Deliveroo targets huge growth in UK delivery market

Artur Stańczuk

November 3, 2024

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restaurantonline.co.uk

Summary:

Deliveroo, with 160K partners in ten markets, is driving major growth and innovation. At its Food Forward event, Deliveroo unveiled its strategy with three key pillars: building trust, expanding delivery occasions, and empowering partners. According to Kantar data, only 2% of the UK's 50B annual food occasions are takeaways, showing vast room for growth. Deliveroo aims to expand its active user base, which currently places 300M orders annually. By 2026, Deliveroo plans for more users to join its Plus loyalty program, which already accounts for 40% of orders. Technologies like AI-powered support and a Hub Manager app aim to improve customer experience and partner support.

Deep Dive:

🚴 A Vision for Market Growth

📈 Building Customer Trust

📅 Expanding Delivery Occasions

📲 Empowering Partners with Tools

🚴 A Vision for Market Growth

Deliveroo, with 160,000 partners worldwide, is set on transforming the global food delivery market. At the Food Forward event, chief business officer Carlo Mocci noted that, in the UK, only 2% of in-home food consumption is from takeaways. This reveals a huge opportunity for expansion, and Deliveroo’s three-part strategy is aimed at capturing this potential. Mocci emphasized, “There’s no magic formula for success, but we believe that focusing on the small things every day adds up to a big impact.”

📈 Building Customer Trust

The first pillar, building trust, targets customer satisfaction through expanded delivery zones, technology-driven issue resolution, and the new Value Programme. This program helps customers identify restaurants that offer excellent experiences at fair prices, which improves order frequency and loyalty. Deliveroo also uses generative AI to enhance customer service, making support faster and more personalized.

📅 Expanding Delivery Occasions

Deliveroo is also focused on boosting delivery frequency by expanding grocery and retail offerings. Grocery delivery now represents 14% of its total sales. Additionally, Deliveroo’s Plus program has evolved into a loyalty program, with Plus subscribers now placing 40% of all orders. These members are more likely to try new restaurants and place three times as many orders as other customers, driving higher order volumes for restaurants.

📲 Empowering Partners with Tools

To further support its partners, Deliveroo has launched a Hub Manager app, allowing partners to track orders, view performance metrics, and access support from any mobile device. Mocci explained, “We’re here to work with the best restaurants, grocers, and retailers to accelerate their growth and support them to succeed in our marketplace.” With dedicated account managers and the new app, Deliveroo aims to create a robust partner ecosystem that helps everyone thrive.

Is Deliveroo’s 2% UK market goal achievable?