Monday, September 16, 2024

Gopuff to increase fees as it hopes to deliver first UK profit after cutting almost 1,000 jobs

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Gopuff cut almost 1,000 jobs during 2023. Credit – Gopuff.

Delivery company Gopuff is to up its fees as it targets turning its first-ever UK profit in the coming years after shedding almost 1,000 jobs in 2023.

The US-headquartered company reduced its UK headcount from 1,707 to 842 last year, according to newly-filed accounts with Companies House.

The consumer goods and food delivery company, which entered the UK after a 2021 takeover of Newcastle-upon Tyne-based business, Fancy, also cut its pre-tax loss from £93.8m to £51.6m.

Since entering the UK, Gopuff has now lost more than £187m.

Its revenue increased in 2023 from £42.8m to £78.1m, the results also show.

The revenue Gopuff generated from the sale of goods increased from £40.2m to £71.6m in 2023 while its subscription turnover rose from £638,014 to £1.8m. Delivery revenue also grew from £1.9m to £4.6m.

Rise in orders helps revenue grow at Gopuff

A statement signed off by the board said: “The strong revenue growth was driven by a significant increase in order volumes from partnership expansion, market share growth and a change in shopping parameters and delivery fees.

“During 2023, the company continued to invest in expanding its business by broadening the range of the product selection it offers to consumers and by offering discounts to attract and retain customers.

“The company expects to deliver revenue growth in the future through increased basket sizes, order volume growth through partnerships and by implementing additional fees on orders.”

Gopuff’s latest UK results come after fellow online food delivery platform Getir announced in April 2024 that it planned to exit the UK, Germany and the Netherlands as part of a restructuring plan which will see it solely operate in its home market of Turkey.

The move came after the  Turkish headquartered firm, which was once valued at £9.5bn, pulled out of Italy, Spain and Portugal last year as demand for home grocery and takeaway services has shown signs of fading in a post-Covid market.

Last summer the business slashed 2,500 roles across its 23,000 strong workforce in its five remaining markets in the UK, Netherlands, Germany, the US and Turkey.

Geri’s most recently published set of UK accounts, for 2022, show that slumped to a pre-tax loss of £168m after having previously lost £116.1m in 2021. The losses were incurred despite its turnover rising from £26.4m to £80m.

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