Deliveroo’s Post

I recently received an email from Deliveroo, stating: "Some of our partners are further away, and our riders need to go the extra mile to get these orders to you. For these deliveries, we will now be charging all of our customers a small extended delivery fee, so these ‘long distance’ orders will no longer be eligible for free delivery. This fee will be discounted, exclusively for Plus customers, so you’ll pay less than other Deliveroo customers and you’ll also save on service fees as normal." This prompted me to reach out to Deliveroo and ask the exact definition of 'long distance' - is it 5 miles, 2 miles, 1 mile, 1 foot, 1 inch??? After several back and forth messages, where the above was just re-quoted and I was treated with disrespect, like an idiot, I still have no definitive answer. I admitted to them that I can see why they are doing it but I still want to know their definition of 'long distance'. I did get a response that it would show up in the ordering process, to which I responded that there must, then, be defined parameters for the system to know when to charge this fee. The only response to this was that "We will not be able to respond to any further correspondence on this matter". This is how companies treat us and how our custom and loyalty is rewarded!

𝗙𝗹𝗮𝘀𝗵 𝗜𝗻𝘀𝗶𝗴𝗵𝘁 ⚡ Last week's Financial Times article 'Delivery Hero exits Deliveroo as takeaway demand wanes' https://lnkd.in/ehyRdJwB might not have told the whole story. Whilst the article states “consumer demand for takeaways has dwindled since the highs of a pandemic boom”, Fable's data on UK consumer spend instead suggests a healthy UK takeaway that has rebounded since August 2022. As a category, aggregators such as Deliveroo, Uber Eats and Just Eat are defending their market share. However, Deliveroo has been ceding market share to Uber Eats and recent data calls into question whether Just Eat could be next. 👉 Get in touch if you'd like further details on UK or European consumer behavior https://lnkd.in/eK9u9bEu

Here are the key metrics you need to know if you want to lose money delivering meals, groceries and whatnots (as reported by Deliveroo last week, worldwide for 2023): Average order value: £24.33 Gross profit per order: £2.50 (Gross margin: 10.8%) LESS … Sales & Marketing costs per order: £0.64 Staff costs per order: £1.05 Other Admin costs per order: £0.96 Hence operating ‘profit’ per order: -£0.15 Yup, Deliveroo loses 15p on every order. And that’s before all the ‘below the line’ stuff. For UK&I alone, the average order value and GP per order are higher (£26.22 and £2.87 respectively) but the gross margin is about the same (10.9%). By the way, Deliveroo’s 2023 results are improving year by year. They are now a whisker away from finally turning a net profit (by ‘whisker’ I mean an £18.5m net loss on revenues of £2.03bn vs £294.1m net loss on revenues of £1.97bn in 2022). Deliveroo cofounder & CEO William S. (Will Shu) seems to have placed some fruitful bets over the past couple of years expanding Deliveroo’s services, such as delivering from supermarket chains such as Waitrose & Partners, Co-op, Sainsbury's and Morrisons. And as of last November, Deliveroo now services high-street and local retailers from Ann Summers to Screwfix (please spare me the comments). So my question is, why should UK ‘on demand’ delivery startups be able to do any better, especially at much smaller scale? #ondemanddelivery #fooddelivery #grocerydelivery

Deliveroo Reports Order Growth in Q1 2024 Deliveroo makes a return to order growth for the first quarter of 2024 with a 2% increase in delivery orders compared to the same time last year. This growth is driven by Deliveroo’s strong progress in international markets, particularly in France, the United Arab Emirates, and Hongkong, and continued strength in Italy. While orders from overseas markets went up by 4%, the number of orders in the UK and Ireland stayed flat. Chief Executive Officer Will Shu acknowledges that the current market in the UK and Ireland is “stable but uncertain.” However, he says Deliveroo is aiming to build a strong foundation for the future by focusing on offering fair prices and making sure customers have a smooth experience when they order food. Overall, Deliveroo's return to growth is a positive sign for the food delivery industry and the company’s international expansion strategy seems to be paying off with its strong growth observed in these new markets. #Deliveroo #fooddelivery #deliveryriders #businessnews

Profitable Q3 for Deliveroo Deliveroo has released its Q3 financial results, with a 7% increase in revenue, climbing from £277m this time last year  to £297m. GTV also saw a 3% rise reaching £1.64 billion, with an average increase of 4-5% per order. The primary drivers of this growth were robust sales in the UK and Ireland, where revenue surged by 7%. In contrast, Deliveroo's smaller international markets, including France, Belgium, Italy, Singapore, Hong Kong, Kuwait, Qatar, and the UAE, experienced a 7% drop in revenue. Looking ahead to the entire fiscal year, the company projects that adjusted EBITDA will fall within the range of £60-80 million. Notably, Deliveroo did not disclose specific profitability figures for the quarter. However, Will Shu expressed confidence in the company's capacity to drive growth and achieve its goals in terms of profitability and sustainable cash flow generation. With a platform comprising 183,000 restaurants and 20,000 grocery sites. Its GTV in the UK and Ireland for the quarter accounted for 61.5% of the performance achieved by Just Eat Takeaway.com in those same markets, although Deliveroo's sales are steadily gaining ground on its larger competitor. https://lnkd.in/e96gbCec

