Deliveroo is a service innovation that started as a Britishonline food delivery company founded in 2013, with the company headquarterbased in London. It operates in approximately 200 cities in 12 countries aroundthe world, namely Australia, Belgium, France, Germany, Hong Kong, Italy,Ireland, Netherlands, Singapore, Spain, United Arab Emirates and the UnitedKingdom.Deliveroo’s mission is to bring the world’s localrestaurants into everyone’s home or office – fast. The company is on a missionto change the way food is being ordered. It has partnered with the bestrestaurants in the business – from local hotspots to national favourites – inorder to bring customers the food they love, right at their doorstep, within a32 minutes timeframe.
In his article “The Food Delivery Wars”, Martin Mignot breaksdown the food industry into three segments: those who cook, those who deliverand those who take orders. In this context, Deliveroo approaches these threedimensions by positioning itself as the service that takes customer’s orders,directs it to the relevant restaurant, picks up the order and finally deliversit to the customer’s doorstep. In addition to offering the customer theconvenience of choosing from a variety of options, this service providesDeliveroo the control of the end-to-end experience and opens up a wholeworld of restaurants that do not have a delivery service to customers who cannow 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 partto create and target a new market by balancing low-cost and commonly usedtechnologies, i.e smartphone devices, and developing an in-house logisticplatform that is driven by a series of algorithms that control drivers’ routesand ensures that orders are delivered to the customers within the requiredtimeframe.
Deliveroo takesefficiency as a key factor to the company’s success, and hence is keen to effectivelystreamline the entire process from any waste. Drivers, also known as riders, needto be well placed and utilised, and typically be within a 2.2 Km radius inorder to arrive within 12 minutes of pickup, which leaves him with a window of 8minutes to serve the 2.2km radius. As a result, the cyclist spendsapproximately 20 minutes per order and can squeeze in 3 deliveries per hour. Thisallows the company to stay true to its mission statement without jeopardisingthe quality of its service. The business plan is further feasible as a resultof the fact that restaurants are usually concentrated within an area, leavingthe riders to be able to accommodate several orders within a significantlylarge area.