Background Information on Deliveroo

Discuss about the Fresh Food Sustainable Distribution And Cost.

It is the report that focuses on the company called Deliveroo. Deliveroo is the web based business that serves the customers with online food delivering service. The business is based at London and delivers a great quality of food from some of the local restaurants of London. The report focuses on strategic analysis of the company and provides some of the recommendations of marketing opportunities that can be explored by the company (Deliveroo., 2018).

Deliveroo is the web based business that serves the customers with online food delivering service. The business is based at London and delivers a great quality of food from some of the famous restaurants. The company then moved to various other countries like Australia. The average delivery time that the company takes is around 32 minutes. The idea behind the start up of the business is to deliver the quality food to the customers whenever they require the food from choice of restaurants. As far as the charges is concerned, Deliveroo is the company that charges flat £2.5 ($3.79), and requires a minimum order of £15 ($22.76). The other way of earning revenue by the company is commission that the company receives from the restaurants from whose orders that booked through the application of Deliveroo. Deliveroo is the company that is transforming the thinking of the people about the food delivery by providing the fast service and reliable delivery from the premium restaurant of the city (Deliveroo., 2018).

As far as the political factors are considered, it has been analyzed that AUSTRALIA is the government that supports the practices of online food market in AUSTRALIA. The government is investigating in employment practices in the online ordering food platforms and minimum wage should be link with these companies as well (Bortolini, et al. 2016). Till now, the companies like Deliveroo dies not fall under this minimum wage criteria and thus keeping the prices very competitive in nature.

Although the economic condition of London is very stable in nature thus there are some economic challenges that have been faced by the food sector in AUSTRALIA. As Britain is in talk with leaving the EU thus Deliveroo is facing the hardships in the context of economy because of the shrinking of pool of workers (Deliveroo., 2018). For the food takeaway companies, AUSTRALIA leaving the EU market results in extra cost and the idea of AUSTRALIA leaving the EU may lead to more uncertainties in the economy of the country.

Political Factors

Because of brexit, the workforce is leaving AUSTRALIA and thus the companies like Deliveroo that requires a lot of workforce are facing issues. The company is looking for students and the labor. Due to poor crisis of Deliveroo, it has been analyzed that most of the labor are not joining the company. The company has undergone the investigation by the relevant department because of the low safety concerns of the labor (Bortolini, et al. 2016). Deliveroo is the company that is deliberately working with the restaurants that serves healthy food because of the change in the culture of eating and the demands of the customers.

As far as the technological innovations are concerned, it has been analyzed that most of the people these days are using the smart phone technology to a great extent. This innovation leads to use of food delivery applications by the users. AUSTRALIA has experienced 21% of the growth in the use of food delivery applications in the age of 16-24.customixation of the applications is also a great innovation for the companies like Deliveroo to offer great services to the socialized customers. Deliveroo is also making use of the innovations in the technological sectors by developing automates kitchens that directly communicate with the application orders. This results in cutting of the middle men for delivery volume to increase by 500%.

Deliveroo is facing issues in this context because of not meeting the minimum wage criteria. There are some other legal obligations that are also not followed by the company such as holiday pay, age discrimination etc. These obligations suggest that the company needs to improve its practices and they should follow the legal terms and lawsuits of AUSTRALIA and London.

In order to be sustainable and environment friendly, the company focuses on the using the fleet of bicycles and scooters. This suggests that the company contributes in reducing the pollution of the place (Financial Review., 2018). Deliveroo actively works with local European authorities to help develop and communicate initiatives to support businesses and the potential impacts of climate change.

Threat of new entrants: threat of new entrants refers to the difficulty that the already existing companies face due to entry of new companies in the industry. As far as the case of Deliveroo is considered, it has been analyzed that the threat of new entrant is high to medium. This is because the new companies can easily enter this industry because of low investment.

Economic Factors

Threat of substitutes: threat of substituted can be low to medium. The only substitute to these delivery companies could be the food restaurants themselves can start their own delivery services. Otherwise the threat of substitutes is very low as people require take away facilities all the time in AUSTRALIA (Bortolini, et al. 2016).

Bargaining power of buyers: bargaining power of buyer so high these days because there are many other companies that are serving the customers with the food delivery services. Even the restaurants these days have started their own services of delivery. Buyers have many options to order their food and these results in high power of bargaining of the customers.

Bargaining power of suppliers: this is the aspect that refers to the bargaining power of the suppliers. This remains high when there are many buyers and less suppliers and remains low then there are fewer buyers and many suppliers. In this case the bargaining power of supplier is very low. This is because the suppliers or the food restaurant are large in number in all over Australia and they have to be in contact with the delivery service to reach the customers. Only dine in facilities cannot results in high profits for the restaurants because of the take away services (Financial Review., 2018).

Deliveroo is one of the services that has been entered the industry of online delivery food services. Other competitors that have been analyzed in this sector are UBER eats. It is the biggest competition for Deliveroo in Australia. As entering this industry is not that much expensive this competition in this industry is very high in nature.

