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July 22, 2019

Deliveroo enters supply chain with food procurement service

British online food delivery firm Deliveroo has entered the supply chain with the launch of a food procurement service under which restaurants can purchase cooking ingredients and supplies at lower prices through deals negotiated by the company.

British online food delivery firm Deliveroo has entered the supply chain with the launch of a food procurement service under which restaurants can purchase cooking ingredients and supplies at lower prices through deals negotiated by the company.

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The online delivery platform has been trialling the scheme for a year, and claims to have saved more than 20% on the ingredients bills for restaurants involved in the tests.

It said that smaller, independent outlets could save 40% through the new food procurement platform, while also improving the quality of their ingredients and products they use.

The company said that restaurants using the scheme can save money on ingredients such as vegetables and meat, as well as on cleaning supplies and packaging products, helping restaurants boost profits and also aid smaller restaurants in their expansion.

Recently, the company secured £450m in a funding round backed by Amazon, as part of Deliveroo’s expansion to become a one-stop shop for restaurants.

Deliveroo said that the scheme supports restaurants at a time when food costs have increased by around 50% in the last five years. Food costs typically make up 20-40% of a restaurant’s sales.

It claimed that the scheme mainly helps smaller restaurants that do not have the economies of scale of large restaurant groups. Some smaller independent restaurants using the programme have cited savings of 40% in some areas.

The company said it expects around 5,000 partners to take up the service by the end of the year. Hundreds of restaurant partners across the UK are already using the scheme.

Deliveroo said that it will launch the programme in the UK, Spain, France and the UAE by the end of the year.

The company has established a team at its London headquarters to negotiate the cost of ingredients and other items, using its partnerships with restaurants and suppliers and industry knowledge.

Deliveroo vice-president of new business Ajay Lakhwani said: “By using our size and scale to negotiate great prices we can both simplify the procurement process and help independents and chains can make big savings. Restaurants and their suppliers are the winners.

“And of course this is great news for customers, as restaurants cook with better quality ingredients.”

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How is technology having an impact on Consumer buying behavior?

As the world rapidly becomes more connected, it is important for brands to understand the impact that improved technology is having on consumer purchasing behaviors. To react effectively, brands must know how to engage with increasingly digitally savvy consumers. GlobalData’s latest Trend Tracker report provides an analysis of Digital Lifestyles – one of GlobalData's top consumer trends for 2022. The report includes an overview of how digital lifestyles are evolving, including the significant impact that the COVID-19 pandemic had on accelerating digitalization, and how this trend is emerging across different Consumer sectors. Key features included in the report:
  • A breakdown of the trend’s prominence across sectors
  • Insights into consumer online penetration, preferred electronic devices and engagement
  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
  • Analysis of what’s next for digital innovations and how brands can leverage the trend
Download this report to keep in touch with the more digital consumer.
by GlobalData
Enter your details here to receive your free Report.

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