Executive Summary

International Business Strategy

Assignment:
The purpose of this report is to evaluate the key
emerging issues as well as the industry trends in the

Deliveroo: The Food Delivery global market while critically analysing Deliveroo and
selected competitors.
Start-up on an Expansion
Deliveroo has a strong market positioning with its
Spree large fleet of drivers as well as with its latest launches
of products like Deliveroo plus, Deliveroo Market Place
as well as Deliveroo Editions, giving the company a
sustained comparative advantage.

Deliveroo should keep investing in technology and

artificial intelligence in order to increase improved
operations and leverage its current comparative
advantage in order to increase market shares. Namely
Deliveroo Editions should be a focus area of
1
Deliveroo’s operations.

2
Table of Content 1/2
Table of Content 2/2
1 Introduction
1.1 Current State of the food delivery industry

“For every £ that UK consumers spend on food, 12p is spent on

takeaways” (Warner, 2018).

The food-delivery market is at €83 billion and makes up for 1% of the

overall food market as of a 2016 McKinsey report. When it comes to
the market of food sold through restaurants, the food delivery market
share is even as high as 4% (McKinsey, 2016). Yearly revenue for online
food delivery is projected to keep growing, with slowing growth rates.
Until 2023, revenue is projected to be at £104 billion at a 7.1 % growth
for Restaurant-to-Consumer Delivery. However, overall the Platform-
to-Consumer-Delivery is expected to grow more rapidly than the
Restaurant-to-Consumer Delivery (IMF et al., 2019).

As online food delivery services are naturally based online, they also
fall under the category of software-led businesses. Within this
segment of technology companies, they are even considered in
Deloitte’s UK Technology Fast 50 with one of them even placed in first
place with a growth of 15,749% (Deloitte, 2018).

4
Current State of the food delivery industry
Market segmentation and customer journey
 Evaluating the global food delivery industry, we need to The Restaurant-to-Consumer model has a 90% market share
differentiate the two business models that exist in this industry. and most of these orders are still placed by phone. However, the
There are new-delivery services and aggregators (Platform-to- new-delivery and aggregator business model leverages how
Consumer) as one option or the direct order through a digital technology is reshaping the market and provides
restaurant (Restaurant-to-Consumer). customers with a more convenient food order process and

If customers order directly through the restaurant, the restaurants with the option to increase their demand. The new-

restaurant will carry our the delivery of the meal. However, in delivery businesses in particular offer more restaurants the

new-delivery models the online service provider will take care of option to do home deliveries by providing the logistics of the

the delivery themselves. The figure below shows the customer delivery to the restaurants (McKinsey, 2016).

journey for Platform-to-Consumer orders (Statista, 2018).

Customer Restaurant/Food

Delivery

Platform Checkout / Payment

Figure 1: Customer journey Source: adapted from Statista, 2018 5
1.2 Current State of the food delivery industry
1.2.2 Platform-to-Consumer Delivery grows faster
9.5
Overall projected
growth P-t-C

While the Restaurant-to-consumer Delivery is a significantly %

Segment overview: global segment sizes in US$
larger segment as seen in Figure 2, the projected growth
rates for the Platform-to-Consumer Delivery (P-t-C) is higher 140,000
at 9.5% (Statista, 2018). Nonetheless, standard Restaurant 32,983
120,000 30,583
deliveries are still projected to be the major market segment 27,741
24,514
100,000
in 2023. 21,018
80,000 17,449
Despite that, the high growth rates for P-t-C deliveries attract
not only more competitors but also more restaurants to 60,000
112,299
92,885 100,68 107,499
migrate to these online food delivery platforms as the 40,000 74,944 84,188 9
segment size is projected to nearly double from 2018 to
20,000
2023 (Statista 2018).
0
2018 2019 2020 2021 2022 2023
Platform-to-Consumer Delivery
Restaurant-to-Consumer Delivery
Figure 2: Global food delivery segment sizes
Source: based on Statista, 2018

