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Deliveroo To Create 1,000 New Jobs With Delivery-Only Kitchens
10 Apr 2017
Deliveroo is to launch a new business model which it says will create around 1,000 new flexible jobs in the UK.
By the end of this year, Deliveroo has plans to set up 30 new delivery-only mobile or warehouse kitchens and team up with over 200 restaurants in a variety of UK locations.
The offshoot of their main business model will be dubbed Deliveroo Editions and could create hundreds of flexible jobs all over the UK in places where businesses don’t find it feasible to open a branch of their usual bricks-and-mortar restaurant.
The gist of the idea is that Deliveroo will set up the kitchens and equipment whilst their restaurant partners will supply their own kitchen staff and menus. Deliveroo will also provide the delivery service and will help with marketing.
It is hoped that the venture will fill the gap where people have a demand for a particular cuisine but there is no restaurant supplying it locally.
Explaining why the new business model would allow food to be sold cheaper than at traditional high street or shopping centre restaurants, Will Shu, chief executive of Deliveroo, said: “This is the biggest development in the market since Deliveroo first launched. If you think that it costs £500,000 to £1m to put up a full-service restaurant, then to operate one of these restaurants, it is a fraction of that.”
“By drawing on the unique technology that motors Deliveroo, we are able to identify gaps in the market and curate bespoke restaurant selections, meaning more choice for customers and the chance for our partners to scale.”
“Let's say you see less than 20 restaurants on the app but the area has a lot of demand. What we would then do is establish the missing cuisines and invite our partners to take up residency in the kitchens,” added Mr Shu.
Deliveroo Editions has already been trialed at Battersea, Camberwell, Canary Wharf and Dulwich in London and will now roll out to other parts of the UK as well as continuing to expand in the capital. They will also trial in Singapore and Dubai, and, if the ventures prove a success, then Deliveroo could export the idea to other parts of the world, too.
The 1,000 new jobs which will be created by Deliveroo Editions would add to the existing 30,000 delivery driver positions which the company currently supports.
Of the sort of flexible work contracts which Deliveroo provides, Mr Shu commented: “What we are doing is aligning the contracts with operational reality. We are really proud of the flexibility that we offer. In London, the average rider earns £10 an hour, which is more than the living wage, but they want flexibility around their working. We want to work with Government, maintaining flexibility but also offering entitlements. What that looks like in the future is hard to say.”
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