SWOT Analysis of Deliveroo

Introduction 

Swot analysis of Deliveroo. Deliveroo is an online food delivery service providing British company. Greg Orlowski and Will Shu laid the foundation of the company in 2013. The headquarter of the company is in London, England, UK.

Deliveroo is operating its business in more than 200 locations worldwide like Kuwait, UAE, Hong Kong, Singapore, Australia, Italy, Ireland, Belgium, France, Netherlands, UK, and others. The online food delivery platform has employed more than 2300 employees to manage its operations. However, roundabout 110,000 self-employed couriers are working for the company.

According to an estimate, the annual revenue of Deliveroo in the first half of 2021 was 922.5 million pounds. Out of which, the gross profit of the company in H1 of 2021 was 263.9 million pounds, and it has increased by 7.8%.

Some of the top competitors of Deliveroo are Just Eat, ChowNow, GrubHub, Postmates, Swiggy, Uber Eats, Zomato, and DoorDash.

Today, we’ll discuss swot analysis of Deliveroo. It’s going to focus on the internal strengths and weaknesses, and external available opportunities and potential threats that the food delivery service providing company has to face. Here’s the swot analysis of Deliveroo as follows;

Strengths of Deliveroo 

Supply Chain

If we study the business model and supply chain of Deliveroo, it’s very interesting. As we know that the company the kitchens on contracts and it doesn’t produce its products, and self-employed delivery guys deliver the products. Everyone has a vested interest in it, and they all depend on each other and support one another for the common goal.

Cost Edge

Deliveroo is managing its application and has complete control over it. The food delivery brand doesn’t have to keep permanent employees, and it reduces the employment benefits cost and taxes. However, it hires people as “gig-based” or temporary.

Low Pricing

Deliveroo develops partnerships with such kitchens that have the cost-competitive edge due to local supplies or kitchen gardening. It allows the company to have a low price advantage over its competitors, and the customers can get a cheap price from the company.

Strong Management

The founders of Deliveroo have a strong professional intellectual background like Will Shu was a software company director and Greg Orlowski was an investment banker. Their different skills and expertise complemented each other in the foundation of the company. For instance, Will Shu worked with a tech giant company and brought an investment of 275 million dollars.

Marketing

The target demographic market of Deliveroo is the young millennial that loves everything from their phone. They planned even the slightest details to attract the attention of young customers like millennial humor ads, sleek logos, and other things. The goal is to convince them that the company is facilitating them with its service, and to make them that they become a part of it.

Facility & Location

Deliveroo is not a traditional type of food delivery business. It has freelance kitchen and gig workers, and it allows the company to expand its business operations quickly and lowers the cost and taxations.

Weaknesses of Deliveroo 

Tech Malfunction

Deliveroo heavily depends on the application for the management of the company’s operations. The company’s app crashed many times in 2017 due to a technical malfunction. Resultantly, hundreds of customers lost their money and orders. In fact, the food delivery service providing company resolved the technical issues. But the whole scenario brought a lot of criticism on the company for poor customer support and lack of communication.

Public Relation Issues

Many people have complained that the company hasn’t been failing to adhere to equipment safety and cycle training for its employees. Many HR critics have hailed the company for manipulating and not offering the rights to the employees. Resultantly, the company has to deal with a lot of bad media press and negative headlines on various media channels.

Branding Issues

The company rebranded everything in 2016 in order to have a competitive edge over competitors like Amazon Restaurants, UberEATS, Just Eat, and others. The reason customers choose Deliveroo is because of the cheap price range. The rebrand would help the food delivery brand to achieve legitimacy in the market, and the brand loyalty of the company is low.

Opportunities available to Deliveroo 

New Partnerships

Deliveroo partnered up with Heineken in 2016 and became the first brand to offer online alcohol delivery. If the company wants to be the first delivery service providing an app in every field, then the company has to partner up with other brands. The expansion would allow gaining a competitive edge and strengthening its brand name.

Food Trends

Healthy food and diet trends are supporting Deliveroo because the company doesn’t rely on the industrialized kitchen for the preparation. Many small kitchens prepare food for the company and deliver it to the customers. The company should use this advantage for marketing and promotion of its brand.

New Technology

The food delivery service market has increased by more than 650% since 2016, and the company is investing its resources in the tech hub in London. The tech-hub would allow the company to experiment, investigate, and manage food deliveries and orders.

The company has partnered up with TripAdvisor for the new tech hub; it would allow customers to place direct orders on the application without changing the platform. It would further improve the customers and brand awareness.

Threats Deliveroo has to face 

Changes in Food Taste

Takeaway Services is the primary food partner of Deliveroo. As we know that healthy diet and food trends are growing among customers. The company and its partner should provide the same type of taste and food whatever customers are demanding for it.

High Competition

The food delivery service providing market has become highly competitive in recent years. Companies like Hungry House, UberEats, Grub Hub, and Just Eat are the top competitors. However, Amazon has also entered the competition and its new offer of “free-one-hour-deliveries” to have a competitive edge.

Bad Economy

Economic uncertain situations and declining pound value has decreased the total number of food orders. Many customers view online food ordering as a luxury rather than a cheaper food option.

Conclusion: Deliveroo SWOT Analysis 

After an in-depth study of swot analysis of Deliveroo; we’ve realized that Deliveroo is the world’s leading growing online food delivery service providing company. The company should focus on its strengths and exploit opportunities, and work on weaknesses to avoid threats.