Deliveroo Raises $180M from Durable Capital Partners, Valuation Reaches $7B
Deliveroo, the UK-based food delivery company, has raised $180 million in a funding round led by Durable Capital Partners, a US-based investment firm. The latest funding round brings Deliveroo’s valuation to $7 billion, making it one of the most valuable food delivery companies in the world.
The funding comes at a time when the food delivery industry is experiencing a surge in demand due to the COVID-19 pandemic. With people staying at home and restaurants closed, food delivery services have become essential for many households. Deliveroo has been one of the beneficiaries of this trend, with its revenues growing by 72% in the first quarter of 2021 compared to the same period last year.
The new funding will be used to expand Deliveroo’s services and reach new customers. The company plans to invest in its Editions program, which allows restaurants to set up delivery-only kitchens in areas with high demand. Deliveroo also plans to expand its on-demand grocery delivery service, which was launched in response to the pandemic.
In addition to expanding its services, Deliveroo plans to hire more staff and invest in technology to improve its operations. The company has already started testing autonomous delivery robots in London and plans to roll out the technology in other cities.
Competition and Challenges
Despite its success, Deliveroo faces stiff competition from other food delivery companies such as Uber Eats and Just Eat. These companies have also seen a surge in demand during the pandemic and are investing heavily in their services.
Deliveroo also faces challenges from regulators who are concerned about the treatment of its riders. In February 2021, the UK’s Supreme Court ruled that Deliveroo riders should be classified as workers rather than self-employed contractors. This ruling could have significant financial implications for the company, as it may be required to provide its riders with benefits such as sick pay and holiday pay.
The Future of Food Delivery
The COVID-19 pandemic has accelerated the growth of the food delivery industry, but it remains to be seen whether this trend will continue in the long term. As restaurants reopen and people return to their offices, demand for food delivery services may decline.
However, many experts believe that food delivery services will remain popular even after the pandemic. The convenience of having food delivered to your doorstep is hard to beat, and many people have become accustomed to ordering food online.
In addition, the pandemic has highlighted the importance of technology in the food delivery industry. Companies like Deliveroo are investing in autonomous delivery robots and other technologies to improve their operations and reduce costs.
Deliveroo’s latest funding round is a testament to the company’s success in the food delivery industry. With a valuation of $7 billion, Deliveroo is one of the most valuable food delivery companies in the world. The new funding will allow the company to expand its services and invest in technology to improve its operations.
However, Deliveroo faces stiff competition from other food delivery companies and challenges from regulators. The future of the food delivery industry remains uncertain, but many experts believe that it will continue to grow in popularity even after the pandemic.