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People go for subsidised services, who knew!?

Summary:
Deliveroo’s 2016 company accounts filed this week reveal……. a 12-month loss of *£132.7m vs £30m lost a year earlier.The positive spin is focuses on the company’s stellar growth in revenues from £18m to £128m in the year, but with a cost of sales of £127.4m one’s got to ask whether a conventional investor or entrepreneur would really see any potential in such a business?After all, the company’s gross operating margin is all but non-existent.When you consider the potential margin destruction that may arise if and when Deliveroo workers — who have been lawyering up on the back of the raw deal they now realise they’ve been getting with respect to wages and worker rights — get their way on better terms, the business model in question begins to look more non-profit/charity-like by the

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Deliveroo’s 2016 company accounts

Izabella Kaminska
Izabella Kaminska joined FT Alphaville in October 2008, which was, perhaps, the best time in the world to become a financial blogger. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP’s internal magazine. She has also worked as a reporter on English language business papers in Poland and Azerbaijan and was a Reuters graduate trainee in 2004.

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