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Deliveroo raises $385M in new funding

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Re: Deliveroo raises $385M in new funding

#91
post #85
post #68

Earlier quoted context omitted.

> If you raise the cost of employing low skill workers then many of these business models cease to exist. At risk of getting into a discussion about UBI and tax doctrine, is that a bad thing? The business doesn't have a right to exist. If it can't operate without paying its staff below-subsistence wages, why should it (or the VCs who provide it funding) expect the state (read: other taxpayers) to subsidise that? Rega…

I think it is a bad thing if a useful service could not exist - and people who voluntarily chose to be employed by that service cannot have access to those jobs. I think it's better to be employed and increasing your value/skill set in the job market than living off welfare. You can't move up the ladder if you don't develop skills.

In the case of Deliveroo, if it can't exist without significant state subsidy then the business model needs revision. This is the same logic that applies to any business that fails to make enough money to continue operating; a startup which asked developers to work for free (or even below-market wages, gambling with equity aside) in order to reduce its costs would be laughed out of the door, it's hard to see why this is any different.

Alleging that people "voluntarily chose" to work in gig economy jobs ignores both the significant anti-welfare rhetoric from politicians and (perhaps particularly in the West) cultural push towards employment ("protestant work ethic"), and your own/the GP's points that a number of the people working there are doing so through a shortage of alternatives.

On the other hand, we need to be careful not to throw the baby out with the bathwater; a push (in the UK, the Labour party have been particularly vocal) to ban zero-hours contracts has risks to the ability of people who need the flexibility (students being the obvious example) to find work which suits.

> I think it's better to be employed and increasing your value/skill set in the job market than living off welfare

They're not mutually exclusive; in this case both happen (although it's debatable to what extent Deliveroo et al develop anyone's skill set). Equally, the money spent topping up the wages of the low paid could be redirected to providing education.

Re: Deliveroo raises $385M in new funding

#92
post #20

Earlier quoted context omitted.

What makes you think Just-Eat ran out of steam "years ago"? Stock price is higher than ever: http://www.londonstockexchange.com/exchange/prices-and-marke... They are reporting good growth: http://www.cityam.com/256734/just-eat-reported-order-growth-... I see lots of Deliveroo bikes around where I live in the centre of London, but they are basically non-existant when I go to other towns and cities. Also, Deliveroo sta…

Entirely anecdotal, but my perception of Just Eat, Hungry House, etc. is of consistently crap takeaway food. I do not, and will not, order from them. Their reviews are completely untrustworthy - you literally never know what you’re going to get. There is no image to hurt - they’re the lowest of the low. In the UK, Deliveroo originally differentiated primarily by only accepting high quality restaurants, rather than ta…

> Their reviews are completely untrustworthy - you literally never know what you’re going to get. There is no image to hurt - they’re the lowest of the low.

I guess you're using it wrong. Most I know use it for a takeaway place they're already familiar with and use it as a convenient way to order rather than a way to discover new restaurants.

> In the UK, Deliveroo originally differentiated primarily by only accepting high quality restaurants, rather than takeaways.

Did it? Here in Nottingham Deliveroo are showing high quality restaurants like Five Guys, Burger King, Subway and Hooters.

Re: Deliveroo raises $385M in new funding

#93
post #64

All these new delivery startups remind me of Kozmo.com, which raised quite a bit of money from high-profile investors (including Fred Wilson and Amazon[1]) and even filed for an IPO in 2000. Kozmo.com described itself this way in its IPO filing: "We enable consumers to order a variety of entertainment, food and convenience products over the Internet for free delivery in under one hour. Our promise of under one hour d…

This one reminds me of groupon, the discounts they must ask for can't really be profitable to the business or drive much business to anyone. Otherwise the restaurants would just hire their own dedicated delivery person.

You have to love the new net economy, it's all about burning through investor cash while having the crappiest, unprofitable business model they can, but hey they have deep learning and algorithms!

Re: Deliveroo raises $385M in new funding

#94
post #20

Earlier quoted context omitted.

What makes you think Just-Eat ran out of steam "years ago"? Stock price is higher than ever: http://www.londonstockexchange.com/exchange/prices-and-marke... They are reporting good growth: http://www.cityam.com/256734/just-eat-reported-order-growth-... I see lots of Deliveroo bikes around where I live in the centre of London, but they are basically non-existant when I go to other towns and cities. Also, Deliveroo sta…

Entirely anecdotal, but my perception of Just Eat, Hungry House, etc. is of consistently crap takeaway food. I do not, and will not, order from them. Their reviews are completely untrustworthy - you literally never know what you’re going to get. There is no image to hurt - they’re the lowest of the low. In the UK, Deliveroo originally differentiated primarily by only accepting high quality restaurants, rather than ta…

Get off your high horse for few minutes.

