Deliveroo raises $385M in new funding
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Deliveroo raises $385M in new funding
1–10 of 147 posts
Re: Deliveroo raises $385M in new funding
#2Like Pets.com never happened
Re: Deliveroo raises $385M in new funding
#3Party like it‘s 99...
Re: Deliveroo raises $385M in new funding
#4Like Pets.com never happened
Very different. Pets.com in Y1: revenue $600k USD, advertising spend $11.5m.
Deliveroo generates significant revenue and is a business/brand that consumers are passionate about. The bet investors are making is that their gross margin can increase quickly.
Expect they're doing close to £300m of revenue now, so a 6.5x rev>valuation multiple is punchy but fair.
Re: Deliveroo raises $385M in new funding
#5Another unicorn that can only exist because it uses fake self-employment to turn their workforce into a cheaper one.
Just like Uber and so many others this only works because for some reason turning paid work into something that is not even self-sustaining suddenly is accepted.
Does nobody have ethical issues with seeing value in devaluing people?
Re: Deliveroo raises $385M in new funding
#6What have Deliveroo done differently to be more successful than the food delivery startups that came before?
Re: Deliveroo raises $385M in new funding
#7Another unicorn that can only exist because it uses fake self-employment to turn their workforce into a cheaper one. Just like Uber and so many others this only works because for some reason turning paid work into something that is not even self-sustaining suddenly is accepted. Does nobody have ethical issues with seeing value in devaluing people?
While I agree this self-employed farce has to stop, the service itself is good. Previously takeaways were all the more greasy options, the deliveroo options are nicer food and it's aimed at a different market segment. It allows venues access to a market that was previously denied to them because they couldn't justify running their own delivery service full-time.
They charge £2.50 per delivery. If they were paying couriers minimum wage I assume they'd be able to make money off it still.
I think that price probably includes the high risk that the self-employed status will be rescinded.
Re: Deliveroo raises $385M in new funding
#8Was just reading about them only the other day and how they are losing money: http://www.bbc.co.uk/news/business-41347817
So how they derive such a valuation is very much at odds with actualities.
Re: Deliveroo raises $385M in new funding
#9What have Deliveroo done differently to be more successful than the food delivery startups that came before?
They beat everyone else, including UberEats, to the AU market. I think them and Foodora were the first two, but they won and UberEats just relied on their brand to muscle in. Both share the market pretty evenly ehre, from what I can tell.
I wonder if they did this for many 'secondary' markets to try to beat the big players or if AU is just a weird case.
Re: Deliveroo raises $385M in new funding
#10For those wondering about these numbers, Deliveroo has a great concept, solid execution and huge brand recognition.
Just-eat (worth 4.6B) connects people to shitty takeaways and has a terrible website. Deliveroo connects people to restaurants and provides the delivery service themselves, through bikers (here in London). They have taken this and spread throughout Europe.
They are going to (and are) completely canablising Just-eat who seemed to run out of stream and grind to a halt several years ago.