to 7.4 million in 2022. The modest year-on-
year decline coincided with inflationary pressures on
consumers. The decline stabilised through the year, with
H1 2023 MACs down 5% year-on-year and H2 2023 MACs
down 2%, exiting 2023 at a high for the year of 7.3 million
MACs, reflecting early signs of stabilisation in consumer
behaviour. AOF remained broadly stable year-on-year at 3.4.
Description
We use the Peakon platform to better understand
employee engagement. Monthly surveys allow us to
reflect employee feedback into departmental action
plans in ‘real time’. The overall engagement score
measures the sentiment across four key engagement
areas: ‘belief (in product)’, ‘satisfaction (in job)’, ‘loyalty
(to Deliveroo)’ and ‘employee net promoter score (‘eNPS’)’.
Performance – 2023
Employee engagement decreased from 7.8 in December
2022 to 7.4 in December 2023. The primary driver is
that in February 2023, we completed a Company-wide
redundancy programme that impacted engagement
across all areas of our business. This caused our
engagement score to reach a low of 7.1 in April; however,
since then it began recovering steadily. Towards the
end of the year, this recovery was slowed to a degree
by the announcement of our return to office policy,
requiring UK and Ireland-based employees to attend the
office three days per week – a measure that we feel is
necessary for long-term culture and productivity.
31
2
3
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
23Annual Report 2023 deliveroo plc
Key performance indicators continued
Non-financial KPIs continued
Net zero on Scopes 1 and 2 (market-
based)
Representation of women at Level 4
and above
Overall
39%
+2 ppts YoY
Total Scopes 1 and
2 Emissions
11,317 tCO
2
e
22 23
37%
39%
Tech-based roles
25%
+2 ppts YoY
22
23
23%
25%
Description
Scope 1 emissions are those we make directly – for
example running gas hobs in Editions kitchens, or
burning gas in boilers that heat our buildings. Scope
2 emissions are from the energy we purchase – for
example, the emissions created when a gas-fired power
station in the UK generates the electricity for our HQ.
We have set a 2035 target to reduce these to net zero,
with an interim target of 15-25% reduction by the end of
2025. The interim target is measured against our FY2022
baseline (excluding markets we exited in FY2022), and
is calculated on a market-basis.
Performance – 2023
Against the FY2022 baseline (which excludes market
exits), our market-based emissions for FY2023 were
11,317 tCO
2
e. This represents a decrease of 2.6% year-on-
year. This is marginally ahead of expectations; major capital
investments likely to lead to more significant reductions
are planned for this financial year.
Key to strategy and remuneration
1
Invest in key CVP levers
2
Focus on priority verticals
3
Increase operating efficiency
R
Remuneration metrics
3
R
Description
Representation of women at Level 4 and above in
the workforce represents the proportion of women
in the workforce compared to men at mid and senior
levels. The People team continuously monitors the
representation of women across the Company and
reports it to the Executive Team on a quarterly basis,
both by level and role split (e.g. ‘Tech’ and ‘non-Tech’).
Performance – 2023
The representation of women at Level 4 and above has
increased by 2ppts overall YoY. Looking at the figures
by role split, the representation of women has increased
by 2ppts in Tech roles and by 1ppts in non-Tech roles
over the past year. At the end of 2023, nearly all of the
planned actions on our impact plan for gender equity
were completed or in progress, covering areas such as
inclusive recruitment, development of women in middle
management, and more.
22 23
11,625
11,317
3
R
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
24 deliveroo plc Annual Report 2023
Stakeholder statement
Our stakeholders
Our approach to stakeholders
We are focused on driving long-term sustainable performance for the benefit of
the three-sided marketplace of consumers, riders and merchants, as well as our
shareholders and wider stakeholders. We are also committed to being a diverse and
inclusive company, recognising the vital role we play in supporting the communities
in which we operate.
This section sets out how we have engaged with our key stakeholders to understand what matters to them and how
these valuable insights feed into the Board’s decision making. The Board recognises that our business and behaviours
impact our stakeholders and so, to the extent relevant, the Board seeks to consider their interests when reaching
decisions. You can read more about how the Board considers these interests in our Section 172 Statement on page 29.
What they care about
We offer an exciting environment for our employees to build
a career. Our people want to accelerate their growth by
working with talented colleagues to take on new and unique
challenges, and deliver career-defining work while making a
positive impact on local communities. All while participating
in a vibrant, diverse and supportive working environment.
Why they matter to us
Employees are the lifeblood of Deliveroo. They enable us
to support our marketplace and have helped build the
Company into what it is today.
How we engaged
• Unfortunately, in 2023 we had to make some tough
decisions, including employee redundancies. This was
incredibly difficult but the right thing to do for the long-
term interests of the business. We made every effort
to manage the redundancy process as sensitively and
supportively as possible, with training given across
the organisation.
• We held monthly firmwide events to share key Company
initiatives and news.
• Peakon is our employee sentiment measurement
and engagement tool. We received 25,000 Peakon
survey responses, with over 40,000 individual
feedback comments, which management considers
in decision making.
• We engaged through our award-winning employee
resource groups (‘ERGs’), which create communities made
up of colleagues with shared identity and their supporters
and allies.
Outcomes and support
• We responded to employee feedback provided through
our engagement platform, Peakon. Resulting initiatives
included: the development of a Company-wide approach
to individual goal setting, more clarity on our key
strategic initiatives, and the launch of fully-funded private
healthcare for UK employees.
• After engagement with employee leadership and our ERGs,
we introduced a new ‘Return to Office’ policy in the UK and
Ireland to encourage greater cross-functional innovation
and productivity.
• We refreshed our Company Values, which play a key role in
setting our culture and guiding how we act as a business.
• We launched two new ERGs, our Disability, Neurodiversity
and Mental Health ERG, and our Family and Carers ERG.
Our employees
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
25Annual Report 2023 deliveroo plc
Stakeholder statement continued
What they care about
We focus on understanding what our customers want. We know
this includes service that is reliable, trustworthy, and provides
great value, particularly during tough times.
Wherever possible, we make decisions with our consumers top
of mind, to offer them the best service on a neighbourhood-
by-neighbourhood level. In response to customer demand
we have extended our offer to include non-food. Our aim is to
transform how people shop as well as eat by bringing more of
their local neighbourhood to their door.
Why they matter to us
Consumers are the cornerstone of our marketplace. Ultimately,
if consumers aren’t happy with the service we offer, they will
place fewer orders, reducing partner revenues, rider earning
opportunities and Company growth and profitability. That’s why
we are consumer obsessed.
