Introduction
Deliveroo, the UK-based food delivery company, has recently announced that it has raised £223.7m in a funding round led by existing investors Durable Capital Partners and Fidelity. The funding will be used to further expand the company’s delivery-only kitchens, Editions, and to develop new technology that will improve its service. The company has also announced that it will be expanding its grocery delivery service by £100m.
Expansion of Grocery Delivery Service
Deliveroo’s grocery delivery service, launched in March 2020, has seen a significant increase in demand due to the COVID-19 pandemic. The service allows customers to order groceries from local shops and supermarkets for delivery within 30 minutes. Deliveroo has now announced that it will be expanding the service by £100m, allowing it to reach more customers across the UK.
The expansion of the grocery delivery service will be done in partnership with Co-op, the UK’s fifth-largest food retailer. Deliveroo will offer a range of Co-op products, including fresh produce, canned goods, and household essentials, to customers in cities such as London, Bristol, and Manchester.
Expansion of Delivery-Only Kitchens
Deliveroo’s delivery-only kitchens, Editions, have become increasingly popular in recent years. The kitchens allow restaurants to expand their reach without the need for a physical location, and they allow Deliveroo to offer a wider range of cuisine to its customers. The funding from the recent funding round will be used to expand the Editions network and to develop new technology that will improve the service.
Deliveroo has stated that it plans to open 30 new delivery-only kitchens in the UK by the end of 2021, with a focus on areas that have been hit hard by the pandemic. The company has also announced that it will be working with independent restaurants to help them set up delivery-only kitchens, allowing them to expand their reach and increase their revenue.
Conclusion
Deliveroo’s recent funding round and expansion plans have highlighted the company’s commitment to improving its service and expanding its reach. The expansion of the grocery delivery service will allow Deliveroo to reach more customers across the UK, while the expansion of the Editions network will allow the company to offer a wider range of cuisine to its customers. The company’s focus on helping independent restaurants set up delivery-only kitchens is also a positive step, as it will allow these businesses to expand their reach and increase their revenue in a challenging economic climate. Overall, Deliveroo’s plans for expansion show that it is committed to innovation and growth, even in the face of difficult market conditions.