6
1.2 Current State of the food delivery industry
1.2.3 China is the dominant market

7
1.2 Current
China has theState of the
highest userfood delivery rate
penetration industry
in online food the European market are generated in the UK with projected
1.2.3 China is the dominant market
deliveries and is projected to have the second strongest growth revenues of 5,100 million US$ in 2023 (Statista, 2018).
rates as can be seen in Figure 3. Simultaneously China is also the
Looking at the overall online food-delivery market, penetration
dominant market in both food delivery segments, followed by
rates exceeded 30 percent in 2016 but is believed to increase to
the Netherlands and the UK (Statista, 2018).
65 percent every year. This will lead to the online food delivery
However, the overall strongest growth rate can be seen in taking over the offline food delivery in the coming years
Europe at a growth rate of 9.5%. The highest revenues within (McKinsey, 2016).

+ 6.6%

16833 23146 United States

+ 9.5%
12433 19561 Europe
+ 9.4%
41684 65429 China

2018 2023
Figure 3: Global projected revenues for online food delivery Source: based on Statista, 2018

8
2 Key Emerging Issues
2.1 Sustaining a robust delivery network of personnel and legal issues
2 Key Emerging
Online Issues
Food Delivery Services are globally struggling with legal
2.1 Sustaining
issues, a robust
as drivers delivery
strike for highernetwork of personnel
payments, andand
safety issues legal issues

gear (Knieps, 2018). Even though a court in the UK ruled in 2018,

that delivery services drivers are indeed self-employed and
therefore are not entitled to bargaining rights, the legal battle is
still ongoing as the Independent Workers Union appealed that
decision (Farrell, 2018). Multiple countries saw a number of
companies facing strikes from their drivers as seen in figure 4. In
Germany this even led to the formation of a labour union and
appointing a workers’ council (Knieps, 2018).

However, considering that most of the drivers in new-delivery

businesses are self-employed, their bargaining power is very
limited (Farrell, 2018). If these businesses were to employ all of
their drivers, this would potentially lead to an increase of costs
for businesses (People Management, 2017) as well as possibly
less flexibility for employees (Bright, 2017).

Figure 4: Food delivery driver protests around the world

2 Key Emerging Issues
2.2 High competition and urban operations
2 Key
The Emerging
target marketIssues
of online food deliveries is mainly in urban Along those lines, the provision of new restaurants as well as
2.2 High competition and urban operations
areas as they provide the required density and demand for offering restaurants in other neighbourhoods where these
operations (Netzer et al., 2017). With improved logistics and the restaurants are not located is a big issue for food delivery
use of artificial intelligence, delivery times are constantly being companies.
reduced with consumers expecting these as standards (Netzer et
al., 2017). Keeping up with these ever shortening delivery times
can be a struggle. As more and more competitors enter the
market, companies have a hard time to sustain their market
shares. This leads to companies withdrawing from cities or even
countries as they have to give into competition (FRPT Research,
2016; FAZ, 2018).

As food delivery services mostly operate in dense, urban cities,

they find it hard to operate in cities that are less dense. While
parcel carriers offer nationwide delivery services, online food
deliveries have yet to reach this objective (Hirschberg et al.,
Figure 5: Operation of food delivery services in Newcastle
2016). Source: Mattone, 2018
2 Key Emerging Issues
2.3 Restaurant retention
2 Keythough
Even Emerging Issuesdelivery operators offer restaurants a
the online Companies are therefore on a slippery slope to maximising
2.3 Restaurant retention
chance to increase their revenue and expand their customer these margins in their best interest while retaining restaurant
base, these operators take a fixed percentage of profit margins listings (Keng, 2018).
per order. As competition increases, some companies increase
For companies aiming to join the market, the issue at hand is
these margins which can lead to restaurants withdrawing from
enlisting restaurants in the first place, as the competition with
these services (BBC One, 2019). Even though higher margins
existing players increases.
increase the delivery company’s profit, they depend on
restaurant listings especially with increasing competition.