How we engaged
• Our consumer engagement programme generated over
2 million pieces of feedback from consumers globally.
This included specific insight on whether they felt the
order they received represented good value for money, to
improve our understanding of consumer value perception.
• We established the Roosearch Hub, our first high-tech
lab, to enable our Research and Insights team to collect
consumer insights.
Outcomes and support
• We established new browsing functionality to improve the
discoverability of retail items, and introduced a new in-app
experience to allow consumers to send items as gifts.
• We introduced a monthly Roosights newsletter for all
employees to ensure customer insights and learnings are
disseminated and acted upon across the business.
• We focused on improving value for money for consumers,
building mechanisms to reward merchant partners who
offer great value, as well as ensuring that better value
for money options are more visible and accessible on
our platform.
• We established cross-business teams to: reduce
defects on orders by 10% (with orders not delivered
down by 65%); reduce delivery times by one minute; and
increase consumer satisfaction (with NPS up 11 points
year-on-year).
• We expanded and enhanced our CVP by broadening our
Company mission and introducing our retail proposition.
What they care about
When we speak to riders – both directly, and through their
unions in the UK, France and Italy – they are clear that they
want attractive earning opportunities and a flexible way
to work which fits within their lifestyle. They also want
protection and security against issues which may arise.
Why they matter to us
Riders are an integral participant in our three-sided
marketplace. That is why we will continue to invest in
improvements to our rider proposition, focusing on what
riders want, while campaigning for what’s important to
them – the flexible work they tell us they value.
How we engaged
• We engaged with riders through dedicated engagement
teams in each of our markets, with regular surveys, an in-
app feedback tool and rider focus groups.
• Riders also have access to our dedicated, live order
support tool, which deals with order-related issues and
is another forum for us to gather feedback.
• We also engaged with riders through trade unions in a
number of markets, including in the UK, France and Italy.
Outcomes and support
• We continued to offer riders unmatched flexibility and
advocate for this flexible way of working with policy
makers around the world.
• Globally, over 135,000 riders completed an order in 2023
and satisfaction remained above 80% for the year.
• Following engagement with the GMB Union, we launched
a new partnership with City and Guilds in the UK, providing
thousands of riders with new vocational skills training and
qualification opportunities.
• We signed three agreements with elected trade unions in
France concerning offboarding decisions and rider fees.
• We improved the coverage of our accident insurance in
Hong Kong.
• We launched a Ramadan Riders Awareness Programme in
our Middle Eastern markets, aimed at promoting the health
and wellbeing of riders in preparation for the holy month.
We arranged similar Ramadan initiatives and events in
several countries worldwide.
Our consumers Our riders
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
26 deliveroo plc Annual Report 2023
What they care about
Our merchants want to work with a platform that gives
them the tools to reach new consumers, boost their sales
and improve their bottom line. We are proud to be a key
part of merchants’ growth, particularly in a challenging
economic climate.
Our smaller merchants are at an earlier stage in their journey,
so we provide specific support for them to digitise, develop
their business plans, and go greener.
Why they matter to us
Our merchants provide the food and products that our
consumers love. Without them, our customers would not
have the breadth of selection and quality of products
they require. Our proposition to our merchant partners
– restaurants, grocers and non-food retailers – aims to
provide strong incremental demand generation, an excellent
consumer experience, and tools to drive profitability and
grow their business.
How we engaged
• Merchant Insight and User Experience teams regularly
engaged with groups of merchants to receive feedback
and to test our products and services.
• We expanded our account management capability and
rebooted our onboarding processes to improve partner
support through the first, critical weeks of operating
with Deliveroo.
• We increased the level of self-service reporting available
through our Partner Hub, enabling merchants to better
interrogate their performance on Deliveroo.
• We launched the first ‘Deliver & Grow’, a new series of
thought leadership publications helping merchants
understand consumer trends.
• We held our ‘Food Forward’ Restaurant conference in
October 2023, bringing together 350 merchants, providing
a fantastic opportunity for them to gain insights into
consumer trends and engage with industry experts and
members of our Executive Team.
Outcomes and support
• We enabled more merchants to sign up to our increasing
number of market-leading marketing campaigns that
drive incremental sales.
• We made it easier for merchants to respond to customer
reviews, helping strengthen the relationship and
experience for both parties.
• We launched new commercial infrastructure
and incentives to reward our merchants for
operational performance which aligns with better
consumer outcomes.
• We launched a new sustainable packaging store for
merchant partners in the UAE, helping them to choose
more environmentally friendly packaging options at cost
effective prices.
• We created a new partnership with wholesalers to offer
merchants savings on their costs of goods.
• We launched a new training academy to help small and
medium-sized restaurants across the UK access expert
advice and valuable training and skills opportunities.
• We supported 115,000 jobs in restaurants and their supply
chairs across our 10 markets.
Our merchants
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
27Annual Report 2023 deliveroo plc
Stakeholder statement continued
What they care about
The communities in which we operate are as diverse and varied
as the cuisines and merchants on our platform. At a time of high
inflation globally, we know there are common concerns about
the cost of living and the cost of food in particular, which is why
we have partnered with charities that support those in need.
Why they matter to us
Deliveroo is fundamentally a local company. We want to be
more than a presence in the neighbourhoods in which we
operate; we want to actively support local communities.
This matters to our consumers, riders and merchant
partners – so it matters to us.
How we engaged
• We engaged with charities in the locations in which we
operate to support local communities. We know food best
and help those in need to access free meals.
• During 2023, through our Full Life Campaign, we have
helped provide over 3 million free meals globally to people
facing hunger through our charity partnerships.
• We also provided our employees with a paid day off to
volunteer at a charity. Following internal awareness raising,
we saw a 30% increase year-on-year on the global uptake
of colleagues using their volunteering day.
Outcomes and support
• In the UK, we worked with the Trussell Trust to help provide
meals and raise money for its food bank network and
associated mental health and financial support services.
We also provided hundreds of volunteers to help support
the Trussell Trust staff at the charity’s food bank.
• During 2022 and 2023 we launched our Full Life campaign
in Kuwait and Qatar, collaborating with Food Box and
the Social Work Society. We continued our collaboration
with the Italian Red Cross, Emirates Red Crescent in UAE,
Secours Populaire in France, FoodCloud in Ireland, St
James Settlement in Hong Kong and Food from the Heart
in Singapore. In addition to our existing partnerships, we
also launched a new charity partnership with the Belgian
Federation of Food Banks.
