Deliveroo Business Model, How It Works & Revenue Model

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Deliveroo Business Model, How It Works Revenue
Model
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• All happiness depends on a leisurely breakfast.
  Now, that is a great way to start the day.
  Wouldnt you agree? According to studies,
  skipping breakfast can harm mood and energy
  levels. Not to sound grim, but skipping breakfast
  is also believed to cause psychosocial problems,
  another reason you should think twice before
  missing out on your meals. In our everyday
  attempts at expediting our routines, it is only
  imminent that we barely find time to cook a
  proper meal. In such instances, the on-demand
  food delivery system is all that is needed.
  Deliveroo, headquartered in London, is one such
  on-demand food delivery system founded in 2013
  that caters to the needs of its customers by
  promptly delivering food to their doorsteps. With
  its reliable services, Deliveroo business model
  has seen rapid growth.
• Deliveroo is now operational across countries
  such as France, Spain, Italy, Ireland, Hong Kong,
  Singapore, and Australia.

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Deliveroo Business Model

• Deliveroo works on delivering customers their
  favorite food from the restaurants listed on its
  platform. Deliveroo helps restaurants be more
  available to their customer base.
• In less than a decade into business, Deliveroo
  has garnered a 22 market share in the UK.
  Deliveroo delivers food to users ordering on the
  Deliveroo app or website. The Deliveroo app is
  available on Android and iOS.
• Deliveroo intends to ensure efficient delivery.
  The delivery radius is limited to achieve
  efficiency. The key stakeholders of the Deliveroo
  business model are customers, restaurants, and
  riders.

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• Restaurant Partners
• Restaurants may be unable to reach a large
  customer base due to their inability to provide
  delivery services. In such cases, partnering with
  Deliveroo helps them gain an audience.
  Restaurants partnering with Deliveroo have
  witnessed significant growth, which has led
  Deliveroo to work with 50,000 restaurant
  partners.
• Deliveroo incorporates ways to position the
  restaurants they partner with better than the
  other restaurants.
• Brand Promotion
• Deliveroo engages in promoting restaurants so
  that their visibility increases. Thereby directly
  helping them expand their reach.

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POS Integration Deliveroo enables restaurants to
connect their menus with the POS (Point of Sale)
system. Staff wont have to enter the order
manually as the POS integration allows orders to
be received directly. Support and Insights The
support and insights provided by Deliveroo
promote and grow businesses, help them acquire
new customers, and increase sales. Service Deliver
oo uses an algorithm called Frank that powers
every order. Deliveroo uses this algorithm to
improve efficiency in delivering orders based on
the location of restaurants, riders, and
customers.
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Delivery Partners
Deliveroos commitment to prioritizing the safety
and well-being of its riders has attracted about
50,000 self-employed riders working for them
today. Some of the factors that may have
influenced riders in choosing Deliveroo over the
other food delivery platforms are
Insurance
Deliveroos decision to offer insurance to its
riders has given it a competitive edge over the
others in the business. This move has helped
Deliveroo retain its riders. Close to 45000
riders are covered.


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Flexibility
Deliveroo ensures flexibility to its riders when
it comes to their working hours. Deliveroo riders
are free to choose when and where they wish to
work. Riders getting to decide their shift
timings has proved to be well received.
Other Benefits
Not only does Deliveroo provide free insurance
for its riders but also road safety training.
Deliveroo exemplifies its inclination toward
riders welfare by introducing contact-free
delivery in the wake of the pandemic and running
regular road safety campaigns.
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How does Deliveroo business work?
With the help of an on-demand food delivery
application like Deliveroo, food ordering and
delivery are made relatively simple. Once the
users make orders on the Deliveroo app or
website, Deliveroo delivers food from restaurants
to customers through its riders. The following
are the steps involved in ordering from the
Deliveroo app
Users can browse through the restaurants enlisted
on the Deliveroo app after signing up and
navigate through the menus to select the food
from the outlet that interests them. Deliveroo
only accepts card payments to create a safer
working environment for its riders.
The outlet that the customer has ordered from
receives a notification. After this, the outlet
works on getting the food prepared and ready for
delivery.
The restaurant confirms the order depending on
the availability. Deliveroos riders stationed
near the restaurant then receive notifications.
Riders collect the food from restaurants and
deliver them to the customers at their doorstep
without compromising the quality.
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Deliveroos Revenue model
Deliveroos annual income has seen a considerable
increase since its inception. Deliveroo increased
its revenues by 56 in 2021 to 1.8 billion. It
has managed to double its revenue in the past
three years. Deliveroos revenue stream includes
commission fees, delivery fees, service fees,
small order fees, and Deliveroo Plus.
Commission fee
Deliveroo charges a commission from restaurants
for orders made through the Deliveroo app. The
commission depends upon the location of the
restaurant. Deliveroo is said to charge a
commission fee of anywhere between 25 and 45.
Delivery fee
One of the ways by which online food delivery
systems like Deliveroo make money is through
delivery fees. For each delivery, Deliveroo
charges its users.

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• Service fee
• Deliveroo also charges a service fee to provide a
  great customer experience by adding new features.
  
• Deliveroo Plus
• Deliveroo Plus is Deliveroos subscription
  membership plan. Members get to enjoy exclusive
  offers which are not available to other
  customers.
• Bottom Line
• Today Deliveroo is active in more than 200 cities
  globally. With its commitment to offering
  reliable services, Deliveroo has managed to make
  a name for itself. Having been Deliveroos first
  rider, the founder, Will Shu, started with just
  three restaurants to provide its users with the
  best food delivery experience, and today has seen
  phenomenal growth, partnering with 50,000
  restaurants.

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