Deliveroo, to invest, or not?
Deliveroo Share Price is a British online food delivery company that was founded in 2013 by Will Shu, a former investment banker, and Greg Orlowski, a software developer. Shu came up with the idea for Deliveroo after moving to London from New York and being frustrated by the lack of quality food delivery options.
Initially, Deliveroo operated as a bicycle courier service, with Shu and Orlowski delivering food themselves. However, the company quickly expanded, raising its first funding round of £2.75 million in 2014 to expand its operations.
The company’s business model is based on partnering with restaurants and delivering their food to customers. The company’s algorithm optimizes delivery times and routes to ensure that food arrives quickly and in good condition. They also offer a subscription service called Deliveroo Plus, which provides customers with unlimited free deliveries for a monthly fee.
Deliveroo went public on the London Stock Exchange in March 2021 with an initial price of 390p per share, giving the company a market valuation of around £7.6 billion. However, the stock had a difficult start to trading, with shares falling as much as 30% on the first day of trading. The poor performance was attributed to concerns over the company’s business model, profitability, and worker rights.
ince then, the stock has continued to struggle, with shares trading well below the IPO price. As of September 2021, Deliveroo’s share price was around 270p, representing a decline of over 30% from the initial offer price. The company has faced continued criticism over its treatment of workers, including its classification of riders as independent contractors rather than employees. This has led to regulatory challenges and legal battles in several countries, which has put further pressure on the company’s stock price.
Who is Deliveroo?
Deliveroo is a British online food delivery company that was founded in 2013 by Will Shu and Greg Orlowski. Shu, who was then working as an investment banker, noticed that there were limited options for food delivery in London, particularly for high-quality restaurant food. He also saw that many restaurants did not have the resources to offer their own delivery services.
Shu decided to create a platform that would connect customers with restaurants and offer high-quality food delivery services. He partnered with Orlowski, a software developer, and together they launched Deliveroo in the UK.
Initially, Deliveroo only operated in the central London area, but it quickly expanded to other parts of the city and other cities across the UK. The company’s business model involves partnering with restaurants that do not have their own delivery infrastructure and offering delivery services to customers through a network of independent contractors, known as “riders.”
Deliveroo has since expanded to over 200 cities across 12 countries, including Australia, Belgium, France, Germany, Hong Kong, Ireland, Italy, Netherlands, Singapore, Spain, Taiwan, and the United Arab Emirates. The company has also expanded beyond restaurant delivery, offering services such as grocery and alcohol delivery.
Deliveroo’s Main Competitors
Deliveroo’s main competitors in the food delivery industry vary by region, but here are some of the major players:
- Uber Eats
- Uber Eats is a global food delivery platform that operates in over 45 countries. It was launched in 2014 and has grown rapidly, becoming one of Deliveroo’s main competitors.
- Just Eat
- Just Eat is a UK-based online food delivery service that operates in 24 countries. It was founded in 2001 and has grown through mergers and acquisitions, becoming a major player in the food delivery market.
- Grubhub
- Grubhub is an American online and mobile food ordering and delivery platform that serves over 4,000 US cities. It was founded in 2004 and has grown through mergers and acquisitions, including its merger with Seamless in 2013.
- DoorDash
- DoorDash is an American food delivery platform that operates in the US, Canada, and Australia. It was founded in 2013 and has grown rapidly, becoming one of the top players in the US market.
- Postmates
- Postmates is an American delivery platform that delivers a variety of goods, including food, groceries, and alcohol. It was founded in 2011 and acquired by Uber in 2020.
- Glovo
- Glovo is a Spanish delivery platform that operates in over 20 countries in Europe, South America, and Africa. It was founded in 2015 and offers food delivery, as well as delivery for other products and services.
Investing in Deliveroo could potentially offer several advantages. First, the exposure to the growing food delivery market. The food delivery market is rapidly growing, and investing in Deliveroo could give you exposure to this trend. Due to the pandemic more people are staying at home. This has increased the demand for convenience. The food delivery market is expected to continue to grow in the coming years.
Second, strong brand recognition. Deliveroo is a well-known brand in the food delivery industry, with a presence in over 12 countries. Likewise, this gives it a strong competitive advantage and makes it well-positioned to capture market share as the industry continues to grow. Next, innovative technology. Deliveroo has invested heavily in technology, developing its own delivery algorithm to optimize delivery times and increase efficiency. This has helped it to differentiate itself from competitors and build a loyal customer base.
Additionally, experienced management team. Deliveroo’s management team has a proven track record of growing successful businesses. CEO Will Shu, for example, was a former investment banker and has led the company through its rapid expansion.
Lastly, potential for high returns. As with any investment, there is the potential for high returns if Deliveroo continues to grow and succeed in the food delivery market. However, it’s important to keep in mind that there are also risks involved, and investing always carries the possibility of loss.