Is Deliveroo Still Losing Money? Nope. After years of losing money, all 3 European delivery aggregators are to report a profit in 2023. ➫ Deliveroo in the UK anticipate £60-80 million adjusted EBITDA  ➫ Just Eat recently indicated adjusted EBITDA to exceed €320 million.  ➫ Germany's Delivery Hero anticipates adjusted EBITDA margins 0.5%. What has changed? IMO, they start to understand delivery metrics: 1. Increased basket size 2. Targeted marketing  3. Drivers efficiency What about restaurant partners? How does this turn of tables affect you? 💡 Increased basket size = more fees to pay 💡 Restaurant using marketing tools = lower margins for you 💡 Drivers efficiency = drivers taking 2-3 deliveries means cold food Time to re-think your delivery strategy! Getting in a driving seat and driving your own deliveries is the only way. —————————————————————— ———————————————— I’m Edin. In real life, I am an entrepreneur like you. With the experience of starting and exiting my businesses. I help food & bev founders grow businesses AND personal brand on LinkedIn  DM me to get the ball rolling.

Have you ever been deep in conversation with a friend or work colleague, and you've suddenly felt the urge to send them a gift to lift their spirits, celebrate, or say sorry? But in your brain you hit the same recurring roadblock that stops you dead in your tracks. You don't have their address and asking would ruin the surprise and kill the moment. With thoughtful gifting on the increase, Deliveroo are partnering with local retailers and offering a nationwide gifting service. In as little as 20 minutes ⌚, they can deliver 🚚 a range of bespoke gifts, or food items, directly to the recipients doorstep. But that's only one half of the 'spontaneous gifting' conundrum. How do you get the recipients address without losing the element of surprise? Download Dustid's intelligent address book, share and connect with your tribe of friends 👨👨👧 and work colleagues and always have their address details at your fingertips. #logistics #gifting #AddressBook #surprise

Did you know each month, we'll be entering anyone who leaves us a review into a draw to win a Deliveroo voucher? 🎉 If you've recently used our services, please take a few minutes to leave us a review on Trustpilot 👉 https://bit.ly/3OLcUkY. Not only does this give you a chance to enjoy a tasty meal on us, but it also helps us improve our services to better meet your needs. We appreciate your feedback and can't wait to hear from you! #customerfeedback #reviewincentive #trustpilot #deliveroovoucher #customerservice #appreciation

Your MVP is probably too big. Which of these would you do if Deliveroo didn't exist and you wanted to test a new food-delivery service from scratch? - spend £millions building a marketplace platform to track individual drivers and restaurants with huge menu systems and intricate ordering options, manage payments/refunds/deposits online, with a map/navigation solution built-in - build a simple form where people can send their orders to you for local restaurants, stick a tablet in a local restaurant to send orders to, and deliver orders for them Deliveroo's first delivery driver was the bloke who started the company. ❌ An MVP isn't "All the stuff that I want to build". Your MVP is "The smallest thing I should build to learn whether my idea works". To *really* get to the root of what your MVP should include, you should probably: ✅ Define, really well, the problem you want to solve (and make sure it actually needs solving) ✅ Work out your hypothesis for your solution ✅ Come up with the least amount of work you can to see if you can solve the problem Go small, learn as much as you can.

📣 Deliveroo Pivots Strategy to Enhance Value Proposition Exciting developments from #Deliveroo as they dial up their focus on improving value perceptions! Key takeaways: 🔹 A shift towards more targeted promotions to enhance customer value perceptions. 🔹 Emphasis on value in their TV, digital, and print media campaigns, as noted by CEO Will Shu. 🔹 Initiatives arose due to inflationary impacts and a dip in NPS scores. 🔹 A marked focus on refining the customer experience post-order for better retention and growth. 🔹 Financial Update: Deliveroo narrowed losses by 46% YoY and witnessed a 23% YoY gross profit rise. 🔹 The firm is also making headway in its advertising business, allowing brands to advertise within the app. Kudos to Deliveroo for their agile response to market dynamics. As the economic landscape evolves, it's great to see brands adapting and refining their strategies for customer-centric growth! 🚀 #Marketing #BusinessUpdate #EconomicTrends #FoodDeliveryIndustry https://lnkd.in/eJYDnQF2