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deliveroo plc
Annual Report and Accounts 2024
Strategic Report
Group and Key financial highlights 02
At a glance 04
Chair’s Letter 06
Founder and Chief Executive Officer’s Letter 08
Our investment case 14
Our business model 16
Our strategy 18
Key performance indicators 22
Operating and strategic review 27
Financial review 32
Stakeholder engagement 38
Section 172(1) statement 42
Our People 44
Sustainability review 50
Task Force on Climate-related
Financial Disclosures statement 57
Viability statement 65
Non-financial and
sustainability information statement 66
Risk management and our principal risks 67
Governance Report
Governance at a glance 76
Compliance with the Code 77
Chair’s introduction to governance 78
Board of Directors 80
Governance Report 83
Nomination Committee Report 94
Audit and Risk Committee Report 98
Directors’ Remuneration Report 106
Directors’ Report 152
Directors’ Responsibilities statement 157
Financial Statements
Independent Auditor’s Report 158
Consolidated income statement
and statement of comprehensive loss 171
Consolidated statement
of financial position 172
Consolidated statement of
changes in equity 173
Consolidated statement of cash flows 174
Notes to the consolidated
financial statements 175
Parent Company balance sheet 215
Parent Company statement
of changes in equity 216
Notes to the financial statements 217
Five-year financial summary 226
Glossary 227
Glossary – Alternative Performance Measures 230
Company and Shareholder information 233
WELCOME T0 OUR
2024 ANNUAL REPORT
01deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT FINANCIALSGOVERNANCE
Gross transaction value (‘GTV’)* Revenue Gross profit Adjusted EBITDA*
£7.4bn
+6%
2
vs 2023
'24'23'22'21
6.3
6.8
7.1
7.4
£2.1bn
+3%
2
vs 2023
'24'23'22'21
1.7
2.0 2.0
2.1
£767m
10.3% (as % of GTV)*
'24'23'22'21
495
643
726
767
£130m
1.7% (as % of GTV)
'24'23'22'21
(100) (45)
85
130
1
Full discussion of financial statements on
page 171.
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 230.
Profit/(loss) before income tax Free cash flow* Net cash*
£12.2m
'24'23'22'21
(282) (231) (11)
12.2
£86m
'24'23'22'21
(239) (243) (38)
86
£0.7bn
'24'23'22'21
1.3
1.0
0.7 0.7
KEY FINANCIAL HIGHLIGHTS
1
2024
Group and Key financial highlights
02deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Positive free cash flow and profit for the year
We achieved two important financial milestones in 2024,
delivering profit for the year and positive free cash flow
for the first time. Profit for the year (from continuing and
discontinued operations) was £3 million, compared to a
loss of £(32) million in 2023, and we generated £86 million
of free cash flow in 2024, compared to an outflow in 2023
of £38 million.
£3m
profit for the year in 2024 (vs £(32)m in 2023)
£86m
free cash flow in 2024 (vs £(38)m in 2023)
Innovations in our Plus loyalty programme
In 2024 we made significant improvements to our Plus
loyalty programme, supporting our ambition to become a
Plus-first business by 2026. This included the relaunch of
Plus Gold with 10% credit back and an on-time guarantee
and lowering the minimum order value and service fee for
Plus Silver. We also launched a new invitation-only Diamond
tier to drive greater retention and frequency among our
highest value customers with exclusive benefits including
priority delivery on every order, 10% credit back, an
enhanced on-time guarantee, a dedicated customer care
team, and exclusive access to certain merchants and
events.
44%
of orders in Q4 2024 came from
our Plus subscribers (vs 42% in Q4 2023)
CVP enhancements
Throughout 2024 we made significant progress developing
our consumer value proposition (‘CVP’) across the selection,
price/value and consumer experience pillars. We enhanced
selection by adding c.3,000 restaurant, grocery and retail sites
globally, whilst incentivising partners via our Value Programme
to reduce price mark-ups. Our focus on making every
order perfect has seen us continue to reduce poor service
outcomes, with order inaccuracy down 5% and rejections and
cancellations down 12%.
20%
reduction to sales-weighted average
mark-up on platform in the UKI
Strong double-digit growth in grocery
Our grocery business grew strongly in 2024, reaching
16% of Group GTV in H2 2024. Progress was driven by
improved consumer experience, increased selection and
greater awareness of our offering. Growth of mid-sized
baskets (£30-£60) continued to outpace smaller baskets,
supported by in-app features such as “Your Regulars”, a
better substitutions experience, improvements to our
picking app and larger ranges with our grocery partners.
Our top-up order functionality continued to drive category
adoption, with almost a third of consumers who ordered
through this feature in 2024 being new to grocery.
16%
of Group GTV from grocery
in H2 2024 (vs 13% in H2 2023)
Roll-out of retail proposition
Having launched our retail proposition in November 2023,
we are still early in our journey and focused on enhancing
selection and driving awareness. We continued to drive
awareness by leveraging seasonal moments such as
Valentine’s Day, Mother’s Day, Black Friday and Christmas.
We enhanced our selection by adding brands such as
The Perfume Shop, B&Q and Wilko in the UK, Holland &
Barrett and Toys R Us in UAE, as well as a number of local
independent stores. We also rolled out retail in further
markets during the year.
~2,000
retail partner sites
added in 2024
Shareholder returns
Reflecting our continued financial progress and our
confidence in the outlook, we announced the return of an
additional £150 million of structurally surplus capital at our
interim results in August 2024. This is being executed through
an on-market share buyback programme, with repurchased
shares being subsequently cancelled. As at the end of 2024,
the programme was c.60% complete. Additionally, the Employee
Benefit Trust (EBT) purchased a further 22.6 million shares to be
used to satisfy employee share-based compensation awards,
for a total consideration of £30 million, in order to offset any
potential dilution to shareholders.
£150 million
return of structurally surplus capital
announced in 2024
03deliveroo plc Annual Report and Accounts 2024
Group and Key financial highlights continued
STRATEGIC REPORT FINANCIALSGOVERNANCE
MERCHANTS
(Restaurants, Grocers
and Retailers)
CONSUMERS
RIDERS
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 – 60%
UK and Ireland
International –
40%
France, Italy,
Hong Kong, Belgium,
Singapore, UAE,
Kuwait and Qatar
Our Mission
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.
10
Markets worldwide
82%
Global rider satisfaction
in Q4 2024
~135,000
Riders at the end of 2024
~163,000
Restaurant partner sites
~23,000
Grocery and retail sites
296m
Orders delivered in 2024
* 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 230.
At a glance
OUR BUSINESS IS A HYPERLOCAL THREE-SIDED ONLINE MARKETPLACE...
04deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Who we partner with
Restaurants Grocery Retail Advertising
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.
We partner with some of the largest
grocery retailers in the world, as well as
a large number of small independent
grocers.
Through our non-food retail offering,
‘Deliveroo Shopping’, we work with large
and small merchants in categories such
as flowers, DIY, homeware, electrical
goods and health and beauty.
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.
...PARTNERING WITH SOME OF THE BEST BRANDS, ACROSS SEVERAL KEY VERTICALS
05deliveroo plc Annual Report and Accounts 2024
At a glance continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
CLAUDIA ARNEY
CHAIR
Dear Shareholders,
This has been another successful year for Deliveroo. We have
matured our operations and ways of working, and made
significant progress on our key initiatives (outlined elsewhere in
this report), all while delivering profit and positive free cash flow
– a major achievement for the Company. As Will reflects in his
CEO Letter, the Company has come a long way since its inception,
building strength and resilience while preserving the spirit of
innovation and growth which remains at the heart of Deliveroo.
The Board has continued to be highly engaged with our strong
and committed management team. Detailed below are the
key highlights of the Company’s progress from the Board’s
perspective. More information on the Board’s specific areas
of focus during FY2024 is set out in our Governance Report on
page 76.
Our performance
Operational and financial performance
We continued to make significant progress on profitability in
2024, despite a challenging growth environment. In addition
to achieving the two milestones of profit and positive free
cash flow, we grew adjusted EBITDA by 52% year-on-year to
£130 million (2023: £85 million), representing a margin (as a %
of GTV) of 1.7%. The majority of this improvement in profitability
came from topline growth driven by increased order volumes,
higher GTV per order and the growing contribution of our high-
margin advertising business. We continued to drive efficiencies
in our delivery network, holding costs of goods sold flat, despite
growing orders by 2% year-on-year. We also reduced marketing
and overheads as a percentage of GTV by 50 basis points
year-on-year, reflecting cost optimisation measures within the
business, which remain a key focus.
As announced on 10 March 2025, we decided to exit Hong
Kong. The changing dynamics of the market led us to consider
our strategic options and, as the financial contribution to the
group was not sufficient to support the required investment
to enable us to compete strongly, we took the decision to exit.
This is a difficult decision, particularly in relation to our valued
colleagues and partners there, but the Board believes that this
is the right thing for the Company and our investors.
Capital returns
We have maintained the Group capital allocation methodology
we first laid out in 2023, and we continued our buyback
programmes with the completion of the £30 million EBT share
purchase in H1 2024, and the announcement in August 2024 of
an additional £150 million share buyback expected to complete
shortly. With our preliminary results on 13 March 2025, we will
announce a further capital return of up to £100 million via an on-
market share buyback. This brings announced share purchases
for cancellation to a total of £550 million since 2023, alongside
£105 million EBT purchases to offset dilution, since 2022. This
reflects our financial progress and our confidence in the
outlook for our business.
Strong governance
Our focus as a Board has been on supporting and challenging
the organisation as it continues to evolve and develop. I am
proud that in October 2024, we were one of the first companies
to transfer our listing category on the London Stock Exchange
to the ‘premium’ Commercial Companies (Equity Shares)
category (ESCC). This is an important milestone for the Company
and the Board believes that the transfer will bring a number of
benefits to the Company and our shareholders. Importantly, it
has enabled us to be eligible for inclusion in the FTSE UK Index
Series which we joined in December 2024.
Chair’s Letter
06deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Our Remuneration Committee has been focused on the review
of our Remuneration Policy which will be put to shareholders
at our upcoming Annual General Meeting in May 2025. While
our current Policy continues to adhere to best practice, given
business and external environment changes over the last three
years, we believe that some changes are required for us to
continue to recruit, retain and motivate the top executive talent
which is key to our future success. Our Remuneration Committee
Chair, Dame Karen Jones, engaged with our largest investors
to obtain their feedback on our plans. More information on
that and the proposed Policy can be found in the Directors’
Remuneration Report on page 106.
Board changes
As Directors we have a duty to promote the long-term success
of the Company, which includes ensuring that we have the
right talent in both executive positions and on the Board.
Technology and cyber are clearly areas which are critical to
the success of the Company and last year we identified the
need to bring additional skills in this area to the Board. We
welcomed Shobie Ramakrishnan as a Non-Executive Director
on 1 January 2024 and she has already made a significant
contribution across our entire agenda, as well as providing real
insight and challenge in our tech and cyber discussions.
Maintaining the right culture and relevant expertise on our
Board is very important and as such, we keep the balance of
skills, experience and knowledge under ongoing review as our
strategy evolves. We know that an experienced and diverse
Board most effectively supports our Executive Team as they
manage the strategic, operational and broader stakeholder
issues and opportunities that impact the Company. This year
marks our second year of reporting against the FCA’s listing
rule requirements on diversity and inclusion, which can be
found on page 96. I am pleased to share that in 2024, our Board
composition exceeded the FCA’s gender diversity targets,
with 55.6% of our Directors being women and our Chair, Chief
Financial Officer, and Senior Independent Director positions are
held by female directors.
Our ESG progress
We continue to focus on our six ESG pillars, which consider all the
participants in our marketplace as well as our employees and
other stakeholders. Our progress against the six pillars is set out
in the Sustainability review, alongside our specific commitment
to reduce our emissions and to improve gender diversity in our
organisation. More detail on this can be found on pages 50 to 56.
Looking ahead
This has been a positive year for Deliveroo, with the Company
delivering strong financial results and operational progress.
We are aware of the ongoing pressures which are causing
economic uncertainty for many of our customers and partners,
but we believe that our financial progress and foundational
improvements set us up to capture the many 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
12 March 2025
07deliveroo plc Annual Report and Accounts 2024
Chair’s Letter continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Opening thoughts
I’ve shared before that I’m not a particularly retrospective
person, but these letters force me to stand back and reflect on
what we have achieved and how that sets us up for the future.
When I think back to our first annual report in 2021, it is clear to
me that we are a very different company now – we offer much
more to consumers, riders and merchants. Our business model
and performance is stronger and more resilient. Looking back
further, the Company is fundamentally different to the one Greg
and I launched in 2013. We now bring the entire neighbourhood
to your door! We are really proud of the evolution and innovation
and growth continue to be at the heart of what we do.
The business is far bigger, and far more multi-faceted than I ever
would have thought. But in many ways, we are completely the
same: we still believe we are in the early days of the industry,
we are ambitious, we are innovative, we are curious and we
are utterly obsessed with creating a better experience for our
users. At the core, we are at our happiest when we are solving
the toughest problems for consumers, merchants and riders,
whether that is making sure you don’t have missing fries,
creating a more efficient logistics network, or figuring out how
to further revolutionise our proposition for consumers, riders
and merchants. Some things never change.
Growth since 2023 has not been easy, but we made a lot of
progress on creating a sustainable foundation. In 2024, we
delivered two important financial output metrics. Firstly, we
delivered a profit, and secondly we generated positive free
cash flow – this is a big step forward for the Company. While
the macro continued to be tough in the UK and the rest of
Europe in 2024, we did see growth improve, with increasingly
encouraging signs in order frequency and customer retention
through the year. That being said, I am dissatisfied with where
growth is currently. Driving sustainable growth is therefore our
number one priority for 2025 and beyond. The initiatives that
we are pursuing, alongside the improvements we have seen
in the broader environment, give me conviction that we will
deliver this.
Key progress in 2024
Profitability and FCF milestones
We continued to make significant progress on profitability
in 2024, as our strategy to manage our markets hyperlocally
continues to bear fruit.
Alongside hitting the two milestones of positive free cash flow
and profit, we grew adjusted EBITDA by 52% year-on-year to
£130 million (2023: £85 million).
The profitability improvement came from a combination of
topline growth and continued discipline in the cost base. The
topline performance has been driven by increased order
volumes, higher GTV per order and the growing contribution of
our high-margin advertising revenue business, which reached
1.4% of GTV in Q4 2024 (Q4 2023: 1.0%).
Within the cost base, we continued to identify opportunities
for efficiencies in our delivery network. For example, we rolled
out multi pick-up stacking, allowing us to pick up orders from
different merchants and deliver them to multiple consumers,
while continuing to protect the consumer and rider experience.
This unlock has enabled us to stack significantly more orders
year-on-year, resulting in some significant network efficiencies.
In parallel, we’ve also reduced rider wait time at merchants
by 3% year-on-year which in an industry where seconds really
matter is material. We’ve done this through collecting more
live data points from our merchants, rather than relying on
estimates, enabled by a number of new features, such as an
order ready button to let partners control their prep times,
a rider check-in function to regulate rider arrivals and rider
receipt scanning to reduce mix-ups.
WILL SHU
FOUNDER & CEO
Founder and Chief Executive Officer’s Letter
08deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
In other areas, we also continued to optimise. In marketing,
we laid the foundations to drive greater efficiency – rolling
out tooling that enables the marketing teams to both target
users and create different campaign types faster and with
significantly less engineering support. In overheads, we have
started to optimise our location strategy leveraging our tech
hub in India and EU hub in Manchester, while improving self-
serve tooling and automation across a number of areas in
the business.
In early 2025 we made the difficult decision to exit the Hong
Kong market. As a founder, it is never easy to make these types
of decisions, and I want to thank our colleagues in Hong Kong
for their commitment. Unfortunately, the dynamics of the
market have fundamentally changed, leading us to consider
our strategic options. With Hong Kong representing just 5% of
Group GTV in 2024 and having never positively contributed to
Group adjusted EBITDA, the financial performance of the market
was not strong enough to merit the investment that would be
required to compete strongly. Therefore, we decided it would
not serve shareholders’ best interests to continue to operate
in Hong Kong. Whilst I am very proud of the work the team have
done in the market over the years, I know that this is the right
decision for the business.
