Deliveroo Raises $180m in Funding Led by Durable Capital Partners and
Deliveroo, the UK-based food delivery company, has announced that it has raised $180m in funding in a round led by Durable Capital Partners and Fidelity . The funding comes as the company continues to expand its operations globally, with a focus on Europe and Asia.
The latest funding round brings Deliveroo’s valuation to over $7bn, making it one of the most valuable privately held food delivery companies in the world . The company plans to use the funds to invest in its technology and expand its delivery-only kitchens, known as Editions, which allow restaurants to expand their reach without the need for a physical location .
Expanding Operations Globally
Deliveroo has been expanding its operations globally, with a particular focus on Europe and Asia. The company has recently launched in Taiwan, Kuwait, and Oman, bringing the total number of markets it operates in to 13 . The company has also been expanding its Editions kitchens, with plans to open 12 new sites in the UK this year .
Deliveroo’s expansion comes at a time when demand for food delivery services has surged due to the COVID-19 pandemic. With many people staying at home and restaurants closed or operating at reduced capacity, food delivery services have become an essential part of daily life for many people .
Despite its success, Deliveroo faces several challenges as it continues to expand. One of the biggest challenges is competition from other food delivery companies such as Uber Eats and Just Eat . These companies have also been expanding their operations globally and investing heavily in technology to improve their services.
Another challenge for Deliveroo is the ongoing controversy surrounding the employment status of its riders. Deliveroo riders are currently classified as self-employed, which means they are not entitled to benefits such as sick pay and holiday pay. This has led to protests and legal challenges from riders who argue that they should be classified as employees .
Deliveroo’s latest funding round is a significant milestone for the company as it continues to expand its operations globally. The funds will allow the company to invest in its technology and expand its delivery-only kitchens, which have been a key driver of its growth in recent years. However, Deliveroo faces several challenges as it continues to expand, including competition from other food delivery companies and ongoing controversy surrounding the employment status of its riders. Only time will tell if Deliveroo can overcome these challenges and maintain its position as one of the most valuable privately held food delivery companies in the world.