Online food delivery business Deliveroo has remained positive about the prospects for its global business, despite the fact that losses widened in 2018.
The company made a pre-tax loss of £232m (€260.6m), according to its most recent annual results. That compared to a pre-tax loss of £199m (€223.5m) in 2017.
But Deliveroo, which was founded just six years ago, highlighted a 72% increase in global revenue in 2018 to £476m (€534.6m) and a 42% jump in gross profit to £91m (€102.2m).
The company also has considerable financial backing thanks to a $575m (€524.5m) investment led by Amazon in May this year, taking the total raised in the business to over $1.5bn (€1.4bn).
During 2018, Deliveroo continued to invest heavily, entering the Taiwan and Kuwait markets, as well as doubling the number of towns and cities in which it operates to 250.
The company also claimed that it had helped to boost the sales among UK restaurants in a tough trading environment there, pointing to independent analysis by Capital Economics which claimed that Deliveroo delivered a total of £1bn (€1.1bn) more sales in 2018. Independent restaurants enjoyed an extra £320m (€359.4m) in sales, the analysis claimed.
And Deliveroo more than doubled investment in its technology to £18m (€20.2m) and spent £10m (€11.2m) on free insurance for riders during the past year. The company, which claims to work with 80,000 restaurants worldwide, is due to launch in another 50 UK towns and cities next year.
Will Shu, Deliveroo co-founder and CEO, said: “Deliveroo is growing from strength-to-strength and expanding across our markets as more and more people want amazing food delivered straight to their door.
“We’re focused on our mission of becoming the definitive food company, and we’ve continued to invest heavily in expansion, technology and new products to meet this ambition. We are leading the field in innovation in food delivery, helping our restaurant partners to boost their sales and providing more well-paid work for riders.