Deliveroo achieved better than expected results during the first quarter of 2025 with order volumes growing by 7% from the previous year, compared to the 6% increase seen in Q4 2024.
Investors responded positively to Deliveroo's latest trading update, pushing its share price up by 3.7% on 17 April 2025. The company emerged as a top FTSE 100 performer for the day after reaffirming its full-year forecast, including high single-digit GTV growth and £170m–£190m in adjusted EBITDA.
This boost in investor sentiment reflects growing confidence in Deliveroo’s resilience despite mixed market conditions.
Strong Q1 Signals Steady Growth
Deliveroo’s Q1 report showed consistent growth across the UK & Ireland and international markets. While user growth in the UK was modest, a loyal base drove stable order volumes. International operations continued to support total volume expansion, albeit at a slower pace.
GTV rose by 9% year-on-year, outpacing order volume due to improved pricing, premium menu offerings, and stronger partnerships with high-end restaurants.
Investor Reaction Lifts Deliveroo to the Top of FTSE 100
On 17 April, Deliveroo’s shares jumped 3.7%, securing its spot among the FTSE 100’s top gainers. Investors welcomed its confidence in 2025 targets, viewing it as a bullish signal amid uncertain economic conditions.
This performance also helped it outperform rivals Just Eat Takeaway and Uber Eats, despite lingering concerns about long-term market saturation and rising operational costs.
Competitive Pressures in the UK Meal-Delivery Market
The UK meal-delivery industry remains fiercely competitive. Deliveroo, Just Eat Takeaway, and Uber Eats are racing to retain market share through innovation and pricing strategy shifts.
Post-pandemic slowdown in order growth, combined with higher logistics and wage expenses, have put pressure on margins. Deliveroo’s tech-driven enhancements and premium partnerships offer a strategic edge in this climate.
Changing Consumer Habits Drive Strategy
With consumers increasingly focused on both value and quality, Deliveroo’s ability to serve budget-conscious users alongside premium diners is key to maintaining growth. Its Q1 performance reflects this dual-target strategy paying off.
Still, growing competition and cost pressures mean Deliveroo must continue evolving to retain customer loyalty and protect margins.
Operational Initiatives Behind the Growth
During Q1, Deliveroo invested in logistics and app upgrades, improving user engagement and delivery reliability. Urban users reported better performance and smoother ordering experiences.
Collaborations with top-tier restaurants boosted average order values. Curated menus and enhanced food discovery tools reinforced Deliveroo's brand as a premium delivery choice.
Yet, the company must navigate rising costs and unpredictable consumer behaviour to sustain momentum throughout the year.