• We launched a new initiative to provide free meals for
homeless members of the LGTBQ+ community to coincide
with Pride Week.
What they care about
We want to ensure that our investors understand our
business, including our business model, strategy, future
growth potential and risks, overall performance, capital
structure and ESG matters.
We are committed to considering shareholder interests and
maintaining an open and regular dialogue, to understand
their perspectives and priorities.
Why they matter to us
Shareholders are the owners of our business and the main
source of long-term funding, so our focus is on delivering
long-term, sustainable value for them.
We aim to provide investors with transparent and consistent
information and appropriate ongoing dialogue with our
Board and Senior Management.
How we engaged
• We provided quarterly market updates, including hosting
webcasts for our annual and interim results, as well as
our Q4 trading update. During each webcast, Executive
Directors responded to questions from analysts and
investors to ensure an open dialogue with the market.
• Our CEO, CFO and the Investor Relations team met with
investors after our significant financial announcements
as well as on an ad hoc basis.
• Outside of reported results, we hosted specific events
for investors and analysts, including our grocery seminar
in July and Capital Markets Event in November. We also
engaged extensively with institutional investors in
August and September ahead of our tender offer which
concluded in October 2023.
• Our Board Chair engaged with our largest investors ahead
of our Annual General Meeting (‘AGM’) on general Board and
governance matters, as well as shareholder engagement
with the Board at the AGM.
Outcomes and support
• The CEO, CFO and IR team held almost 200 meetings with
over 500 individual investors and analysts during 2023.
Investor views and feedback from these meetings were
reported back to the Board.
• We held a successful AGM with all resolutions passed,
receiving in excess of 97% votes in favour.
• In October, we successfully completed a tender offer to
return £250 million to shareholders, taking the total return
of capital to shareholders during the year to £300 million.
Our shareholdersOur local communities
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
28 deliveroo plc Annual Report 2023
The Board’s duties under Section 172(1)
The Board recognises that our business and behaviours
can impact our consumers, riders, merchants, employees,
investors and other stakeholders. We believe that stakeholder
engagement is key to the execution of our strategy and is
critical to achieving long-term sustainable success.
The Board considers impacts on our key stakeholders and
the consequences of any decision in the long term. It is
not always possible to provide positive outcomes for all
stakeholders and the Board sometimes has to make decisions
based on balancing competing interests. Stakeholder activity
is undertaken across our business and at different levels
of the organisation. For more information on how we have
engaged with our key stakeholders, see pages 25 to 28.
Section 172(1) Statement
The Board confirms that, for the year ended
31 December 2023, it has acted to promote the long-
term success of the Company for the benefit of its
shareholders as a whole, while having due regard to
the matters set out in Section 172(1)(a) to (f) of the
Companies Act 2006.
The table below describes the methods used by
the Board in fulfilling its duty under Section 172(1),
in relation to each of the factors set out in the
Section. More information is cross-referenced
to demonstrate how these factors are considered
by the Board and across the business.
How the Board fulfils its Section 172(1) duties
How the Board fulfils its duty Key activities/considerations in 2023 More information
(a) The likely consequences of any decision in the long term
The Board receives regular updates on
the Company’s operational and financial
performance from the CEO and CFO as
well as from other members of Senior
Management. This includes the outcome
of engagement with investors, consumers,
riders, merchants, employees and other
stakeholders. The Board also holds an
annual strategy day, which includes
presentations from key areas of the
business to inform the Board of the key
focuses in the coming year, with actions
from the day considered throughout
the year.
• Board strategy day and Capital Markets Event.
• Board approval of expanded Company mission.
• Board approval of budget and long-term financial plan.
• Approval of 2024 ESG strategy and ongoing monitoring of
progress against pillars, emissions, diversity and Task Force
on Climate-related Financial Disclosures (‘TCFD’) reporting.
• Consideration of financial reporting statements,
including outlook and market guidance.
• Capital allocation consideration including approval of
£50m share buy back and £250m tender offer.
→ Chair’s Letter p12 and p78
→ Company Mission p16
→ Our Business Model p14
→ Our Strategy p16
→ Board Activities p87
→ Viability Statement p75
and Going Concern p148
and p178
→ Sustainability p31
(b) The interests of the Company’s employees
The Board receives regular updates
on matters relating to our employees
through the CEO and the Chief People
Officer, including in relation to employee
engagement, culture and recruitment
to align with our growth and strategic
ambitions, and diversity, equity and
inclusion (‘DE&I’). The Chief People
Officer also reports to the Remuneration
Committee more specifically on
recruitment and reward matters, and to
the Nomination Committee on leadership
succession, DE&I and culture.
• Review of the Company’s remuneration philosophy,
employee engagement and attrition.
• Approval of the Company’s refreshed Values.
• Updates on culture and DE&I matters.
• Review and approval of the Gender Pay Gap Report.
• Reports from Dominique Reiniche, the designated
Employee Non-Executive Director.
• Review of the Company’s Return to Office policy.
• Quarterly People KPIs.
• Consideration and approval of the Company’s
diversity reporting and compliance with the new
FCA disclosure requirements.
→ Our People p42
→ Stakeholder Engagement p83
→ Diversity, Equity and Inclusion
p92
→ Employee Engagement p84
→ Whistleblowing p101
→ Nomination Committee
Report p91
→ Directors’ Remuneration
Report p102
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
29Annual Report 2023 deliveroo plc
How the Board fulfils its duty Key activities/considerations in 2023 More information
(c) The need to foster the Company’s business relationships with suppliers,
customers and others
The Board receives regular updates
on matters relating to our consumers,
riders, merchants and other significant
commercial arrangements, through
the CEO and regular presentations from
members of Senior Management.
• CEO updates on key strategic, operational and business
matters including annual strategy day.
• CFO updates on key financial and investor matters.
• Executive Team presentations on our markets, consumers,
business partners and competitive landscape.
• Board trip to Italy to better understand the local market
and meet with the Italy team.
• Updates on tech, product and automation.
• Updates on matters relating to riders.
• Updates on ESG matters relating to our marketplace.
• Direct feedback from our Board members as
Deliveroo consumers.
→ Sustainability p31
→ Our Business Model p14
→ Our Strategy p16
→ Whistleblowing p101
→ Anti-Bribery and
Corruption p41
(d) The impact of the Company’s operations on the community and the environment
The Board receives regular reports on ESG
matters from the CEO and members of
Senior Management.