Growth
As I have remarked throughout the year, GTV growth wasn’t great
in 2024. But it was better than 2023, and it was encouraging to
see a few things: food inflation started to decline markedly in
the UK and the rest of Europe; our initiatives started to work;
and there was a return to real wage growth in the UK in the
second half of 2024. Obviously it’s not always easy to associate
our outputs one-to-one with our initiatives or the macro but
certainly growth improved throughout 2024. We are early in
2025, and there continues to be a lot of uncertainty, but we are
feeling increasingly optimistic.
Innovation in Plus loyalty programme
One of our focus areas for 2024 was to significantly invest in
growing our Deliveroo Plus programme, as we aim to become a
Plus-first business by 2026 – meaning the majority of our orders
will come from Plus subscribers. Our intention was to transform
Plus into a true loyalty programme, rather than just a simple free
delivery subscription (price arbitrage) programme. I am pleased
to say that we made great progress on this in 2024, taking our
Plus programme to another level, with the biggest innovations
since its inception. Our Gold programme changed for the better.
Simply put, we greatly enhanced the value for consumers. We
added two important new features to the programme in UKI
and France: an on-time-promise, which allows customers to
have the confidence that the order will be delivered in a timely
manner, and also our credit-back programme, which allows
a 10% credit back for restaurant orders above a minimum
spend. We saw paying subscribers of Plus Gold rise by 30% in
UKI and France since this enhanced programme was launched
in May 2024. We also see that Plus Gold users have double the
frequency of our Pay-As-You-Go consumers. We think having a
30% bigger base of highly engaged users in a short amount
of time is a big win. We also launched a new programme: Plus
Diamond. Diamond is focused on our highest frequency and
most valuable customers: these are the types of customers
who will order everyday and likely have the highest service and
delivery expectations. They also tend to reside in large cities and
are highly affluent. For these customers we are really creating a
great loyalty programme: there are exclusive merchants, there
is a generous on-time promise and also a special customer
service team. These users have more than double the frequency
of Gold users, and have increased their frequency since joining
Diamond. It’s early, but we’re pleased with what we’re seeing.
Price/Value
Price/value has always been a key pillar in the CVP, but its
importance has increased dramatically over the last 24 months.
The bottom line is that things got too expensive for people over
the last two years and this impacted growth, particularly in the
restaurant segment. In this context, we have done a lot of work
to reinforce value using both direct and indirect levers. Through
indirect levers, like our commercial architecture and value
programme, we have seen thousands of restaurants reducing
markups. We also helped consumers find more competitively
priced restaurants, through in-app merchandising, delivering
millions of pounds of savings to consumers – we call this
“Deliveroo’s Choice”. These encouraging signs saw us extend the
value programme to France during the year. At the same time,
we’ve taken the opportunity to invest in pricing, through one
of our direct levers, targeted promotions, to further reinforce
value perception. So what did we achieve? We managed to, on
average, decrease markups on our platform in the UKI by
200 bps. Obviously 200 bps is not only a large number, but
also an average – we managed to convince many of our
top merchants to reduce markups significantly – and those
merchants who are featured in Deliveroo’s Choice – have seen a
15% uplift in Gross Merchandise Value (‘GMV’).
09deliveroo plc Annual Report and Accounts 2024
Founder and Chief Executive Officer’s Letter continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Delivery experience
We continue to believe that the key to unlocking growth in
the industry is through building consumer trust. Our work on
price integrity is one way of addressing this, but it also involves
building a flawless delivery experience. As such a key focus
area for 2024 was fixing defects that merchants directly cause
or contribute to – for example orders that arrive with items
missing, or orders that are cancelled or rejected by merchants.
Our progress here has been good: we introduced an improved
item substitution flow, forced scanning for grocery products
with barcodes, optimised receipt layouts to aid partners
packing their orders, rolled out order number scanning for
riders at restaurants and introduced more signals to better
understand when a restaurant is truly open for deliveries. These
actions reduced cancellations and rejections by 12%
year-on-year and order inaccuracy by 5% year-on-year. And of
course it benefits merchants, in terms of lower refund rates,
but also commissions, the delivery experience is part of our
commercial programme, and we have seen this truly align
interests across the marketplace.
Selection
Finally, on selection, we continue to offer market-leading
selection, adding an additional c.3,000 restaurant, grocery and
retail sites, predominantly through the roll-out of retail and
continued expansion of grocery. Within the restaurant segment,
we have signed or renewed hundreds of restaurant partners on
an exclusive basis including Joe & the Juice, Nando’s, Wingstop,
Pho, Dishoom and Bleecker Burger in the UK and SALT in the UAE,
as well as a number of local independent favourites. We also
continued to expand selection by increasing the delivery area
available to consumers, increasing the selection they see in the
app, giving them greater choice.
Grocery
Our grocery business continued to perform extremely well
in 2024, with strong double-digit growth across the year. This
growth was broad-based across markets and has seen grocery
reach 16% of Group GTV in the second half (vs 13% in H2 2023).
Progress has predominantly been driven by an improved
service, consumer experience and increased partner and
product selection.
On service, we have continued to ship improvements to our
picking app, such as mandatory barcode scanning and dynamic
pick times. With almost 80% of grocery orders now delivered
through our own proprietary picking technology, these have
increased picker accuracy, reduced the incidence of defects
and driven better pick efficiency. We also made several
improvements to our consumer facing proposition, including
scaling top-up orders (which accounted for around 10% of new
grocery customers globally in Q4 2024), launching new promo
mechanics including £ / % off and multi-buy and integrating
partner loyalty schemes, for example Co-op member pricing.
On selection, we launched with Iceland, Morrisons Daily and ASDA
Express, alongside expanding coverage of existing partners,
such as Co-op and Sainsbury’s in the UK. In addition, we had a
renewed focus on adding exclusive specialist grocers across
our markets. Knowing that larger ranges are the key to driving
conversion and growing basket size, we have expanded the
number of partners offering ranges of 10-15k stock keeping
units (‘SKUs’) across the UK, France and Italy. This has enabled
further penetration of mid-sized grocery baskets, those in
the £30-60 range, with growth of these baskets continuing to
outpace other sized grocery baskets in 2024.
The result of this is that Grocery MACs grew by 20%, and even
the oldest grocery cohorts (2019) are still seeing double-digit
percentage increases in spend year-on-year. We believe we
have a true first-mover advantage in a clear societal shift
in how people are consuming groceries, and it is still the
very beginning.
Retail
It remains early days for our retail business, having launched
in the UK and UAE in November 2023, but we are continuing to
scale. During the past year we have been focused on expanding
to new markets, driving awareness of the proposition, and
expanding selection in our priority categories, such as DIY,
Flowers, Health and Beauty, and Pets.
In terms of partner selection, we more than doubled the number
of retail sites trading on the platform. In the UK, we added major
retailers such as B&Q, The Perfume Shop, Not On The High Street,
Wilko and Accessorize, as well as expanding the number of sites
with existing partners, such as Screwfix. In the UAE, we have
added some big name brands such as Holland & Barratt, Toys R
Us and Lush, as well as a number of local independent favourites
like Al Nahdi Pharmacy and Sol Flowers. We continue to have a
strong pipeline of retailers in discussions and look forward to
announcing more partnerships with major brands in the coming
months.
From a tech perspective, our retail business utilises the same
underlying platform as grocery, and therefore benefits from
the majority of improvements outlined above. Our retail specific
technology investments have mainly focused on either critical
unlocks for key partners such as enabling riders to return
high value items, or improvements to our consumer facing
proposition to drive purchase. In particular, we have focused
on developing repeatable and scalable capabilities to support
seasonal and deal events such as Valentine’s Day and Black
Friday as we have seen that these are peak trading occasions
for immediate/on-demand missions. Some of these, such as deal
and discount merchandising and intent based targeting, have
also proved a critical lever to drive awareness.
Founder and Chief Executive Officer’s Letter continued
10deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Advertising
We are continuing to scale our advertising business, which is a
key profit driver over the medium term. The bulk of this revenue
currently comes from our sponsored positioning and search
results products for restaurants and grocers, which drive
strong return on advertising spend (‘ROAS’) for partners. The
growth in revenue has been driven by the development of new
inventory, giving merchants more real estate to advertise on
the platform, as well as an increase in the number of merchants
and brands advertising on our platform, with 78,000 partner
sites running campaigns throughout 2024 (2023: 68,000). We
also see existing advertisers placing more ads, with around
90% of all partners who place an ad, returning to place another
within a month. We have more to do on FMCG and non-endemic
advertising, but we remain confident in our ability to hit our
target of >2% of GTV by 2026.
We have also enhanced our advertising proposition to
merchants, providing more guidance to partners in terms of
the bids and budgets they require to get maximum return.
Additionally, we have provided more targeting options to suit
partner needs: for example giving them the ability to run
campaigns focused during particular days of the week or hours
of the day, or aimed at particular audiences. Machine learning
models have driven an improvement in relevance of ads and
our approach to ad inventory leading to better click-through
rates and improved ROAS. Finally, we have launched branding and
awareness ad formats, like banners and merchandising cards
for partners to advertise new product launches and build their
brand story.
Supporting riders and merchants
In a tight and competitive labour market, we continue to provide
hundreds of thousands of riders with work that they value,
balancing flexibility, attractive earnings and security into an
attractive proposition. As ever, we’ve sought to improve the
experience for our riders. We have developed new features
such as: ‘rider check-in’ at restaurants to make sure that riders’
orders are completed more efficiently, and so riders can
complete more deliveries per hour; enabled riders to return
undeliverable retail items and earn more in the process; and
we have strengthened features to prevent unauthorised riders
from accessing the platform, and to protect registered riders’
earnings. We have also sought to make riders safer on the road,
with first aid courses in Italy, safety training in Singapore and
an anti-discrimination agreement with unions in France. In the
UK, we agreed to increase riders’ minimum pay guarantee with
the GMB Union and launched a first-of-its-kind Respect Charter,
bringing together riders and restaurant partners so that our
service is conducted with courtesy and consideration of others.
We also want to give riders new opportunities when they work,
which is why we introduced a new global partnership with
Lynx Educate, so riders and their families across markets have
access to courses from financial management, to languages,
to digital skills. We continue to see strong rider application
pipelines and rider retention rates, as well as a satisfaction
score of 82%, which shows we have an attractive proposition.
For merchants, we enhanced the quality of support we provide
to help them grow, including overhauling our Partner Hub to
enable partners to access more data to help them understand
and guide their performance. This included the launch of a
mobile-app, putting this data in partners’ pockets in real-
time. We have also developed features to help simplify their
site operations, introducing ‘Order Ready’ or ‘Need More Time’
functionality on their tablet to help manage the coordination of
food preparation with rider arrival. In October 2024, we held our
second ‘Food Forward’ partner conference, bringing together
over 300 of our top merchants, providing an opportunity for
them to gain insight into consumer trends and engage with
industry experts and members of our Executive Team. Finally,
we continued to expand our partnership ecosystem, launching
more B2B partnerships to provide services and benefits to our
partners, for example Amazon Business provides free Amazon
Business Prime and discounts to subscribed partners, and
YouLend offer partners easy and secure access to funding, with
competitive rates and repayments.
Our Focus for 2025
As mentioned at the outset, our mission and strategy remains
unchanged, meaning many of our focus areas for 2025 are
consistent with those in 2024. Our strategic framework has
a multi-year focus, meaning we won’t always launch new
initiatives every year. Some years will be about laying the
foundations for future years, and other years will see initiatives
that are running smoothly graduate to being part of business
as usual. 2024 saw us do a lot of foundational work, which will
enable us to drive the business forwards in 2025 through the
following initiatives.
Further step change our Plus loyalty
programme
We have built a strong foundation in Loyalty with material steps
forward in 2024 in improved propositions of our one of a kind
tiered subscription programme. Our focus for the coming year
will be to continue to scale the programme with a larger and
more engaged user base in order to deliver on our ambition to
become a Plus first business by 2026.
The next step for us in this journey is to scale the programme by
delivering clarity of the proposition to customers, encouraging
trials across new missions and verticals to improve usage, and
leveraging new partnerships and benefits to enhance the value
we provide to our loyal customers. In addition to this, we will
optimise the user journey and experience across all stages,
building a more efficient Plus lifecycle, fuelling further retention
and increased frequency on our platform.
With over 8 years of experience in the subscription programme
space, we have strong user demographics, and are confident
the programme will continue to play an important role in driving
growth for Deliveroo.
11deliveroo plc Annual Report and Accounts 2024
Founder and Chief Executive Officer’s Letter continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Continue to scale our Grocery and Retail
businesses globally
Even though we launched grocery in 2018, we’re still early in the
journey, with around 70% of our consumers yet to try grocery
and around half of our users who have never visited a grocery
menu in the app. Those numbers are significantly higher for
retail. This represents a giant opportunity. As such, growth
across these verticals is a key focus area for 2025 as we bring
even more of the neighbourhood to consumers’ doors, and both
businesses are critical contributors to our target of mid-teens
percentage GTV growth in the medium term.
The strategy is therefore similar for both grocery and retail, we
will: (i) continue to improve selection and coverage through
new and existing partners, (ii) drive awareness and category
adoption through the launch of new features and targeted
merchandising, (iii) continue to expand our missions into
mid-sized baskets for grocery and into new categories for retail,
through range expansion and enhanced technology,
(iv) deliver value for money to consumers and improve service,
and (v) develop new capabilities to drive further growth,
including multi-partner shopping, scheduled orders and the
launch of ‘Deliveroo Express’, our new white-label proposition for
grocers and retailers.
Improve in-app merchandising
Merchandising remains a significant opportunity going forward.
As mentioned previously, we will evolve our in-app experience to
drive greater awareness of our Retail and Grocery offerings to
the millions of users who visit the Deliveroo app every month. I
am also very excited about helping our users discover amazing
new partners while reducing friction through the ordering
experience. We will introduce new ways for users to browse
through the app such as a navigation bar at the bottom of the
screen and new filters to help users refine choice, for instance,
by distance or rating. Discovering new local gems has been one
of the most rewarding experiences for me personally as a user.
We will launch a dedicated destination within the app to help
our users discover these amazing local gems, aided by more
immersive photography and videos. For users who simply want
to quickly reorder their favourite go-to meals, we will make
this possible with just a few clicks through our new reorder
destination. We are also redesigning our new customer sign up
experience from scratch, giving users the ability to tailor the
app experience to match their personal preferences. Through
these investments in merchandising, I believe we can drive
increased conversion and long term user retention.
Deliver further marketing efficiency
During 2024, we made good foundational progress on our
marketing efficiency strategic pillar. We delivered a number of
improvements to drive efficiency, such as launching enhanced
user-level targeted promos, partner co-funded promotions, new
promo mechanics, improved marketing tooling and automated
CRM journeys aimed at improving the lifecycle of new cohorts.
In 2025, we will leverage the improvements made in 2024 to
increase marketing efficiency through more targeted and
personalised promotions, increased co-funding by partners and
further performance marketing optimisations.
Reignite restaurant growth
The restaurant category has lagged in growth over the last few
years. The primary reason is pretty straightforward – orders
became less affordable. We have made a lot of progress on
price/value and will continue to do so. We have also achieved a
lot on the selection side as mentioned above. There is always
a lot of industry chatter about market share gains and losses,
and we certainly understand the competitive intensity in this
market as well as anyone, but the reality is, restaurant delivery
use cases are fairly concentrated in the UK and Europe. People
use restaurant delivery primarily as a treat, and mostly towards
the end of the week. Our focus will be on extending use cases
and targeting those occasions where we think restaurants can
play a far bigger role. Our view is that the market can absolutely
be a lot larger in the restaurant segment, and we will lead the
charge on that.
GenAI/Automation opportunity
Chat GPT 3.5 came out in November 2022, and like everyone
else, I was pretty blown away. I used it relentlessly for days, but
in the end, I found that I was primarily using it for fun, creating
songs, poems and other humorous messages. The business
applications of the tool, I could clearly imagine in my head, but I
wasn’t sure when the models would support this activity. There
has been a huge amount of hype around this, but in the last six
months it has become clear that these tools are not only ready,
but will transform businesses and workforces in a much shorter
amount of time than most people think.
At Deliveroo, we already provide accelerated customer service
resolutions through automation, but soon AI agents will fulfil
the interactions in a very high quality way with natural language
policies (instead of code). That interaction experience will
not only apply to support, but will also apply to certain areas
of discovery and ordering. The shift from a human-to-UI to a
human-to-agent to an agent-to-agent experience will happen
for certain parts of our user base. Making sure we can provide
the best experience in that context will be important.
