Deliveroo is a food delivery and online ordering service providing British multinational company. Will Shu and Greg Orlowski founded the food delivery service-providing firm in 2013. Today, we’ll discuss the PESTLE analysis of Deliveroo; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Deliveroo
Some of the main political factors in the Deliveroo PESTLE analysis are as follows;
I-License Regulations
Deliveroo is operating its business in approximately 15 countries across the globe. The food delivery brand should pay a key close attention to the government-approved licenses and agreements of different countries. If they are close to the expiration date or have any pending fees and charges, the delivery service company should apply for the renewal of the license.
II-Trade & Tax Policies
Deliveroo should also keep in mind the trade and taxation policies and regulations of different countries. Not every political government is friendly and welcoming to the food delivery service brands; they change their policies and trade agreements with every new government. The delivery service providing brand should comply with the government trade and tax regulations and comply with them accordingly.
III-Political Stability
The stable political environment plays a key role in the growth and time of food deliveries of the brand Deliveroo. In case of Roadblocks, protests, processions, strikes, and other activities would make it difficult for the delivery service-providing firm to perform its delivery operations.
Economic Factors Affecting Deliveroo
Some of the main economic factors in the Deliveroo PESTLE analysis are as follows;
I-Economic Growth
Economic growth and consumer spending habits have a direct impact on the growth, sales, and profitability of the brand. For instance, if customer spending is low due to various economic factors, Deliveroo should avoid running its business in those markets; otherwise, it would decrease the company’s growth, network, and sales.
II-Inflations
The inflation rate is the other economic indicator and it directly impacts the purchasing power and sale of the company. For instance, the inflation rate has been increasing significantly for the past few years across the world. It increases the retail price of the products and services, and things become unaffordable to the consumers; they would stop buying the services.
III-Fuel Prices & Wages
The drivers and riders of Deliveroo are working on a very small commission margin. The oil prices have been increasing ever since the pandemic crisis and other international political factors. They have increased the delivery service charges to some extent, and it negatively impacts the company’s sales, revenue, and profitability.
Social Factors Impacting Deliveroo
Some of the main social factors in the Deliveroo PESTEL analysis are as follows;
I-Food Ordering Trend
The online food ordering trend has been increasing for the past few years. People are leading a busy life and they don’t want to waste their time on driving and going out for food, rather they could order it online and deliver it to their home address. However, it presents great growth opportunities for the food delivery brand Deliveroo to exploit the growing trends.
II-Dietary Preferences
The consumer market has become highly health conscious and they prefer healthy, less sugary, less oily, and organic food. Deliveroo should include health and dietary food items in its portfolio, it allows the food delivery brand to keep up with growing trends and amplifies the customer’s satisfaction level.
Technological Factors Affecting Deliveroo
Some of the main technological factors in the Deliveroo PESTEL analysis are as follows;
I-User-friendly Platform
Deliveroo has invested a significant amount of capital resources in the development and running of the online web platform and mobile application. The delivery service-providing brand should try to keep its platform as simple as possible to keep up with growing customer market trends. It allows the company to improve the customer satisfaction level and won’t confuse customers with a lot of options and features.
II-Advanced Technology
Deliveroo should employ AI, ML, and data analytical technology to make its web platform and mobile application efficient. It allows the food delivery service company to predict the consumer interest and habits; and recommend them the relevant food items. Most importantly, it provides the most efficient and shortest possible route to the riders and drivers to decrease the delivery time.
III-Online Payment System
The online payment option on Deliveroo should be simple and inclusive. The delivery service-providing company should offer multiple online payment options to the customers by integrating and coordinating with various financial institutions. It allows the company to attract new potential clients and increase its sales.
Legal Factors Impacting Deliveroo
Some of the main legal factors in the Deliveroo PESTEL analysis are as follows;
I-Health and Safe Food Regulations
The health and food safety regulations of different countries are very strict to protect the safety, health, and well-being of ordinary customers. Deliveroo should comply with the health and food regulations of different countries to avoid any type of legal troubles and expensive lawsuits.
II-Data Privacy
Deliveroo deals with a great variety of private data of customers. It puts a great legal data privacy responsibility on the company. The delivery service brand should make its system safe and secure to avoid any type of data breach and cybersecurity threats.
Environmental Factors Affecting Deliveroo
Some of the main environmental factors in the Deliveroo PESTEL analysis are as follows;
I-Biodegradable Packaging
People eat food and throw away packaging. Deliveroo delivers thousands of packages and orders daily and they produce significant environmental waste. In order to decrease waste, Deliveroo employs biodegradable packaging material that would be disposed of easily without harming the natural environment.
II-Local Sourcing
Deliveroo should consider sourcing food locally to avoid fuel consumption and decrease the carbon emission rate. The company should also use electric vehicles and bikes for food delivery to make the business sustainable without increasing the carbon impact on the environment.
Conclusion: Deliveroo PESTLE Analysis |PESTEL Analysis of Deliveroo |External Environmental Analysis of Deliveroo | Strategic Analysis of Deliveroo
After an in-depth study of the pestle analysis of Deliveroo; we have realized that Deliveroo is the world’s leading delivery service-providing brand. If you are learning about the Deliveroo PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