Figure 6: Food Delivery Startups M&A 2012-2017 Source: Chen, 2017

2 Key Emerging Issues
2.4 Customer retention
2 Key
In Emerging
a very Issues
competitive industry, customer retention is a big issue Due to these own fleets of drivers, many companies therefore
2.4 Customer retention
that companies need to address. As it is easy for customers to charge the customers fixed delivery fees to increase their profit
switch between online food delivery services due to a large margins. As mentioned before, with increased competition
number to choose from, companies as well as restaurants face these become competitive as well, as these fees vary.
an issue here. They need to retain customers in order to keep
their order volumes high and be profitable, especially for new-
delivery models where the companies have their own fleet of
drivers (FATbit Chef, 2017).

% of Customers Returned*
Customer Retention
The industry average on
customer retention for the
food delivery market currently
ranges at around 25 percent. 25%
I7
1
5n Figure 7: Industry Average customer retention
d Source: based on Gessner, 2018
2u
%
s
5
3t
0r
%y
4
2A
5
5
v
 6a
g0
e%
M
o
2 Key Emerging Issues n
t
2.5 Corporate Social Responsibility & Environmental issues
h
s

S
i
n
c
e

F
i
r
s
t

P
u
r
c
h
a
s
e
*
A
u
g

2
0
1
7

t
o

F
e
b

2
0
1
8
2 Key 78
With Emerging
million Issues
metric tons of plastic packaging that is by 2021. This also includes plastic packaging and take-out
2.5 Corporate Social Responsibility & Environmental issues
produced every year and only 14 percent recycled (Royte, packaging, which 44% of countries banned so far as can be seen
2018), food delivery companies are currently adding to these in Figure 8 (Statista, 2018).
numbers. Each day 65 million meal containers are discarded in
Food delivery services who heavily depend on packaging are
China alone (The Economist, 2017).
facing the problem of finding alternatives and solutions to this
Governments around the world have started to act on this issue problem, as environmental issues and corporate social
with a number of countries banning plastic items. The European responsibility becomes more important to consumers.
Union for instance, will effectively ban all single-use plastic
items

Figure 8: Countries banning plastic items 12

Source: Statista, 2018
3 About Deliveroo
Overview

Deliveroo was co-founded by CEO Will Shu in 2013 in London. It was one of
the first food delivery services to have their own fleet of drivers, taking over
the whole order and delivery process for restaurants. The company currently
has a revenue growth of more than 650% year on year. Consumers are able to
track their delivery on the Deliveroo App and investments in Deliveroo’s own
algorithm ’Frank’ is one of its investments to improve allocation of drivers and
thus optimising efficiency. Their recent introduction of Deliveroo Editions
gives the company a competitive advantage as they are able to help
restaurants expand into new areas (Deliveroo, 2019). Despite making losses,
the company is currently valued at 2.5 billion euros ([Link], 2018) and
the financial times titled Deliveroo as Europe’s fastest growing company in
2018 with a growth rate of 107,117% (Financial Times, 2018).

13
4 Resource-based strategy
What makes Deliveroo unique?

Deliveroo is on forth place in terms of value of leading global Furthermore, Deliveroo has a unique positioning when it comes
food technology companies from Europe with a value of 2.5 to technology and focuses on growing its technology team.
billion euros ([Link], 2018). They have an annual revenue Deliveroo scored first place in Deloitte’s UK Technology Fast 50
of 277.1 million GBP in 2017 (Deliveroo, 2018) at an annual with a growth of 15,749% (Deloitte, 2018) and is placed fourth
revenue growth of 923.5% within 2013-2016. This made of the European food technology companies ([Link],
Deliveroo the fastest growing company in Europe (Financial 2018). Deliveroo’s “real-time logistics algorithm and artificial
Times, 2018). One of the reasons that the only 6-year old intelligence systems” lead to faster deliveries and an increase of
company achieved this, is its uniqueness. delivery volumes. This leads to continuous improvements of
processes where Deliveroo improves the allocation of drivers
What makes Deliveroo so unique is a number of things. The
and the exploration of new restaurants as they analyse in which
most distinctive one is that Deliveroo was one of the first to
locations and what type of cuisine is missing in an area
introduce the innovative new-delivery model which provides
(caterlyst, 2017).
restaurants with its own fleet of drivers as well as an order
platform. Deliveroo would therefore handle the whole order
process so the restaurant only needs to focus on the cooking
process.

