Deliveroo makes its first ever profit of £1million after losing £82.9 million last year – as average spend per customer swells to £25

Deliveroo has announced that it has made a profit of £1million in the first half of the year after the food delivery company lost £82.9 million last year. 

The food delivery company saw its total number of orders placed in the same period soar to 146 million. 

Deliveroo has revealed that it had seen encouraging signs in terms of consumer behaviour as food price rises continued to ease.

It posted a profit of £1.3 million for the first half of the year, swinging from a loss of £82.9 million this time last year. Meanwhile, the total orders placed rose by two per cent.

Gross transaction value per order – which means the average cost of people’s food baskets plus delivery fees – was £25, up from £24.20 the prior year.

A Deliveroo cyclist. posted a profit of £1.3 million for the first half of the year, swinging from a loss of £82.9 million this time last year

The food delivery company saw its total number of orders placed in the same period soar to 146 million

Will Shu (pictured), Deliveroo’s founder and chief executive, said: ‘I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focused on achieving a flawless delivery experience’

This was primarily driven by higher item prices, which are set by restaurants and shops, even though the rate that prices are rising continues to slow.

In the UK and Ireland, total spending jumped by 7% at constant currency, partly driven by customers placing orders more frequently.

Deliveroo said it benefited from new restaurants on the platform, such as Pizza Pilgrims and Wingstop, as well as more grocery options and brands such as Ann Summers and B&Q selling products through the app.

Will Shu, Deliveroo’s founder and chief executive, said achieving a profit was a ‘major financial milestone’ for the company.

‘I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focused on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers,’ he said.

Shares in the firm were up by more than seven per cent in early trading on Thursday.