Since its IPO on 31 March 2021, the Deliveroo share price (LON: ROO) (ROO.L) has fallen by around 9%. In that time, it has been relatively volatile having fallen by around a third in the immediate aftermath of its IPO. Over the same time period, the FTSE All-Share Index (INDEXFTSE: ASX) has gained around 5%.
Following its stock market listing, the firm released a first quarter trading update on 15 April. It showed an acceleration in growth for the fourth successive quarter. Its orders increased by 114% year-on-year to 71 million and gross transaction value (GTV) moved 130% higher to reach £1.65 billion.
In addition, Deliveroo reported that it has maintained its guidance regarding GTV growth and gross margin for the full year. Its monthly active consumer base has increased by 91% year-on-year so it now stands at 7.1 million monthly active consumers on average.
The firm reiterated that it is mindful of the uncertain impact that an eventual lifting of Covid-19 lockdown measures could have on its business. Although it is upbeat about the future, it has taken a prudent approach to full year guidance, according to its update.
Deliveroo also released share price news regarding its expansion with Waitrose since its IPO. Following a successful trial, the two companies have agreed a two-year partnership that will take the total number of Waitrose shops using the company’s services to 150 by the end of the summer. This is an expansion of 110 stores versus the 40 used in the trial.
According to the update, the partnership is a key part of Deliveroo’s expansion strategy in the UK. It is aiming to access an increasing proportion of the UK population via a variety of agreements with traditional retailers.
During the last month, the firm announced changes to its Board. On 28 April, Dominique Reiniche and Karen Jones were appointed as non-executive directors. On the topic of directors, the company released a notification of the vesting of restricted Deliveroo stock awards to the CEO and CFO on 19 April.
Looking ahead, there are currently no events in the company’s financial calendar. The Deliveroo share price is trading at 264p at the time of writing.
Not Investment Advice
Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.