At 86.96p, Deliveroo’s (ROO) share price is 78% below the level at which it joined the stock market in 2021. Competition has been fierce and the company is still not making a profit.

The boom in ordering food online seen during the pandemic has started to fade away thanks to the cost-of- living crisis.

Deliveroo realises it needs to do something and is now prioritising cost and operational efficiencies over the previous land grab just to increase its market share.

Normally this would be music to the ears of investors as it could accelerate the path to sustained profitability. However, the share price just won’t break out of its current depressed trend.

The only way Deliveroo is going to win over the market is to start generating positive cash flow and sustained profit growth. That could be helped by ramping up its advertising from fast moving consumer goods companies which could become an important source of revenue in time.

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