Our workforce will change as well. Development teams, of
course, already use AI as a co-pilot, but these tools are rapidly
getting far better. These agents tackle areas like code refactors,
dependency updates, migrations and code reviews, freeing
up our developers for more strategic tasks. Imagine each one
of our engineers as a super technical manager with a virtual
agent team. I get pretty excited about that, and it is starting to
happen today.
Beyond engineering, imagine a scenario where bespoke
qualitative or quantitative requests across the business can
be driven by AI agents in the Company: Why did market share
increase in a certain city over the last year? Give me the
granular history of how we improved efficiency in our logistics
algorithm over time? How do we best market a particular
partner? Agents doing this type of work can mean people can
get better answers much faster.
Founder and Chief Executive Officer’s Letter continued
12deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Looking ahead
Growth isn’t where we want to be yet. But the signs in user
behaviour are encouraging. Although the macro is volatile.
In spite of that, I am very excited and optimistic about the
opportunity ahead – we have identified areas of investment and
efficiency, and we will continue to relentlessly march towards
a better and better CVP. Therefore we are confident in our
medium-term targets.
Closing thoughts
Overall, 2024 was a really positive year for Deliveroo. We delivered
a strong set of financial results alongside significant operational
progress. There is much for teams across the business to be
proud of and I want to thank them for their hard work during
the year.
As mentioned throughout this letter, we have made significant
foundational improvements in 2024, which will help drive the
business forwards in 2025 and beyond. Importantly, we’ve done
this whilst making significant strides in profitability and free
cash flow, whilst continuing to grow – albeit slower than we
would have liked. This sets us up well for the future.
The way I see it, the inputs are looking good – we have a robust
plan and a great team to deliver on it. We’re an engine ready to
go, and as Deliveroo heads into its thirteenth year I couldn’t be
more excited and optimistic about the huge opportunity that
we have ahead of us.
Yours sincerely,
WILL SHU
FOUNDER AND CHIEF EXECUTIVE OFFICER
12 March 2025
13deliveroo plc Annual Report and Accounts 2024
Founder and Chief Executive Officer’s Letter continued
STRATEGIC REPORT FINANCIALSGOVERNANCE
DELIVERING
CONTINUED
EXCELLENCE
Deliveroo presents a compelling
investment case with strong future
potential driven by enhancement
of our consumer value proposition,
expansion of missions and new
verticals, improving operational
efficiency and continued
technological innovation.
Consistent strengths Multiple opportunities for growth
Large underpenetrated markets: Three key consumer
verticals of restaurant, grocery and retail represent a
significant combined Total Addressable Market (‘TAM’),
with low online penetration.
Strong cohort fundamentals: Consistent growth from
increasing average order frequency in existing cohorts
whilst improving retention and adding large new cohorts
each year.
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.
Further improving our CVP: Strengthening consumer trust
by promoting fair prices and improving the in-app and
delivery experience, and increasing loyalty by further
improving our recently enhanced Plus programme.
New missions and verticals: Unlocking new missions in
restaurant, expanding grocery into mid-sized baskets,
scaling our retail vertical to meet consumer appetite
for on-demand retail products, and growing our
advertising business.
Capturing delivery efficiencies: Smarter order stacking
(including multi-partner stacking) and combining inference
and direct signals from merchants to reduce rider
wait time.
Marketing and overheads programme: Further improving
efficiency of marketing and promotions, tooling and
AI automation, whilst leveraging location strategy and
achieving third-party savings.
3.5x
monthly average order frequency in Q4 2024;
our highest ever level
c.70%
of platform users yet to place a grocery order
(as at Q4 2024); significant opportunity ahead
Our investment case
14deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Strong foundations Sustainability commitments
Innovation in our DNA: Continuous drive to test and learn,
a Deliveroo trait that led to the pioneering of grocery and
delivery-only kitchens, and the first subscription model in
the industry – which we recently enhanced into a loyalty
programme, as well as adding retail to our offering.
Consumer obsession: ‘Living and breathing the
marketplace’ to understand consumers, riders and
merchants; showcasing a 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: Delivered positive free cashflow in
2024; net cash of £668 million (December 2024) provides
the financial resources to maintain and strengthen market
positions and pursue growth opportunities, whilst providing
appropriate headroom.
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.
Equity, diversity and inclusion (‘ED&I’): Attract and develop a
gender-balanced and more equitable workforce, reflecting
our consumers and supporting ED&I across our marketplace.
£450m
structurally surplus capital announced and
returned to shareholders across 2023-24*
~18.2%
reduction year-on-year in scope 1 and 2
emissions (on a location basis)
* Of the £450 million structurally surplus capital announced across 2023 and 2024, £300 million was returned to shareholders in
2023, and £150 million announced in August 2024.
15deliveroo plc Annual Report and Accounts 2024
Our investment case continued
STRATEGIC REPORT FINANCIALSGOVERNANCE
01
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.
Our technology
Our sophisticated logistics technology underpins all we do and ensures the
three sides of the marketplace interact seamlessly together.
02
Our three-sided marketplace
For
CONSUMERS
Compelling consumer
value proposition
For
RIDERS
Highly flexible work,
attractive earnings
and security.
For
MERCHANTS
Logistics, incremental
demand generation, new
consumers, and online tools
to grow business effectively.
HYPERLOCAL
NETWORK
Our consumers, riders
and merchants live and
operate within local
neighbourhoods.
Our business model
16deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
03
The value we created in 2024
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.
296m
orders delivered in 2024
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.
3.5m
meals donated to families in need in 2024
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.
£7.4bn GTV*
enabled through our platform in 2024
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.
7.6
out of 10 employee engagement score
in December 2024
1
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.
82%
global rider satisfaction score
in Q4 2024
2
Shareholders
We aim to balance continued strong growth with
progress on profitability, and have set out our path
to reach an adjusted EBITDA margin (as % of GTV)
target of 4%+ in the medium term. Capturing growth
opportunities and driving towards our margin target
will create substantial shareholder value.
£150m
return of structurally surplus capital
to shareholders announced in 2024
1
Figure based on December 2024 monthly Peakon employee engagement survey results.
2
Figure based on Q4 2024 survey results. During the reported period, c.74,000 riders completed the survey globally,
representing c.45% of the number of riders who delivered at least one order across the quarter.
17deliveroo plc Annual Report and Accounts 2024
Our business model continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
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.
Our core priorities
Compelling CVP Across key verticals Delivered efficiently
Selection Restaurant Optimised delivery
Price/value Grocery Marketing efficiency
Consumer experience Retail Operating leverage
Loyalty Advertising Investment discipline
Allow us to create value across the business
Drive growth Optimise returns Capital efficiency
Mid-teens GTV growth in
the medium term
4%+ adjusted EBITDA
margin in the medium
term
Maintain an efficient
capital structure
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.
Our strategy
1
2
3
18deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT FINANCIALSGOVERNANCE
Added
c.3,000
merchant sites
Sales-weighted
mark up reduced
20%
in UKI
Plus accounted for
44%
of order volume
in Q4 2024
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. There remain 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 more than non-members and have
stronger retention, making this programme one
of our most valuable strategic growth assets.
Priorities in 2025
• Selection: In the restaurant segment we will
continue to expand our supply, focusing on
geographies and cuisine types where our
penetration of the supply is low. In grocery, we
will continue to expand our product ranges
and footprint with well-known brands across
key markets. In retail, we will continue to build
selection, launching new retailers and expanding
into new regions within our existing portfolio.
• Price/value: Continue to reduce and maintain low
price mark-ups through the Value Programme.
Optimise Deliveroo-funded promotions with
improved marketing efficiency driven by tooling
and automation. Increase the number of offer
types that our grocery and retail partners are
able to provide on our platform, targeting parity
with in-store where possible.
• Consumer experience: Evolve the in-app
consumer experience by introducing new ways
to navigate the app, better tools to narrow down
choice and new flows to seamlessly place orders,
placing an increased focus on discovery. This
will help users discover our Grocery and Retail
offering for the first time, find great promotions
and offers, as well as help them discover new
restaurants and occasions. Alongside this, we will
also continue rolling out new tools for partners
to help further reduce order inaccuracies and
improve service.
• Loyalty: Continue to progress towards becoming
a Plus-first business by 2026 by optimising
and scaling the proposition through new
partnerships and new partner-funded benefits
to provide our loyal customers with even more
value, driving greater retention and frequency.
Progress in 2024
• Selection: We expanded our global merchant
supply with an additional c.3,000 sites, across
restaurants, grocery and retail, including a
number on an exclusive basis. We also expanded
the delivery area in more neighbourhoods,
increasing the selection that consumers see in
the app, giving them greater choice.
• Price/value: We improved value for money on
our platform via the continued roll-out of our
Value Programme in UKI and France. Since the
launch sales-weighted average markup on the
platform in the UKI has reduced by 20%, with
a third of participating restaurants reducing
their mark-up. We have also invested in pricing,
through targeted promotions, to capitalise
on a stabilising consumer environment by
reinforcing value perception.
• Consumer experience: We continued to
strive for more perfect orders, introducing
an improved item substitution flow, forced
scanning for grocery products with barcodes,
optimising receipt layouts to aid order packing,
rolling out order number scanning for riders
and introducing better signals to understand
when a partner is accepting orders. These
actions reduced rejections and cancellations by
12% and order inaccuracy by 5% year-on-year.
• Loyalty: We significantly enhanced our loyalty
proposition; launching our new premium tier
Plus Diamond in UKI, relaunching Plus Gold in
UKI and France and improving Plus Silver in
UKI, France and Italy. This, coupled with our
first major Plus brand campaign, resulted in
record levels of adoption, and improved order
frequency.
COMPELLING CVP
1
HIGHLIGHTS
19deliveroo plc Annual Report and Accounts 2024
Our strategy continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Scaled grocery to
16%
of GTV in H2 2024
Added
c.2,000
Retail Sites
Ad revenue now
1.4%
of GTV in Q4 2024
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
We launched our ‘Shopping’ proposition in 2023,
since consumer behaviour showed 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 whilst
protecting the consumer experience by serving them
with the most relevant content.
Priorities in 2025
• Restaurant: Accelerate growth within this vertical
by growing our share of the existing category,
using our proven hyperlocal playbook to further
penetrate geographic zones where we believe
our CVP is far superior to that of our competitors,
while growing the market, by unlocking new
missions to expand the categories we operate in.
• Grocery: Serve more customer missions by
continuing our expansion into mid-sized baskets
through range expansion and enhanced
technology, whilst continuing to drive greater
category adoption via the launch of new features
and targeted merchandising.
• Retail: Continue to scale retail globally by
partnering with leading brands and local
favourites to grow selection and coverage,
including launching in additional markets. This
will help build consumer awareness alongside
targeted marketing campaigns around key
seasonal retail moments, promotions and in-app
merchandising.
• Advertising: Increase advertiser adoption across
segments by introducing additional advertising
formats and slots, whilst continuing to drive an
attractive return on ad-spend (‘ROAS’). We will
also continue to scale our offering to advertisers
by enhancing our approach to FMCG and non-
endemic advertising, where we are currently less
advanced.
Progress in 2024
• Restaurant: With overall category-level growth
being constrained by value-for-money concerns
of consumers, we made significant progress
in ensuring consumers pay a fair price,
alongside reducing order defects. This was
achieved through new technologies to enhance
operations, targeted promotional investment
and expanding the range of incentives for
partners to improve their consumer proposition
and experience.
• Grocery: Our grocery business continued to
scale, reaching 16% of GTV in the second half of
2024, helped by the growth of mid-sized baskets
(£30-£60), which continue to grow faster than
other baskets. We improved selection, by adding
new partners and by increasing SKU count with
existing grocers. The latter is a key enabler to
growing basket sizes, increasing conversion
and improving consumer experience.
• Retail: We have made good progress building
up selection and driving awareness of our
‘Shopping’ proposition, adding major retailers
such as Wilko, B&Q and Accessorize in the UK and
Toys R Us and Holland & Barratt in the UAE, as
well as a number of local independent stores.
Following encouraging early signs in UAE and
the UK, we launched retail in further markets
during 2024.
• Advertising: We further scaled our business
across sponsored positioning and search
results for restaurants and grocers, with ad
revenue reaching 1.4% of GTV in Q4 2024. We
continue to take a consumer-first approach,
to strike the right balance between helping
merchants drive demand, whilst prioritising the
consumer experience.
Our strategy continued
ACROSS KEY VERTICALS
2
HIGHLIGHTS
20deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Increased
stacked orders by
c.50%
year-on-year
Rider wait time at
merchants down
3%
year-on-year
Marketing and
overheads down
50 bps
year-on-year as a
% of GTV
%
o
f
GTV
PILLARS
Optimised delivery
Delivery costs are the largest expense item in our
P&L. We have a proven record in driving efficiency
in the delivery network, enabling us to reinvest in
our key growth drivers and improve profitability,
whilst 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 percentage
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 whilst providing
appropriate headroom.
Priorities in 2025
• Optimised Delivery: We will continue to build
an efficient and flexible network, focusing on
creating new opportunities for efficiency that
guarantee service levels. Alongside stacking
efficiencies, we will continue to focus on
dispatch innovation and creating smoother rider
handover experiences, both at the merchant and
the consumer.
• Marketing efficiency: Leverage the
improvements made in 2024 to increase
marketing efficiency through more targeted and
personalised promotions, increased co-funding
by partners and further performance marketing
optimisations.
• Operating leverage: Drive further efficiencies
through improved tooling and automation,
optimising third-party spend and leveraging our
location strategy.
• Investment discipline: We will continue to focus
investments across the highest impact areas
in the business. In line with our commitment
to disciplined capital allocation the Board
determined that it would not serve shareholders’
best interests to continue to operate in Hong
Kong; we exited the market in H1 2025.
Progress in 2024
• Optimised Delivery: We continued to drive
efficiencies in our delivery network further
reducing cost of goods sold as a percentage
of GTV. A key element has been the roll out of
multi pick-up stacking, which helped enable
us increase stacked orders by c.50% year-on-
year, whilst protecting the consumer and rider
experience. Additionally, through features like an
order ready button for partners, a rider check-in
function and rider receipt scanning we reduced
rider wait time at merchants by 3% year-on-year.
• Marketing efficiency: We delivered a number of
improvements to drive efficiency: we launched
enhanced user-level targeted promotions,
partner co-funded promotions, new promo
mechanics, improved marketing tooling and
automated CRM journeys aimed at improving
the lifecycle of new cohorts.
• Operating leverage: Alongside the
improvements to marketing efficiencies above,
we have other efficiency programmes to
improve headcount productivity and drive other
cost efficiency. These benefits are starting
to feed into the numbers with marketing and
overheads down 1% year-on-year and down 50
bps as a % of GTV.
DELIVERED EFFICIENTLY
3
HIGHLIGHTS
21deliveroo plc Annual Report and Accounts 2024
Our strategy continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Revenue and revenue take rate* Gross profit and margin (as % of GTV)*
REVENUE (£M)
£2,072m
+3%**
REVENUE TAKE RATE (%)
27.9%
-90 bps YoY
GROSS PROFIT (£M)
£767m
+6%
GROSS PROFIT MARGIN (%)
10.3%
+0 bps
'24'23'22'21
1,735
1,975
2,030
2,072
'24'23'22'21
27.5
28.8
28.7
27.9
'24'23'22'21
495
643
726
767
'24'23'22'21
7.9
9.4
10.3 10.3
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 – 2024
Revenue reached £2,072 million, a year-on-year increase of 3%**, mainly driven
by the growth in GTV, as well as a growing contribution from advertising
revenue. The revenue take rate was 27.9% compared to 28.7% in 2023, as we
continued to make planned CVP investments to reinforce value perception
– particularly given the tough macroeconomic backdrop. Revenue take rate
was also impacted by a greater proportion of grocery and Plus orders within
the mix.
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 – 2024
Gross profit reached £767 million compared to £726 million in 2023, an
increase of 6% in reported currency. Gross profit margin (as % of GTV)
remained stable year-on-year at 10.3%, despite the decrease in revenue take
rate, as we continued to generate efficiencies in our delivery network. These
included progress on multi pick-up stacking, a reduction in the time riders
spend at restaurants for an order to be ready and further improvement in our
handover process to the consumer. Our cost of sales per order improved to
£4.41 in 2024 (2023: £4.49).
