Amazon just made a major investment in buzzy British food delivery unicorn Deliveroo. Here's what it is like to use.

Advertisement
Amazon just made a major investment in buzzy British food delivery unicorn Deliveroo. Here's what it is like to use.

Deliveroo

Deliveroo

Lunchtime donuts.

Advertisement
  • Amazon led a $575 million funding round in British food delivery startup Deliveroo, announced Friday.
  • Deliveroo was launched in 2013 by Will Shu, a former banking analyst who was tired of the lack of options available when he had to eat at his desk.
  • It is now one of the UK's most valuable startups, worth more than $2 billion at its last valuation, and will use its new funding for international expansion.
  • We tested out its app to find out how easy it is to use.
  • Visit Business Insider's homepage for more stories.

Amazon just made a major investment into buzzy UK food delivery startup Deliveroo.

On Friday, Deliveroo announced it had raised $575 million in a recent round of funding led by Amazon. This brings its total funding to $1.35 billion and makes it one of the best-funded startups in Europe.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

While Deliveroo has not confirmed its current valuation, it was last valued at $2 billion and was reportedly targeting a new valuation of at least $4 billion.

The company was launched in 2013 by former Morgan Stanley banker Will Shu, who was tired of the lack of food options available when he had to eat at his desk. The company has since achieved rapid success in a very short period of time.

Advertisement

Read more: How Deliveroo went from being the idea of a hungry banker to a $2 billion food delivery giant with backing from Amazon

Its reach now expands beyond London and the UK to more than 500 cities in 14 different countries across Europe, the Middle East, Asia, and Australasia.

But there's still one key market missing, the US, which already has a hugely competitive delivery market dominated by companies such as Uber Eats and Seamless.

We tested out its app to see what it is like to use:

Exclusive FREE Report: The 5 Biggest Questions Around Amazon's Grocery Chain by Business Insider Intelligence

Advertisement
{{}}

There are two ways to order Deliveroo – via its app or on the website.

There are two ways to order Deliveroo – via its app or on the website.

The app is free to download and the sign-on process is pretty hassle-free.

The opening dashboard feels a lot like its US competitors – Uber Eats, Caviar, or Seamless. Once we set our location, a dashboard appeared with local restaurants that we could order from.

The opening dashboard feels a lot like its US competitors – Uber Eats, Caviar, or Seamless. Once we set our location, a dashboard appeared with local restaurants that we could order from.

You can filter by the location and delay the arrival time using the drop-down arrow. This is handy if you're at work but want to pre-order a meal to be sent home later.

Deliveroo recently caused an uproar after one of its board members, Martin Mignot, said the company's ultimate mission is to kill off home cooking.

Advertisement

You can search for a type of cuisine or for a specific restaurant. Failing that, you can scroll down the list for inspiration.

You can search for a type of cuisine or for a specific restaurant. Failing that, you can scroll down the list for inspiration.

Deliveroo lists the customer ratings for each restaurant prominently. This is a helpful tool when you're wading through its vast list of restaurants.

On a dreary summer day, we were in the mood for some brightly colored donuts.

You can filter by your dietary requirements or by the best local offers.

You can filter by your dietary requirements or by the best local offers.
Advertisement

Deliveroo seems to be pretty hot on food allergies. There are numerous occasions when it gives you the chance to list these.

Deliveroo seems to be pretty hot on food allergies. There are numerous occasions when it gives you the chance to list these.

Once we'd chosen our restaurant, we selected the exact types of donuts that we wanted.

Once we'd chosen our restaurant, we selected the exact types of donuts that we wanted.
Advertisement

The process of adding the items the basket is very straightforward.

The process of adding the items the basket is very straightforward.

A delivery fee is automatically added to the order. This fee is based on factors such as the distance and the time to delivery. Riders earn on average £10 ($12.76) an hour.

A delivery fee is automatically added to the order. This fee is based on factors such as the distance and the time to delivery. Riders earn on average £10 ($12.76) an hour.

The company makes money from these fees and by charging the restaurant a commission to use this service.

Customers also have the option to add a "rider" tip. The company has been criticized in the past for riders' pay and working conditions.

The employment status of these riders continues to be an issue. Deliveroo classes them as "self-employed," but experts say that restrictions placed on them by Deliveroo could mean they should be entitled to further rights like a minimum wage and holiday pay.

Advertisement

It isn't until this point that you're asked to actually register with the company. This can be done by manually entering your email or by linking it to a Facebook or Gmail account.

It isn't until this point that you're asked to actually register with the company. This can be done by manually entering your email or by linking it to a Facebook or Gmail account.

It's definitely a bonus that you don't need to give away all your details right away.

Once you've added your address, it asks for any extra details to make the delivery process slicker.

Once you've added your address, it asks for any extra details to make the delivery process slicker.

You can zoom in on the map and mark exactly where the building entrance is.

Advertisement

Our order was placed at 12.21 p.m. and it was scheduled to arrive within 20 minutes.

Our order was placed at 12.21 p.m. and it was scheduled to arrive within 20 minutes.

Once you've ordered, you'll receive an email notification and can track the order progress via the app.

But just five minutes later, we received a call to say the delivery person was 2 minutes away.

But just five minutes later, we received a call to say the delivery person was 2 minutes away.
Advertisement

The donuts were neatly boxed up...

The donuts were neatly boxed up...

...and within five more minutes, we were tucking in.

...and within five more minutes, we were tucking in.
Advertisement

Overall, we were impressed by the process.

Overall, we were impressed by the process.

The app is very easy to use and there's a good selection of choice. On this occasion, there were no delivery delays so we had zero complaints.