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Overview of Market Segments

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SWOT Analysis

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A courier service that brings consumer favourites from the restaurant to their door.
Consumers choose a cuisine that wish to have, opt for a restaurant and then choose a delivery company that can bring this dish to their doorstep. This concept is clearly explained in the below clip from Deliveroo's advertising campaign 'Food Freedom'

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Key Profiles
- College students

-> Fast-paced life
-> Classes, Active social lives, New careers
-> Provides students with a "taste of home"

- Working Professionals

-> Busy work/life balance
-> Not enough time to plan healthy options
-> Able to save time and take away the guesswork

Key User Demographics
- 20.5 million users (2019)
- 18-24
- 25-34
Maslow's Hierarchy of Needs
- Psychologcial Needs

-> Providing the food to customers at the correct quality and time

- Safety Needs

-> Secure payment process to ensure customer's feel safe uploading their details

- Belonging

-> Creating membership plans and exclusive offers to members to create a community

- Esteem

-> Providing various options for the costumer to keep them interested and content

- Self-Actualisation

->  A consistent, positive experience  that keeps the customer returning

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Studies have found that consumers are now becoming more conscious of what they buy and the impact this has on the environment
Businesses have to be aware that consumers are both willing to pay more for a product that is environmentally friendly as well as likely to look for alternatives and receive backlash if the product hinders the environment

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Convenience is a key factor in consumer food choices. This concept is explored by Wales, M (2009), as well as the affect this has on consumers perception regarding nutrition & how convenience can be used to boost consumer's health.

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Role of convenience in consumer food choices

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Consumers are now becoming more conscious of their health and are willing to pay more for healthier alternatives
A global health survey found 88% of people surveyed would be willing to pay more for healthier food and this was found across all demographics
This is a key shift that Deliveroo must consider to use as an opportunity before upcoming competition answers the consumer demand
Deliveroo uses their blog Deliveroo Food Scene  to explore  the latests news and the best of what the company offers under various categories (including healthy options)

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Prezzo
- High-street stores are now operating their own delivery service specifically for their restaurants and cutting out the need for delivery specific companies
Freshly
- With consumers being more conscious of healthier food choices, companies such as Freshly can bring convenience to consumers without them having to compromise on their nutrition

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Freshly New Years Resolution Ad Commercial on TV  2019

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The Global Online Food Delivery market is valued at $84.6bn and set to hit $164.5bn by 2024
The market has a projected compound annual growth rate (CAGR) of 11.4% between 2019-2024
Key players in the market include GrubHub, JustEat, Delivery Hero, Takeaway.com & Deliveroo
The market is broken down into websites and applications (Applications hold a larger share of the market)
Companies in this market offer highly similar service's to consumers and use predatory pricing to drive competition out and increase share

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The below link outlines an external market analysis of the food delivery industry and how these factors will impact Deliveroo.

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- Website Design (creates a "more enjoyable user experience" that keeps the consumer on the website and therefore likely to complete a purchase and return to the website in the future)
- Payment System (website design should "save a consumer's transaction time" and be trustworthy otherwise they will be more reluctant to hand over payment)
- Security ("Level of trust" has to be high from the consumer for them to purchase through the website
- Information Quality (more extensive product range and description will lead to "better buying designs and improve consumer satisfaction")

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UberEats
- Operate in 220,000 restaurants in over 500 cities globally
- Has grown revenues by $2.6 billion (gross) since December last year
- Delivery fee based on distance from the restaurant (Deliveroo offers a monthly subscription where delivery is included)
GrubHub
- Makes up a 1/3 of market share, which makes their size a constant dominator of the market
- Consumers can order from around 125,000 takeout restaurants
-Operates in U.S and the U.K
JustEat
- Dominates app users in the UK (shown in the figure below)
- Market leader in the UK (market share is estimated to be 3 or 4 times larger than UberEast and Deliveroo combined)