Deliveroo plans to return a further £250mn to shareholders, in a sign of the food delivery group’s growing confidence in its ability to generate cash, after losses halved in the first half of the year.
“The company fundamentally is at a very different place to when we went public 30 months ago,” said Will Shu, Deliveroo’s founder and chief executive. “We are basically free cash flow break-even at this point.”
Food delivery and logistics groups such as Deliveroo, Uber, DoorDash and Delivery Hero, which have collectively burnt through tens of billions of dollars of losses over the past decade, have come under increasing pressure from investors to demonstrate profitability as the cost of capital has risen sharply over the past year.
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