Staff will be cut by 9% as the company fails to achieve profitability. In 2022 the exit from the market of the Netherlands and Australia.
by Enrico Netti
Deliveroo announces the cut of 350 employees, 9% of the staff. The cause is to be found in the difficulty of achieving profits while there is a slowdown in orders. Last year Deliveroo had exited the Australian market and the Netherlands where it had tried to conquer the leadership. The pandemic has accelerated the development of delivery platforms including rivals Just Eat and Uber Eats. In recent times, with the normalization of the health situation and the recovery of out-of-home consumption, the number of orders has decreased despite the increase in value following the acceleration of inflation which has led restaurants to raise prices. Prices on which the commissions applied by the delivery platforms are then calculated. “We now face serious and unforeseen economic headwinds,” founder and CEO Will Shu wrote in the company blog. In all fairness, our fixed cost base is too large for our business.” The focus is now on profitability after breaking even in the second half of 2022. In recent months, large high-tech companies, from Zoom to eBay, from Alphabet (Google) to Amazon without forgetting Meta, Ibm, PayPal, Salesforce, Spotify and Twitter fired more than 150,000 workers to stem rising costs. Deliveroo went public in London in March 2021 at 390p a share, a valuation of £7.6bn, but the shares have embarked on a path that has taken them to be worth nearly 89p.