Dive Brief:
- Deliveroo is launching a new restaurant makeover competition that will help three U.K. eateries get a makeover, according to a company announcement.
- Winners will each receive over $31,500 to help its restaurant partners capture more revenue as well as help with marketing, in-house and delivery operations.
- The digital delivery service was inspired to help its Deliveroo independent partners after learning that 88% of British consumers place just as much importance on a restaurant's style and vibe as they do the quality of the food. Data also revealed that 81% of Brits would go into a restaurant because of the exterior appearance while 71% said they would be more likely to share their experience on social media if they enjoyed the surroundings.
Dive Insight:
Deliveroo’s new competition and its general pattern of wanting to prop up its restaurant partners shows a potential turn in the tides for the emerging food delivery market. Instead of simply ferrying food from the restaurant to hungry consumers, Deliveroo and similar companies could be in a position to help the restaurant retail market turn more profit while providing consumers more of what they want. It's not alone.
The platform has been offering multiple benefits to its couriers as well. Earlier this year, Deliveroo offered electric moped rentals by the hour for delivery drivers who can show proof of insurance. Not only does this give restaurants more delivery capacity by increasing the pool of available drivers, it also helps create job opportunities for would-be drivers who can’t afford a scooter. Some people may also have aspirations of working as a delivery driver and being able to rent a scooter helps them explore the opportunity before taking the expensive plunge of purchasing their own ride.
Its new Deliveroo Academy offers drivers 300 free online training courses focused on skills development, from learning a new language to web design. The company is aiming to assist its drivers with pursuing additional opportunities, CEO Will Shu said at a recent technology summit. In the same vein, the company is funding 40 scholarships this year for college degrees, providing drivers with a chance to pitch a business idea to investors and providing apprenticeship opportunities.
The third-party delivery company is not alone in its attempt to lend a hand to restaurants. DoorDash launched a program that supports immigrant- and refugee-founded restaurants in San Francisco, giving owners credits to fund $0 delivery fees for six weeks and prime in-app placement. Deliveroo and Uber Eats both have launched virtual kitchens in the U.K. to provide new and existing restaurants with a space to cook and prepare food without needing to open a physical location.
