Deliveroo is one of the most iconic companies of the fast delivery sector but its competitor Uber makes it difficult for them to become the leader.
However, their latest innovation may create a huge competitive advantage as it would create a Business-to-Business model that would help local food businesses to expand their activities through the market.
The initiative is called Roobox and it has been functioning since August. What Deliveroo has done is to offer to restaurants and chefs spaces to be used as kitchens at no costs and with the only condition of having Deliveroo as the single alternative to deliver their products which will compensate the initial investments.
With this new model, Deliveroo is creating a new platform that allows entrepreneurs with few or no resources to take their products to the market and to be chosen as an alternative among other food chain giants that have the sufficient means to pay the commission to Deliveroo or other fast delivery companies. Moreover, it would also satisfy customers, as Roobox is more likely to be implemented in those areas where supply is not meeting demand and the food delivery process is becoming saturated.
By creating this concept of ‘plug-and-play’ kitchen, Deliveroo may gain recognition not only for its better drivers (that are not only faster but also use more sustainable vehicles such as bicycles) but also to deliver unique products in the market in fewer time.
Removing property and integrating it to the logistics process of Deliveroo sounds as a very attractive initiative that would allow the company to have higher control over its products and delivery options (more detailed track of orders) and a much cheaper and less risky option for local food places.
As the article says, “even though Roobox might not have the reach of digital platform, its impact could not be less profound” and with the objective of creating more than 30 new kitchens in London only by the end of the year, it could not be clearer.