• Approval of ESG strategy and monitoring of progress
against ESG commitments and pillars.
• Review of progress made against Scope 3 emissions and
diversity commitments.
• Progress against the gender diversity and emissions
metrics as part of executive remuneration under the PSP.
• Review of annual TCFD and Sustainability review disclosures.
• Review and approval of the Modern Slavery Statement.
→ Sustainability p31
→ TCFD p67
→ Stakeholder Engagement p25
→ Directors’ Remuneration
Report p102
(e) The desirability of the Company maintaining a reputation for high standards of
business conduct
The Board receives regular updates on
Company Values, culture, risk, regulatory,
legal and governance matters from the CEO,
CFO, Chief People Officer, General Counsel
and Company Secretary.
• CEO report on Company Values review.
• Review and approval of the Modern Slavery Statement and
Gender Pay Gap reporting.
• Consideration and approval of the Group’s principal risks
and risk appetite, and monitoring of controls.
• Regular updates on legal, regulatory and governance
matters including the Company’s Speak Up platform.
• Internal Audit reports.
• Consideration of key policies and procedures.
→ Sustainability p31
→ Anti-Bribery and Corruption
p41
→ Risk management and our
principal risks p58
→ Audit and Risk Committee
Report p94
→ Whistleblowing on p83
and p101
(f) The need to act fairly as between members of the Company
The Executive Directors, Chair, Senior
Independent Director and other Non-
Executive Directors are available to meet with
investors on request and report back to the
Board on investor views from these meetings.
The Board receives regular reports from
the Investor Relations team and the
Company’s corporate brokers on feedback
from investor engagement, competitor
trends, the Company’s share register and
significant changes in shareholdings.
• Regular broker updates on investor feedback and market/
competitor dynamics.
• Shareholder engagement ahead of, and during, the AGM
in May 2023.
• Regular investor engagement by CEO, CFO and IR team.
• Engagement with investors/analysts at the Capital
Markets Event.
• Consultation with investors on the mechanism and
proposed value for the return of capital to Shareholders.
→ Notice of 2023 AGM: see
Company website
→ AGM p84
→ Stakeholder Engagement p83
Stakeholder statement continued
How the Board fulfils its Section 172(1) duties continued
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
30 deliveroo plc Annual Report 2023
Company, environment and communities:
Marketplace:
Sustainability review
Our marketplace
At Deliveroo, we are committed to
supporting our marketplace, our
Company, our communities, and the
environment around us. We want to
have a positive impact. This means
supporting our consumers with access
to healthier choices, our merchants with
opportunities for growth and our riders
with good work. We’re also working to
make our Company and marketplace
more inclusive, to reduce our impact
on the environment, and to support
communities facing food insecurity.
Our sustainability strategy guides six pillars of activity, and
is shaped by a materiality assessment of what matters most
to Deliveroo and the Company’s diverse range of stakeholders.
It is also shaped by where our action could have the most
positive impact on society and the environment. We group these
pillars into two ‘clusters’ through which we aim to deliver positive
environmental and social outcomes: one cluster comprising
the three sides of our marketplace – consumers, riders and
merchants – and the other covering our Company, the wider
environment, and the communities we operate in. Over the
course of the year we have made good progress against each
of the pillars. This review sets out our achievements during the
year and our priorities for the year ahead.
Riding and thriving
Enabling healthier eating
Supporting merchants to grow and be
more sustainable
Reaching net zero and reducing waste
Tackling food insecurity in our communities
Building a diverse and inclusive company
and marketplace
Our six sustainability pillars
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
31Annual Report 2023 deliveroo plc
Sustainability review continued
Riding and thriving Enabling healthier eating
We want to give riders the flexible work they value
alongside the security they deserve, as well as
attractive earning and learning opportunities.
Highlights of progress on our 2023 priorities
• Launched six new partnerships in the UK, providing
riders with discounts and perks, and renewed our
safety partnership with Flare app.
• Celebrated the one-year anniversary of the GMB deal
in the UK with progress on rider representation, and
developed our union relationship in Italy.
• Engaged positively with regulators including on the
EU’s Platform Work Directive.
• Launched our partnership with vocational skills
and training provider City and Guilds in the UK. Over
600 riders have started their ‘Ready For’ courses in
construction and care while 25 riders completed
intensive training and are now starting careers in
Network Rail and London Underground.
• Ran a scholarship programme, providing access
to university courses in Italy for 80 riders.
• Launched upskilling programmes in business and
mechanics in Hong Kong.
Priorities for 2024
• Launch childcare support in the UK, giving riders
subsidised access to childcare, and exploring other
opportunities for partnerships.
• Enhance learning opportunities for riders by rolling
out our improved online learning opportunities with
Lynx, in all markets, and expanding our range of
vocational opportunities in other markets.
• Continue to advocate for the flexible work that
riders want.
• Roll out the joint Deliveroo/GMB ‘Respect’ charter
with more partners in the UK – a set of principles
about how riders and merchants should be treated
with respect.
UN Sustainable Development Goals sub-indicators
5.1, 5.5, 10.1, 10.4
Metrics we measure
• Rider satisfaction
• Absolute number of riders participating in training
by market (initiatives varying across market)
• Rider retention
We want to give our consumers the best selection,
availability and value in healthier choices, as well as
the tools to help them make informed choices about
what to order.
Highlights of progress on our 2023 priorities
• Rolled out dietary tags, like ‘vegan’ and ‘vegetarian’
to all markets.
• Worked with the Food Data Transparency
Partnership on metrics to define healthy food
targets for businesses.
• Continued our partnership with ‘Bite Back’ 2030 to
understand young people’s barriers to accessing
healthy food.
• Led on industry engagement to understand SME
priorities in healthy eating in branding and marketing.
Priorities for 2024
• Roll out a new macronutrient feature to improve
the tools we offer consumers to help them
make informed choices, allowing partners to
list information, at an item level, on protein, fat,
saturated fat, carbohydrates, sugar and fibre.
This is in addition to the calories information they
can already display.
• Use new macronutrient data to explore selection
targets across markets where healthy options are
under-represented on menus.
UN Sustainable Development Goals sub-indicators
2.1
Metrics we measure
• Number of healthy searches by consumers
• Number of restaurants in healthy tab
Year in review
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32 deliveroo plc Annual Report 2023
Reaching net zero and reducing waste
We want to reduce our own emissions and the amount
of waste we produce.
