Deliveroo has revealed that it plans to expand into around 100 new towns and cities across the UK in 2021 as it builds on the success of its operations during the pandemic.
With the hospitality industry largely closed and people shopping more online, demand for home delivery of restaurant food and groceries soared in 2020. Aldi, Co-op, Morrisons, M&S and One Stop all started working with Deliveroo last year to offer speedy delivery of essential food & drink items to their customers.
Deliveroo said its expansion will mean around 4 million more people will be able to access its services for the first time in 2021. It also plans to expand its reach in around 150 of the areas it currently operates in. Altogether, Deliveroo will then be able to service almost two-thirds of the population of the UK.
Carlo Mocci, Deliveroo’s Chief Business Officer for UK and Ireland, said: “With further lockdown measures now in place across the UK, we want to do everything possible to help households get the food they need and want and play our role to make sure families across the country have a wide selection of amazing food, drink and household products to order in as little as 30 minutes.”
Amazon now owns 16% of Deliveroo’s equity following an investment last year. Analysts have suggested that Deliveroo could look to list its shares during 2021 to capitalise on its current popularity and investor interest in tech firms.
NAM Implications:
- Key to bear in mind that Deliveroo only becomes viable…
- …via saturation coverage of the UK…
- …by category and geography.
- So best to anticipate their expanding partnerships with all businesses that need micro-delivery to households.
- Amazon’s 16% equity participation should give an indication of where this is heading…
- If you were in any doubt.