1
2
3 1
2
3
KEY TO STRATEGY AND
REMUNERATION
1
Invest in key
CVP levers
2
Focus on priority
verticals
3
Increase operating
efficiency
4
Remuneration
metrics
1
Adjusted EBITDA represents
profit/(loss) for the year
before income tax charge,
finance costs, finance
income, depreciation and
amortisation, exceptional
items, and share-based
payments charge
and accrued national
insurance on share
options. Adjusted EBITDA
is considered to be a
measure of the underlying
trading performance of
the Group and is used,
amongst other measures,
to evaluate operations
from a profitability
perspective.
* 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 230.
** In constant currency.
Key performance indicators
FINANCIAL KPIs
1
22deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Adjusted EBITDA* and margin (as % of GTV)* Net cash* and free cash flow*
ADJUSTED EBITDA (£M)
£130m
+£45m
ADJUSTED EBITDA MARGIN (%)
1.7%
+50 bps
NET CASH (£M)
£668m
(1)%
FREE CASH FLOW (£M)
£86m
+£124m
'24'23'22'21
(100) (45)
85
130
'24'23'22'21
(1.6) (0.7)
1.2
1.7
'24'23'22'21
1,291
1,000
679 668
H2
24'
H1
'24
'23'22'21
(239) (243)
(38)
3
83
Description
Adjusted EBITDA represents profit/(loss) for the year before income tax charge,
finance costs, finance income, depreciation and amortisation, exceptional
items, and share-based payments charge and accrued national insurance on
share options. Adjusted EBITDA is considered to be a measure of the underlying
trading performance of the Group and is used, amongst other measures, to
evaluate operations from a profitability perspective.
Performance – 2024
Adjusted EBITDA was £130 million, compared to £85 million in 2023, with the
uplift driven primarily by gross profit improvement. Adjusted EBITDA margin (as
% of GTV) was 1.7% compared to 1.2% in 2023.
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 – 2024
Net cash was £668 million at 31 December 2024, compared to £679 million at
31 December 2023. The year-on-year movement was driven by the generation
of positive free cash flow in 2024, which totalled £86 million compared to
free cash flow of £(38) million in 2023. The net cash movement includes share
repurchases of £120 million in 2024.
1
2
3
4 1
2
3
KEY TO STRATEGY AND
REMUNERATION
1
Invest in key
CVP levers
2
Focus on priority
verticals
3
Increase operating
efficiency
4
Remuneration
metrics
1
Adjusted EBITDA represents
profit/(loss) for the year
before income tax charge,
finance costs, finance
income, depreciation and
amortisation, exceptional
items, and share-based
payments charge
and accrued national
insurance on share
options. Adjusted EBITDA
is considered to be a
measure of the underlying
trading performance of
the Group and is used,
amongst other measures,
to evaluate operations
from a profitability
perspective.
* 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 230.
** In constant currency.
23deliveroo plc Annual Report and Accounts 2024
Key performance indicators continued
FINANCIAL KPIs
1
STRATEGIC REPORT GOVERNANCE FINANCIALS
GTV* and GTV growth Orders and GTV per order*
GROSS TRANSACTION VALUE (£M)
£7,433m
+5%
GTV GROWTH IN CONSTANT CURRENCY (%)
6%
ORDERS (M)
296m
+2%
GTV PER ORDER (£)
£25.1
+4%
'24'23'22'21
6,305
6,848
7,062
7,433
'24'23'22'21
70
7
3
6
'24'23'22'21
284
299
290
296
'24'23'22'21
22.2
22.9
24.3
25.1
Description
GTV comprises the total value of consumer baskets (net of discounts)
and consumer fees, excluding those from our Signature offering, and is
represented including VAT and other sales-related taxes but excluding any
discretionary tips.
Performance – 2024
GTV reached £7,433 million, a year-on-year increase of 5% in reported currency
and 6% in constant currency. The primary driver of GTV growth in the year was
a 4% year-on-year increase in GTV per order, whilst orders were up 2%. The
year-on-year GTV growth rate improved in 2024 compared to 2023, reflecting
a narrowing of the gap between food inflation and wage inflation in some of
our major markets and the actions we took to drive order growth, including
improving the value for money we offer, reducing defects, driving growth in
grocery and enhancing our Plus loyalty programmes.
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 – 2024
Orders were 296 million in 2024, a year-on-year increase of 2%. This was driven
by a higher average monthly active consumer base in 2024 as well as higher
average monthly order frequency year-on-year. GTV per order grew by 3%
in reported currency and 4% in constant currency to £25.1 for the year. This
equates to an increase of 80p versus 2023 driven by item-level price inflation
and the scaling of our grocery business, which tends to come with higher GTV
per order.
1
2
3
4 1
2
3
KEY TO STRATEGY AND
REMUNERATION
1
Invest in key
CVP levers
2
Focus on priority
verticals
3
Increase operating
efficiency
4
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 230.
Key performance indicators continued
NON-FINANCIAL KPIs
24deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
MACs and AOF Employee engagement
MONTHLY ACTIVE CONSUMERS (M)
7.1m
+1%
AVERAGE ORDER FREQUENCY (MONTHLY)
3.5x
+1% YoY
EMPLOYEE ENGAGEMENT (SCORE OUT OF 10)
7.6
+0.2 pts YoY
'24'23'22'21
7.0
7.4
7.1 7.1
'24'23'22'21
3.4 3.4 3.4
3.5
'24'23'22'21
8.1
7.8
7.4
7.6
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 – 2024
In 2024, MACs averaged 7.1 million for the year as a whole, equating to a 1%
improvement versus 2023. The modest year-on-year improvement coincided
with inflationary pressures on consumers starting to ease alongside our
execution on certain CVP initiatives which support consumer retention.
Monthly AOF of 3.5x was a 1% improvement year-on-year, reflecting early signs
of stabilisation in consumer behaviour.
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 – 2024
Employee engagement increased from 7.4 in December 2023 to 7.6 in
December 2024. Our score was stable over the course of H1 and steadily
increased throughout H2. We regularly shared strategy and performance
updates, which were well received, while strengthening our Learning and
Development and ED&I programmes.
1
2
3
KEY TO STRATEGY AND
REMUNERATION
1
Invest in key
CVP levers
2
Focus on priority
verticals
3
Increase operating
efficiency
4
Remuneration
metrics
25deliveroo plc Annual Report and Accounts 2024
Key performance indicators continued
NON-FINANCIAL KPIs
STRATEGIC REPORT GOVERNANCE FINANCIALS
Net zero on Scopes 1 and 2 (market-based) Representation of women at Level 4 and above
TOTAL SCOPES 1 AND 2 EMISSIONS
9,770 tCO
2
e
OVERALL
41%
+2 ppts YoY
TECH-BASED ROLES
28%
+2 ppts YoY
'24'23'22
11,625
11,317
9,770
'24'23'22
37%
39%
41%
'24'23'22
23%
25%
28%
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 – 2024
Our market-based emissions for FY2024 were 9,770 tCO
2
e. This is a 13.6%
decrease year-on-year, and a 15.9% decrease against the 2022 baseline. This is
in line with expectations given the capital investments over FY2024, as well as
further investment in renewable electricity as the primary energy source for
more of our buildings.
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 – 2024
The representation of women at Level 4 and above has increased by 2ppts
overall year-on-year. Looking at the figures by role split, the representation
of women has increased by 2ppts specifically in tech roles. This has been a
key hiring focus for the year and comprises part of the ongoing strategy to
improve representation and gender diversity in senior tech-based roles.
3
4 4
KEY TO STRATEGY AND
REMUNERATION
1
Invest in key
CVP levers
2
Focus on priority
verticals
3
Increase operating
efficiency
4
Remuneration
metrics
Key performance indicators continued
NON-FINANCIAL KPIs
26deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
1. Key developments in 2024
Growth and operating environment
In 2024, GTV growth improved to 6% year-on-year in constant
currency, with orders returning to growth of 2%, driven by the
continuous improvements made to our CVP, alongside cost of
living pressures becoming less of a headwind during the year in
some of our major markets. GTV grew in both our restaurant and
grocery businesses.
The UKI performed well, with GTV growing 7% in constant
currency and order growth accelerating through the year to
5% in Q4 (Q1: 0%, Q2: 1%, Q3: 2%) despite continuing uncertainty
in the consumer environment. The improvement in Group GTV
growth to 6%, from 3% in 2023, was driven by International,
which grew 4% in constant currency compared to (3)% in 2023.
This improvement in growth was driven by continued strength
in UAE and Italy and stabilisation in France – which was a drag
on growth in the prior year. After encouraging signs in the first
half, France was impacted by market softness in H2. Hong Kong
was impacted by the difficult competitive environment through
the year. Excluding Hong Kong, International GTV growth was
9% in constant currency and order growth was 6%. Group GTV
growth was 8% in constant currency and order growth was 4%
excluding Hong Kong.
At a Group level, average order frequency (AOF) improved to its
highest ever level in Q4 2024 and each annual cohort continued
to increase frequency. Consumer retention is also now less of a
headwind to growth, with consumer churn improving through
the year. Our customer NPS improved by 4 points year on year.
While the consumer environment remains uncertain, we will
continue to make targeted investments into our CVP in order
to support our consumers and underpin our ability to drive
continued profitable growth.
Consumer value proposition
The on-demand delivery industry remains early in its maturity
and there is ample room for growth. We believe that the biggest
factor to unlock future growth for Deliveroo and our merchants
is improving consumer trust and loyalty, through a combination
of price integrity and a flawless consumer experience – both
factors in driving frequency and retention on the platform. The
accumulation of marginal gains that improve trust and loyalty
can have just as much impact on growth as unlocking newer
verticals such as grocery and retail.
Loyalty (Deliveroo Plus)
In 2024 we enhanced our loyalty programmes significantly,
in line with our ambition to be a Plus-first business by 2026.
These have been the biggest developments for Plus since we
launched the programme in 2017. Firstly, we relaunched our Gold
tier in the UK and France towards the end of H1, with improved
benefits such as 10% credit back on eligible orders, and an
on-time guarantee giving customers a credit if the order is over
15 minutes late. In the UK, France and Italy we also made the
Silver tier relevant for more occasions by lowering the minimum
order value, while also adjusting the service fee.
We also launched a new Plus Diamond tier in the UK, with the aim
of driving even greater retention and frequency among some of
our highest value customers. Diamond is an exclusive, invitation-
only tier offering members a premium experience including
priority delivery on every order, 10% credit back on eligible
orders, an on-time guarantee with credit back for the full
order value for orders more than 10 minutes late, a dedicated
customer care team, and exclusive access to certain merchants
and events.
We continue to see the potential for partnership approaches
in our Plus distribution and, for example, in the UK launched a
major partnership with Blue Light Card, offering free Silver to
the emergency services sector including NHS workers, social
workers and the armed forces.
Whilst it is still relatively early days for these improvements
in Plus, we are pleased with some early indicators. We have
seen an encouraging increase in paying subscribers since the
enhancements to the programme at the end of H1 – reaching
an all-time high at the end of 2024.
We are also encouraged by the frequency uplift we’ve seen so
far in Gold and in Diamond – particularly given these are already
high frequency users. While it’s too early to assess the retention
benefits of the relaunch, we believe that giving customers
more reasons to remain with Deliveroo will improve retention.
Plus members already order more frequently than ‘pay-as-
you-go’ users, and their retention is stronger, so we expect the
enhanced programme to play a key role in driving growth for
Deliveroo.
Price/value
Imperative to building consumer trust is price integrity. In
2024 we continued promoting value in our app, for example
by highlighting where restaurants and grocers are matching
prices to their dine-in or in-store prices, as well as using
targeted promotions to reinforce value perception. Throughout
the year, we made progress on building the foundations
for more efficient promotional activity, including improving
targeting and personalisation of our promotions. This work will
continue in 2025.
1
In this section, all growth rates are year-on-year and in reported currency unless otherwise stated. The following commentary includes discussion of statutory measures such as revenue and operating loss, as well as
alternative performance measures (‘APMs’) such as gross transaction value (‘GTV’), gross profit margin (as % of GTV) and adjusted EBITDA, as the business also uses these metrics to monitor and assess performance. A full list of
APMs and their definitions can be found on page 230. More detailed discussion of statutory results is contained in the Financial Review beginning on page 32.
Operating and strategic review
1
27deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
As prices are set by our merchant partners, we used our
commercial architecture and our value programme to
incentivise merchants to reduce markups on the platform.
We incentivise partners to improve and maintain strong value
scores by driving more volume to our best value partners
through in-app merchandising. We were encouraged to see
that the proportion of GTV coming from those partner sites
at the end of 2024 was significantly higher compared to
before the launch of our value programme. Overall, we remain
confident that our trust-building approach to price/value
improves frequency and retention and is the right approach for
consumers, riders, merchants and Deliveroo over the long term.
Consumer experience
Our aim is to deliver a flawless consumer experience on each
occasion and we continue to work with our merchant partners
and riders to reduce poor service outcomes. A focus in 2024 was
to reduce merchant-driven defects such as order inaccuracies,
rejections and cancellations. We reduced rejections to an
all-time low by introducing more signals to better understand
when a restaurant is able to accept deliveries. We made further
progress on reducing order inaccuracies such as missing items
by introducing an improved item substitution flow. Finally, we
continued to reduce the instances of ‘orders marked delivered,
not received’ (OMDNR), the worst possible defect, to an all-time
low in 2024.
Within the delivery experience, we introduced a feature which
allows consumers to choose a safe space for their delivery,
if they are not able to receive it. This improves the consumer
experience while also reducing avoidable wait times for our
riders.
Selection
We continued to improve our market-leading selection, adding
a further c.3,000 sites across restaurant, grocery and retail
compared to the end of 2023, particularly through the roll-out
of retail and expansion of grocery selection. Within restaurant,
we achieved key exclusive wins and renewals including Dishoom,
Nando’s, Joe & the Juice, Wingstop, Pho and Bleecker Burger in
the UK, Livio Più in France and SALT in the UAE, alongside several
local independent favourites. We also continued to expand
selection in both the UKI and International by increasing the
delivery radii available to our consumers.
Newer verticals and use cases
Grocery
Our grocery business continued to grow strongly, reaching
16% of Group GTV in the second half (H2 2023: 13%). Progress
was supported by improved consumer experience, increased
selection and higher awareness. We also continued improving
the efficiency of the picking process with features such as
mandatory barcode scanning and auto-complete. In 2024,
over 70% of grocery orders were delivered through our own
proprietary picking app technology, which helped to reduce
instances of order inaccuracy and rejections significantly
versus the prior year while increasing the likelihood of suitable
substitutions.
We continued to see strong growth from baskets below £30,
but even stronger growth from mid-sized baskets (£30-£60).
A key enabler of this growth is the significant increase in the
number of partners that have listed between 3,000 and 10,000
SKUs compared to the prior year, when our partners listed a
maximum of 3,000 SKUs. We also launched with Iceland and
expanded our presence with existing partners to improve our
selection in the UK. Internationally, we increased our coverage
with Intermarché in France and Waitrose in UAE, where we also
added a new exclusive partnership with a specialist brand
which benefitted from a viral social media following.
We continued acquiring new-to-category users. Whilst we were
pleased that our user penetration in grocery continued to
increase steadily in each quarter in 2024 as we continued to
improve our offering – almost 70% of our platform users are yet
to place a grocery order, so we remain relentlessly focussed
on driving adoption. We offer consumers the chance to ‘top up’
their restaurant order by adding a grocery order through the
order tracking page in all of our markets. The top up feature has
been one of our most effective drivers of category adoption;
almost a third of consumers ordering through this feature are
new to the grocery category.
Retail
We also continued to lay the foundations for future retail
growth. We made good progress on building selection across
key target categories such as DIY, Health and Beauty, Pet Care
and Flowers. In H2 we added brands such as Wilko, The Perfume
Shop, Not On The High Street, Accessorize and Hurr in the UK and
expanded the number of sites with existing partners such as
Boots and Screwfix. In the UAE, we added large brands such as
Lush, Holland & Barrett and Toys R Us as well as a number of local
favourites such as Al Nahdi Pharmacy and Sol Flowers. By the end
of 2024 we had over 2,500 retail sites on our platform, enabling
us to bring even more of the neighbourhood to our consumers’
doors.
Operating and strategic review
1
continued
28deliveroo plc Annual Report and Accounts 2024
1
In this section, all growth rates are year-on-year and in reported currency unless otherwise stated. The following commentary includes discussion of statutory measures such as revenue and operating loss, as well as
alternative performance measures (‘APMs’) such as gross transaction value (‘GTV’), gross profit margin (as % of GTV) and adjusted EBITDA, as the business also uses these metrics to monitor and assess performance. A full list of
APMs and their definitions can be found on page 230. More detailed discussion of statutory results is contained in the Financial Review beginning on page 32.
