3 ms·
The answer is somewhere between A and C depending on what you call inefficiency - Assuming 20 minutes per order (3 per hour) at a minimum wage of c£9 per hour p
by Closi 6y ago
The answer is somewhere between A and C depending on what you call inefficiency - Assuming 20 minutes per order (3 per hour) at a minimum wage of c£9 per hour pre-holiday and any other benefits, you are talking about £3 per delivery. They need to pay more than this, as many drive and the fee needs to cover fuel, so call it £4 per delivery or something like that, it's somewhere between £3-£4 probably.
So then you add the cost of user aquisition - which is usually giving out £5 - £10 vouchers and for most of those customers to only use the service once. Clearly the first delivery is a massive loss. Then following that lots of orders are done on a free-or-low delivery cost basis (incl. Deliveroo Plus).
These companies are in a land grab still so it's low margin and high competition between them and Uber Eats. Uber Eats is technically a better cost model (i.e. more efficient) than Deliveroo assuming car delivery, as you can interleave deliveries and cab rides.