The Next Move For Food Delivery

Deliveroo is now valued at $2 billion

November 6, 2017

Current plans are to push out an interesting food delivery strategy to more cities around the globe. It's called "Deliveroo Editions" and here's how it works: Deliveroo builds its own kitchen facilities, and then it invites local restaurants to operate a station on those premises, food can then be delivered quickly from that location.

This offers a low-risk way to bring new businesses, people who might not have an existing restaurant, to a new market. 

Restaurant owners who work in Deliveroo's takeout kitchen save significantly on overheads and benefit from the firm's "social media, IT and marketing specialization, that would be a huge cost for any one restaurant to bear."

London-based Deliveroo conveys the consumer data findings to "Editions" restaurant owners, who can then create new offerings in a more informed way, according to the company. Deliveroo currently operates in about 140 cities globally.   

Here’s a look at the industry: 

New Yorkers and people in Chicago are most likely to get their takeout from GrubHub. Chances are DoorDash will fork over your food in San Jose and Fort Worth. In Charlotte, N.C., and Los Angeles Postmates is most likely to bring home the bacon (cheeseburger). 

GrubHub, which includes Seamless, has the greatest overall market share and is the most popular takeout delivery platform in nine major cities, according to August data for the 22 most populous cities in the U.S. Grubhub’s marketshare is likely to increase after GrubHub’s recent acquisition of Eat24, Yelp’s delivery platform. 

DoorDash, forexample, specializes in partnerships with nationwide chain restaurants that are often more difficult to secure but allow for more volume with fewer partners. 

UberEATS, which launched in several cities last year and is now profitable in 27 of 108 cities worldwide, has the benefit of existing driver networks around the country from its parent company Uber. 

Caviar has the biggest market share in the highly competitive and tech-forward San Francisco.   

And then there is the cost…WalletHub has released its list of the best and cheapest local foodie scenes and compared more than 180 of the largest U.S. cities across 24 key metrics.  Who is the top foodie city in America? It’s San Francisco who also has the most cooking schools per square root of its population.

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