STRATEGIC REPORT GOVERNANCE FINANCIALS
We leveraged seasonal moments such as Valentine’s Day
and Black Friday to raise awareness of the offering to our
consumers. We also drove good engagement by leveraging
search intent – targeting consumers who browsed specific
categories, such as Pharmacy, with tailored recommendations
and promotions.
We’ve made good strides on the technology side, for example
enabling riders to return undeliverable items to give retailers
the comfort that high-value items will not go missing. We
continued to evolve our in-app experience and merchandising,
for example with an item-led carousel on the home page of
our app to showcase deals and enable easy browsing of retail
items. After encouraging signs of consumer engagement in
the UAE and the UK, we went on to launch retail in other markets
including Kuwait, Singapore and Belgium.
Profitability and cash flow
In 2024 we achieved two important financial milestones,
delivering a statutory profit and positive free cash flow. These
milestones reflect our progress on adjusted EBITDA, which
increased 52% to £129.6 million (2023: £85.4 million). We made
further progress on adjusted EBITDA margin (as % of GTV), which
improved 50 bps year-on-year to 1.7% (2023: 1.2%).
Our advertising business, an important driver of profitability,
reached an annualised revenue run-rate in Q4 2024 of
£113 million (Q4 2023: £77 million) or 1.4% of GTV (Q4 2023: 1.0%
of GTV). The majority of this revenue continues to come from
our sponsored positioning and search results products for our
merchants, which drive strong return on advertising spend
(‘ROAS’) for partners. We continue to take a consumer-first
approach, wanting to strike the right balance between helping
merchants drive incremental demand while always prioritising
1
In this section, all growth rates are year-on-year and in reported currency unless otherwise stated. The following commentary includes discussion of statutory measures such as revenue and operating loss, as well as
alternative performance measures (‘APMs’) such as gross transaction value (‘GTV’), gross profit margin (as % of GTV) and adjusted EBITDA, as the business also uses these metrics to monitor and assess performance. A full list of
APMs and their definitions can be found on page 230. More detailed discussion of statutory results is contained in the Financial Review beginning on page 32.
2
The year-on-year changes in tables within this report are based on unrounded figures.
* Alternative performance measure (‘APM’), refer to glossary on page 230 for further details
the consumer experience, but remain confident in our ability to
reach our target of over 2% of GTV by 2026.
Our continued service improvements drove a reduction
in refunds. We made significant progress on multi pick-up
stacking, where a rider can pick up orders from multiple
merchants and deliver them to multiple consumers, increasing
our proportion of stacked orders by around 50% in 2024 while
continuing to prioritise the consumer and rider experience. We
reduced the amount of time riders spend waiting at restaurants
for an order to be ready by 3%, and further improved our
processes to enable seamless and accurate handovers to the
consumer. These efficiencies in our delivery network, alongside
our service improvements, allowed us to continue investing
into our CVP while maintaining a stable gross profit margin
compared to the prior year.
Marketing and overheads* decreased slightly to £637.3 million
in 2024 (2023: £641.0 million) despite the 6% increase in GTV, the
investments to support our launch and scaling of retail and the
relaunch of our Plus loyalty programmes. As a result, marketing
and overheads as a percentage of GTV decreased by 50 bps
year-on-year. This operating leverage reflects the impact of
cost optimisation measures within the business, which remain a
key focus.
Market exit
As announced on 10 March 2025, we decided to exit our Hong
Kong operations through a sale of certain assets to foodpanda
and the closure of others. Hong Kong represented 5% of Group
GTV in 2024 and had a 5 percentage point negative impact
on International GTV growth in that year. The market remains
adjusted EBITDA negative. Reflecting the market dynamics
in Hong Kong and, specifically, the discount sensitivity of
consumers in that market, we determined that we could not
reach a sustainable and profitable scale without considerable
financial investment, and the expected return on such
investment was not aligned with our thresholds.
Summary financial information (excluding Hong Kong)
2
£ million unless stated 2024 2023
Year-on-year
change
(reported)
Year-on-year
change
(constant)
Continuing operations
GTV* 7,061 6,603 7% 8%
Revenue 1,967 1,890 4% 5%
Revenue take rate (as % of GTV)* 27.9% 28.6% (80) bps –
Adjusted EBITDA* 139.6 87.7 59% –
Adjusted EBITDA margin (as % of GTV)* 2.0% 1.3% 60 bps –
29deliveroo plc Annual Report and Accounts 2024
Operating and strategic review
1
continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Medium-term targets
At our Capital Markets Event (‘CME’) in November 2023, we set out
targets to deliver mid-teens percentage GTV growth per annum
(in constant currency) in the medium term and to reach an
adjusted EBITDA margin of 4%+ by 2026.
We continue to be confident in our medium-term target of mid
teens GTV growth per annum.
Since the CME, we have made strong progress with our
growth levers:
• making continuous improvements to our CVP including
loyalty, price/value, service and selection;
• making significant strides with our grocery proposition; and
• launching retail.
We also see further exciting opportunities to accelerate growth
going forwards by:
• growing share – driving further penetration in geographic
areas where we believe we can develop a large CVP
differential; and
• growing the market – unlocking new occasions to expand
our current categories.
The improvement in the consumer backdrop has taken longer
than anticipated at the time of CME, which has delayed the
delivery of our adjusted EBITDA margin target of 4%+. However,
we have already made good progress on our profitability levers,
increasing margin by 50 bps in 2024, particularly:
• scaling our advertising revenue;
• improving our rider network efficiency through smarter
stacking and reducing rider wait time; and
• good cost control.
We remain confident in our plans to deliver ongoing efficiencies
and drive operating leverage as we scale, to deliver an adjusted
EBITDA margin of 4%+ in the medium term.
During 2025, we are making focused investments to drive the
further growth opportunities mentioned above and therefore
expect adjusted EBITDA margin progression to be slightly
lower than the 50 bps delivered in 2024. We expect margin
improvement to accelerate thereafter.
Capital position and shareholder returns
Reflecting our confidence in ongoing cash generation, we
will announce on 13 March 2025 the return of up to a further
£100 million of structurally surplus capital. This will be executed
in the form of an on-market share buyback programme, with
repurchased shares being subsequently cancelled.
The programme is expected to commence shortly, after the
completion of the existing programme to purchase up to
£150 million as announced with our 2024 interim results. Our
existing AGM authority permits the repurchase of up to 10% of
our issued share capital in a year. As such, completion of the
new share buyback will be subject to the reapproval of the AGM
authority in May.
2. The three sides of the marketplace
Since 2013, we have pioneered on-demand food delivery via
a hyperlocal three-sided online marketplace, connecting
consumers, merchants and riders. In 2024, we made further
progress in developing all three sides of our marketplace.
Consumers
Deliveroo’s monthly active consumers (‘MACs’) averaged
7.1 million across 2024, in line with 2023. The year-on-year
declines we experienced in 2023 have shown signs of
stabilisation, with MACs flat in H1 and up 1% in H2 2024 (2023 –
H1: (5)%, H2: (2)%). In Q4 2024, MACs reached the highest level
since 2022 at 7.4 million. More importantly, having worsened
in 2022 and 2023, the rate of churn at a cohort level began
to stabilise – improving steadily through 2024. Average order
frequency (AOF) at a Group level improved across every annual
cohort and, in Q4, reached its highest ever level on a blended
basis. These improvements reflect the impacts of execution on
our CVP initiatives. However, the consumer environment remains
uncertain and we remain focused on achieving a longer track-
record of improvement.
Retention – lapse rate
2
improved through 2024
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Average order frequency
3
has returned to growth
20242023202220212020201920182017
Operating and strategic review
1
continued
30deliveroo plc Annual Report and Accounts 2024
1
In this section, all growth rates are year-on-year and in reported currency unless otherwise stated. The following commentary includes discussion of statutory measures such as revenue and operating loss, as well as
alternative performance measures (‘APMs’) such as gross transaction value (‘GTV’), gross profit margin (as % of GTV) and adjusted EBITDA, as the business also uses these metrics to monitor and assess performance. A full list of
APMs and their definitions can be found on page 230. More detailed discussion of statutory results is contained in the Financial Review beginning on page 32.
2
Represents the average year-on-year change in active users across our 2015 to 2020 annual cohorts.
3
Represents the average year-on-year change in monthly average order frequency across our 2015 to 2022 annual cohorts.
STRATEGIC REPORT GOVERNANCE FINANCIALS
MACs and AOF
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
UK & Ireland (m) 4.0 4.0 3.9 4.0 3.9 3.9 3.8 4.1
International (m) 3.1 3.1 3.0 3.3 3.3 3.2 3.1 3.3
Group average MACs (m) 7.1 7.1 6.9 7.3 7.2 7.1 6.9 7.4
Year-on-year growth in MACs (7)% (4)% (2)% (2)% 0% 0% 1% 1%
Average order frequency (monthly) 3.4 3.4 3.4 3.4 3.4 3.5 3.4 3.5
Monthly active consumers (‘MACs’) is the number of individual consumer accounts that have placed an order on our platform in a given month; average
MACs for a quarter is the average of MACs for the three months of that quarter.
Average order frequency (monthly) is the average number of orders placed by active consumers in a month; AOF for a quarter is the average of AOF for
the three months of that quarter.
Merchants
Merchant selection is an important part of our consumer value
proposition. Growth in the number of merchants increases
availability and choice to consumers on a hyperlocal basis. At
the same time, we are focused on partner quality, ensuring
good service and value for money on our platform – a focus that
is reinforced by our value programme. At the end of 2024, the
number of global partner restaurant sites increased slightly to
approximately 163,000 (H1 2024: 162,000) driven by new partner
additions as well as the onboarding of restaurants that have
improved their performance since being offboarded as part
of our value programme. Our global partner grocery and retail
sites reached approximately 23,000 at the end of 2024 (H1
2024: 21,000) as we continued to add merchant selection on a
neighbourhood-by-neighbourhood basis across both newer
verticals.
Riders
Deliveroo continues to offer riders flexible work alongside
attractive earning opportunities and security. Riders tell us
that they value this work, which ensures we have sufficient
rider supply to match consumer demand. We work with around
135,000 riders globally, with 82% of riders globally saying they
are satisfied or very satisfied working with Deliveroo in Q4 2024
(Q2 2024: 81%). As further evidence of the popularity of the work
we offer, we continue to see strong rider application pipelines
and strong rider retention rates. We continue to monitor
our rider fleet size to reflect the impact of macroeconomic
conditions on order volumes and maintain an efficient rider
network.
There are no material updates in the UK or France. Deliveroo
maintains constructive relationships with decision-makers and
relevant stakeholders. With regard to Italy and Belgium, there
have been no material updates from those provided in the 2023
full year results and we remain engaged with relevant local
authorities and stakeholders. In Belgium, this includes local
social security and postal regulators.
At EU level, the EU Platform Work Directive, which was finalised
in April 2024 and formally adopted by the European Council in
October 2024, is now with Member States to commence the
transposition process. Deliveroo is engaging with relevant
Member States’ governments on this topic.
At any given time, Deliveroo will be involved in regulatory
investigations, audits, claims, court cases and appeals, as
well as individual and collective legal claims in any market.
We recognise provisions or contingent liabilities for such
proceedings as appropriate. These represent management’s
best estimate of potential economic outflows based on the
status of proceedings at the time of approval of the financial
statements, and are based on current and/or anticipated claims,
even where the amounts claimed are disputed.
31deliveroo plc Annual Report and Accounts 2024
Operating and strategic review
1
continued
1
In this section, all growth rates are year-on-year and in reported currency unless otherwise stated. The following commentary includes discussion of statutory measures such as revenue and operating loss, as well as
alternative performance measures (‘APMs’) such as gross transaction value (‘GTV’), gross profit margin (as % of GTV) and adjusted EBITDA, as the business also uses these metrics to monitor and assess performance. A full list of
APMs and their definitions can be found on page 230. More detailed discussion of statutory results is contained in the Financial Review beginning on page 32.
STRATEGIC REPORT GOVERNANCE FINANCIALS
To supplement performance assessment, Deliveroo uses alternative performance measures (‘APMs’), which are not defined under
IFRS. The Board reviews gross transaction value (‘GTV’) and adjusted EBITDA, as well as other APMs shown below, alongside IFRS
measures.
£ million unless stated 2024 2023
YoY change
(reported)
YoY change
(constant)
Orders 296.0 290.2 2% 2%
GTV per order (£)* 25.1 24.3 3% 4%
GTV* 7,433.5 7,062.0 5% 6%
Revenue 2,071.9 2,030.0 2% 3%
Revenue take rate (as % of GTV)* 27.9% 28.7% (90) bps –
Gross profit 766.9 726.4 6% –
Gross profit margin (as % of GTV)* 10.3% 10.3% 0 bps –
Marketing and overheads* (637.3) (641.0) (1)% –
Marketing and overheads as % of GTV* (8.6)% (9.1)% 50 bps –
Adjusted EBITDA* 129.6 85.4 52% –
Adjusted EBITDA margin (as % of GTV)* 1.7% 1.2% 50 bps –
Profit/(loss) for the year*^ 2.9 (31.8) n.m –
Free cash flow*^ 85.5 (38.4) n.m –
Net cash*^ 667.9 678.8 (1)% –
1. Group operating performance and income statement
Gross transaction value
GTV increased 5% year-on-year (6% in constant currency) to £7,433.5 million, as both order volume and GTV per order* grew year-on-
year. GTV per order grew 3% (4% in constant currency), primarily due to item-level price inflation. Orders were up 2% to 296.0 million,
reflecting encouraging signs of stabilisation in consumer behaviour as well as execution of our CVP initiatives. In most of our
markets, average order frequency returned to growth and retention improved through the year. This was underpinned by further
enhancements of our CVP such as the enhancement of our Plus loyalty programmes, ongoing progress on price/value, service and
selection, and improved experience, selection and awareness in grocery.
READ MORE ON PAGE 171
SCILLA GRIMBLE
CFO
1
All growth rates are year-on-year and in reported currency unless otherwise stated. The year-on-year changes in tables within this report are based
on unrounded figures.
* Alternative performance measure (‘APM’), refer to glossary on page 230 for further details.
^ Continuing and discontinued operations
Financial review
1
32deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Revenue
Revenue grew 2% year-on-year (3% in constant currency) to £2,071.9 million. Revenue take rate (i.e.
revenue as a % of GTV) decreased by 90 bps year-on-year to 27.9%, with H2 stable compared to H1
2024. We continued to make planned CVP investments to reinforce value perception, such as our
‘£7 off 7’ and ‘Summer Saver’ promotional campaigns, in order to capitalise on signs of stabilisation
in consumer behaviour across our markets. Revenue take rate was also impacted by a greater
proportion of grocery and Plus orders in the mix, both of which generate a lower take rate, offset
partially by a growing contribution from advertising revenue, which reached 1.4% of GTV in Q4 2024
Q4 2023: 1.0%).
Gross profit
Gross profit increased 6% to £766.9 million. Gross profit margin (as % of GTV) was flat at 10.3% in 2024
(2023: 10.3%), despite the decrease in revenue take rate, as we continued to generate efficiencies
in our delivery network. These included progress on multi pick-up stacking, a reduction in the time
riders spend waiting at restaurants for an order to be ready and further improvement in our handover
process to the consumer. Our cost of sales per order improved to £4.41 in 2024 (2023: £4.49).
Administrative expenses
£ million 2024 2023 Change
Staff and other people costs*^ 367.5 362.0 2%
Capitalised development costs (41.4) (36.1) 15%
Net people costs 326.1 325.9 0%
Non-people costs 123.7 129.3 (4)%
Total overheads 449.8 455.2 (1)%
Sales and marketing costs 187.5 185.8 1%
Total marketing and overheads 637.3 641.0 (1)%
Depreciation, amortisation and impairments 73.3 78.9 (7)%
Share-based payments charge and national insurance on
share options 56.3 64.3 (12)%
Other operating income and expenses*^^ 4.4 (0.1) n.m.
Total administrative expenses pre-exceptional items 771.3 784.1 (2)%
Exceptional items* 12.4 (14.1) n.m.
Total administrative expenses 783.7 770.0 2%
Administrative expenses increased 2% to £783.7 million in 2024 but fell by 2% excluding
exceptional items*, which comprised settlements and professional fees in relation to legal and
regulatory investigations.
