Deliveroo has denied it plans to its replace restaurants partners, after a business plan seen by MCA appears to show a long-term ambition to move into food production.
The group said it has already started to develop ‘virtual restaurants’ – partnerships with existing operators on new brands exclusive to Deliveroo.
But Deliveroo said it had no plans to phase out established restaurant brands from the platform, after a document detailed the group’s plan to slash consumer costs by producing its ‘own content’, which would be further streamlined using automated food production.
In the report, The Future of Food Delivery, Deliveroo makes the case for daily consumer use of the platform, of up to three times a day, with the average cost of an order being cut by half due to efficiency savings.
Restaurant operators are wary of the way Deliveroo could use their data as a potential competitor later down the line, and there has been some speculation about the tech company’s ambitions in this area, with Pho managing director Mark Smith recently suggesting Deliveroo was looking at becoming an operator in its own right.
The move would follow the path of other Silicon Valley-backed tech companies such as Netflix which have transitioned from content providers to content creators.
In a statement to MCA, Deliveroo said some ‘virtual restaurants’ were already live, with Shawarma Boys a new concept from Bakchich, Queso Dillo created by Texas Joe’s.
The tech company said it provided data analytics to identify cuisine gaps in the market, helped restaurants with sourcing, food management and marketing, and gave advice on menu pricing, size and layout and kitchen preparation times.
A Deliveroo Spokesman said: “Deliveroo’s Editions platform allows restaurants to expand to new areas, create new brands and reach new customers without needing a high street presence. This delivers results for restaurants, who can increase their sales, and delivers for our customers, who have access to an even greater choice of restaurants.”
Elsewhere the document sets a context of busier lifestyles, larger disposable incomes and smaller domestic kitchens paving the way for everyday on-demand delivery.
Deliveroo claims it is growing at an “unparalleled rate” with orders increasing 18-fold between 2015 and 2017.
It predicts Editions, its dark kitchen model, as the key to satisfying future consumers looking to make multiple orders a day.
Personalised selections, automated delivery and automated production are all cited as advancements set to transform its operations further.
Deliveroo says AI and integrated supply chain will reduce costs by 50%, while automated food production and delivery will result in a cost of just £1 apiece, which will result in the average cost of an order being slashed from £24 to £12.
This will unlock the combined takeaway (27bn) restaurant (442bn) and grocery (1.2tn) of the 12 markets Deliveroo operates in, and the from then the global food market of 7.7tn.
