Deliveroo has been a favoured, successful and contemporary addition to the food industryEarly 2018 saw an announcement from food delivery company Deliveroo that it is pushing ahead with developing the brand and expanding its London headquarters by employing a further 250 staff in its technical department.
Despite challenging times in the current economic market and tough competition in the food industry, this suggests positive growth for the popular service.
Delivering on expansion
Deliveroo has around 1,110 employees in its workforce, with 30,000 drivers and riders delivering food to hungry customers. The current plans will see an addition of skilled workers at its HQ for the roles of product managers and designers, data scientists, cybersecurity specialists and software engineers.
The expansion is designed to boost innovation and stability at the heart of the business.
Since its start-up in 2012, Deliveroo has been a favoured, successful and contemporary addition to the food industry and has been able to secure various investments to the tune of $859.6m (£609.8m), which hints at continued strength in its vision going forward.
The business did see a £129m loss in 2016 – far higher than the previous year – but reported that revenue increased during this period seven-fold to £128.6m, equally indicating growth.
Overcoming challenges in the industry
Deliveroo has still faced challenges in its workforce, with the Independent Workers Union of Great Britain applying to the high court for a review of the ruling by the Central Arbitration Committee that resulted in riders not being classed as workers and thus not entitled to collective bargaining rights, the national living wage or holiday pay.
Deliveroo has steadfastly stood by its claims that it wishes to ensure flexible, well-paid, enjoyable employment for the delivery riders.
In 2013, Deliveroo announced aims to extend its reach into Asia and the US; however, this has been capped at European expansion and the likes of Hong Kong, the United Arab Emirates, Singapore and Australia.
There are now growing concerns and uncertainty around expansion outside the UK since the Brexit decision, which could also potentially affect UK businesses due to passport and immigration policy changes.
In 2017, Deliveroo noted its intention for industrial kitchens that restaurants could use for Deliveroo orders, allowing the company to expand the food options available while charging higher commission rates.
The co-founder and chief executive of Deliveroo, Will Shu, noted that this is a sign of confidence in its ambitions and future outlook, and that these new roles will bolster the technological driving force behind the business.
Deliveroo faces pressure to keep the business effective and competitive when faced with rival delivery companies such as Just Eat and Uber, the latter of which expanded its Uber Eats arm in 2017.
In the face of this and all other challenges, Deliveroo is strengthening its technology base and headquarters and is steadily surging forward.
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