Deliveroo struggles with acquisition after slashing marketing spend – Charged Retail
Deliveroo has admitted it has continued to struggle with “weaker” customer acquisition and retention in Q3 after deciding to reduce its consumer marketing spend in Q2.
Initially, the tech company had planned to increases its marketing spend over 2022, however company CFO Adam Miller said it had made “conscious decisions to pull back on marketing spend”, as part of its strategy to “chase” top-line growth against a backdrop of consumer headwinds.
The move had an immediate impact on Deliveroo’s consumer base, with active customers in the second quarter falling slightly compared to Q1, the company said.
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Over the course of Q3, Deliveroo’s customer figures were broadly stable year-on-year, claiming an average of 7.3 million active customers monthly, 1% increase.
Despite this, the food delivery firm has said the total active customers continued to decline sequentially.
There has been no indication from Deliveroo that it will U-turn on its strategy, instead it said it will continue to focus on “more efficient” marketing investment next quarter.
You can read Deliveroo’s full Q3 results here.
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