Deliveroo, the London-based startup that lets restaurants offer takeaway delivery to customers online, is raising £16 million in new funding and eyeing international expansion.
The Series B funding is led by Accel Partners, with investment from Index Ventures, Hummingbird Ventures, and Hoxton Ventures.
The company gives restaurants a tablet and bluetooth printer, and that’s all they need to start taking online orders. Deliveroo handles the packaging, deliveries, booking, and works with venues to establish their online menu.
Deliveroo is different to sites like Just Eat. Instead of serving as an online platform for takeaways to manage orders, Deliveroo does it all. That’s proven a hit for restaurants in London and Brighton.
CEO William Shu started Deliveroo when he realised that it’s tough to order decent food in London. He used to work as an investment banking analyst in New York, but moving to London made him realise that the city just doesn’t have the same 24/7 food-ordering infrastructure as New York.
Deliveroo has become a big player in London’s takeaway industry. CEO William Shu told Business Insider that the company has signed up over 750 restaurants in London. He also said that many restaurants have seen a 10% increase in revenue after adding the service, with others seeing revenue rise 30% after signing up with Deliveroo.
You might have seen the Deliveroo motorbikes and bicycles driving around London. Shu says that Deliveroo has over 300 drivers, and the company has found that cyclists can sometimes be faster than motorbikes when it comes to delivering food.
Many of the restaurants on Deliveroo are higher-end than what you might find on other takeaway sites. Shu describes the typical venue as “casual premium affordable.” But Deliveroo is also working with established chains — Nando’s is using Deliveroo for takeaways.
The £16 million in new funding is going to be spent on three things, Shu says. First up is geographic growth, and the company is looking at European cities and Gulf states. Deliveroo also wants to increase its marketing spend and hire more developers to improve its service.