Net people costs were flat year-on-year. Staff and other people costs reflect lower average
headcount partially offset by wage inflation and the use of temporary contractors as we
recruit carefully for certain project roles. Higher capitalised development costs related to CVP
improvements such as retail and the enhancement of our Plus programmes. We reduced non-
people costs, including costs related to IT and offices, resulting in lower overheads for the year.
Slightly higher sales and marketing costs reflect our investment into retail, offset partially by
improvements to marketing optimisation. Overall, we reduced marketing and overheads by 1%
year-on-year.
The decrease in depreciation, amortisation and impairments largely reflects impairments in the
comparative period.
Other operating income was £10.6 million in 2024 (2023: £5.9 million), with the increase principally
due to higher R&D tax credits in the year. Other operating expenses totalled £6.2 million (2023:
£6.0 million).
Share-based payments charge and national insurance (‘NI’)
on share options
The table below sets out the share-based payments charge and national insurance (‘NI’) on share
options. The lower share-based payment charge year-on-year was driven by graded vesting and
reducing impact of earlier schemes.
£ million 2024 2023 Change
Share-based payments charge 49.1 56.1 (12)%
National insurance on share options 7.2 8.2 (12)%
Total share-based payments charge and NI on
share options 56.3 64.3 (12)%
1
All growth rates are year-on-year and in reported currency unless otherwise stated. The year-on-year changes in tables within this report are based on unrounded figures.
* Alternative performance measure (‘APM’), refer to glossary on page 230 for further details.
^ Other people costs primarily relate to contractors and customer care agents.
^^ The reconciliation from marketing and overheads to total administrative expenses requires the reversal of other operating income and expenses, which are included in adjusted EBITDA.
33deliveroo plc Annual Report and Accounts 2024
Financial review
1
continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Adjusted EBITDA
Reconciliation to financial statements
2024
^
£m
2023^
£m Change
Operating loss (12.4) (43.7) (72)%
Depreciation, amortisation and impairments 73.3 78.9 (7)%
EBITDA 60.9 35.2 73%
Share-based payments charge and national
insurance on share options 56.3 64.3 (12)%
Exceptional items* 12.4 (14.1) n.m
Adjusted EBITDA* 129.6 85.4 52%
Marketing and overheads* 637.3 641.0 (1)%
Gross profit 766.9 726.4 6%
Adjusted EBITDA increased to £129.6 million, compared to £85.4 million in 2023. Adjusted EBITDA
margin (as a % of GTV) increased 50 bps to 1.7% in 2024. With gross margin (as a % of GTV)*
flat year-on-year, the improvement in margin was driven by a 50 bps reduction in marketing
and overheads (as % of GTV)* as we drove operating leverage from marketing and overhead
efficiencies.
Finance income and finance costs
Finance income decreased to £28.5 million (2023: £35.3 million, comprising £34.2 million interest
income and £1.1 million of net foreign exchange gains). The decrease in interest income
reflects the lower average cash balance year-on-year following a number of capital returns
to shareholders in 2023 and 2024, as detailed below. Finance costs were £3.9 million (2023:
£2.5 million), impacted by £1.1 million of net foreign exchange losses.
Income tax charge
The income tax charge increased to £12.3 million (2023: £7.6 million) as a result of the mix of
jurisdictions in which profits arise.
Discontinued operations
In 2024, the profit for the year from discontinued operations was £3.0 million (2023: a loss of
£(13.3) million), with the gain arising from the conclusion of matters in certain markets.
Profit for the year
Profit for the year (continuing and discontinued operations) was £2.9 million in 2024 (2023: loss of
£(31.8) million) as a result of the movements described above.
2. Segmental operating performance
2
Deliveroo reviews operating performance in two geographical segments: the UK and Ireland (‘UKI’)
and International, which comprises eight markets across Europe, the Middle East and Asia. In 2024,
UKI represented 60% of total GTV (2023: 59%), while International represented 40% (2023: 41%).
UK and Ireland
£ million
unless stated 2024 2023
YoY change
(reported)
YoY change
(constant)
Orders (m) 162.8 159.2 2% 2%
GTV per order* (£) 27.6 26.3 5% 5%
Gross transaction value* 4,488.9 4,180.9 7% 7%
Revenue 1,254.4 1,209.0 4% 4%
Revenue take rate (as % of GTV)* 27.9% 28.9% (100) bps –
Gross profit 484.5 457.5 6% –
Gross profit margin (as % of GTV)* 10.8% 10.9% (10) bps –
Marketing and overheads* (210.6) (204.9) 3% –
Marketing and overheads (as % of GTV)* (4.7)% (4.9)% 20 bps –
Segment adjusted EBITDA* 273.9 252.6 8% –
Segment adjusted EBITDA margin
(as % of GTV)* 6.1% 6.0% 10 bps –
Financial review
1
continued
34deliveroo plc Annual Report and Accounts 2024
1
All growth rates are year-on-year and in reported currency unless otherwise stated. The year-on-year changes in tables within this report are based on unrounded figures.
2
The year-on-year changes in tables within this report are based on unrounded figures.
* Alternative performance measure (‘APM’), refer to glossary on page 230 for further details.
^ Figures for continuing operations
STRATEGIC REPORT GOVERNANCE FINANCIALS
In UKI, GTV grew 7% to £4,488.9 million. Order growth accelerated through the year (Q1: 0%, Q2:
1%, Q3: 2%, Q4: 5%) as further execution on our initiatives helped drive improvements to both
frequency and retention with monthly active consumers reaching the highest level since 2022
and average order frequency reaching our highest level ever at 3.5x per month. This was achieved
despite continued uncertainty in the consumer environment.
GTV per order increased 5% to £27.6, reflecting the moderating but continued impact of food
price inflation. Revenue grew 4% to £1,254.4 million, driven by the increase in GTV. Revenue take
rate was stable in H2 compared to H1 but decreased 100 bps year-on-year to 27.9%. This was
due to a planned increase in targeted promotions to provide value and some mix effect from
growth in grocery and Plus orders, partly offset by the higher contribution from advertising
revenue. Our investment into revenue take rate was enabled by further efficiencies in the delivery
network, which led to us maintaining a stable gross profit margin. Adjusted EBITDA increased by
8% to £273.9 million, with the uplift in gross profit partially offset by an increase in marketing and
overheads.
Our UKI performance was underpinned by further CVP improvements. We made significant
progress on our Plus loyalty programmes, improving the attractiveness of our Plus Gold and Silver
tiers and launching Plus Diamond to drive even better retention and frequency among some of
our highest value customers. We are encouraged by the increase in paying subscribers and the
frequency uplift we’ve seen so far. We made further progress on price/value – by the end of 2024,
the proportion of GTV coming from sites offering good value for money was significantly higher
than before we launched our value programme. We also continued to improve the consumer
experience by reducing defects such as rejections and orders marked delivered, not received
(‘OMDNR’) to all-time lows, while also reducing order inaccuracy and cancellations.
We continued to improve the restaurant selection available to our consumers through further
expansion of our delivery radii and through renewals of exclusive partnerships, as described
in the operating and strategic review. In grocery, we launched with Iceland and expanded our
presence with existing partners such as Co-Op, Sainsbury’s, Morrisons Daily and Asda Express, while
also adding a number of specialist grocers. While we continued to see strong growth in grocery
driven by expansion of the range of products available with several partners, the opportunity
ahead remains significant. We also ramped up selection in retail as described in the operating and
strategic review.
International
£ million
unless stated^ 2024 2023
YoY change
(reported)
YoY change
(constant)
Orders (m) 133.2 131.0 2% 2%
GTV per order* (£) 22.1 22.0 1% 3%
Gross transaction value* 2,944.6 2,881.0 2% 4%
Revenue 817.5 821.0 0% 2%
Revenue take rate (as % of GTV)* 27.8% 28.5% (70) bps –
Gross profit 282.4 268.9 5% –
Gross profit margin (as % of GTV)* 9.6% 9.3% 30 bps –
Marketing and overheads* (180.8) (189.0) (4)% –
Marketing and overheads (as % of GTV)* (6.1)% (6.6)% 40 bps –
Segment adjusted EBITDA* 101.6 79.9 27% –
Segment adjusted EBITDA margin
(as % of GTV)* 3.5% 2.8% 70 bps –
International GTV returned to growth on a full year basis, reaching £2,944.6 million, an increase
of 4% in constant currency (2% in reported currency). Orders grew 2% to 133.2 million. While the
competitive environment remained difficult in Hong Kong, International excluding Hong Kong grew
GTV 9% in constant currency.
GTV per order increased 3% in constant currency to £22.1, reflecting the moderating but
continued impact of food price inflation in certain markets. Revenue was up 2% in constant
currency to £817.5 million. Revenue take rate was stable in H2 compared to H1, but decreased
70 bps year-on-year driven primarily by an increase in targeted promotions to provide value to
our consumers and some mix effect from growth in grocery orders, offset partially by a higher
contribution from advertising revenue. As in the UKI, our investment into revenue take rate in
International was enabled by further efficiencies in our delivery network, which helped us to
improve gross profit margin to 9.6%. Driven by an increase in gross profit and by overhead
efficiencies, adjusted EBITDA grew 27% to £101.6 million.
1
All growth rates are year-on-year and in reported currency unless otherwise stated. The year-on-year changes in tables within this report are based on unrounded figures.
* Alternative performance measure (‘APM’), refer to glossary on page 230 for further details.
^ The year-on-year changes in tables within this report are based on unrounded figures.
35deliveroo plc Annual Report and Accounts 2024
Financial review
1
continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
At a market level, we saw continued GTV strength in UAE and Italy and a stabilisation in France,
which was a drag on growth in the prior year. After encouraging signs in H1, France was impacted
by market softness in the second half, with a sharp decline in consumer confidence in Q4
following uncertainty around the government and Budget. As highlighted through the year, Hong
Kong was a laggard amongst our major markets due to the challenging competitive environment.
Across the International segment, our progress was supported by the continued enhancement
of our CVP. We broadened the selection available to consumers with the expansion of our delivery
radii in key zones and through key exclusive wins and renewals with brands such as Livio Più in
France, SALT in the UAE and several local independent favourites. On price/value, we extended our
value programme to France to offer better value to our consumers and on loyalty, we relaunched
Plus Gold in France and made our Silver tier more relevant in France and Italy. We continued to
strengthen our grocery and retail propositions internationally; we added several specialist
grocers including an exclusive partnership with an emerging brand in UAE which benefitted
from a viral social media following, while extending the rollout of retail in additional markets as
described above in the operating and strategic review.
3. Cash flow statement
All discussion of cash flows are for continuing and discontinued operations, unless
otherwise stated.
Free cash flow
Net cash generated from operating activities increased to £148.5 million in 2024 from £23.2 million
in 2023. The improvement was primarily driven by a working capital inflow due to the timing of the
year end within the week, as well as the increase in adjusted EBITDA.
Purchases of property, plant and equipment (also referred to as ‘capital expenditure’) decreased
to £3.3 million (2023: £7.6 million), primarily reflecting new office spend in the comparative period.
Acquisition of intangible assets (also referred to as ‘capitalised development costs’) increased to
£41.4 million (2023: £36.1 million), reflecting the build out of some key initiatives in the year such as
the Plus relaunch and the scaling of our retail proposition.
Free cash flow in 2024 was £85.5 million (2023: £(38.4) million). This included cash exceptional
outflows of £(47.8) million (2023: £(20.2) million) principally relating to the payment of amounts
previously disclosed within provisions. Free cash flow before cash exceptionals was £133.2 million
(2023: £(18.2) million outflow). While the significant free cash inflow benefitted from a working
capital inflow of £77.4 million primarily due to the timing of period end, we are pleased with the
continuing progress on cash generation.
Free cash flow
2024
£m
2023
£m
Adjusted EBITDA* 129.6 85.4
Change in net working capital 77.4 (33.7)
Cash exceptionals* (47.8) (20.2)
Cash tax and other (10.7) (8.3)
Net cash generated from operating activities 148.5 23.2
Purchase of property, plant and equipment (3.3) (7.6)
Acquisition of intangible assets (41.4) (36.1)
Payments of lease liabilities (16.1) (15.4)
Interest on lease liabilities (2.2) (2.5)
Free cash flow* 85.5 (38.4)
Add back: cash exceptionals* 47.8 20.2
Free cash flow before exceptionals* 133.3 (18.2)
READ MORE ON PAGE 172
Financial review
1
continued
36deliveroo plc Annual Report and Accounts 2024
1
All growth rates are year-on-year and in reported currency unless otherwise stated. The year-on-year changes in tables within this report are based on unrounded figures.
* Alternative performance measure (‘APM’), refer to glossary on page 230 for further details.
STRATEGIC REPORT GOVERNANCE FINANCIALS
Other cash flow items
Total interest received, which is not included in our definition of free cash flow, was £27.2 million
in 2024 (2023: £31.7 million), reflecting the reduced average cash balance following our returns
of capital to shareholders in 2023 and 2024, partially offset by a higher average interest rate in
2024 and more efficient cash management. Purchases of own shares amounted to £120 million
(including fees) in 2024 (2023: £312.8 million), reflecting the EBT share purchase programme we
announced and completed in H1 and £89.5 million completed in the year of the £150 million share
repurchase programme announced in August 2024.
Free cash flow before exceptionals, including interest income
2024
£m
2023
£m
Free cash flow* (reported) 85.5 (38.4)
Exceptional items* 47.8 20.2
Free cash flow before exceptionals* 133.3 (18.2)
Interest income (not included above) 27.2 31.7
Free cash flow before exceptionals*, including interest income 160.5 13.5
4. Balance sheet
Deliveroo continues to benefit from a strong financial position. Net cash was £667.9 million at
31 December 2024 (£678.8 million at 31 December 2023), comprising cash and cash equivalents
of £461.3 million and other treasury deposits of £206.6 million (£603.1 million and £75.7 million,
respectively at 31 December 2023). As at 31 December 2024, Deliveroo had no debt outstanding
(31 December 2023: nil).
Net cash*
FY 2024
£m
H1 2024
£m
2023
£m
Cash and cash equivalents
461.3 356.7 603.1
Other treasury deposits 206.6 305.4 75.7
Less: debt – ––
Net cash 667.9 662.1 678.8
Provisions at 31 December 2024 were £82.0 million, a decrease of £45.2 million compared to
£127.2 million at 31 December 2023. This decrease is primarily due to the payment of amounts
relating to legal and regulatory proceedings. At the period end, the portion of provisions classified
as current liabilities was £70.4 million (31 December 2023: £58.1 million).
5. Dividend and dividend policy
No dividend has been declared or paid in the current or comparative periods. Given the early
stage of maturity of the online food and retail category, Deliveroo remains focused on investing
to drive growth, believing that this is the best way to drive long-term shareholder value. The
Company does not expect to declare or pay any dividends for the foreseeable future.
Events after the reporting period
Subsequent to the year end the Group repurchased a further 39,622,645 ordinary shares at a cost
of £53.5 million as part of the share buyback programme commenced in August 2024.
On 10 March 2025, the Group announced the exit of its Hong Kong operations through the sale
of certain assets and the closure of other assets. This decision had no material impact on the
consolidated financial statements for the year ended 31 December 2024.
On 12 March 2025, a share buyback programme of up to £100 million was approved. These shares
will subsequently be cancelled. Our existing AGM authority permits the repurchase of up to 10% of
our issued share capital in a year. The completion of the new share buyback will be subject to the
re-approval of the AGM authority in May.
READ MORE ON PAGE 174
1
All growth rates are year-on-year and in reported currency unless otherwise stated. The year-on-year changes in tables within this report are based on unrounded figures.
* Alternative performance measure (‘APM’), refer to glossary on page 230 for further details.
37deliveroo plc Annual Report and Accounts 2024
Financial review
1
continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
We are dedicated to achieving long-term sustainable
performance that benefits the three-sided
marketplace of consumers, riders and merchants, as
well as our shareholders and broader stakeholders.
We prioritise building strong relationships and mutual
trust with all stakeholders, recognising their crucial
role in our success. We are focused on fostering
diversity and inclusion, acknowledging the essential
role we play in supporting the communities where
we operate.
Stakeholder impacts are considered in our business decisions at every level, guided by our Board’s
leadership. This section outlines our engagement with key stakeholders to understand their
priorities and how these insights inform the Board’s decision-making process, as detailed further
in our Section 172 statement on page 42.
