Online food delivery company, Deliveroo’s, revenues surged 72% in 2018, but its losses also increased after it invested money into new regions and product offerings in a fiercely competitive market, according to the Financial Times.
Founded in 2013, Deliveroo which is one of the fastest-growing technology businesses in Europe, earned £349.4 million in operating expenses in the year to 31 December 2018, up from £106 million the previous year, after launching in Taiwan and Kuwait, and more than 250 new cities.
It also introduced Marketplace+, a platform allowing restaurants to deliver their own food, to differentiate its business from rivals.
The investments increased global sales up to £476 million, the company said on Wednesday, but pre-tax losses widened by 16.6% to £232 million, compared with £199 million in 2017.
In May Deliveroo raised a $575 million funding round led by Amazon, which also saw it raise money from existing investors T Rowe Price, Fidelity and Greenoaks.
According to the company, the funding will be used to “grow Deliveroo’s tech team, expand the company’s reach to new customers, develop new innovations in the food delivery sector and increase support for restaurant partners and riders”.