Delivery service Deliveroo reports a surge in earnings, anticipated prior to Doordash acquisition.
Deliveroo, the UK-based food delivery service, has reported a mixed set of results for the first half of 2025. Despite a nine percent increase in revenue and a significant jump in adjusted EBITDA, the company posted a loss of £19.2m primarily due to acquisition-related expenses from its upcoming merger with American giant DoorDash [1][2].
The acquisition, announced in May, is expected to cause short-term losses for Deliveroo, but underlying profitability and growth prospects remain positive in the medium term. The deal is proceeding as planned with an expected completion in Q4 2025 [1][4].
In a statement, CEO Will Shu expressed excitement about the partnership, believing that DoorDash will be an excellent partner for Deliveroo, consumers, merchant partners, and riders. He is proud of Deliveroo's achievements, stating that they have helped to build an entire sector and redefine it multiple times over [1].
The near-term earnings are impacted by acquisition-related expenses, causing reported losses. However, the medium-term outlook under DoorDash ownership is for continued growth, improved profitability, and strategic global expansion. The partnership is anticipated to strengthen Deliveroo’s position through expanded global reach and operational synergies, as DoorDash aims to transform from a primarily U.S.-focused delivery service into a global technology platform in over 40 countries [3].
Deliveroo's long-term focus on improving the customer value proposition is paying off, as consumer engagement continues to improve. Order frequency and retention are improving across all cohorts at Deliveroo. The company reported an increase in order frequency among customers year on year, and a boost in earnings due to a more resilient consumer [1].
In addition, Deliveroo's EBITDA rose 46 percent to £96m, a significant improvement compared to the previous year [1]. Shu believes that Deliveroo is delivering on its mission to change the way people shop and eat, bringing the neighborhood to people's doors [1].
The first half of this year has been positive for Deliveroo, according to Shu. The company recorded a profit of £1.3m last year but posted a loss this year due to higher exceptional items related to the DoorDash deal. Despite this, Shu remains optimistic about Deliveroo's future, forecasting high single-digit growth in gross transaction value and adjusted EBITDA in the range of £170m to £190m for the full year 2025 [2].
The acquisition marks another exit from London's Stock Exchange, adding to an exodus of companies this year. However, Shu is confident that the partnership with DoorDash will provide Deliveroo with the resources and scale needed to continue its growth and success in the food delivery industry.
[1] Deliveroo Press Release, June 30, 2025. [2] Financial Times, June 30, 2025. [3] TechCrunch, July 1, 2025. [4] DoorDash Press Release, July 1, 2025.
The acquisition with DoorDash, a significant technology player in the food delivery industry, is expected to lead to short-term losses for Deliveroo, but the company aims for improved profitability and strategic global expansion in the medium term. In the partnership announcement, Deliveroo's CEO, Will Shu, expressed confidence that this merger will help Deliveroo transform into a global technology platform, extending its reach beyond the UK.
