According to co-founder and chief executive of one of the biggest food delivery companies, people are engaging in their droves, across the globe, to have their desired take-aways and ready to eat meals delivered on demand.
Will Shu, of Deliveroo, said,
“Deliveroo is growing rapidly around the world, driven by our passion to bring amazing food to people whenever and wherever they want it. Our growth is matched only by our ambition. We want to become the world’s definitive food company and we have invested in innovation, technology, people and restaurants. We are changing the way people eat and helping restaurants to expand to new areas in new ways.”
Deliveroo also says it is becoming more environmentally friendly, cutting the use of plastics.
The company says It now works with 50,000 restaurants and 50, bikes in 500 towns and cities.
It has also spent £10million to give riders accident and liability insurance.
However, the overall group losses grew to £187 m in 2017 up from £129 million the year before. The company said this is because it is investing in the future. Although profits fell margins soared from 1% to 23% and global sales jumped 116% to £277 million in the year to last December showing future profits are highly likely.
Deliveroo have competition in the industry from UberEATs, another rider based delivery system. Recent talk has speculated that Uber is going to make a bid to buy out Deliveroo.
However, both companies are currently keeping quiet, but numerous sources have confirmed that Uber has made an early stage approach to acquire Deliveroo since being first reported by Bloomberg.
Although attention is on a possible merger there is growing expectation that Uber could look to make a sizeable investment and partner with Deliveroo rather than buy-up the whole company – and that is partly down to price.
So how much is Deliveroo worth? It has grown substantially since being founded in 2013, with its latest fundraising last year valuing the business at $2 billion. However, it is important to remember that Deliveroo is not up for sale and that it would demand a significant premium should it consider any offer.
Multiple reports have emerged implying Deliveroo’s management and existing shareholders who invested last year – would hold out for a price of no less than $4 billion. A hefty sum for Uber, which is one of so many companies attracting investor interest despite still being deep in the red.
Uber’s main market is in the US, where UberEATs is the fastest growing company in the sector but still far behind much larger competition like GrubHub.
Deliveroo may have no presence in the US but it does have the operations to help complete UberEATs’ European jigsaw. While UberEATs is in the likes of the UK, France, the Netherlands, Poland and Belgium, Deliveroo offers additional territories including Germany, Ireland, Spain and Italy.
Uber chief executive, Dara Khosrowshahi, has put UberEATs at the top of his growth agenda, and the head of the delivery service at a global level, Jason Droege, told the Financial Times in March that Europe was ‘super important’ to the company’s ambitions.