Food delivery startup Deliveroo sees expansion into non-food driving growth

Deliveroo, the British food delivery company, is diversifying into non-food retail as part of its growth strategy. The expansion includes offering toys, electronics, and other goods through its new feature, "Deliveroo Shopping," available on its app. 

In collaboration with hardware supplier Screwfix, customers can now purchase non-food items, including DIY products. 

With 162,000 restaurants and 20,000 grocery sites on its platform, Deliveroo is venturing into direct competition with its shareholder Amazon, which holds a 14.13 per cent stake.

Deliveroo expects its gross value transaction (GTV) to experience mid-teens percentage growth annually in the medium term. 

The company also reiterated its goal of achieving an earnings margin, as a percentage of GTV, exceeding 4 per cent by 2026. 

CEO Will Shu expressed confidence in the significant growth potential, emphasising this move into non-food categories.

For the full year 2023, Deliveroo maintains its guidance, anticipating adjusted core earnings to fall within the range of £60 million to £80 million. The company's investor day, scheduled for Wednesday, aims to provide further insights into its strategic initiatives and future plans.

(With Reuters inputs)