* Q1 group orders up 114%, gross transaction value up 130%
* Company working to prove itself to the market - CEO
* Uncertain how much demand was driven by COVID lockdown
* Shares fall 2%
(Adds CEO comments, shares)
By Paul Sandle
LONDON, April 15 (Reuters) - Deliveroo said a
more-than doubling in first quarter orders during coronavirus
lockdowns was an initial step in proving itself following the
debacle of the food delivery company's London flotation last
month.
"We have a lot of work ahead of us to both grow the business
over the long term, and prove ourselves to the markets," Chief
Executive Will Shu said. "It is day one of doing that."
Growth accelerated for a fourth consecutive quarter, with
group orders up 114% year-on-year to 71 million and gross
transaction value (GTV) up 130% year-on-year to 1.65 billion
pounds ($2.27 billion), the company said.
But it was difficult to know how much demand was driven by
cafes and restaurants closing their doors in COVID-19 lockdowns.
Deliveroo said it expected growth to slow as restrictions eased.
"We are mindful of the uncertain impact of the lifting of
COVID-19 restrictions," Shu said in an interview. "We wanted to
be prudent when it comes to guidance."
He said, however, that strong demand in markets such as Hong
Kong and the United Arab Emirates, where lockdowns have been
lifted, indicated what could happen in other countries.
Deliveroo maintained guidance for full-year GTV growth of
30-40% and gross profit margins of 7.5-8.0%.
Rival Just Eat Takeaway.com said on Wednesday
Britain had been a "standout" in the first quarter, and it was
pulling away from competitors, namely Deliveroo and Uber Eats.
Shu, however, said Deliveroo was "incredibly proud" of its
performance in Britain and Ireland. "We feel great about our
market position," he said.
Grocery delivery, in partnership with supermarkets Waitrose,
Aldi, Coop, Morrisons and Sainsbury's, expanded
at pace, he added, with GTV growing by more than 700% to
represent more than 10% of UK GTV.
IPO FLOP
Deliveroo's flotation was supposed to be London's debut of
the decade, but the stock plunged 30% on the first day, wiping
more than 2 billion pounds from the company's initial 7.6
billion pound valuation.
The shares were down 2% to 265 pence on Thursday morning,
31% below their IPO price of 390 pence.
Some of Britain's biggest investment companies shunned the
listing, citing concerns about gig-economy working conditions.
Shu said the self-employed rider model had been upheld by
courts in Britain, France and Italy.
"I'm not wedded to any particular model," he said. "However
I am wedded to the model that riders want."
($1 = 0.7260 pounds)
(Editing by Jane Merriman and Mark Potter)