14
4 Resource-based strategy
What makes Deliveroo unique?

Another aspect is its CEO and founder Will Shu. The founder was
also the company’s first delivery driver and still goes on 2018). It is also very successful in attracting new investors,
occasional drives. This provides him with a very good insight helping the business to keep growing and investing (Ghosh,
into the business and provides him with an understanding of a 2018).
number of issues the company faces and how these may be
One of the reasons Deliveroo keeps making losses, is its high
overcome (Gilchrist, 2018).
investments into global expansion plans (BBC, 2018). Within
Furthermore, Deliveroo has a strong financial position. Even just 6 years of its existence, the company operates in more than
though the company’s pre-tax losses keep rising, sales keep 200 cities across 12 countries (Deliveroo, no date) and plans for
doubling, leading to a high value of 2.5 billion euros (BBC, many more to follow, including adding more restaurants to their
offering.
4 Resource-based strategy
What makes Deliveroo unique?

Strong Well-
Excellent Global Innovative
financial managed
Leadership presence ideas
position processes

Figure 9: Resource-based strategy

Source: based on Heffernan, 2018 15
 5 BCG Matrix
Food Delivery Portfolio
Stars Question
Marks
Looking at the BCG Matrix in Figure 10 it can High Market share Low
be seen, that Delivery Hero and Just Eat are
very close competitors to Deliveroo in the food
delivery market. While Uber Eats is another
close competitor within the European Market,
the main competitors are Delivery Hero, Just

Market Growth
Eat and Deliveroo ([Link],2018).
While market growth is high within the
Platform-to-consumer food delivery sector,
Delivery Hero and Just Eat have higher market
shares than competitors Deliveroo and Uber Cash Dogs
Eats. cows
The following analysis will therefore consider
Figure 10: BCG Matrix
these two companies and leading players in
the food delivery industry (Maida, 2017) as
Deliveroo’s competitors. Low

16
Source: based on Stone & River, 2017

17
6 Deliveroo’s Blue Ocean Strategy
6.1 Deliveroo Editions, Deliveroo+ and Artificial Intelligence

18
6 Deliveroo’s
Deliveroo BluetoOcean
managed Strategy
develop a Blue Ocean Strategy (Kim & and also to introduce new restaurants altogether. This saves
6.1 Deliveroo Editions, Deliveroo+ and Artificial Intelligence
Mauborgne, 2005) for the food delivery Industry. In an Industry restaurants the cost of high-street spaces and gives them the
where customers would either call a restaurant directly or order opportunity to have locations where the only focus is on
through a website that placed the order at the restaurant, deliveries (Iqbal, 2019).
Deliveroo identified a strategic gap in the market. By taking
Another unique idea is the implementation of Deliveroo Plus to
control over the entire order and delivery process, they crossed
increase customer retention. By introducing the subscription
industry boundaries and developed a unique concept that
service, which saves the customer from delivery charges per
quickly began to grow. With the use of and significant
order, the customer can pay a monthly or yearly fee to cover
investments in innovative algorithms and Artificial Intelligence,
these expenses (Cook, 2017).
the company has a unique position in the market. It helps the
company to cut down cost by shortening delivery times and
improving driver allocation as well as analysis where and what
type of restaurant to add to its portfolio. This also helped attract
investors who would usually invest in technology (Ghosh, 2018).