OUR
APPROACH TO
STAKEHOLDERS
Stakeholder engagement
38deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Our employees Our consumers
What they care about and why they matter to us
We provide an exciting environment for employees to build their careers, working with
talented colleagues on unique challenges and impactful projects. Our people want to
accelerate their growth by doing career-defining work and by working in a vibrant, diverse,
and supportive workplace. Employees are the lifeblood of Deliveroo, crucial to supporting
our marketplace and shaping the Company.
How we engaged
• Organised monthly events to share important company updates, including our 2024
plans. Hosted special events like the Golden Wings awards to celebrate outstanding
employees at Deliveroo.
• Peakon is our employee sentiment measurement and engagement tool. We received
over 31,000 Peakon Survey responses, with over 38,000 individual feedback comments,
which helped to inform management decisions.
• Surveyed 500 employees and also held 60 focus groups to assess our culture and
employee value proposition, along with Executive-led listening sessions.
• Engaged and empowered 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
• Responded to employee feedback from Peakon by launching initiatives to improve and
streamline the goal-setting process, new interactive feedback training, clearer global
expectations, and a handbook for better work practices.
• Launched a new process for assessing high potential employees at mid-to
senior-grades, to enable more proactive development and career management for our
top talent.
• Launched a mentoring programme for women, ‘milestone’ training for new director level
employees, “Steer your Career”, workshops, and group coaching for employees taking or
returning from parental leave.
• Our ‘Learning at Work’ week, available to all employees in all markets, included 21 live
workshops, book recommendations from Executive Team members, 10 custom-created
on-demand digital courses, curated learning playlists on Roolearn, and unlimited access
to all content from our learning partners. There were 1,770 enrolments in these activities.
What they care about and why they matter to us
We prioritise understanding what our customers want, which includes a service that is
reliable, trustworthy, and provides great value. We make consumer-centric decisions to
provide the best neighbourhood-level service with a leading selection across food, grocery
and retail. Our aim is to transform how people shop and eat by bringing more of their local
neighbourhood to their door. If consumers are unhappy, orders decline, affecting partner
revenues, rider earnings, and Company growth. That’s why we are consumer-obsessed.
How we engaged
• The consumer engagement programme gathered nearly 3 million pieces of feedback
globally, helping us to assess satisfaction with our range and reliability, understand value
perceptions, and identify ways to meet more customer needs.
Outcomes and support
• Focused on enhancing value for money by rewarding restaurants that offer great deals
and making their options more visible on our platform. As a result, in 2024, 38% of orders
in the UKI came from top value restaurants, up from 18% in 2023. Due to this success, we
expanded the programme to France in 2024.
• Improved the Plus loyalty programme by offering a 10% credit back on orders over £30
and a £5 on-time promise for Plus Gold members. Also launched ‘Plus Diamond’ for top
customers, featuring priority delivery, on-time guarantee, and dedicated customer
support.
• Continued to reduce defects on orders with ‘orders marked delivered but not received’
down by 38% year-on-year and order inaccuracy down 5% year-on-year. Our consumer
satisfaction has improved with NPS up four points year-on-year.
• Improved our CVP by increasing platform selection, adding new restaurant partners,
securing exclusive deals with popular eateries, and including major retail brands,
independent retailers, and more non-food options with our grocery partners.
• Launched ‘Now Just Got Even Better,’ a global brand platform that shows how Deliveroo
enhances every moment, based on insights from the UK, France, and UAE. The new
platform uses consistent visuals and branding for easy recognition across all
consumer interactions.
39deliveroo plc Annual Report and Accounts 2024
Stakeholder engagement continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Our riders Our merchants
What they care about and why they matter to us
When we speak to riders – both directly, and through their unions in the UK, France and Italy
– they are clear that they want a flexible way to work with attractive earning opportunities,
protections and benefits. Riders are an integral participant in the three-sided marketplace
so we continue to invest in improvements to our rider proposition and focus on the flexible
work riders want.
How we engaged
• Engaged with riders through dedicated engagement teams in each of our markets, with
regular surveys, an in-app feedback tool, roadshow events, and rider focus groups.
• Riders have access to our dedicated, live order support tool and team, which deals with
order-related issues and is another forum for us to gather feedback.
• Engaged with riders through trade unions in a number of markets, including in the UK,
France and Italy.
Outcomes and support
• Continued to offer riders unmatched flexibility and advocate for this with policy makers
around the world.
• Globally, more than 137,000 riders completed an order in 2024 and satisfaction remained
above 80% for the year.
• Following negotiations with the GMB Union we increased the pay floor for riders in the UK
to £12 an hour for time on order, plus costs, a 15% increase in the pay floor since it came
into effect in September 2022.
• Launched a Respect Charter in the UK in conjunction with the GMB Union to improve rider
and partner relationships in the UK. Launched a further Respect Charter in the UAE.
• Partnered with Lynx Educate to offer a wide range of educational courses for riders
worldwide, allowing them and their families to learn and gain new skills.
• Signed an agreement with French unions to protect riders against discrimination and
ensure better protections for platform workers in the delivery sector.
• Continued e-bike partnerships to support rider transitions to green vehicles in France
and Italy.
What they care about and why they matter to us
Our merchants work with us to reach new consumers, boost their sales and improve their
bottom line, and we are proud to be a key part of merchants’ growth. Our merchants provide
the breadth of quality food and product selection that our consumers love. 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. We provide tailored support to our smaller
merchants at an earlier stage in their journey to digitise, develop their business plans,
and go greener.
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.
• Hosted the ‘Food Forward’ conference in October 2024 for over 300 merchants to learn
about consumer trends and connect with experts and our Executive Team.
Outcomes and support
• Enabled more merchants to sign up to our increasing number of industry-leading
marketing campaigns that drive incremental sales.
• Overhauled our Partner Hub to give merchants better insights and actions to boost
performance, launching a mobile app for 24/7 management and real-time performance
updates.
• Enhanced the order experience for merchants by adding ‘Order Ready’ and ‘Need More
Time’ features and introducing ‘Rider Check-In’ scanning technology to better align rider
arrival with food preparation.
• Expanded our Manchester commercial hub to better support new merchants and over
9,000 top independent restaurants in the UK, Ireland, France, Italy, and Belgium.
• Expanded our account management capability and rebooted onboarding processes to
improve partner support through the first, critical weeks of operating with Deliveroo.
• Step changed our picking technology for grocery and retail merchants, improving
operations and saving labour hours.
• Hosted the Deliveroo Restaurant Awards across several markets to celebrate, hero and
drive awareness of our restaurant partners.
Stakeholder engagement continued
40deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
Our local communities Our shareholders
What they care about and why they matter to us
The communities in which we operate are as diverse and varied as the cuisines and
merchants on our platform. Deliveroo is fundamentally a local company. We want to
be more than a presence in local neighbourhoods, we want to actively support local
communities on issues where we can make a difference, like food insecurity. This matters
to our consumers, riders and merchant partners – so it matters to us.
How we engaged
• Partnered with local charities to provide free meals to those in need in the locations in
which we operate.
• In 2024, our Full Life Campaign provided over 3.5 million free meals worldwide to those
facing hunger through charity partnerships.
• Provided our employees with a paid day off to volunteer at a charity. Following internal
awareness raising, we saw a 36% increase year-on-year globally of colleagues using
their volunteering day.
Outcomes and support
• Addressed food insecurity by partnering with organisations globally: in the UK with the
Trussell Trust for meals and volunteers, in Italy with the Red Cross in distributing over a
million meals, in Kuwait with the International Charity Organisation to deliver essential
food boxes, in Hong Kong with St James’ Settlement, in Singapore with Food From The
Heart to donate meals, and in Ireland with FoodCloud to reduce food waste. In UAE
we distributed food essentials and Iftar meals during Ramadan and partnered with
Bread for All, in Qatar we distributed dates and water ahead of Iftar and in Belgium we
partnered with the Federation of Belgian Food Banks to deliver 35,000 meals.
• In collaboration with Sheffield Hallam University launched a Sustainable Packaging
Challenge for students to design innovative, spill-proof, temperature-maintaining,
cost-effective packaging. The winning design will be produced and available in the UK
in 2025.
• Launched the Deliveroo’s Open Kitchen Fund, which aims to contribute to improving
LGBTQIA+ representation in the hospitality industry.
• Launched a partnership with Blue Light Card in the UK, offering all essential workers
free delivery with Plus Silver for 12 months.
What they care about and why they matter to us
We want to ensure that our investors understand our business model, strategy, growth
potential, risks, performance, capital structure and ESG matters. Shareholders are the owners
of our business and an important source of long-term funding so we are committed to
understanding their priorities and perspectives and delivering long-term, sustainable value for
them. We provide transparent and consistent information and appropriate ongoing dialogue
with our Board and Senior Management.
How we engaged
• Announced full year, half year and quarterly financial results. This included hosting
webcasts for full and half year results where Executive Directors responded to questions
from analysts and investors, ensuring 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.
• Our Board Chair discussed governance and Board matters with major investors before the
2024 AGM. Our Board attended the 2024 AGM to engage with our shareholders.
• Our Remuneration Committee Chair, engaged with our largest investors and certain
proxy advisers regarding our proposed Remuneration Policy, which will be presented to
shareholders for approval at our 2025 AGM.
Outcomes and support
• Throughout 2024, the CEO, CFO, and Investor Relations team held around 200 meetings with
nearly 400 investors and analysts, and shared their feedback with the Board.
• Held a successful 2024 AGM with all resolutions passed, receiving in excess of 99% votes
in favour.
• Continued to follow our capital allocation policy, announcing a return of a further
£150 million of surplus capital to shareholders through an on-market buyback programme.
• Transferred to the equity shares (commercial companies) (‘ESCC’) category on the LSE.
Entering the ESCC category has allowed our inclusion in the FTSE UK Index Series, potentially
boosting passive investment and liquidity, as well as providing increased protections for
investors under the UK Listing Rules.
41deliveroo plc Annual Report and Accounts 2024
Stakeholder engagement continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
How the Board fulfils its Section 172(1) duties
How the Board fulfils its duty Key activities/considerations in 2024 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.
• Board approval of 2025 budget and long-term financial plan.
• Transfer to the Equity Shares (Commercial Companies)
category (‘ESCC’) (leading to admission to the FTSE UK Index
Series).
• Update on the Company’s 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
£30 million EBT share buyback and £150 million company share
buyback programmes.
• Approval of new £140 million Revolving Credit facility.
• Decision to exit Hong Kong.
→ Chair’s Letter, page 06
→ Founder and CEO’s Letter,
page 08
→ Our business model,
page 16
→ Our strategy, page 18
→ Board activities, page 90
→ Viability statement page
65 and Going Concern,
page 176 to 177
→ Sustainability review,
page 50
(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 equity,diversity and inclusion
(‘ED&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 remuneration approach, employee engagement and
attrition.
• Engagement with the Company’s largest investors and proxy
voting agencies on the proposed Remuneration Policy to be
put to shareholders at the upcoming AGM.
• Updates on culture, talent and ED&I matters, including
Company culture review.
• Review and approval of the Gender Pay Gap Report.
• Reports from the designated Employee Non-Executive Director.
• Quarterly People KPIs.
• Consideration and approval of the Company’s diversity
reporting and compliance with the FCA disclosure
requirements.
• Approval of the Company’s corporate insurance programme,
including Directors’ and Officers’ liability insurance.
→ Our people, page 44
→ Stakeholder engagement,
page 38
→ Equity, Diversity and
Inclusion, page 46
→ Employee engagement,
page 45
→ Whistleblowing, page 105
→ Nomination Committee
Report, page 94
→ Directors’ Remuneration
Report, page 106
Section 172(1) statement
The Board confirms that, for the year ended
31 December 2024, it has acted to promote
the long-term success of the Company for
the benefit of its shareholders as a whole,
whilst having due regard to the matters
set out in Section 172(1)(a) to (f) of the
Companies Act 2006.
The information which follows 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.
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 engagement is undertaken across our
business and at different levels of the organisation. For
more details on how we have interacted with our key
stakeholders, please refer to pages 38 to 41.
Section 172(1) statement
42deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT GOVERNANCE FINANCIALS
How the Board fulfils its duty Key activities/considerations in 2024 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 Paris to better understand the local market and to meet the French 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.
→ Sustainability review, page 50
→ Our business model, page 16
→ Our strategy, page 18
→ Whistleblowing, page 105
→ Anti-Bribery and Corruption, page 49
(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.
• Progress against the Scope 3 emissions and gender diversity metrics as part of Executive
remuneration under the PSP.
• Review and approval of the modern slavery statement.
• Review of annual TCFD and Sustainability review disclosures.
→ Sustainability review, page 50
→ TCFD, page 57
→ Stakeholder engagement, page 38
→ Directors’ Remuneration Report,
page 106
(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,
Company Secretary and VP Assurance.
• 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 and approval of new and current key policies and procedures.
• Director, Executive Team and Senior Management training ahead of transition to the ESCC category.
→ Sustainability review, page 50
→ Anti-bribery and corruption, page 49
→ Risk management and our principal
risks, page 67
→ Audit and Risk Committee Report,
page 98
→ Whistleblowing, on page 105
(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.
• Chair engagement with major shareholders ahead of the May 2024 AGM.
• Remuneration Committee Chair engagement during 2024 and 2025 on proposed new Remuneration
Policy.
• Regular investor engagement by CEO, CFO and Investor Relations team.
→ Notice of 2024 AGM; see Company
website
→ AGM, page 79
→ Stakeholder engagement, page 38
→ Directors’ Remuneration Report,
page 106
43deliveroo plc Annual Report and Accounts 2024
Section 172(1) statement continued
STRATEGIC REPORT GOVERNANCE FINANCIALS
Our culture and values
Organisational culture
During 2024 we conducted a review to build upon our
unique culture. A key finding was that our culture is one
where people feel proud to work with each other and for
Deliveroo – mentioning their bright, dedicated, supportive
colleagues. Other feedback highlighted that Deliveroo
operates in a fast-paced environment, marked by a strong
sense of urgency. Through this, we look to prioritise
cultivating a culture of rapid professional development. We
are proud that employees recognise Deliveroo’s energetic
pace, which supports their skill enhancement and career
progression.
Company values
Our values continue to be reinforced through
organisational processes designed to drive our culture. In
recruitment, candidates are assessed against our values
as well as experience and competence. In Performance &
Development, our Global Levels & Expectations Framework
has been refreshed this year to include behavioural
indicators aligned to our values, to deepen understanding.
By incorporating these indicators, we aim to provide
clearer guidance on how our values translate into everyday
decisions. This enhancement not only helps employees
align their behaviours with organisational goals but also
facilitates more objective performance evaluations and
targeted development opportunities.
Firmwide meetings are used to share ‘wins’ tagged to
one or more values to reinforce their importance, and
at a local level, many teams have initiatives or ways of
working shaped around our values. Our annual employee
recognition awards, Golden Wings, celebrate employees
across categories aligned to our values.
What it’s like to work at Deliveroo
Our Employee Value Proposition
Our Employee Value Proposition (‘EVP’) comprises three pillars describing the professional and personal value derived from a
career at Deliveroo. During the year, employees were consulted on our EVP and the common themes are detailed in the below table.
EVP Pillar Impact What our employees have to say
Grow fast
In a rapidly evolving industry, employees have the
chance to tackle unique and complex problems in a
dynamic, fast-paced environment alongside talented
colleagues. Our robust learning and development
programmes, including skills training and leadership
development, supports the opportunity for
professional growth.
Employees have expressed that Deliveroo
provides them with complex, varied, and
intellectually fulfilling work, allowing them
to take ownership of their tasks. This
empowering environment enables them to
develop their skills rapidly and advance in
their careers.
Leave your
mark
Despite our rapid growth, many areas of our business
are still in the early stages, with innovation being
a constant focus. Whether it's launching our new
non-food retail venture or expanding into emerging
markets, our employees tackle unique challenges
quickly. This allows everyone at Deliveroo, regardless
of their role or level, to make a real impact on the
business.
Employees have shared that they
appreciate the opportunity to make a
significant impact and innovate on a large
scale, which allows them to contribute
meaningfully to the Company's success
and drive forward-thinking initiatives.
Be part of
something
bigger
Our employees are helping to shape a new industry
with innovations like Deliveroo Hop and our move into
retail, which supports flexible work for thousands of
riders and boosts economic activity for our partners.