Highlights of progress on our 2023 priorities
• Calculated our Scope 3 baseline and set a net
zero target.
• Refreshed our Scope 1 and 2 interim reduction
targets as part of Executive PSP.
• Began rider kit recycling scheme trials to continue
our commitment towards reducing waste.
• Identified and provided investment for emissions
reduction in our Editions kitchens.
• Ran subsidy schemes for e-bike transition in the UK
and Italy.
• To support our consumers to reduce their food
waste we launched a Food Waste Story Book ‘Lyn’s
Food Adventure’ across the Middle East.
Priorities for 2024
• Support our restaurants to understand their
carbon footprint.
• Identify interim Scope 3 targets, on the path to our
2040 and 2050 targets.
• Invest in energy-saving capital improvements in
the three most carbon intensive markets – the UK,
Hong Kong, and UAE.
• Invest in e-bike partnerships in more markets.
UN Sustainable Development Goals sub-indicators
12.3, 12.6, 13.2
Metrics we measure
• Greenhouse Gas reduction
• Volume of kit recycled in trials
• Food waste from Hop sites
Supporting merchants to grow and be
more sustainable
We want to provide our merchants with new
opportunities to grow revenues, increase brand
value and maximise profit potential from online
delivery, while supporting and enabling more
sustainable behaviour.
Highlights of progress on our 2023 priorities
• Launched a partnership with Bestway offering
restaurants discounts on everyday essentials.
• Launched our partner training academy, giving
partners access to training on business productivity
and sustainability optics.
• Financial incentive programme offered 30%
discount to partners to purchase eco-friendly
packaging products, further supporting their
transition to sustainable wrapping.
• Ran restaurant awards in France and UAE,
recognising the best food and brands.
• Continued our partnership with Olleco oil in the UK,
recycling used cooking oil from kitchens.
• Hosted a Food Forward conference with over 350
partners from across Europe, providing bespoke
research and insight.
• Launched a ‘Deliver and Grow’ report series to
provide insights to restaurants on growth.
Priorities for 2024
• Develop new partnerships that save our partners
money and drive growth.
• As we expand into retail, work with our new retail
partners to understand their sustainability priorities
and how Deliveroo can support these.
• Expand the partner training academy, which hosts
productivity and sustainability e-learning, into
international markets.
UN Sustainable Development Goals sub-indicators
8.2, 8.5, 9, 10.2, 10.3, 10.4, 12.2, 12.3, 12.5, 12.8
Metrics we measure
• Sales growth via our platform
• Number of restaurants enrolled in our
sustainability training
• Volume of oil recycled by Olleco
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
33Annual Report 2023 deliveroo plc
Sustainability review continued
Tackling food insecurity in
our communities
Building a diverse and inclusive
company and marketplace
We want to reduce food insecurity in our communities
by establishing the right partnerships and taking
direct action where we can.
Highlights of progress on our 2023 priorities
Charity partnerships
• Established food redistribution charity partnerships
in all of our markets.
• Increased donations via the round-up feature.
Food redistribution
• Funded thousands of free meals in 11 participating
restaurants for LGBTQ+ people experiencing
homelessness during Pride in London.
• Delivered meals to people in need during Mother’s
Day, Dragon Boat Festival and Winter Solstice in
Hong Kong.
• Supported Ramadan celebrations with food
distribution in Singapore.
Priorities for 2024
• Investigate how we can use any spare capacity
in Editions or Hop sites to support our food
insecurity work.
• Increase employee volunteering, aiming for a 30%
year-on-year increase.
• Explore more opportunities to redistribute surplus
food from partners.
UN Sustainable Development Goals sub-indicators
2.1
Metrics we measure
• Total consumer donations
• Percentage of consumers making a donation
• Total staff volunteering days
We want to have a gender balanced and more
equitable workforce that reflects our customers,
and improve diversity, equity and inclusion (‘DE&I’)
across our marketplace.
Highlights of progress on our 2023 priorities
• Expanded our gender representation target
to include Level 4+.
• Increased the overall number of women in senior
roles and the number of women hired in technology
roles through an evolved gender equity plan.
• Refreshed or introduced multiple policies including
guidance around workplace accessibility and
LGBTQ+ inclusion, and have launched two new
employee resource groups for our family, carer,
and disability communities.
• Sponsored trailblazing organisations looking to
increase diversity in tech and hospitality, such
as Colorintech’s Black Tech Fest and Be Inclusive
Hospitality.
Priorities for 2024
• Expand our work beyond gender equity to include
more diversity identities.
• Introduce self-serve tools that enable the
business to consider and apply DE&I principles
in decision-making.
• Continue to support organisations championing
diversity in the restaurant, grocery and
hospitality industries.
UN Sustainable Development Goals sub-indicators
5.1, 5.5, 10
Metrics we measure
• Level 4+ female representation
Year in review continued
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS
34 deliveroo plc Annual Report 2023
Materiality matrix
Key
1. Health and safety
2. Water use
3. Supply chain
4. Sustainable sourcing
5. Transparency
6. Talent attraction
7. Animal health
8. Executive remuneration
9. Privacy
10. Food safety
11. Human rights and modern slavery
12. Employee conditions
13. Supporting partners
14. Diversity, equity and inclusion
15. Nutrition, obesity and wellbeing
16. Packaging waste
17. Climate change
18. Riders’ working conditions
19. Food poverty
20. Food waste
21. Deforestation
Introduction
In 2023, we strengthened our offer for each side of the
marketplace while also launching new initiatives to meet
our environmental and social goals. We built positive
partnerships for our restaurants and riders and continued
to build our healthy selection for consumers. We took good
steps to address food insecurity, having grown donations
and established charity partnerships in each of our markets.
We made continued progress under the pillar of reaching net
zero and reducing waste, with details of our Scope 3 baseline
and net zero target detailed below. One area where we made
slower progress was in leveraging our own network to tackle
food insecurity by using spare kitchen or grocery capacity
to support our communities. This continues to be a priority
to investigate for 2024.
In reviewing our materiality assessment, we are content
that the majority of last year’s analysis remains relevant
and valid for 2024. The key area of development relates to
the expansion of the Deliveroo offering into non-food retail.
This means we are expanding our range of partners to
include retailers such as florists, hardware and pet supplies
stores. To reflect the broader range of stakeholders we
now work with, we have included additional issues on our
materiality matrix, e.g. deforestation in supply chains and
elevated the importance of modern slavery given this is a
risk many retailers face and combat in their supply chains.