Aiming to keep this position Deliveroo introduced another

strategy to stay in this Blue Ocean: Deliveroo Editions. The
company uses these ”Dark Kitchens” to provide more customers
with restaurants that would otherwise not be available to them
Figure 11: Deliveroo Editions

19
6 Deliveroo’s Blue Ocean Strategy
6.2 Strategy Canvas

20
 6 Deliveroo’s Blue Ocean Strategy
Deliveroo competes in higher
6.2 Strategy Canvas
quality food delivery service high
compared to Just Eat and 10

Delivery Hero which leads to

Relative Offering Level

8
higher prices.
Just Eat has the slowest delivery 6
times whereas Deliveroo
4
performs better in this sector.

While Just Eat currently has a 2

larger portfolio of restaurants, 0

low
Deliveroo identified a strategic Price Delivery Availability Quality Variety
Times
gap with Deliveroo Editions
and gains an advantage here.

Figure 12: Strategy Canvas

Source: based on Kim & Mauborgne, 2005

21
6 Deliveroo’s Blue Ocean Strategy
6.3 Actions for Creating New Value Curve

Reduce
Delivery costs &
fees
 Deliveroo strives to improve their operations to
reduce cost. Deliveroo plus is a first step in
raising customer retention and further reducing
New Create
Eliminate fees for customers.
Value New (own)
Packaging waste Restaurants Furthermore Deliveroo creates new possibilities
Curve & Drivers with Deliveroo editions to create new or even
their own restaurants and thus offering a higher
variety of choices to customers and enlarging their
operating network.
Raise By introducing environmental friendly packaging
Number of Deliveroo aims to eliminate packaging waste.
Restaurants
& customer
retention
Figure 13: New Value Curve
19
Source: based on Kim & Mauborgne, 2005
7 Deliveroo, Just Eat and Delivery Hero KPI Analysis
7.1 Revenue

Figure 14 shows a comparison between the revenues of Revenue

Deliveroo, Just Eat and Delivery Hero between years 2015 and 600
2017. A strong increase in revenue can be seen for all three +145% +160%

companies over recent years. It should be noted, that the

500
currency for Deliveroo and Just Eat are in GBP, whereas the

In million GPB / Delivery Hero in €

currency for Delivery Hero is in EUR. Taking this into account,
400 +152%
Just Eat generates the highest revenue, followed by Delivery
+205%
Hero and Deliveroo.
300 +216%
546 544

376
341
+711% 277
248
166
129
18

20
7 Deliveroo, Just Eat and Delivery Hero KPI Analysis
However, looking at the growth we can clearly see that all three
7.1 Revenue
companies have very high growth rates. The significantly 200
highest growth can be seen for Deliveroo, which managed to
increase its revenue significantly at 711% from year 2015 to 100
2016 and is still looking at the highest growth rates for 2017.
Considering that Deliveroo first launched in 2013, it managed to 0
increase revenue very quickly and is closing the gap to its Deliveroo Just Eat Delivery Hero
competitors. 2015 2016 2017
Figure 14: Yearly Revenue

Source: Annual Reports Deliveroo, Just Eat and Delivery Hero, 2016, 2017

21
7 Deliveroo, Just Eat and Delivery Hero KPI Analysis
7.2 Profit/Loss

Profit/Loss
Figure 15 shows a comparison between the profits or losses of 91
100
Deliveroo, Just Eat and Delivery Hero between years 2015 and
50 35
2017. Even though all three companies are looking at high
revenues, all three companies booked losses in 2017. Especially 0
-247-202-336

In million GPB / Delivery Hero in €

Deliveroo and Delivery Hero have yet to write black numbers. -30
-50
Just Eat, which went public in the UK in 2014, was profitable in
-100 -76
recent years until 2017, where it invested a significant amount
in creating its own delivery service to take on new-delivery -150 -129

model competitors like Deliveroo (Ram, 2018).

