By: Sashi Somavarapu, Vice President of Engineering and Country Head of Deliveroo India Development Centre
With the unveiling of Deliveroo's H1 2023 Financial Results, the pivotal role of technology as Deliveroo's cornerstone for business transformation and growth was evident. Our exceptional talent based in The India Development Centre - headquartered in Hyderabad - have been instrumental in contributing to our global tech, driving this remarkable business growth.
Deliveroo's world-leading technology ensures that the three sides of the marketplace interact seamlessly together, strengthening the interests of each side; restaurants and grocers maximise sales, riders maximise earning potential and consumers receive their food on time.
Technology underpins every corner of our marketplace, and continues to play a vital role in helping us to achieve true profitability as a business, as well as taking the consumer experience to the next level. Here are three reasons why technology is synonymous with Deliveroo.
1) A More Efficient and Reliable Delivery Network
At the heart of Deliveroo's operational efficiency lies its pioneering logistics technology, combined with a data-driven approach. The meticulous orchestration of deliveries through machine learning algorithms and data-driven models guarantees a delivery network that is not only efficient but also reliable across the three sides of our marketplace: Consumers, Riders, and Restaurant/Grocery Partners. A clear example of this operational excellence is Deliveroo's 'dispatcher' algorithm, known as Frank, which does hundreds of thousands of calculations every few seconds to offer the right order to the right rider in real-time, ensuring quick and reliable deliveries whilst maximising their earnings.
2) Understanding and empowering consumers
Technology-driven enhancements have helped Deliveroo expand merchant selections to now being able to offer consumers 182,000 restaurant and grocery partners to select from. Within its consumer app, Deliveroo has algorithms that enable consumers to discover new restaurants and cuisines that appeal to them, by ensuring that recommendations align with individual tastes and preferences. By using data and technology, Deliveroo also adjusts its local pricing and promotions to match specific customer preferences, resulting in a personalised experience that connects well with its users.
Technology ensures that the shopping experience itself is rich and intuitive. For example, customers now have the option to top up their restaurant orders with grocery items sourced from Hop stores (Deliveroo's rapid grocery delivery service) during checkout. This synergy enriches the customer experience and broadens choices for users. Deliveroo's technology fosters a connection between customers and partners, enhancing the in-app experience with immersive multimedia content. Moreover, customers can access Ratings & Reviews, providing them the chance to browse others' feedback and leave their own, thus facilitating the exchange of valuable insights.
Last but not least, the incorporation of technology into self-service care options empowers customers to resolve issues independently, elevating their overall experience and streamlining customer support operations.
3) Enabling future growth and new verticals
Since its launch in 2022, Deliveroo's tech-powered advertising platform has become a strong source of revenue growth. In Q2, Deliveroo reported a revenue run-rate of £55 million, accounting for 0.8% of the GTV. The company's ability to attract an ever-growing number of advertising partners demonstrates its capability to facilitate brand growth. In H1 2023, merchants advertising on the platform surged to approximately 50,000 vs 38,000 in H2 2022. Not only does it benefit brands, but it's a key element of our Consumer Value Proposition as it's focused on VALUE through special offers and discounts that cater to our customers' needs. In addition to Advertising offerings, we continued to offer our partners tech enabled cloud kitchens known as 'Editions'. In our cloud kitchens, we use data and technology to identify customer demand and predict which restaurants are likely to succeed in each area, hence, reducing the risk for restaurants and saving them the cost of investing in a new brick and mortar location, whilst adding a wider selection to customers. Powered by Deliveroo's grocery management technology is 'HOP' our delivery-only stores, providing a fast delivery promise, high fulfilment rates, best-in-class delivery experience, and a unique selection
As Deliveroo grows, its unwavering commitment to innovation drives its journey to becoming the definitive food delivery company. Its remarkable journey from the Initial Public Offering (IPO), to the recent H1 results and achieving EBITDA breakeven ahead of expectations, is a testament to the transformative force of engineering and technology. As technology and engineering evolve, so too will Deliveroo's capacity to reshape customers, restaurants and riders' expectations and establish higher industry benchmarks that will define the future of online food delivery.
You can be part of the team that is driving technological innovation in the food tech space. Apply today and be part of the cutting-edge innovations happening at Deliveroo's India Development Centre! (Link to applications)
Disclaimer: No Business Standard Journalist was involved in creation of this content