Deliveroo lost £129 million last year, more than it generated in sales, as the food delivery service saw its soaring revenues wiped out by the enormous costs involved in logistics, promotion and international expansion.
Annual turnover at the company, which is backed by some of the world’s leading venture capitalists, grew by 610 per cent from £18.1 million in 2015 to £128.6 million last year, its latest accounts show.
However, the cost of delivering food to customers was £127.5 million, resulting in a gross profit of only £1.1 million — a margin of less than 0.9 per cent.
Administrative expenses, including the cost of promoting the service, ballooned from £28.8 million in 2015 to £142.2 million. Pre-tax losses widened by 330 per cent, from £30.1