These issues are ranked relatively low for the moment since
retail is currently a small part of the business, and as we do
not control the stock choices made by partners this has less
impact on the core business.
In line with our materiality assessment, our priority areas
of focus for 2024 are food insecurity, enabling healthier
eating, and promoting a diverse and inclusive company and
marketplace. We look forward to sharing more information
on our plans during the year and will report on our progress
in the 2024 Annual Report.
Potential for Deliveroo action to have a big
impact on society or the environment
Importance to stakeholders
1
11
2
12
3
13
4
14
5
15
6
16
7
17
8
18
9
19
10
20
21
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35Annual Report 2023 deliveroo plc 35
Sustainability review continued
Deep dives
This year we have chosen to deep dive on two themes within
this sustainability review: reaching net zero and reducing
waste, and helping support our merchants to grow and be
more sustainable (with a focus on our restaurant partners).
We have chosen these areas as we have new targets and
investments within our environmental pillar and new research
on our impact with partners to share.
Deep dive net zero
Last year we set out our net zero target of 2035 for our
Scopes 1 and 2 emissions. This year we are setting a net
zero target of 2050 for our overall Scope 3 emissions and a
2040 target for net zero on delivery emissions which make
up c.37% of our overall Scope 3 footprint. Below we provide
more information about our Scope 3 baseline and our
transition plans to reach zero across all three scopes.
Scope 1:
Direct emissions from owned or controlled sources,
e.g. natural gas for heating
Scope 2:
Indirect emissions from the generation of purchased
energy, e.g. electricity
Scope 3:
All other indirect emissions that occur in the value chain,
e.g. rider deliveries
Scope 3 baseline and target
Our Scope 3 emissions are 132,064 tC0
2
e and we have set
an overall net zero target of 2050, with a commitment to
net zero on delivery emissions by 2040. As is common for
many businesses, our Scope 3 emissions are much larger
than our Scope 1 and 2 emissions; for Deliveroo roughly 10
times larger. This demonstrates the scale of the challenge
we have ahead for decarbonising up and down our value
chain. Our 2050 target is in line with the Paris Agreement.
It is achievable but still requires us to move at pace.
The date also reflects the size and coordination challenge
of our emissions reduction effort across all Scope 3
categories. We have also set an ambitious 2040 target for
delivery emissions. These represent the largest individual
percentage of our total Scope 3 emissions, and so we want
to make substantial progress here. The 2040 date reflects
that we have more levers to influence change than for other
areas (explored on page 37), and the wider transport sector
may move quicker than in other sectors within our Scope 3
emissions, particularly in our European markets.
Scope 3 emissions by category (total 132,064 tC0
2
e)
Purchased goods and
services (1)
Business travel (6)
Capital goods (2) Employee commuting (7)
Fuel- and energy-related
activities not included in
Scope 1 or Scope 2 (3)
Rider delivery emissions (9)
Upstream transportation and
distribution (4)
Use of sold products (11)
Waste generated in
operations (5)
End-of-life treatment of sold
products (12)
This covers all of our Scope 3 emissions, and we have only
shown categories where Deliveroo operations produce
emissions in line with the Greenhouse Gas (‘GHG’) protocol on
reporting.
As the chart shows, c.37% of our emissions are from our
rider fleet (category 9: rider delivery emissions include
travel to the restaurant and from restaurant to consumer),
with the rest largely dominated by purchased goods and
services (category 1). Other categories, such as business
travel or employee commuting contribute less to our
overall emissions but will remain difficult problems to solve.
This analysis shows where we can most make an impact
supporting decarbonisation of the rider fleet and reducing
emissions from our suppliers.
1. Decarbonising the rider fleet
Our target of reaching a net zero emission fleet by 2040
is ambitious but achievable.
Around the world, we mostly work with independent,
self-employed riders. They have freedom to determine the
vehicle they use for work, with many using that which they
already own for personal purposes. Because we do not
directly provide vehicles for these riders, we need to use
indirect means to drive the shift to decarbonise our fleet,
such as incentives and behavioural nudges.
What we have seen so far
We are already seeing strong take-up of electric vehicles
among riders, in particular, in cities. For example, almost
half of orders are completed on bikes or e-bikes in London.
In the coming months and years, we want to expand upon
this localised success, increasing both the proportion of
riders using electric vehicles and e-bikes, and the proportion
of deliveries completed by green vehicles.
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36 deliveroo plc Annual Report 2023
Reducing the cost of electric vehicles
for riders
We know from engagement with riders that they have
a clear interest in greener vehicles, and particularly e-bikes
or e-mopeds. These can enable riders to earn more and/
or reduce their fuel costs at the same time as benefiting
the environment. There are overlapping benefits between
achieving improved operational performance, better
consumer outcomes and higher rider earnings – at the same
time as reduced exhaust emissions for local communities
and reduced carbon emissions from our operations.
However, some clear barriers to take-up remain, including
the high upfront cost of switching to e-vehicles.
We have run a number of initiatives, including subsidies, to help
riders make the transition to greener vehicles and e-bikes.
In doing so we can gain a better understanding of how we can
best support riders. In particular, these initiatives are focused
on bringing down the upfront cost of an e-bike and removing
those initial barriers to making the switch.
We are also exploring more innovative ways of bringing down
the cost of electric vehicles for riders in the UK. For example,
we have launched a trial with e-moped provider, Admoto
for a subsidised rental price in return for displaying paid-for
advertising on the back of electronic rider boxes. We are
exploring a roll-out of the scheme to more UK cities outside
London in 2024.
Market initiatives
Discounted e-bike Discounted e-moped
Rental/Rent-to-own Sale Rental/Rent-to-own Sale
UK
France
Belgium
Italy
Next steps
We are clearly communicating to our riders the importance
and benefits of moving to a greener fleet. Over the course
of 2024 and beyond, we will:
• Investigate new electric vehicle trials in the Middle
East. Unlike the majority of our markets, we work with
outsourced agencies in the Middle East who directly
provide vehicles for riders to use. This gives us greater
leverage over the vehicles that riders use in the market.
We want to understand the operational implications
of transitioning to electric vehicles in these markets,
including how we can best leverage the growing electric
charging infrastructure to ensure greener vehicles do
not come at the expense of operational performance
and consumer outcomes.
