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Deliveroo PLC (ROO)

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Friday 30 July, 2021

Deliveroo PLC

Proposal to end operations in Spain

RNS Number : 0582H
Deliveroo PLC
30 July 2021
 

30 July 2021

 

 

DELIVEROO PLC

("Deliveroo" or the "Company")

 

 

Deliveroo announces proposal to end operations in Spain

 

Deliveroo today announces that it proposes to consult on ending its operations in Spain. Deliveroo currently operates across 12 markets worldwide, with the vast majority of the Company's gross transaction value (GTV) coming from markets where Deliveroo holds a #1 or #2 market position. 

 

Spain represents less than 2% of Deliveroo's GTV in H1 2021. The Company has determined that achieving and sustaining a top-tier market position in Spain would require a disproportionate level of investment with highly uncertain long-term potential returns that could impact the economic viability of the market for the Company. 

 

The proposal to end operations in Spain reflects the Company's intention to focus investment and resources on the Company's other markets, continuing to grow its network of consumers, restaurant and grocery partners, and riders, and expanding market share in both new and existing towns and cities. 

 

Deliveroo's proposal to consult on the ending of its operations in Spain remains subject to full consultation with impacted employees and riders. Deliveroo anticipates that the collective consultation process will commence in early-September and the Company will work with all relevant stakeholders and prepare all required documentation accordingly.

 

Should the Company decide to end operations after the conclusion of the consultation process, which will take around a month, the Company will make sure that appropriate compensation and goodwill packages, compliant with all local regulations and laws, will be available for riders and employees. 

 

This proposal does not impact previously communicated full year guidance on Group annual GTV growth and gross profit margin.

 

Hadi Moussa, Chief Business Officer, International, Deliveroo said:

 

"The decision to propose ending our operations in Spain is not one we have taken lightly. We want to thank all of the restaurants who work with Deliveroo in Spain, as well as our fantastic customers. Particular thanks goes to the thousands of brilliant, hard-working riders who chose to work with Deliveroo, as well as our talented and committed employees. They will be supported throughout the consultation period."

 

Contacts

Investor Relations

David Hancock, VP Investor Relations - 07966 930716 or [email protected]

Media Relations

Joe Carberry, VP Communications - 07787 561905

Romilly Dennys, Head of Corporate Communications, UKI - 07786 221309

Tulchan Communications, James Macey White, Jessica Reid, Mark Burgess - [email protected]

 

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