Annual growth of 25% and a net worth of over $1billion in just 3 years, impossible for a start-up business I hear you cry! Yet Deliveroo with a presence in over 60 countries and an army of 5000 cyclists, has achieved the impossible. The seemingly straightforward concept of ordering high quality food straight to our doorstep has got us Wagamama loving students obsessed with the new fast food app. Let’s face it, lying in the comfort of our Headingley abodes watching an entire series of Prison Break with a ‘cheeky Nandos’ by our side is much more appealing than taking the time and effort to actually eat out!
So how did Founder, William Shu achieve such quick growth?
Talking about his experience with Just Eat upon moving to London, he stated ‘I didn’t recognize any of the restaurants that were listed; they were places like Chang’s Express or House of Kebabs so obviously culinary masters. I had no idea when the food was going to show up except that it generally took a long time. Although the ordering process was much easier, it was not a great customer experience.’
So back in 2013 identifying the demand in the market for quality, quick delivery food, Shu and his best mate (who is conveiently a software developer) came up with the concept of Deliveroo. It connects us to higher end restaurants such as Carluccios by taking a small commission from the restaurants. The reason why more and more eateries are so enticed to become part of the Deliveroo brand is how hassle-free the service is for them. Deliveroo have their own courier fleet of ‘Roomen’ cyclists prepared at any given time to connect the food to the customer (well until 11pm).
Another smart reasoning behind the cyclists is that it allows for timing precision of estimated delivery. At the end of the day, it’s much easier to predict a journey by bike over that of a car trying to manoeuvre through the cryptic traffic light system of Leeds.
The future for Deliveroo?
Deliveroo looks set for further expansion and global domination since the business model has been fully embraced in even more European cities such as Paris. The founder is said to be ‘open to the prospect of one day using automated fleets of self-driving drones or delivery robots.’ So Leeds, do not be alarmed if you spot gourmet burgers flying around The Headrow anytime soon.
By Zoe Allison