• For our most densely populated zones in cities like
London, Paris and Milan, we aim to have specific vehicle
mix targets. These targets will take into consideration the
availability of vehicles in each market, and the suitability
of different vehicle types for the local road network
and topography.
2. Reducing emissions from
our suppliers
We purchase a wide variety of goods and services. The most
relevant in terms of emissions reduction include: emissions
associated with our marketing spend; emissions associated
with our software and IT spend; and spending on rider kit
(due to the intensity of textile manufacturing).
In 2023 we launched a new kit recycling programme,
and we plan to launch another in 2024. Not only does the
programme manage waste effectively, it also contributes
to the development of a circular economy. By recycling and
reusing rider kit such as bags and jackets we extend their
lifespan and reduce the demand for new production. This
significantly reduces the carbon footprint associated with
manufacturing new equipment, transportation, and the
disposal of old items. Over the course of 2024, we plan to
use learnings from these trials to understand and implement
programmes that can increase the proportion of riders’ kit
that is reused or recycled.
We anticipate that emissions across other areas will reduce
in line with wider market decarbonisation. However, we are
also engaging with key suppliers to understand their plans
to reduce their emissions ahead of that wider market effect
and understand where we can support our supply chain.
These are just two important examples of us taking action
to reduce our Scope 3 emissions but we also have a number
of other initiatives in place that will contribute to our net
zero future. For example, selling food that would otherwise
be wasted from our Hop sites and encouraging cycling to
reduce commuting emissions across the Company.
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37Annual Report 2023 deliveroo plc
Sustainability review continued
Deep dives continued
2. Reducing emissions from
our suppliers continued
Scope 1 and 2 transition
Last year we set out targets to reduce our Scopes 1 and
2 emissions and reach net zero by 2035, alongside an
interim target of a 15% reduction by 2025 (included as a
performance metric in the PSP for our Executive Team).
This target has been refreshed with a goal of a 20%
reduction by 2026 (also included as a performance metric
in the PSP for our Executive Team). This year we have
achieved a 2.6% reduction in our market-based emissions
compared to our FY2022 baseline. As our SECR report sets
out (page 39), this is driven by a combination of changes in
our consumption patterns and the greening of the energy
grids in some of most emissions-intensive markets. To build
on this positive start, our strategy to achieve net zero is
guided by where our emissions hot spots are and where we
can have the most impact. As the chart below shows, c. 80%
of our emissions come from our Editions kitchens, with the
rest coming from our office estate and Hop sites. This is
to be expected given the emissions intensity of cooking
processes and its associated gas usage.
Relative intensity of Editions/Office/Hop
Editions
Office
Hop
Relative market contributions to overall
emissions (location-based)
UK Singapore
UAE India
Hong Kong Italy
France Kuwait
Our plan to reach net zero by 2035 is underpinned by three
phases of activity.
1. Reduction in absolute emissions: To support our emissions
reduction work in kitchens, we have completed two audits
of our estate and identified several measures that are most
impactful for reducing our emissions. These measures
include improving the efficiency of our extractor fans,
recycling the heat from the cooking process to heat our
buildings and water, and reducing the refrigeration power
needed to keep food at the correct temperature. We are
beginning to implement these measures in 2024.
2. Procurement of renewable energy: We already procure
renewable electricity in the UK for our Editions and Hop
sites. We will investigate procurement of renewable
electricity in other markets with a particular focus on the
UAE and Hong Kong. Here the electricity grids are powered
by fewer renewable sources than in our other markets
so renewable electricity will have the greatest impact.
Renewable gas to power kitchen hobs and equipment
is a relatively less mature market. We will explore both
transitioning our kitchen equipment over to induction to
use renewable electricity and consider the possibilities of
using renewable gas as the market continues to develop.
3. Consideration of carbon removals and/or credits:
If any residual emissions remain we will consider active
carbon removals before considering offsetting and/or
credits.
Deep dive merchant support
We are proud of the positive impact we have on our
merchants. Last year we commissioned an independent
economics research firm, Capital Economics, to analyse
the impact Deliveroo had on our partners and the wider
economy. The highlights of that analysis are detailed below,
where we saw three broad themes.
First, we drive revenue growth for our partners. This comes
from both increased delivery sales and greater dine-in, as
consumers discover local restaurants on the app. In the UK,
over half of our restaurant partners who responded to our
survey reported an increase in dine-in revenues as a result
of increased exposure and reputation built through the
Deliveroo app.
Second, we support expansion with restaurants often
hiring new staff, reaching new customers, extending
opening hours or even opening new sites thanks to delivery
partnerships. In Italy, 52% of restaurants said the most
important benefit of partnering with Deliveroo was the ability
to reach new customers. In the UK 4% of our restaurants
responded that partnering with delivery platforms had
enabled them to open new sites, the equivalent of around
2,000 new restaurants.
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38 deliveroo plc Annual Report 2023
Third, we support productivity through digitisation of
businesses, a crucial part of improving their productivity.
In both Singapore and Hong Kong, around half of restaurants
had adopted new digital technology as a result of using
delivery services. Businesses have both gained confidence
in how to use digital technology and experienced the
efficiency benefits it can offer. As restaurants adopt delivery
technology they are more likely to embrace other forms
of digital technology in their business e.g, across HR or
financial management.
We will continue to look for ways to build on how we support
restaurants through cost-saving schemes or marketing
opportunities for growth.
Cost savings
• In the UK, against a backdrop of rising food price
inflation, we launched a partnership with Bestway
to provide our partners with access to cheaper
prices on their everyday essentials.
• With Olleco oil, we offer partners both cheaper
prices on fresh cooking oil and rebates on the
collection of used oil.
Tailored support
• Working with Enterprise Nation, we’ve rolled out
sustainability training to all UK partners, giving
expert advice on topics including cutting down
on food waste and managing sustainable supply
chains. We look forward to rolling out this training
in all markets in 2024.
• We have dedicated account management and
partner support services.
• We provide insights via ‘Deliver and Grow’, our new
insights report series for delivery businesses.
Marketing
• Tens of thousands of restaurants make use of
our Marketer Offers, which allow restaurants to
create promotions.
• Our new value programme highlights great value
partners through funded marketer offers, priority
in carousels and value tags.
• Our advertising platform gives restaurants the
opportunity to promote themselves on the Deliveroo
app, which drives an increase in new customers.