-200 -184
Despite high losses, Delivery Hero went public in Germany in
-250
2017 (ZEIT Online, 2017). Like Just Eat, the company invested a
lot into growth, namely marketing, technology and -300
administration (ssu and dpa, 2017).
-350
7 Deliveroo,
Deliveroo Just
which Eatyet
is not and Delivery
a public Herocan
company KPIalso
Analysis
be seen to
7.2 Profit/Loss -400
increasingly invest significant amounts into growth, namely its Deliveroo Just Eat Delivery Hero
2015 2016 2017
Deliveroo editions restaurants, innovation, technology and Figure 15: Yearly Profit/Loss
people (BBC, 2018). Source: Annual Reports Deliveroo, Just Eat and Delivery Hero, 2016, 2017
7 Deliveroo, Just Eat and Delivery Hero KPI Analysis
7.3 Order Numbers – Industry Specific KPI
7 Deliveroo,
As Deliveroo isJust Eat and
a private Delivery
company, not Hero KPI Analysis
all information is public Order Volume
7.3 Order Numbers – Industry Specific KPI
record. This includes the exact number of orders. According to a 300 292
variety of sources however, it took the company less than 2
years to reach 10,000 weekly orders in London alone and it is
estimated that current daily orders in London are at 60,000 as 250

of 2017 (Shubber, 2017). This amounts to yearly orders of 22

million in London alone. Considering the company operates in 200
over 200 cities, it can be assumed that it will close the gap to its 172 171

In millions
competitors.
150 136
Nonetheless, Delivery Hero is looking at order numbers of
103
nearly 300 million per year with Just Eat following at about half 96
100
of this number at 172 Million as can be seen in Figure 16.

All three companies are looking at steadily increasing order

50
numbers as consumers switch to Platform-to-Consumer- 22
Delivery Services and overall food delivery numbers increase.
0
Deliveroo Just Eat Delivery Hero
2015 2016 2017
Figure 16: Number of orders per year
Source: Annual Reports Just Eat and Delivery Hero, 2016, 2017 and Shubber,2017
8 VRIO Analysis
8.1 Deliveroo

Competitive
Resources Valuable Rare Imitability Organisation
Advantage
Delivery Fleets Y N Y Y Competitive Parity
Sustained
Technology / AI Y Y Y Y Competitive
Advantage
Temporary
Deliveroo Plus Y Y N N Competitive
Advantage
Sustained
Deliveroo Editions Y Y Y Y Competitive
Advantage
8 VRIO
Figure Analysis
17: VRIO Analysis for Deliveroo
8.1 Deliveroo
Deliveroo has a clear sustained competitive advantage when it option of additional restaurants in areas they would usually not
comes to the elaborate algorithm and artificial intelligence that be able to offer them. Deliveroo’s subscription service Deliveroo
the company uses in order to improve delivery times and Plus poses as a temporary competitive advantage, as other new-
logistical distribution of drivers. It is a field where the company delivery businesses can catch up soon (Cook, 2017).
invests a lot in (caterlyst, 2017). Another sustained competitive
Their original competitive advantage of their own delivery fleets
advantage is the new business model of Deliveroo Editions,
is still not entirely common as it involves heavy costs for training
where new “dark kitchens” or “ghost kitchens” are a set up of
and wages (People Management, 2017). However, it still offers a
metal boxes and operate as a restaurant. This provides the
competitive parity while competitors adapt.
8 VRIO Analysis
8.2 Just Eat

Competitive
Resources Valuable Rare Imitability Organisation
Advantage
Temporary
Restaurant Network Y Y Y N Competitive
Advantage
Temporary
High revenues Y Y Y N Competitive
Advantage
Figure 18: VRIO Analysis for Just Eat

Just Eat has a temporary competitive Advantage with 29,520

Restaurants compared to 16,383 Restaurants listed at Deliveroo in
the UK alone as of December 2018 (Mattone, 2018). As
competition increases and other competitors changing their
operations like Deliveroo offering ”dark kitchen” models, this
advantage fades.
8 VRIOtemporary
Another Analysiscompetitive advantage that is influenced by
8.2 Just Eat
the high number of restaurant listings is the high revenues Just
Eat generates. Again, with increased competition this advantage
might disappear.
Figure 19: Coverage of Just Eat in the UK
Source: Mattone, 2018
8 VRIO Analysis
8.3 Delivery Hero

