Monday 20 August 2018

Deliveroo plots launch of 'Editions' service

Deliveroo enables users to have food delivered to their homes from food companies that don't have a restaurant in their area (stock picture)
Deliveroo enables users to have food delivered to their homes from food companies that don't have a restaurant in their area (stock picture)
Gavin McLoughlin

Gavin McLoughlin

Food-delivery app Deliveroo is gearing up to launch its popular 'Editions' service in Ireland.

The service enables users to have food delivered to their homes from food companies that don't have a restaurant in their area.

Instead, Deliveroo sets up a kitchen-only facility in partnership with the food business, allowing the business to expand its reach without the costs associated with running a front-of-house operation.

Dan Warne, Deliveroo's managing director for the UK and Ireland, said the company was "researching prospective sites and speaking with prospective partners about how this could look", but did not have a definitive timeline for when the service would be up and running.

Deliveroo is operating in Dublin, Galway, Cork, Limerick and Belfast.

Warne said the company's immediate expansion plans are to cover greater areas of existing markets, but it would look to expand to smaller urban areas over time.

Ireland is currently the fastest growing market for Deliveroo across all the countries in which it operates, while Irish-owned Mexican restaurant Boojum is the second most successful restaurant across the whole group.

Warne said the average hourly earnings for a Deliveroo rider is €11.20.

The company uses a self-employed model for riders, which has been criticised for not affording Deliveroo riders the same protections as employees.

However, Warne said that, according to company surveys, 85pc of Deliveroo riders say flexibility is the main reason they work for the company.

"The reason for that is more than 90pc of our riders have a supplementary income stream that is Deliveroo, alongside a core job or study or something else. They will use this as a 'top up', if you like, for the rest of their lifestyle," Warne said.

The model allows riders to log in to the Deliveroo app whenever they wish to work.

Warne said the average number of hours Deliveroo riders work every week is 12.

He said the company is engaged with the Government on changing the law to enable those who work longer hours to receive some protections.

"What we're looking to do as a business... is end what we see as a trade off between the flexibility that I've just articulated, and the security that one might get when working full time," Warne said, adding that if that flexibility is lost, Deliveroo is concerned it will find it harder to attract riders who are looking for flexible work.

Warne added that the company plans to launch an insurance product for riders in Ireland, which would allow them to receive 75pc of their average gross income (for the year prior to an injury or illness), for up to 26 weeks in return for paying a premium.

The company's Editions service allows restaurants not typically associated with the home delivery of food to enter that market. Deliveroo takes a commission on every order and also charges users a delivery fee.

Sunday Indo Business

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