SECR disclosure
In line with the UK Government’s Streamlined Energy and
Carbon Reporting (‘SECR’) legislation, we have calculated
total operational energy and associated GHG emissions
across the Deliveroo plc global portfolio for the year
ended 31 December 2023. Our reporting scope includes
energy associated with activities undertaken by the Group
only. Energy and associated emissions reported include
electricity and natural gas utilised at operational sites
(Scopes 1 and 2) and relevant business travel (that falls in
Scope 3). This includes our Editions kitchens, Hop sites and
office estate. No other emission sources were identified
as applicable for the Group’s operations. As set out above,
reducing our own direct emissions while supporting
consumers and merchants to reduce their own emissions
is a key priority.
In 2023, 40% of our total SECR-relevant energy consumption
(from all scopes) was UK based. We consume significant
amounts of energy in the UK because, as a UK-
headquartered company, we have more staff and therefore
larger offices in the UK, as well as having a large share of
our Editions kitchens based in the UK. Our UK emissions have
increased. This is mainly driven by increased natural gas
usage. This could be driven by increased Editions kitchen
capacity and changes in how our partners use their gas in
those sites.
Our global SECR-relevant emissions were calculated at 12,745
(of which 12,727 are our global Scope 1 and 2 location-based
emissions). This compares to 2022 emissions of 13,160 on a
location basis. Our overall emissions in FY2023 have therefore
fallen by 3% compared to FY2022. Part of this reduction is
driven by market exits in Australia and the Netherlands meaning
we are operating in fewer markets. Aside from market exits,
emissions reductions in Hong Kong had the biggest effect.
Here, changes in our consumption pattern and a greening
of the respective energy grids drove the reduction.
Data we collected was analysed by our external consultants,
Sustainable Advantage, based on 79% verifiable data and
21% estimated data. Data was collected from statements
and invoices provided by utilities companies and landlords;
for some locations meter readings are taken and verified
by external providers. Amounts have had to be estimated
for locations where a service charge is paid rather than
metered invoices, where co-working spaces are used, or
where it was not possible to collect metered data.
Consistent with last year, estimated data was based on
CIBSE Guide F (2012) benchmarks against the total occupied
floorspace for each site or estimated using pro rata data
collection methods. Where we had partial data we utilised
the actual data we had, and applied an average for the
missing data for the rest of the year. The Group will continue
to engage with suppliers and landlords to obtain increased
data for its 2024 reporting. The table on page 40 sets out
data for the year ended 31 December 2023 in line with the
SECR framework, including our total global and UK operational
energy and carbon emissions required under the Companies
(Directors’ Report) and Limited Liability Partnerships (Energy
and Carbon Report) Regulations 2018.
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39Annual Report 2023 deliveroo plc
Sustainability review continued
Streamlined Energy and Carbon Reporting (‘SECR’)
As at December 2023 As at December 2022
Global UK and offshore area Global UK and offshore area
Scope 1 – tCO
2
e emissions 5,079 3,094 4,203 2,441
Scope 2 – tCO
2
e emissions
(location)
7,649 2,057 8,957 2,035
Scope 2 – tCO
2
e emissions
(market)
6,220 628 7,815 893
Scope 3 – grey fleet (MWh/tCO
2
e) 72.5/18 45.7/11
Total scope 1, 2 and 3 (location) 12,746 5,162 13,160 4,476
Total scope 1, 2 and 3 (market) 11,317 3,733 12,018 3,334
Scope 1 – natural gas 27,764MWh/5,079tCO
2
e 16,916MWh/3,094tCO
2
e 23,043MWh/4,203tCO
2
e 13,373MWh/2,441tCO
2
e
Scope 2 – electricity (location) 23,393MWh/7,649tCO
2
e 10,288MWh/2,057tCO
2
e 27,113MWh/8,957tCO
2
e 10,521MWh/2,035tCO
2
e
Scope 2 – electricity (market) 23,393MWh/6,220tCO
2
e 10,288MWh/628tCO
2
e 27,113MWh/7,815tCO
2
e 10,521MWh/893tCO
2
e
Scope 1 – MWh consumption 27,764 16,916 23,043MWh 13,373MWh
Scope 2 – MWh consumption 23,393 10,288 27,113MWh 10,521MWh
Total MWh consumption 51,230 27,250 50,156MWh 23,894MWh
Intensity ratio (location basis)
– tCO
2
e/100,000 orders
2.83 3.24 4.25 2.83
Intensity ratio (location basis)
– tCO
2
e/£m revenue
3.93 4.26 6.45 4.00
SECR disclosure continued
Methodology
• Our emissions have been calculated in line with the GHG
Protocol Corporate Accounting and Reporting Standard
(revised edition) and emissions factors have been taken
from International Energy Agency and DEFRA databases
(consistent with FY2022).
• The boundaries of our GHG inventory were defined using the
operational control approach, which covered all emissions
for which we were responsible during the period.
• Reporting scope includes energy associated with
activities undertaken by global entities directly owned
by Deliveroo plc only.
• Energy and associated emissions reported include electricity
and natural gas utilised at operational sites and relevant
business travel (e.g. use of hire cars or employee-owned
vehicles for business mileage).
• Where data was partially collected, pro rata calculation
methods were used. Where these were cost only, average
country electricity cost/kWh to back-calculate kWh
was used.
• Twenty-one percent (21%) of our data set is based on
estimated data. Estimates are calculated from previous
consumption and published CIBSE Guide F (2012) benchmarks
(as this was used to inform previous consumption estimates).
Energy efficiency measures in 2023
During the year we built business cases to identify our
most impactful energy-saving measures. This is in line with
the priorities we set out in 2022. These include fan speed
modulation, heat recovery systems and refrigeration
controls. We built these business cases on the basis of our
Energy Savings Opportunities Scheme audit, internal data,
and advice from Avison Young, our external consultants.
Over 2024 we will implement these measures and we have
a dedicated budget to support this implementation.
As we stated last year, we have continued with the roll-out
of sub-metering in our Editions kitchens and we will continue
to assess new opportunities over the course of 2024. We also
actively investigate the procurement of renewable energy
sources to meet our PSP targets which are detailed below:
• Last year, against a 2022 baseline, we set a target of a
15%-25% reduction in our market-based Scope 1 and 2
emissions (2025 target date).
• This year, against a 2022 baseline, we set a target of a
20%-30% reduction in our market-based Scope 1 and 2
emissions (2026 target dates).
These PSP targets are based on a baseline that excludes
certain markets so that market exit does not contribute to
emissions reduction. As such the SECR disclosure below may
not precisely track our PSP data.
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40 deliveroo plc Annual Report 202340