Case Analysis Of Deliveroo

BACKGROUND: Deliveroo is a British online food delivery company that operates in the UK, the Netherlands, France, Germany, Belgium, Ireland, Spain, Italy, Dubai, Australia, Singapore & Hong Kong. It was founded by two childhood friends Will Shu, who has a background in finance, and developer Greg Orlowsk in 2013. This unique idea arose to founder, Will Shu, when he moved from New York City to London to work as an investment banker and was dissatisfied by the food delivery options. He witnessed that customer’s choice was limited only to restaurants that already provide a takeaway service. Thereby, he analyzed the opportunity to exploit the niche market by creating partnerships with higher-end restaurants. Together, they established own network

The logistical innovation and back-end sophistication has opened delivery options for many chains and restaurants that haven’t offered delivery before. Figure 1 illustrates the disruption of food delivery industry from focus on Grocery stores and delivery to meal deliveries. Deliveroo focus on Meal deliveries and it follows niche market strategy. It has created a competitive advantage through differentiation by providing logistic service as quoted below. “While Deliveroo does deliver food to the home, according to Leonard Picardo, Director of Marketing and Corporate Relations, Deliveroo is going after a very different market from that of Just Eat and Delivery Hero. “The restaurants that they work with are limited to those who have their own delivery logistics,” he says — a fraction of the restaurant sector.” Figure 1: The disruption of Food delivery

And higher value proposition for consumers than the peers leads to a purchase. The company creates accessibility enabling consumers to receive food delivery from restaurants that do not offer such a service on their own, particularly premium restaurants. It also increases access for restaurants, connecting them with customers who do not want to come to the venue. The company offers convenience by making its service easy for customers to use. Once consumers place their order on its website, food delivery takes an average of 32 minutes. Convenience is offered to restaurants by providing them with an established delivery service and drivers. The company offers a price value proposition. It charges consumers a flat, low fee of £2.50 for delivery. In addition, if they refer a friend who completes an order, they can receive free credit towards a meal. The company reduces risk by using packaging for food that maintains its temperature if possible. Moreover, if a customer is not at the destination when the delivery person arrives, the driver will wait for up to 10 minutes before