High quality restaurants? Around Edinburgh the 'highest quality' restaurant offered is Pizza Express.

Re: Deliveroo raises $385M in new funding

#95
post #92

Earlier quoted context omitted.

Entirely anecdotal, but my perception of Just Eat, Hungry House, etc. is of consistently crap takeaway food. I do not, and will not, order from them. Their reviews are completely untrustworthy - you literally never know what you’re going to get. There is no image to hurt - they’re the lowest of the low. In the UK, Deliveroo originally differentiated primarily by only accepting high quality restaurants, rather than ta…

> Their reviews are completely untrustworthy - you literally never know what you’re going to get. There is no image to hurt - they’re the lowest of the low. I guess you're using it wrong. Most I know use it for a takeaway place they're already familiar with and use it as a convenient way to order rather than a way to discover new restaurants. > In the UK, Deliveroo originally differentiated primarily by only acceptin…

I don’t think it’s super fair to say that attempting to use features for one of its intended use-cases is using it wrong.

I have also noticed that restaurants will almost always include their own menu with direct ordering information, so I’m not sure restaurants are super into the idea of shifting existing customers to another platform - not that this invalidates the use case at all, to be fair.

Yes it was like that originally. In densely populated, high-end parts of major cities, it generally still is like that (as mentioned in another comment of mine).

There has also been a recent major push by both Deliveroo and Uber Eats to onboard major nationwide chains, which don’t tend to maintain particularly good quality standards via delivery unfortunately. Some exceptions to this, but generally fast food translates to delivery services very poorly.

Re: Deliveroo raises $385M in new funding

#96
post #89
post #82

Earlier quoted context omitted.

As a Brazilian it makes sense to me, Brazil economy just keeps getting worse and worse, a lot of Brazilians are moving abroad chasing some opportunities. London is very famous as a destination for them, before there was Deliveroo I knew some people who did a lot of construction work because a lot of firms would hire them even if they don't have the proper visa, I assume you can do the same with Deliveroo.

A lot of Brazilians (allegedly) come in on fake Portugese documents too

I always assumed most people just come in pretending to go with short stay tourist purposes and try to stay under the radar while living there. London is so expensive anyway most will probably be squatting.

Re: Deliveroo raises $385M in new funding

#97

Earlier quoted context omitted.

Don’t they get a discount on the food? That’s how a lot of the other services make it...

Looks like from the comments below they can take out 30% of the cost of the food. Assuming average of £20/order, that's £6/order, which could work. Still doesn't seem like a great deal for the consumer / restaurant. E.g. I'm paying £8.50 of a £22.50 order purely on delivery, and I don't even get table service...

At least where I live, typically the food that is served via deliveroo is not at all the same quantity or quality as what you get for the same price in the restaurant, so that further is unfair to the consumer.

Re: Deliveroo raises $385M in new funding

#98
post #94

Earlier quoted context omitted.

Entirely anecdotal, but my perception of Just Eat, Hungry House, etc. is of consistently crap takeaway food. I do not, and will not, order from them. Their reviews are completely untrustworthy - you literally never know what you’re going to get. There is no image to hurt - they’re the lowest of the low. In the UK, Deliveroo originally differentiated primarily by only accepting high quality restaurants, rather than ta…

Get off your high horse for few minutes. High quality restaurants? Around Edinburgh the 'highest quality' restaurant offered is Pizza Express.

Which serves higher quality food than the 200 generic chicken and kebab houses on Just Eat.

Anyway, in London there are a lot better quality places on Deliveroo than pizza express.

Re: Deliveroo raises $385M in new funding

#99

Earlier quoted context omitted.

I work for a company worth billions. I've talked to entrepreneurs who "already tried the idea" for the sort of business I work at. I guess how you execute matters, or something.

Is the company you work for actually profitable?

More profitable than the company that guy runs.

Re: Deliveroo raises $385M in new funding

#100

Currently there is a £2.50 fee for deliveries in London with Deliveroo. Even with extreme optimization a Deliveroo rider can't possibly make more than 3-4 "proper" deliveries in an hour (food gets cold fast! And when it gets returned deliveroo & the restaurant suffers) so maybe they can generate around £10/hour in revenue for Deliveroo. Then you need to take out costs for the driver, development, marketing, integrati…

I have no doubt Deliveroo gets a percentage cut on the cost of the food, too. That can really add up all by itself.

Similar food delivery services get around 8-12% of each order afaik.
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