Source: Deliveroo
Last week Deliveroo, a restaurant food delivery company, announced it is giving restaurant food delivery subscriptions a try in the U.K., starting with Manchester, Birmingham, Edinburgh, Glasgow, Brighton and York. During the two-month trial period, existing customers in one of the selected cities can try the Deliveroo Plus subscription service for free. Deliveroo will waive its usual £2.50 fee per delivery. After the trial, Deliveroo Plus subscriptions will be available for £8.99 per month, or £89 per year, about $11 per month, or $112 a year in U.S. dollars.
“Deliveroo is all about great foo,d, and transforming where and when people can get a hold of it. And for many customers ordering great food from great restaurants using Deliveroo has become an increasingly big part of their day-to-day lives,” said Dan Warne on Deliveroo’s blog last Friday.
Source: Deliveroo
“But we’re always thinking about what we can do better, smarter and quicker, and, in particular, what we can do to give customers an even better experience and even better value for money,” Warne added. “That’s the driving force behind our new subscription service – Deliveroo Plus – which rewards loyal customers who use our service regularly, by letting them pay a flat monthly (£8.99) or annual fee (£89) instead of a delivery fee on each order.”
Deliveroo was founded by Will Shu, CEO, and Greg Orlowski, CTO, in February 2013, according to Wired UK. Shu started the company after moving from New York to London and learning that it was hard to get high-quality cuisine delivered by local restaurants. Deliveroo partnered with a wide variety of local restaurants to offer food delivery to their customers, making money from the restaurant partnership and by charging customers a fee for each order.
To use Deliveroo, customers download the Deliveroo iOS or Android app to their phone, then input their postal code to see what restaurants Deliveroo serves in that area. Customers place their order, enter their address and payment details, and Deliveroo delivers the food as requested. Orders can be scheduled up to a day in advance, but deliveries take place between noon and 11 PM.
If a customer puts in a postal code for Bloomsbury, for example, they can see a list of all 198 restaurants served by Deliveroo, or they can break it down by category, including Big Flavors, Small Prices; Healthy Food; Family Favorites; Salads; Italian; Breakfast; Noodles; Pizza; Gluten Free; Guilty Pleasures; and more. Orders are then delivered by Roowomen and Roomen.
Source: Deliveroo
Deliveroo is not the only game in town though. Amazon launched Amazon Restaurants last fall to select London postal codes through its Prime Now app. According to Amazon’s initial announcement, Amazon Restaurants have minimum order requirements, but there are no additional markups or hidden fees and delivery to Prime Now members is free.
Insider Take:
Yes, please. Just reviewing the Deliveroo restaurant and menu options made us hungry. Of course, we have similar services in the U.S. – Postmates which now has a subscription offering and Amazon Restaurants which is available in select U.S. cities – but we like this model, because customers have choices. They can pay a flat fee per delivery or subscribe to save the delivery fees which is ideal for customers who order food regularly.
We also like that Deliveroo personally selects, or curates, the restaurants it wants to partner with, so that it upholds a certain standard, and of course, we are a big fan of testing. Starting with six cities for two months, customers and Deliveroo can both take the subscription service for a spin to see if it works. If so, customers can save money while Deliveroo can use the recurring revenue to continue to grow its operation.