London (AFP) – Food delivery app Deliveroo on Thursday reported that it fell back into a loss in the first half of 2025, citing costs related to its takeover by US rival DoorDash. Net loss stood at £19.2 million ($26 million) in the six months to the end of June, compared with a net profit of £1.3 million during the same period one year earlier, according to an earnings statement.
The London-listed firm, which agreed to a £2.9 billion takeover by DoorDash in May, said it is on track to finalize the deal in the final quarter of the year. Deliveroo had reported its first annual profit in March following sizeable full-year losses owing to high investment costs since American Will Shu founded the company in 2013.
Despite slipping back into the red in the first half of 2025, Shu noted that “both growth and profitability are accelerating.” The company attributed the latest loss predominantly to “advisory and legal fees in relation to the DoorDash acquisition,” without which it expected to have made a net profit. Revenue grew eight percent to £1 billion, while orders also grew eight percent.
“I’m excited for what the partnership with DoorDash can bring in the future,” Shu added. The combined group is set to create a delivery service present in more than 40 countries, serving around 50 million monthly-active users. DoorDash, which already operates in over 30 countries, is the largest food delivery app in the United States. The acquisition will expand DoorDash’s reach further, with Deliveroo operating in the UK, Belgium, France, Ireland, Italy, Kuwait, Qatar, Singapore, and the United Arab Emirates.
© 2024 AFP
