New independent analysis finds that Deliveroo supports 81,000 jobs in its restaurants, grocery partners and their wider supply chains, contributing £1.9 billion to the UK economy in 2022.
The new report from economic research consultancy Capital Economics highlights the positive impact Deliveroo makes to the UK hospitality sector and the wider economy, as well as the broader supply chain activity it supports. With orders with a gross transaction value of just over £4 billion in the UK and Ireland placed through the app in 2023, Deliveroo currently works with around 75,000 self-employed riders and 70,000 merchants in the UK.
More than 8 in 10 restaurants found that partnering with delivery platforms increased revenue and almost half (46%) have hired new staff as a result. For many, Deliveroo has enabled them to expand their delivery markets, or start a delivery service they didn’t previously offer.
Not only does Deliveroo drive additional delivery revenue, but it also supports in-store sales and growth. With customers more easily able to discover and trial new restaurants through online orders, more than half (52%) of restaurants also reported an increase in dine-in revenues as a direct result of the increased exposure and reputation built through their presence on delivery apps.
Similarly, one in 20 restaurants (4%) say partnering with Deliveroo has enabled them to open a new site – equating to approximately 2,000 new restaurants across the country. A fifth (19%) have expanded their restaurant to be able to serve more dine-in customers.
And with adoption of new technology key to boosting productivity of small businesses, two-fifths (40%) of merchants have adopted new digital technology into their business as a result of using delivery platforms. For instance adopting accounting software or using data tools to better understand their customers and where it may be profitable to expand. Merchants reported that working with delivery partners helped them gain confidence in using new digital tools across a range of business functions including customer analytics, marketing and HR, as well as making them aware of options they didn’t realise were available before.
Carlo Mocci, chief business officer Europe, Deliveroo, said: “We’re incredibly proud of the contribution our business has made to local communities across the UK, helping our brilliant restaurant partners to expand their customer base and bringing the neighbourhood to people’s doors. We’re truly a partner for growth and at a challenging economic time for businesses, we’re proud that Deliveroo can play such a vital role. We’re committed to championing the UK’s vibrant hospitality sector, and are always looking for ways to do more and help it to thrive.”
One restaurant business which has grown since partnering with Deliveroo is Unagi Streetfood & Sushi in Manchester. Launched in 2020 by a small group of talented chefs, Unagi now has five sites across Greater Manchester and beyond, serving up a host of on-the-go street Japanese snacks. In the 2023 Deliveroo Restaurant Awards Unagi won Best Japanese Restaurant for the North East and the Midlands.
David Vanderhook, Owner at Unagi said: “UNAGI was established in 2020 as a lockdown street-food brand trading from a small airstream – we now have five permanent sites delivering across Manchester. Our first choice of delivery partner was Deliveroo and we now operate with them exclusively. Our revenue has increased year on year, allowing us to reach new customers and drive awareness of our brand.”
Kate Nicholls, Chief Executive of UKHospitality at UKHospitality said: “Hospitality has always been an innovative and optimistic sector of the economy, with businesses looking to grow and expand. Takeaway has been a huge growth area for restaurants around the country and the boom of delivery services like Deliveroo has played a critical part in that.”