There are various competitors in the industry of food delivery services. UBER eats is one of the competitors for Deliveroo that is giving tough competition to the company there are several other competitors as well that are discussed below in brief:

As far as UBER eats is considered, it has been analyzed that it is the firm that does not have the requirements for its marketing as the company is already famous and popular enough because of its taxi services business. The major positive aspects of using this application is that it helps the customers provide the live feed and thus the customers can identify that when their food reaches them. The customers can also contact the drivers (Rctom.hbs.org, 2018).

Just eat is also the service that is used by most of the customers in London. It has been analyzed that it is the service that provides various restaurants offers and also provide many discounts to the first users. The marketing strategy of the company is very efficient and offers and discounting techniques helps the company to serve the market easily and also helps in capturing new market.

Amazon has also started its new services of delivering food in AUSTRALIA. Amazon also has the upper hand in terms of popularity as it is already very popular application in AUSTRALIA and other places in the world.

Other than the above competitors there are various other competitors as well such as door dash, prostates, instacrats etc. That makes the industry more competitive in nature.

Strengths:	Weakness:
·         Strong management – the company has started by two of the founders in which one is investment banker and other is software director. The strong base of management helps the company to avoid all the hurdles in the initial stage of their business.  Will shu the software director co-founder have successfully coordinated with a giant technology fund to negotiate a $275m investment into the company (NewsComAu., 2018). ·         Supply chain – it has been analyzed that the company’s supply chain is its strength. By the great partnerships with the kitchens and the restaurants, it serves the market of all over Australia with great services. This means the kitchens, delivery drivers and Deliveroo employees each support the weight of Deliveroo equally	·         Branding issues – in the year of 2016, it has been analyzed that Deliveroo rebranded its entire company in order to stand out of the competitors. The company has very low brand value and thus it affects its business. ·         Technical malfunctions – Deliveroo is the company that is solely based on its application services and thus it has faced so much of technical malfunctions tell now. Deliveroo faced heavy criticism for their lack of clear communications and poor customer support (NewsComAu., 2018).
Opportunities	Threats:
·         New food trends – the company has the great opportunity of amplifying its business in order to serve the market with healthy food and take away options. Now the company can act as the substitute for cooking the food at home. ·         New partnerships – to expand out from the highly aggressive food market, in 2016 Deliveroo became the first conventional app delivery service to offer alcohol deliveries. The company has partnered with Heineken and it is the first brand that serves the market with alcohol delivery service. (NewsComAu., 2018).	·         High competition – since the commencement of Deliveroo rivalry has grown to include companies like just eat, grubhub, UBER eats and hungry house. In addition, in 2016 Amazon have launched their new delivery service with the advantage of ‘free one-hour deliveries’ to weaken the competition ·         Changes in food tastes: as the change in the food trends has been observed in the market thus it becomes difficult for the company to serve the market needs. Changing taste of the market thus act as the great threat for the company.

As far as strategies position of the company is considered, it has been analyzed that the company focus on market penetration strategy by using more and more marketing strategies to become popular in the existing market. It this competitive advantage of the company and thus it is penetrating the market with full zeal by launching many marketing campaigns and providing promos codes to the people.

The above figure suggests that Deliveroo is the company that deals with serving the customers only on demand. Thus, the market segmentation of the company has been done on the basis of the way people prefer to prefer to order the food.

• Serving the customers with other delivery service such as delivering the daily requirements items from some of the supermarkets. Delivering the daily needs products to the customers on demand etc. This opportunity helps the company to expand in the different sector and also helps the customers to take more and more services from Deliveroo.
• Another market opportunity that can be explored by the company like Deliveroo is to innovate their application and provide the reviews of the restaurants nearby areas of the people so that they can reach and eat there.

Conclusion:

It is the report that has conclude that Deliveroo is the company that serving the market with food delivery service. The company has great competitors in the market such as UBER eats, just eat etc. Thus, the company needs to expands its business and explore the opportunities that are available in the market. The opportunities like delivering other products and reviewing of the restaurants can explore more doors of business for the company.

References:

Bortolini, M., Faccio, M., Ferrari, E., Gamberi, M., & Pilati, F. (2016). Fresh food sustainable distribution: cost, delivery time and carbon footprint three-objective optimization. Journal of Food Engineering, 174, 56-67.

Deliveroo. (2018). Deliveroo.com.au. Retrieved 25 March 2018, from https://deliveroo.com.au/apply

Deliveroo. (2018). Deliveroo.ie. Retrieved 25 March 2018, from https://deliveroo.ie/business/about

Financial Review. (2018) Deliveroo to launch in Australia after $140 million capital raising.. Retrieved 25 March 2018, from https://www.afr.com/technology/deliveroo-to-launch-in-australia-after-140-million-capital-raising-20151116-gl05na

NewsComAu. Is (2018). this the end of dining out?.  Retrieved 25 March 2018, from https://www.news.com.au/lifestyle/food/restaurants-bars/deliveroo-editions-deliveryonly-kitchens-is-giving-australians-even-more-reason-to-never-leave-their-couch/news-story/9847490ca53b0651206920103b5786d0

Rctom.hbs.org (2018) Deliveroo: When Fine Food Meets Exceptional Logistics – Technology and Operations Management. Retrieved 25 March 2018, from https://rctom.hbs.org/submission/deliveroo-when-fine-food-meets-exceptional-logistics/