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Deliveroo Innovation Report

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Deliveroo Innovation Report.

Introduction

Most businesses in today’s globe are involved in competition and battling for market share and viable and lucrative development, brand differentiation and competitive edge in their products or services with their rivals (Porter, 1996). Market pressure requires businesses to adapt to outsmart their rivals and behave innovatively (Bengtsson et al., 1998). While companies are constantly looking for methods to better deal with their competitors, it’s time to create strategic moves and the best way to do this is to produce “Blue Oceans”. This implies creating uncontested market room for the company’s profitable growth that is useful not only to the firm but also to the clients. It is the best approach to compete with competitors and create fresh product or service demand. (West & Ford, 2010). Therefore, one theory proposes that they be better off studying techniques in which they contend with themselves alone. This is known as the Blue Ocean Strategy, followed not only by businesses to remain relevant to the market, but also to further explore and innovate (Kim & Mauborgne, 2005). The purpose of this study is to clarify, analyze and assess the Blue Ocean Theory in detail, and how it has been used to develop, followed by the implementation of Blue Ocean Theory to help analyze and clarify historical and future development of “Deliveroo.”

Question 2

Deliveroo

Deliveroo is a British internet food distribution firm with activities in the United Kingdom, the United States, and Greg Orlowsk established most of Europe and Asia in 2013. The framework of Deliveroo is peer-to-peer and crowdfunding based. With 45,000 UK users serving 15,000 restaurants, Deliveroo struck an estimated six million UK clients before the end of 2018. In the UK, it created 7,200 jobs and contributed £ 372 million over the fiscal year 2016/17. Globally, Deliveroo works with 35,000 couriers, in which 15,000 operate in the UK (BusinessofApps, 2019).

Deliveroo Business Model Canvas

Application of Blue Ocean Strategy

Analysis of Deliveroo Historical and Future development on the basis of Blue Ocean strategy.

Deliveroo Historical Development

In latest times, the food supply industry has risen in leaps and bounds, and it looks set to continue doing so. Since both eating out and ordering in the 21st century have become a key component of our life. Since its launch in 2013, Deliveroo has been one of Britain’s most successful start-ups and has managed to become a top competitor in the food supply scene, holding its own against heavyweights such as Uber eats and Grub hub. Over the past few years, the company has raised $480 million and is believed to be worth around $2 billion. Recently, the concept of Deliveroo was rewarded with an investment of $575 million from Amazon. Deliveroo is UK’s third-highest food service with takeaway enthusiasts, according to a Global Web Index study, although its 23 percent is only a small margin (1 %) behind Uber Eats. (Annex 2a, 2b). The international business played a main role in the development of Deliveroo, with a rise of 99 percent in Europe and an increase of 204 percent in other markets over 20 outside the UK. Deliveroo’s largest European market is France, where it registers around 20,000 daily customers – albeit somewhat behind Uber Eats, which orders almost twice as many (Appendix 3). In June 2018, Deliveroo launched the platform to 5,000 UK restaurants that wished to use their own shipping drivers rather than Deliveroo’s own 15,000 riders network (in the UK). This boosted the platform’s complete amount of UK restaurants by 50% (from 10,000). The courier fleet of Deliveroo is 15,000 powerful in the United Kingdom, giving us a total of 35,000 with another 20,000 in its worldwide markets (Appendix 4). Deliveroo may be the fastest growing, but in a vacuum it doesn’t exist. In latest years, food delivery applications have acquired massive popularity. According to a study conducted by the Global Web Index, 11% of ‘ takeaway enthusiasts ‘ in the United States (Where Deliveroo is still unavailable) and 3% in the United Kingdom used a daily food supply service or just about every day. 26% of Deliveroo’s main UK order market on a weekly basis, with an additional 13% ordering various times a week (Appendix 5). In 2018, Deliveroo introduced a ‘ virtual food market, ‘ which enables clients to place orders in a single transaction with various restaurants. Having trialled the system in Australia, Hong Kong, and Singapore for three months (BusinessofApps 2019).

 

 

Deliveroo Four Action Framework

REDUCE CREATE
 

  • Waiting time
  • Transportation cost
  • Business cost
  • Food delivery charges

 

 

 

 

  • Easy and simple to use
  • Health and safety
  • Drivers training
  • New food trends
  • New Restaurant partners
  • More corporate account
RAISE ELIMINATE
 

 

  • In time delivery
  • New Technology
  • Food quality
  • International expansion & reputation
  • Customer support
  • Internal support
  • Convenience
  • International business expansion

 

 

  • Late delivery
  • Technical malfunctions
  • Transportation cost
  • Conflict

 

 

 

 

 Deliveroo Strategy Canvas

 

Future Development

Deliveroo

Delivery plan to supply the ingredients to their partner’s restaurants. As per Deliveroo, the fresh Food Procurement arm enables restaurants to purchase ingredients and supplies through Deliveroo at better rate. The decision is based after securing £450 million investment received from Amazon to become a one-stop restaurant shop. Restaurants can save more than 20 percent on their bills of ingredients while smaller autonomous outlets could save 40 percent through the new food procurement platform, Deliveroo stated.  The system will enhance lower restaurant economies of scale by purchasing products on behalf of countless restaurants simultaneously to boost their purchasing authority during supplier negotiations. It supposed to be start next summer to all UK restaurants (Young, 2019).

