Deliveroo cuts revenue due to worst UK economy

World-renowned food delivery company Deliveroo recently presented its full-year revenue forecast. Just like any other company is facing pressure due to the economic outlook.
Deliveroo Group said full-year total transaction value (GTV) growth is expected to be between 4% and 12% in constant currency versus the previous guidance of 15%-25%.

Additionally, Deliveroo said growth slowed to 2% in the second quarter from 12% in the first. According to company officials, the current growth rate reflects the “headwind effect of key consumers” in the second quarter.

In addition, UK consumer confidence fell to its lowest level ever since last month.

They struggle with the accelerating cost of living that burdens nearly every system.

Wages have also struggled to keep up with inflation since last month, which already in May hit a 40-year high of 9.1% and is now heading towards triple digits.

Additionally, Deliveroo confirmed that it saw growth in the second quarter. Orders grew 3% from the previous year as basket sizes were larger due to the pandemic. In addition, the Group maintained its margin guidance for the current year.
Furthermore, in 2022, adjusted EBITDA could decline from 1.5 to 1.8%, with a decrease of 2.0 in 2021.