Deliveroo is a service innovation that started as a British
online food delivery company founded in 2013, with the company headquarter
based in London. It operates in approximately 200 cities in 12 countries around
the world, namely Australia, Belgium, France, Germany, Hong Kong, Italy,
Ireland, Netherlands, Singapore, Spain, United Arab Emirates and the United
Kingdom.

Deliveroo’s mission is to bring the world’s local
restaurants into everyone’s home or office – fast. The company is on a mission
to change the way food is being ordered. It has partnered with the best
restaurants in the business – from local hotspots to national favourites – in
order to bring customers the food they love, right at their doorstep, within a
32 minutes timeframe.

In his article “The Food Delivery Wars”, Martin Mignot breaks
down the food industry into three segments: those who cook, those who deliver
and those who take orders. In this context, Deliveroo approaches these three
dimensions by positioning itself as the service that takes customer’s orders,
directs it to the relevant restaurant, picks up the order and finally delivers
it to the customer’s doorstep. In addition to offering the customer the
convenience of choosing from a variety of options, this service provides
Deliveroo the control of the end-to-end experience and opens up a whole
world of restaurants that do not have a delivery service to customers who can
now be served through the help of Deliveroo’s logistics platform.

 

Figure 1: The food
delivery platform and Deliveroo’s positioning
 

 

Source: The Food
Delivery Wars
 

 

 

 

Deliveroo’s business model has managed in part
to create and target a new market by balancing low-cost and commonly used
technologies, i.e smartphone devices, and developing an in-house logistic
platform that is driven by a series of algorithms that control drivers’ routes
and ensures that orders are delivered to the customers within the required
timeframe.

Deliveroo takes
efficiency as a key factor to the company’s success, and hence is keen to effectively
streamline the entire process from any waste. Drivers, also known as riders, need
to be well placed and utilised, and typically be within a 2.2 Km radius in
order to arrive within 12 minutes of pickup, which leaves him with a window of 8
minutes to serve the 2.2km radius. As a result, the cyclist spends
approximately 20 minutes per order and can squeeze in 3 deliveries per hour. This
allows the company to stay true to its mission statement without jeopardising
the quality of its service. The business plan is further feasible as a result
of the fact that restaurants are usually concentrated within an area, leaving
the riders to be able to accommodate several orders within a significantly
large area. 

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