4 ms·

Yes. I believe in the long run, food delivery companies will dominate the landscape of casual/fast food consumption.

goldcd 6y ago
I agree - but I'm not sure it's Deliveroo. In UK at least, they're seen as the 'premium' food delivery option (mainly restaurants, rather than takeaways) - and that's good. What's not so good, is that brand aside, I'm not sure what makes them unique. Speaking to their riders (and Uber drivers) their workforce isn't particularly loyal and have a few different phones for the few different gig-companies they work for. Somebody comes along and offers them more money (say a company that doesn't have to provide a return to investors) and their riders will vanish from the streets overnight - and everybody will seamlessly switch. Deliveroo will be the Yahoo of food delivery.
- Nursie 6y ago
  > In UK at least, they're seen as the 'premium' food delivery option Indeed. So premium that I now always check other services (particularly Just-eat) to see if the restaurant is on them, as the price differential has been as much as 25%. Over £10 on orders in the £40-50 range!
  - goldcd 6y ago
    Yep. I've had a couple of deliveries with stickers on the food saying "order directly from us and save"
monkeydust 6y ago
Also agree. Few thoughts: - The pandemic has meant more traditional chain restaurants embracing delivery (me personally in UK that has been Nandos, Wagamama being available to me via Deliveroo). - There space for more premium restaurants to reach individuals at home, from what I have seen they prefer to own the whole chain (own website, driver network). Interesting if this expands and they decide to partner with provider. I would think Deliveroo would win here over JustEat (just my view). - The whole driver situation is in a state of flux. There is a good paper here* that describes what's going on in gig worker fuelled platform companies as 'pre-automation'. Essentially they are keeping employees at arms length and 'taskifying' all activities with a long term view of automating away the human component with technology (Drones, Autonomous Cars...). This is where the margins start to look more attractive for companies like Deliveroo but the capital investment upfront along with political / legal issues means this will be painful. * Pre-Automation:Insourcing and Automating the Gig Economy https://sociologica.unibo.it/article/view/11657/12290 https://sociologica.unibo.it/article/view/11657/12290
WJW 6y ago
Just popping in here with the customary reminder that even if the sector is growing rapidly, that does not make any individual company in that sector automatically a good investment. Just look at the giant graveyard of solar panel companies that went bankrupt.
- mirekrusin 6y ago
  But we know they are rails shop, they'll dominate market if the market exists.
- lovemenot 6y ago
  Your analogy is apt. In both cases, excess capital drives unsustainable business models. In the case of solar panels, we *all" owe a debt of gratitude to China for commoditising a market that we all needed. It's industrial policy, yes. But even more because the product is strategic in other ways too. In the case of Deliveroo and the like, it's another example of capital markets still haven't figured out how to price the capital / tech-growth new calculus that started with Amazon. Deliveroo may turn out to be a harbinger, or markets may revert to dumb credibility in eventual tech-growth.

I agree - but I'm not sure it's Deliveroo. In UK at least, they're seen as the 'premium' food delivery option (mainly restaurants, rather than takeaways) - and that's good. What's not so good, is that brand aside, I'm not sure what makes them unique. Speaking to their riders (and Uber drivers) their workforce isn't particularly loyal and have a few different phones for the few different gig-companies they work for. Somebody comes along and offers them more money (say a company that doesn't have to provide a return to investors) and their riders will vanish from the streets overnight - and everybody will seamlessly switch. Deliveroo will be the Yahoo of food delivery.

Nursie 6y ago
> In UK at least, they're seen as the 'premium' food delivery option Indeed. So premium that I now always check other services (particularly Just-eat) to see if the restaurant is on them, as the price differential has been as much as 25%. Over £10 on orders in the £40-50 range!
- goldcd 6y ago
  Yep. I've had a couple of deliveries with stickers on the food saying "order directly from us and save"

monkeydust 6y ago

Also agree. Few thoughts: - The pandemic has meant more traditional chain restaurants embracing delivery (me personally in UK that has been Nandos, Wagamama being available to me via Deliveroo). - There space for more premium restaurants to reach individuals at home, from what I have seen they prefer to own the whole chain (own website, driver network). Interesting if this expands and they decide to partner with provider. I would think Deliveroo would win here over JustEat (just my view). - The whole driver situation is in a state of flux. There is a good paper here* that describes what's going on in gig worker fuelled platform companies as 'pre-automation'. Essentially they are keeping employees at arms length and 'taskifying' all activities with a long term view of automating away the human component with technology (Drones, Autonomous Cars...). This is where the margins start to look more attractive for companies like Deliveroo but the capital investment upfront along with political / legal issues means this will be painful. * Pre-Automation:Insourcing and Automating the Gig Economy https://sociologica.unibo.it/article/view/11657/12290 https://sociologica.unibo.it/article/view/11657/12290

WJW 6y ago

Just popping in here with the customary reminder that even if the sector is growing rapidly, that does not make any individual company in that sector automatically a good investment. Just look at the giant graveyard of solar panel companies that went bankrupt.

mirekrusin 6y ago
But we know they are rails shop, they'll dominate market if the market exists.
lovemenot 6y ago
Your analogy is apt. In both cases, excess capital drives unsustainable business models. In the case of solar panels, we *all" owe a debt of gratitude to China for commoditising a market that we all needed. It's industrial policy, yes. But even more because the product is strategic in other ways too. In the case of Deliveroo and the like, it's another example of capital markets still haven't figured out how to price the capital / tech-growth new calculus that started with Amazon. Deliveroo may turn out to be a harbinger, or markets may revert to dumb credibility in eventual tech-growth.