You must have often ordered food from Dominos, Pizza Hut or from a famous burger joint. But what if you wanted to order something you like from a local restaurant that does not deliver? You would have actually had to take the efforts to go out and pick it up yourself. Well, not anymore. The kangaroo will bring the food to you. What do I mean? Cyclists with the kangaroo logo on their backpack as shown in the pictures below, must be familiar sight if you are in the city or the inner suburbs of South Bank or Hawthorn.
Who are they? These are the riders that work with “Deliveroo”, a food delivery start-up. This start-up has created its own network of delivery riders serving both, restaurants that already deliver food and those that don’t (Ashworth 2016).
‘A well-researched and organized business plan includes an analysis of the critical needs of your potential customers and the degree to which those needs are currently being met by other firms in the market’ (Wenzel 2012, p.5). Deliveroo was the first of the lot to identify the need of delivering food from local restaurants that don’t deliver. Their business model was significantly different from its European competitors like Just Eat and Hungry House that are tied up with those restaurants that already do deliveries. Their business plan attracted investors and also welcomed competitors like Foodora with a similar business plan.
The initial phase of their business research involved exploring local restaurants with a fairly good footfall and serving good food. While they did this, they also got freelance cyclists and riders to sign up with them. These riders, ‘also known as Roomen or Roowomen’ are the face of this company (Ang 2016). They play a crucial role in the operations. For this reason, it is important to conduct a distinct market analysis for them. Since these are freelance riders, it is necessary to understand their availability and the ability to perform the delivery role. With their promise to deliver food within the average stipulated time of ‘32 minutes, with 24 minutes of those representing kitchen prep time’, choosing the riders and tracking their ride becomes the most crucial task (Chapman 2015).
How is Deliveroo able to do that? Deliveroo has designed a very clever application that allows both, the operations team and the customers to track the rider on field using GPS. How is this helpful to both? Well, for the customer’s it helps provide live status of the food. They know exactly when their food is going to arrive. For the operations team, it provides data like time taken to deliver the food, the route used by the rider and the total time that the rider has been online. Moreover, the operations team can also fetch data regarding when the customers use the application the most during the week and at what time. This data is then used to allocate riders to specific zones at specific times to match the demand. Since these riders are freelancers, the data also helps the company determine the appropriate pay rate for these riders. For instance, motorcycle riders are paid more than the cyclists since they are quick in delivering food and motorcycles as such require high maintenance.
What more can they do? Certain tweaks in their phone application that allows customers to log in to the app using their Facebook or E-mail accounts and then using analysis of user activity to provide recommendations via notifications on the application, will allow Deliveroo to coherently understand the user’s requirements.
Deliveroo is growing rapidly since its inception. It has expanded its operations to different countries through the huge funds they have received. The only way they will be able to deliver returns to their investors is by cleverly using the data they collect through their phone application.
Ang, D 2016, Deliveroo Singapore – I Am A Convert To This Premium Food Delivery Service, [online] Notey. Available at: http://www.notey.com/@danielfooddiary_unofficial/external/7461390/deliveroo-singapore-%E2%80%93-i-am-a-convert-to-this-premium-food-delivery-service.html, accessed 13 Apr. 2016.
Ashworth, P 2016, Deliveroo has disrupted the market, now what?, [online] LinkedIn. Available at: https://www.linkedin.com, accessed 11 Apr. 2016.
Chapman, L 2016, Food-Delivery Startup Deliveroo Picks Up $25 Million in Series B Funding, [online] WSJ. Available at: http://blogs.wsj.com/venturecapital/2015/01/29/food-delivery-startup-deliveroo-picks-up-25-million-in-series-b-funding, accessed 13 Apr. 2016.
Wenzel, AM 2012, The Entrepreneur’s Guide To Market Research, Santa Barbara, Calif: Praeger, eBook Collection (EBSCOhost), EBSCOhost, viewed 18 April 2016.
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