Competitive
Resources Valuable Rare Imitability Organisation
Advantage

Marketing Y N Y Y Competitive Parity

Sustained
Brand Portfolio Y Y Y Y Competitive
Advantage
8 VRIO
Figure Analysis
20: VRIO Analysis for Delivery Hero
8.3 Delivery Hero
Delivery Hero calls itself ‘United Nations of food delivery’
(Bochmann, 2018) which underlines its sustained competitive
advantage. The company counts 28 brands to its portfolio that
operate in over 40 countries and has partnerships with over
250,000 restaurants in five continents. Additionally adapting their
marketing campaigns to cultures gives Delivery Hero a
competitive parity as these customised marketing approaches
lead to five times higher customer retention (Salz, 2019).
Figure 21: Operating Countries Delivery Hero
Source: Delivery Hero, 2018
9 Future Prospects
9.1 Summary of findings – Current Issues
9 Future
Based Prospects
on the prior analysis in this report, the following issues The other legal issue concerns Deliveroo Editions and the ‘Dark
9.1 Summary of findings – Current Issues
can be summarised for Deliveroo: kitchens’. As Deliveroo found a strategic gap and quickly found a

The biggest issues that Deliveroo currently faces are of a legal way to set up these new restaurants, the company is now facing

nature. The company found itself under a lot of heat for workers legal problems if they wish to keep operating in these facilities.

rights as employees went on strikes and finally to court. In this Problems are the absence of planning permissions as well as

case the court ruled in favour of Deliveroo, letting them keep noise complaints from surrounding neighbours which the

their riders under a self-employed status (Farrell, 2018). company will need to address (Butler, 2017).

However, this does not change the outrage of employees

concerning low pay, holidays and insurance packages. Despite
first attempts from Deliveroo to resolve this issue, these are
issues the company will have to keep addressing. If the court
would not have ruled in their favour or if this case is brought
forward again and Deliveroo would have to employ all of their
drivers, this would lead to huge losses for the company and thus
leave them with fewer resources to invest in innovation (People
Management, 2017).
9 Future Prospects
9.2 Summary of findings – Future Prospects
9 Future
Based on Prospects
the prior analysis in this report, the following company client meetings or events as well as corporate
9.2 Summary of findings – Future Prospects
prospects can be summarised for Deliveroo: catering. Employees would then get an allowance and

1. Deliveroo is attempting to meet their riders needs by freedom to order through Deliveroo (Deliveroo, no date).

launching an income insurance policy in the case of a rider 4. Deliveroo recently launched its new subscription service
falling ill or getting injured (Moules, 2017). Deliveroo Plus. This gives customers the option to pay a

2. In an attempt to increase market shares, Deliveroo is looking monthly fee in order to avoid multiple fees per order placed.

at various options to expand Deliveroo Editions. One way is This is significantly convenient for regular customers but can

the launch of more sites, another is to launch of its ‘virtual ultimately lead to customer retention if they are indecisive

food market’ which gives customers the option to place on where the order should be placed (Shead, 2017).

orders from multiple restaurants at once. Another variation 5. In regards to the environmental issues of exceeding package
is Deliveroo’s first brick-and-mortar store, allowing for in- waste and recycling issues, Deliveroo is making 100,000
store as well as online store deliveries (Iqbal, 2019). biodegradable greaseproof paper inserts that are free of

3. Another prospect to increase market share is Deliveroo for charge to the restaurant partners (Graydon, 2018).

business. The company is offering offices to cater for

9 Future Prospects
9.3 Final Remarks

If Deliveroo manages to increase the number of Deliveroo Editions up to the point

that it creates their own food brands, they would become completely independent
from restaurants. This would give Deliveroo a unique market position.

Considering the current position of Deliveroo and looking at its competitors Just
Eat and Delivery Hero, it looks likely that Deliveroo becomes public in the near
future.
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