Our three-sided marketplace
Our opportunity
Getting food right online is hard. Food is inherently perishable and as a result, delivery needs to be fast and flawless. And food is emotional. How do you express the creativity of a restaurateur or the passion of a consumer online?
Establishing and operating a three-sided marketplace is complex. Our platform connects local consumers, riders and restaurant and grocery partners – all of whom we see as our customers. We must provide a compelling customer value proposition to all three sides.
We must develop the technology and logistics that make the marketplace work seamlessly. We must also create demand and balance supply to drive network density.
Doing all of these things together is challenging. But by doing them successfully, we bring ever-increasing platform utility to our customers, and support the growth flywheel and economies of scale that drive value for Deliveroo’s shareholders and wider stakeholders.
Delivering value
Consumers
We unlock a wealth of choice for consumers, providing fast, reliable delivery of restaurant food, groceries, and more. Our Plus subscription programme further enhances consumer value with free delivery (above a minimum order value) and other benefits.
299M
orders delivered in 2022
Merchants
Access to Deliveroo’s logistics, innovations and more than eight million consumers provides restaurant and grocery partners with new ways to grow revenues, increase brand value and maximise the profit potential from online delivery.
£6.8BN GTV
enabled through our platform in 2022
Riders
We provide riders with attractive earnings opportunities combined with full flexibility over when and where to work. Our free insurance provides security, with accident and third-party liability cover globally and additional cover in many markets.
83%
Global rider satisfaction score in Q4 2022
Communities and environment
We support communities through charity partnerships and employee volunteering. We are also focusing on reducing plastic waste, food waste and the carbon emissions created by our operations, and supporting the wider supply chain to implement more sustainable practices.
>2m meals
delivered to families in need
Employees
We offer an inclusive environment where individuals can evolve their skills and experience and leave their mark, in step with the rapid scaling of our business. Our people have the opportunity to be part of something bigger through the impact we make in our marketplace and communities.
7.8
out of 10 employee engagement score in December 2022
Shareholders
We aim to balance continued strong growth with progress to profitability, and have set out our path to reach our aim of an adjusted EBITDA margin (as % of GTV) of 4%+ by 2026. Capturing growth opportunities and driving towards our target margins will create substantial shareholder value.
4%+
adjusted EBITDA margin (as % of GTV) by 2026
Our enablers
Logistics technology
Innovation at our core
Underpinning our entire offering is our logistics technology. Our machine learning algorithms enable our network to improve the experience of all three sides of the marketplace on an ongoing basis. We use our technology to develop an ever-expanding understanding of the nuances of delivering in each neighbourhood we operate in, allowing us to improve quality of service while gaining efficiency at the same time.
The local network effect
A growing platform
As more consumers join our platform we receive more orders. Greater consumer demand attracts restaurants and grocery partners, who benefit from increased volume. Greater volume and network density provides greater earnings opportunities for riders, who work with Deliveroo more frequently and in greater numbers, which in turn drives more efficient, high performance logistics. This provides an enhanced service for consumers, who have more selection and availability in terms of both cuisine and price as well as a faster, more reliable service.
Our growth businesses
Serving consumer demand
Our growth businesses – Editions, Plus and Grocery – each
contribute to our core food marketplace by strengthening
our network effects and accelerating the virtuous circle of
our three-sided marketplace.
