Deliveroo faces huge loss on food delivery business
According to the latest report published in the leading business portal, losses have increased sharply at the gig economy food delivery organization, Deliveroo. The firm incorporated under the name called Deliveroo. In 2016, the company made worldwide loss of £129m and recorded huge rise from £30m in the year 2015.
Let’s read out our article for getting more information about the same.
Deliveroo observes massive loss on the business of food delivery
Earlier, the Deliveroo made sales of around £128.56m which increased from £18.1m. But the reports suggest that the actual cost of getting the goods to the customer was registered to be £127.47m that leaves it a wafer-thin profit margin.
The unpleasant thing is that the organization of Deliveroo has been funding an international expansion plan. The firm is now spread over a total of 12 countries including Germany & Singapore. Deliveroo don’t have their own deliver system they connects thousands of bike riders to customers who wants food from restaurants.
The firm doesn’t employ its riders directly, but they pay them per delivery hence it term as “gig”. In July 2017, Deliveroo said that if the laws were changed. They would pay sickness and injury benefits to its 15,000 riders in the UK.
They also claimed that rules of employment should be changed so that people who work for such companies can get enhanced benefits and not lose the flexibility to work when they want. Previous year the number of Deliveroo riders across the world rose from 5,700 in the year 2015 to 26,500 a number which has carried on rising. This rapid expansion was observed behind rising administrative expenses that ballooned to £142m last year.
It also shows it raised £208m from shareholders in the year 2016, which represents 29 % of the company. “Deliveroo invests in new technology and sites all over the world. We as a firm feel proud that in only 4 years Deliveroo has been working with more than 30,000 riders and almost 20,000 restaurants for providing good-tasting food in nearly 140 cities around the globe.”