Deliveroo will create 70,000 jobs

Independent study reveals Deliveroo will create 70,000 jobs in the UK restaurant sector

  • Deliveroo continues with its accelerating UK expansion plans this week by opening in 10 new towns. These include: Burton upon Trent, Nuneaton, Chesterfield, Mansfield, Warrington, Wigan, Middlesbrough, Farnborough and Harlow
  • The company is also publishing research that shows Deliveroo has created 25,000 jobs in the UK restaurant industry, including over 8,000 in the independent sector according to new independent economic analysis
  • Revenue of partner restaurants and their supply chains was boosted by £1 billion in 2018 by working with Deliveroo, including £320 million for independent restaurants
  • If Deliveroo's current growth rate continues, analysts estimate that the company is set to create almost 70,000 jobs in the restaurant industry by 2020
  • Deliveroo projected to support £4 billion of economic output in its 14 markets in 2020

(London, 24 May) A major new economic study today reveals the positive impact Deliveroo is having on the UK restaurant industry and the wider economy as the food delivery company announces it's UK expansion continues at pace. The analysis comes as Deliveroo reveals that it continues to broaden its expansion across the UK, opening in 10 new towns in a week.

Analysis by Capital Economics has found that the leading food delivery company has helped create 25,000 jobs in the UK restaurant industry since its launch six years ago. According to Capital Economics, this is nearly 10% of the total number of employees in its partner restaurants, and is on top of the 25,000 self-employed riders Deliveroo provides flexible, well-paid work to in the UK.

The study finds that if Deliveroo were to continue adding restaurants to its platform at the current rate, the food delivery company's operations would help create almost 70,000 restaurant jobs in the UK in 2020.

The advent of food delivery has changed the face of the UK food industry, giving restaurants the opportunity to reach new customers without having to operate a delivery service themselves.

The report finds that in the 12 months to November 2018 Deliveroo helped its partner restaurants and their supply chains generate additional revenue of £1 billion, with independent restaurants enjoying a £320 million boost. Significantly, 63% of partner restaurants say they saw their 'in-restaurant' revenues rise as a result of working with Deliveroo, meaning more people are dining in after ordering from restaurants on Deliveroo.

This increase in revenue not only bolsters restaurants' finances at a time when the industry faces a number of challenges on the high street, it also provides them with an opportunity to expand their business, whether opening a new premises, extending opening hours or adding more options to menus.

Deliveroo's contribution to the restaurant industry and wider economy in the UK is mirrored in its overseas markets. If Deliveroo continues to grow at the same rate, Capital Economics estimate that the company will create over 176,000 jobs in the restaurant sectors in the markets in which it operates.

Deliveroo is committed to helping restaurants succeed. Whilst the industry is facing increasing cost pressures, Deliveroo is supporting them by not only helping them increase their revenue, including through the company's delivery-only Editions kitchens programme, creating 'virtual brands' so restaurants can expand their menus, and also by negotiating deals with a range of providers to reduce their day-to-day costs such as energy bills and kitchenware.

Commenting, Deliveroo founder and CEO Will Shu said:

"Deliveroo is expanding rapidly across the UK, bringing more people amazing food and helping restaurants to grow their businesses by increasing sales.

"At a challenging time for the high street, Deliveroo offers restaurants access to new customers they wouldn't otherwise be able to reach. We also help our restaurant partners cut costs and use unique data insights so they can make the most of the opportunity delivery offers. As a result, Deliveroo is helping to create thousands of jobs in high streets across the UK.

"As we grow, we will create more jobs on Britain's high streets, bring more revenue to restaurants, create work for more riders and, of course, bring exciting foods to offices and homes across the UK."

Minister for Digital and the Creative Industries Margot James said:

'It is great to see Deliveroo go from strength to strength and show why Britain is Europe's leading tech hub.

'We're working hard to make the UK the best place to start and grow a digital business and these findings further acknowledge our consistent track record of producing internationally successful tech firms.'

ENDS

For more information contact either [email protected] or [email protected]

Notes to Editors

1. Deliveroo is an award-winning delivery service founded in 2013 by William Shu and Greg Orlowski. Deliveroo works with over 80,000 best-loved restaurants and takeaways, as well as 60,000 riders to provide the best food delivery experience in the world.  Deliveroo is headquartered in London, with 2,500 employees in offices around the globe.

2. Deliveroo operates in over 500 towns and cities across 14 markets, including Australia, Belgium, France, Germany, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, Kuwait and the United Kingdom.

Deliveroo helping restaurant partners grow in the UK

Capital Economics used data from a survey of Deliveroo's partner restaurants to examine the impact of Deliveroo on their businesses, including growth in revenue and job creation. The results have been scaled up to the total number of partner restaurants. Capital Economics also looked at the increased spend across the supply chain of these partner restaurants and the resultants jobs created in this sector.

The report finds that the additional activity generated in restaurants and their supply chains due to their partnership with Deliveroo has resulted in the creation of 25,000 jobs since the food delivery company started operating in the UK in 2013. 17,000 of these jobs are estimated to be in chain restaurants, whilst 8,100 are in independent restaurants.

If Deliveroo continues to grow at the same rate as the increase in the number of partner restaurants on the platform, Capital Economics project that Deliveroo will have created nearly 70,000 jobs by November 2020 in restaurants and their supply chains. Taking into account the impact of spending by Deliveroo staff, riders and by the company on its suppliers, this figure grows to 79,000 jobs.

Analysis by Capital Economics also finds that Deliveroo's operations had increased the revenue of its partner restaurants and their supply chain by £1 billion in the year to November 2018. Of this, chain restaurants saw their revenue increase by £690 million and independents restaurants saw theirs increase by £320 million.

Deliveroo helping restaurant partners grow worldwide

Across its markets overseas, the report finds that Deliveroo has helped create 59,000 jobs in partner restaurant and their supply chains - 41,1000 in chain restaurants and 18,000 in independent restaurants. If Deliveroo continues to grow at the same rate, Capital Economics project that Deliveroo will have created 176,0000 jobs by November 2020 in restaurants and their supply chains across its global markets. The report also projects that Deliveroo will support £4 billion of economic output across the market in which it operates by 2020.

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