Deliveroo rolls out ads on its delivery app to increase revenue

DELIVEROO is expanding access for advertisers on its app and website, joining a growing number of delivery companies using ads to improve sales and profitability.

The Deliveroo Media and Ecommerce platform, set to roll out in July, will also sell ad space on the company's order-tracker page for the first time, the company said in a statement on Wednesday (Jun 29). A customer may, for example, check the status of their dinner delivery on a Saturday evening and see an ad for a television streaming service or a movie to watch.

While Deliveroo already allows the restaurants and groceries it works with to purchase some advertising space, the new platform expands opportunities to consumer brands and is part of the company's push to become profitable. Fast-growing and money-losing technology companies have seen their shares plunge in recent months as investors move to reward profits, with Deliveroo dropping more than 56 per cent in trading year-to-date. The firm joins peers such as Jokr and Delivery Hero, which have also started supplementing their main businesses with ad revenue.

"Advertising revenue is a small part of Deliveroo's current model but a big opportunity and a lever the company can pull to increase net revenue," Deliveroo chief operating officer Eric French said in the statement.

Brands will be allowed to add samples and other materials to customers' meal and grocery orders that originate from Deliveroo's "editions" kitchens or rapid grocery "hop" centres, it said.

The new service will begin in the UK before expanding to other markets. Criteo is providing technology and media sales services, the company said in the statement. BLOOMBERG

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