Deliveroo’s founder has said the company’s foray into grocery shopping could eventually overtake takeaway food orders, as the firm revealed its first annual profit last year.

About one-sixth of Deliveroo’s income was from delivering retail and grocery shopping in 2024, but Will Shu said it could grow to be more than half.

He told the PA news agency: “I don’t see why it wouldn’t be bigger than our core restaurant business over time.

People are substituting away from the large weekly shops, and they're substituting that by multiple smaller weekly shops. Getting stuff faster is just what people want

“There is a broader societal shift in on-demand, which is the impetus behind a lot of this stuff.”

“People are substituting away from the large weekly shops, and they’re substituting that by multiple smaller weekly shops,” he said.

“Getting stuff faster is just what people want.”

Grocery orders accounted for 16% of the company’s gross transaction value last year, meaning the total cost of people’s baskets plus delivery fees.

The firm added the likes of Ann Summers, The Perfume Shop and Not On The High Street to its shopping ranges as it continued to expand its offering beyond food.

Mr Shu said growth areas included DIY shopping, health and pet food, pointing to recent tie-ups with B&Q and Boots.

The comments came as Deliveroo posted a £2.9 million profit in 2024, it’s first full-year in the black and up from a £31.8 million loss in 2023.

But Mr Shu pointed to an “uncertain” consumer environment, saying changes to the minimum wage and employer taxes had upped costs for shops and restaurants that Deliveroo delivers from.

“You’re talking about some pretty significant increases in their cost base,” he said.

He said the group was seeing “good momentum” in the UK but added: “We don’t know what’s going to happen in April. We’re going to see inflation again … Do people put prices through to the consumer?”

Revenue and orders were both up 2% across the group, which also includes France, Italy and the United Arab Emirates.

Meanwhile, Deliveroo said it had seen an improvement in the frequency of orders and the retention of customers.

Mr Shu said the company was “relentlessly focused” on improving customer experience, partly by growing its loyalty programme, whereby people can pay a subscription for perks such as lower delivery fees.

The founder also played down reports that he was planning to leave the company after selling nearly £15 million of shares last year.

He said: “I’m not (going to leave)… I am the single largest individual shareholder of the company.”