Own Suggestions

According to the rapidly increasing in the food delivering market via app now this is the time to look forward to secure the business and gain competitive advantage for the betterment of the business. As per research 28% British consumer has been increased compare to last year who’s ordering food delivery, and around 27 million orders were taken last six months.

 

One of the suggestions is Voice-based ordering and food tracking devices is the need and time saving technology. The study discovered that as quickly as they hit the order button, nearly a third of customers want to understand the precise shipping time of their food and GPS tracking technology is the best solution.

 

Most of the companies are interest to improve their delivery system. But nobody think about the waste. Food waste apps is the better solution. One-third of the food generated globally is lost every year. Apps for food waste address this issue and help save the planet. They assist restaurants and grocery shops get rid of leftovers and provide low-priced food to individuals in need.

 

My final suggestion is to use of drones for the deliveries. By using of drones might help to secure the time of delivery and the hot food could be deliver with 5-10 minutes instead of more than 30 minutes. And the customer is always pleased to receive the food delivery in a specific time as when they need.

 

Deliveroo Four Action Framework (by using drone delivery)

REDUCE CREATE
 

  • Waiting time
  • Business cost
  • Food delivery expenses

 

 

 

 

  • Green environment
  • Health and safety
  • New food trends
  • New Restaurant partners
  • More corporate account

 

RAISE ELIMINATE
 

 

  • In time delivery commitment
  • New Technology
  • Food quality
  • International expansion & reputation
  • Customer support
  • Internal support
  • Convenience 
  • Cover large are of delivery

 

 

  • Physical force (drivers)
  • Driver commission or salary
  • Drivers training
  • Late delivery
  • Transportation cost
  • Conflict
  • Pollution

 

 

 

Deliveroo Strategy Canvas (before using drone delivery)

 

Deliveroo Strategy Canvas (after using drone delivery)

 

Conclusion

This study concentrated on analyzing the theory of the Blue Ocean and how in the past Deliveroo followed this structure. It proposed feasible approaches that could be used by Deliveroo reflecting in the future on the distinctions between the Red Ocean and the Blue Ocean ideas. Though, as one theory was analyzed in detail, to devote a lot of time to researching other innovation approaches was not viable. Deliveroo is suggested to continue following the Blue Ocean strategy as this approach has yielded excellent outcomes in distinct fields.

 

 

 

 

 

 

 

 

 

 

 

References

 

Berg, R. (2011) What is Blue Ocean Strategy Part 2 – Value Innovation. Retrieved from Berg Consulting. Available at:  http://bergconsulting.com.au/Berg_Consulting_Blog/what-is-blue-ocean-strategy-part-2-value-innovation (Accessed: 26/07/2019).

 

Blue Ocean Strategy (2015) BOS Tools: Red vs. Blue Ocean Strategy. Retrieved from Blue Ocean Strategy. Available at http://www.blueoceanstrategy.com/tools/red-ocean-vs-blue-ocean-strategy/ (Accessed: 26/07/2019).

 

Blue Ocean Strategy (2015) 4 Actions Framework. Retrieved from Blue Ocean Strategy. Available at: http://www.blueoceanstrategy.com/tools/4-actions-framework/ (Accessed: 25/07/2019).

 

Bengtsson, L. et al. (1998) The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances. Available at: https://pubsonline.informs.org/doi/abs/10.1287/orsc.9.3.285 (Accessed: 25/07/2019)

 

Blue Ocean Strategy (2015) Six Paths. Retrieved from Blue Ocean Strategy.  Avaialable at: http://www.blueoceanstrategy.com/tools/six-paths/ (Accessed: 29/07/2019).

BusinessofApps, (2019) Deliveroo Revenue and Usage Statistics. Available at: https://www.businessofapps.com/data/deliveroo-statistics/ (Accessed: 21/07/2019).

 

Blue Ocean Strategy (2015) Strategy Canvas. Retrieved from Blue Ocean Strategy. Avaialble at: http://www.blueoceanstrategy.com/tools/strategy-canvas/ (Accessed: 26/07/2019).

 

Kim, W.C. & Mauborgne, R. (2005) Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. United States of America: Harvard Business School Press.

 

Kim, C. W. & Mauborgne, R. (2005) Value Innovation: a Leap into the Blue Ocean. Journal of Business Strategy, 24(4), 22-28.

 

Leavy, B. (2005) Value pioneering- how to discover your own “blue ocean”: interview with W. Chan Kin and Renée Mauborgne. Strategy & Leadership, 33(6), pp. 13-20.

 

Porter, M. E. (1996) “What Is Strategy?” Harvard Business Review 74, November–December.

 

Porter, M. E, (1998) Competitive Strategy: Techniques for Analyzing Industries and Competitor. New York: The Free Press.

 

Rahim, H. (2017) What is innovation and how can businesses foster it?. The Telegraphs. 4th May. Available at: https://www.telegraph.co.uk/connect/better-business/innovation/what-is-innovation-and-how-can-businesses-foster-it/. (Accessed: 27/07/2019).

 

Siegemund, C. (2008) Blue Ocean Strategy for small and mid-sized companies in Germany. Hamburg: Druck diplomica. pp 28-32.

 

West, D.C. & Ford, J. (2010) Strategic Marketing: Creating Competitive Advantage. (2nd edn) Oxford: Oxford University Press.

 

Young, G. (2019) Deliveroo to start supplying ingredients to partner restaurants. The National, 18 July. Available at: https://www.thenational.scot/business/17780466.deliveroo-start-supplying-ingredients-partner-restaurants/ (Accessed: 29/07/2019).

 

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