They also contribute to larger causes through
charity work, such as partnering with the Trussell
Trust to provide food for those in poverty, and the
'Friend of Dorothy' initiative, which unites our partner
network and ED&I efforts to offer meals to homeless
LGBTQ+ youth.
Employees have expressed that they feel
privileged to work alongside bright and
brilliant colleagues in a diverse and friendly
environment, which fosters collaboration
and mutual respect. Additionally, they take
pride in being part of an iconic, industry-
defining brand that is relentless in its
efforts to enhance and innovate within the
marketplace.
Our People
44deliveroo plc Annual Report and Accounts 2024
STRATEGIC REPORT FINANCIALSGOVERNANCE
Competing for talent
Maintaining our competitive edge in the talent market and
building a workforce that reflects our values and communities
is crucial to growing our business and achieving our strategic
goals. Throughout the year, we continued to enhance our
hiring practices to attract the best talent for Deliveroo.
We revamped our employer branding to strengthen our
position as an employer of choice, showcasing the impactful
opportunities available at Deliveroo. We also engaged with
internal and external communities at key talent events such as
Black Tech Fest and EUROUT.
Making a difference
We partner with a number of charities working with those in
need or at risk of food poverty across our markets. In Italy
we partnered with the Red Cross, who provided first aid
training to our riders as part of a broader commitment to
social responsibility. We have also partnered with the Trussell
Trust in the UK where millions of meals have been provided
since the start of the partnership. Additionally, all employees
receive a paid day annually to volunteer with a charity of their
choice. In 2024 we partnered with Blue Light Card (‘BLC’). This
partnership offers free Deliveroo Plus Silver membership for 12
months to over four million essential workers, including those
in the NHS. The partnership reflects Deliveroo’s commitment to
supporting those who protect and care for our communities.
Experiencing our marketplace
Our consumers, riders and merchants are at the heart of
everything we do, and we encourage our employees to
experience our three-sided marketplace. RooSearch Hub, our
high-tech research lab, continued to deliver insights across
the year, with employees observing research sessions with all
three sides of the marketplace, either in person or online. Over
the year, our UK, UAE and Hong Kong markets also hosted large-
scale research and insights events, where employees in the
above locations were invited to live research sessions to learn
more about how our consumers use Deliveroo.
As in previous years, our ‘We Are Deliveroo’ initiative offered
employees a range of experiences across the marketplace,
such as delivering orders, visiting our Hop and Editions sites,
or observing live care team chats, to bring them closer to the
marketplace.
Our approach to
employee engagement
Employee feedback
Our people are critical to our continued success, and providing
them with the opportunity to give and receive feedback
about their experiences at Deliveroo is an essential way to
foster a positive culture and continue to improve employee
experiences.
Seeking open and honest feedback regularly on a wide
range of issues impacting employee engagement allows
us to flag and address opportunity areas in real time as
they arise. Managers receive live access to their team’s
results to understand both what is going well, and where
they can provide further support. Results, insights and
recommendations are shared quarterly with the Executive
Team, along with insights into any action taking place as a
result of employee feedback. During the year, the CEO and
CPO held listening sessions to obtain employee feedback
on anything top of mind for them. Our engagement score
has improved from 7.4 in December 2023 to 7.6 in December
2024. Our score was stable through most of H1 and steadily
improved in H2 as a result of continued progress on regularly
sharing Company strategy and performance updates,
strengthening of our Learning & Development and ED&I
programs and significant development in tailored learning and
development opportunities; including Learning at Work Week,
and continued development of our employee wellbeing ERGs.
Developing our people
Deliveroo remains committed to providing our people with
fantastic development opportunities. During 2024, we built
on significant progress made in 2023 across various new
programmes and events to provide the opportunity for our
people to take more ownership of their career development.
Key initiatives included:
• A new milestone programme, which was launched to
develop those employees who were recently promoted to
Senior Manager and above roles.
• More online resources and development sessions than
ever before with record high learning engagement in
the year
• Our ‘Learning at Work Week’ held in May allowed employees
to enrol in a series of in-person or digital sessions,
workshops and self-guided learning resources of their
choice.
• Specific programmes for people managers were provided
to over 100 people managers (building on the success of
the global initiatives launched in 2023).
• Our female leadership development programmes
were broadened to be available for employees
across the organisation.
45deliveroo plc Annual Report and Accounts 2024
Our People continued
STRATEGIC REPORT FINANCIALSGOVERNANCE
Supporting our people
Wellbeing and flexibility
The health and wellbeing of our employees remain a top
priority for the Company. To support emotional wellbeing, we
offer resources like the Employee Assistance Programme and
the Headspace app, providing free structured counselling
sessions and mindfulness content for employees and
their families. Additionally, we ensure that all employees
have access to gym benefits, whether through a network
of local classes and gyms or through on-site facilities. Our
commitment to healthcare coverage continues to provide a
minimum level of fully paid coverage to all salaried employees
in the UK, and this year, we’ve enhanced our offerings to
include additional fertility support. In 2024 we developed our
UK menopause assistance policy, providing employees with
access to menopause counselling through our Employee
Assistance Programme and the opportunity to consult with
medical specialists.
We continue to listen to our employees which helps us to drive
our global wellbeing agenda, coming up with innovative ways
to inspire colleagues on physical, mental, social, career and
financial health. These initiatives are largely driven by Employee
Resource Groups (‘ERGs’) which are voluntary employee-
led groups, aimed at building togetherness and a sense of
community at work. During 2024, this included a monthly
awareness programme dedicated to topics such as nutrition,
movement, mental health awareness and winter wellness. We
also established global wellbeing champions and a toolkit
to ensure our mission is properly embedded throughout the
business.
In 2024, we updated our policy for UK and India-based
employees to work from the office for three days of the week.
This approach has brought numerous benefits, including
enhanced collaboration, learning opportunities, and the
enjoyment of spending time with colleagues in person.
Flexibility is something we know is important to our employees,
especially those with caring responsibilities, which is why
we were proud to announce the creation of the Family and
Carers ERG. This new ERG provides support, resources and
community to those employees who face the challenges of
balancing their professional commitments with caregiving
responsibilities.
Equity, Diversity and Inclusion and
celebrating difference at Deliveroo
In 2024, we deepened our commitment to Equity, Diversity
and Inclusion (ED&I) at Deliveroo, creating a workplace where
everyone has the opportunity to thrive. Through impactful
initiatives, progressive policies, and data-driven strategies,
we enhanced representation and celebrated diverse
communities. Our initiatives have had the aim of fostering a
culture of belonging. These efforts underscore our dedication
to cultivating an environment that celebrates difference and
champions equity.
Strategic framework
In 2024, we launched “Worthy of Yes”, a bold new narrative
guiding our ED&I strategy through 2030. This vision shifts
the focus from addressing what’s absent to celebrating
the strengths, skills, and diversity already present within
our people. Our ED&I mission is to connect people with the
opportunities and experiences they want by enabling the ED&I
they need.
This strategic framework is supported by three pillars.
• Equity: Mitigating disparities across key moments of the
employee lifecycle.
• Trust: Increasing stakeholder confidence and trust in ED&I’s
ability to affect change.
• Community: Straightening and mobilising
underrepresented talent communities.
Representation and recruitment
We’re proud to report improved gender balance across
leadership since last year’s Annual Report. Women now
hold 42% of senior management roles (specifically those at
seniority Level 7 and above, up from 41% in 2023, with notable
increases in technology roles (from 29% to 31%). This brings us
closer to our goals of achieving 50% representation of women
in senior business roles and 33% in senior tech roles by the
end of 2025. Our Executive Team remains gender balanced this
year (50% women). Recruitment efforts resulted in women
comprising 44% of all new hires across the company; 34% in
Tech and 47% in non-tech. These results reflect our continued
commitment to inclusive hiring and retaining more women,
and supporting their career development.
Leadership and talent development
Investing in our people remained a priority in 2024. Over 370
women participated in tailored career growth initiatives,
including ‘Accelerate’ and ‘Inspire’ programmes for mid-
level and junior talent and ‘Elevate’ for managers, with 49%
female participation across the organisation. Additionally, we
partnered with Corndel College and Imperial College London
to fund £196,000 worth of technology apprenticeships for 14
women, further advancing opportunities in tech leadership.
Our People continued
46deliveroo plc Annual Report and Accounts 2024
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Community and engagement
In 2024, Deliveroo’s ERGs grew to eight, with the addition of
Black in Roo, alongside Parents & Carers, DNMH (Disability,
Neurodiversity, and Mental Health), Women in Tech, Gender
Equity, Racial Equity, LGBTQ+ (Deloveroo), and Wellbeing. ERG
membership increased by 65% year-on-year globally across
the Company, reflecting our commitment to creating a sense
of belonging. These groups continue to play a central role
in creating spaces for dialogue, advocacy, and meaningful
connections. Our ERGs organised a record number of events
celebrating cultural moments such as Pride, Black Futures
Month, Ramadan, Diwali, and Hanukkah, and spearheaded
initiatives like our sponsorship of Black Tech Fest and
mentorship for LGBTQIA+ culinary talent through The Open
Kitchen initiative.
Supportive policies and benefits
In 2024, we implemented progressive policies to foster a safer
and more caring workplace. These include policies addressing
menopause support, bullying prevention, sexual harassment
prevention, and transitioning at work. In the UK, we also
introduced enhanced benefits such as fertility support and
mental health services tailored for individuals experiencing
gender dysphoria. Additionally, a pilot programme was
launched to support parents in navigating the transition back
to work after parental leave.
Driving change with data
With the expansion of our Global Self ID programme, we
have achieved a deeper understanding of our workforce
demographics. The launch of the digital diversity dashboard
tool in Workday has equipped stakeholders with real-time
actionable ED&I data and insights to drive informed change.
Real-time data has been embedded into processes around
performance and talent management, talent identification
and succession planning ensuring fair opportunities for
employees.
Recognition
Our commitment to gender equity was recognised by Women
in Work’s WiW100 Gender Equity Measure, a comprehensive
benchmark evaluating organisations on 100 criteria for
fostering gender equity, highlighting our progress in board
representation, closing pay gaps, and enhancing parental
policy transparency.
Our Gender Equity ERG also received the Engage Awards ‘Best
Use of Employee Voice’ for actively listening to the needs of
our employees and driving initiatives that address barriers
to leadership for women in tech. Additionally, Deloveroo,
our LGBTQ+ ERG, was shortlisted for the Metro Pride Awards’
Marketing Campaign Award for their impactful ‘Open Kitchen’
initiative, further expanding Deliveroo’s influence in the
marketplace.
Looking ahead
In 2025, we aim to build on these achievements by enhancing
our EVP for Global Ethnic Majority and disabled talent. Deliveroo
will adopt more intersectional approaches, considering
overlapping identities and experiences of our colleagues, and
set new inclusive goals using detailed diversity data that we
hold on employees. This will ensure our workplace remains one
where everyone can grow, thrive, and belong.
Gender diversity
GENDER SPLIT OF DIRECTORS
(OF PLC)
GENDER SPLIT OF SENIOR MANAGERS
(EXCLUDING CEO AND CFO)
GENDER SPLIT OF ALL EMPLOYEES OF THE
GROUP (EXCLUDING DIRECTORS OF PLC)
HEADCOUNT
9
(2023: 8)
HEADCOUNT
107
(2023: 109)
HEADCOUNT
3,839
(2023: 3,574)
AS AT 31 DECEMBER 2024
Female – 56%
Male – 44%
Female – 42%
Male – 58%
Female – 43%
Male – 57%
AS AT 31 DECEMBER 2023
Female – 50%
Male – 50%
Female – 41%
Male – 59%
Female – 40%
Male – 60%
47deliveroo plc Annual Report and Accounts 2024
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STRATEGIC REPORT FINANCIALSGOVERNANCE
Proportion of male and female employees
in each hourly pay quartile
DELIVEROO UK ROOFOODS LTD
LOWER
39.6% 60.4%
47.0% 53.0%
(+1.2pp) (+0.3pp)
SECOND
50.2% 49.8%
51.4% 48.6%
(+2.2pp) (+2.4pp)
THIRD
36.8% 63.2%
34.3% 65.7%
(+3.4pp) (+2.8pp)
UPPER
30.0% 70.0% 29.6% 70.4%
(+1.8pp) (+2pp)
Female Male
The gender pay gap data presented above under ‘Deliveroo UK’ is the data for all UK employees,
which includes both of our UK entities: Roofoods Ltd and Deliveroo Hop Ltd. Roofoods Ltd is the
main operating entity of Deliveroo plc.
Percentage of male and female employees
receiving bonus pay
DELIVEROO UK ROOFOODS LTD
'23
'24
'23
'24
62.5%
60.1%
72.4%
71.1%
'23
'24
'23
'24
65.3%
65.4%
80.3%
74.4%
Female Male
Mean and median Gender
Pay Gap using hourly pay
MEAN
DELIVEROO UK ROOFOODS LTD
11.9%
-2.0pp
(2023: 13.9%)
15.7%
-1.5pp
(2023: 17.2%)
MEDIAN
DELIVEROO UK ROOFOODS LTD
22.1%
+0.9pp
(2023: 21.2%)
25.8%
+1.5pp
(2023: 24.3%)
Mean and median
Gender Bonus Gap
MEAN
DELIVEROO UK ROOFOODS LTD
27.5%
(2023: 29.6%)
27.6%
(2023: 29.9%)
MEDIAN
DELIVEROO UK ROOFOODS LTD
32.5%
(2023: 20.7%)
32.6%
(2023: 20.6%)
GENDER PAY GAP STATS
Our People continued
48deliveroo plc Annual Report and Accounts 2024
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Code of conduct
Our Code of Conduct – known as the ‘Roo Way’ – reflects our
commitment to conducting business in accordance with our
Company values, acting with integrity and offering the best
experience to our marketplace. The principles of the ‘Roo
Way’ are reinforced through employee training and regular
communication, ensuring our colleagues are informed about
the expected standards and equipped to meet them. Through
our whistleblowing platform – ‘Speak Up’ – we encourage
colleagues to report breaches of the Code or other policies,
allowing us to investigate and remediate wrongdoing as
necessary. We have procedures to manage risks associated
with working with third parties and communicate our
requirements through our Business Partner Code of Conduct,
which suppliers must accept and follow.
Anti-bribery and corruption policies
We are committed to countering all forms of bribery and
corruption and work hard to prevent and mitigate risk in this
area. In 2024, we updated our Anti-Bribery and Corruption
Policy and accompanying training, which outlines our
zero-tolerance approach and the conduct we expect of all
employees. We also revised our anti-bribery risk assessment
to ensure it remains an effective tool for directing our
compliance resources. This assessment helps us to monitor
key risks, implement additional controls, and maintain our
anti-bribery and corruption compliance programme on a
risk-targeted basis.
Modern slavery and human rights
We believe everyone has a right to safe and fair working
conditions, and to be treated fairly and with respect. We
recognise our responsibility to respect human rights, which
is embedded within our policies and initiatives, some of
which are described in our People section on page 44. We are
committed to the prevention of abuse, and work proactively
to prevent instances of forced labour, human trafficking and
child labour within our business and our supply chain. In 2024,
we set and achieved several goals for our modern slavery
programme, focusing on developing our internal resources,
enhancing oversight of our supplier risks and continuing to
strengthen controls over certain rider-related risks. More
information is available in our Modern Slavery Statement on
our website, which summarises the risks associated with our
business and supply chain as well as the activities we have
undertaken to address potential impacts.
RESPONSIBLE BUSINESS CONDUCT
49deliveroo plc Annual Report and Accounts 2024
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STRATEGIC REPORT FINANCIALSGOVERNANCE
Our sustainability strategy focuses on six pillars of activity.
This year we have delivered more for three sides of the marketplace – consumers, riders and merchants, as well as
driving progress on our sustainability goals to support our Company, the wider environment, and the communities we
operate in. This review details our progress over the course of 2024, including two case studies showcasing how we
have delivered against two of our key pillars, and sets out our priorities for the year ahead. In line with our reporting
obligations, we also report on our emissions reductions, which can be read in detail in the SECR section of this report.
Our six sustainability pillars
Marketplace Company, environment and communities
Riding and thriving
Reaching net zero and
reducing waste
Enabling healthier eating
Tackling food insecurity in
our communities
Supporting merchants to grow
and be more sustainable
Building a diverse and inclusive
company and marketplace
OUR APPROACH TO
SUSTAINABILITY
Sustainability review
50deliveroo plc Annual Report and Accounts 2024
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