Deliveroo to invest in restaurant technology after raising $70m
The funding, raised by Greenoaks Capital and Index Ventures with participation from Accel and Hoxton Ventures, will be partly used to improve technology for the company’s restaurant partners.
Over 2,000 operators are currently signed up to the platform, including Michelin-starred Trishna, Busaba Eathai, Gourmet Burger Kitchen, MEATLiquor and Wagamama.
Dan Warne, UK managing director at Deliveroo, told BigHospitality the restaurant industry would see a number of changes implemented by the end of the year.
"We want to improve visibility for restaurants to see how their site is performing in comparison to others, and to give them greater control on how customers order," he said.
The platform currently operates in 18 cities around the UK and will be using the funding to expand in targeted areas.
“If top restaurants don’t operate in certain cities then unfortunately we can’t operate there," said Warne.
"By the end of the year we aim to be in all cities that have a strong restaurant supply.”
Deliveroo will also begin a wider UK marketing campaign focused on boosting the number of orders restaurants receive.
“For our newer markets, such as Southampton, they are going to see a rise in orders over time as we spend an increased amount of money ensuring that we have a very strong customer base to service them,” said Warne.
The company is also continually working to reduce it's average delivery time - which currently stands at 31 minutes.
Future potential
Restaurant delivery platforms are attracting strong investor interest, with Deliveroo receiving an additional $25m in funding in January this year.
Mark Edwards, consumer markets partner at accountancy firm BDO, predicts that a number of competing operators are likely to enter the market within the next two years.
“Technology-led restaurant delivery offerings are gaining significant followers – not just in terms of order numbers but also investment potential," he said.
“While this could become a congested market very quickly, there are likely to be a range of new entrants over the next 12-18 months and there will be potential for high returns in the short term as the market matures.”
