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In the News

Deliveroo announces huge losses

Geoff Riley

21st September 2017

The food delivery business Deliveroo is racking up huge losses according to new accounts published by their holding company.

Consider this - nearly all of their annual revenues is eaten up by the costs of getting products the final mile to the consumer. Part of the problem is that the maps used by the delivery riders are close to useless causing delay and frustration and adding to cost. 

The small profit margin left is not enough to finance their ambitious expansion plans leading to mounting losses leaving them to ask shareholders to dig deeper into their pockets.

Is their business model unsustainable especially against the backdrop to legal challenges to their employment practices?

Increase your sales by £110m and your losses by £100m!!  What could possibly go wrong? I think we know the answer.

Meanwhile ... at the top of the business

Investors still prepared to pump money into the business

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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