Will Deliveroo compete with its own customers?
Online food delivery company Deliveroo plans to launch fifteen commercial kitchens in Australia allowing restaurants to bypass the traditional shopfront.
The ‘dark kitchen’ known as Deliveroo Editions provides restaurants with workspace in exchange for a higher commission fee for using the Deliveroo platform.
The new concept will require restaurants to provide their own staff and ingredients, while offering several brands the opportunity to test new ideas and use Deliveroo’s facilities.
A Deliveroo spokesperson said the company knows there are new food concepts that want to enter the market, but aren’t yet ready to invest in their own locations.
“Deliveroo Editions would provide a new avenue for the hospitality industry to grow,” Deliveroo said.
Is Deliveroo the Netflix of the food world?
Deliveroo’s move is similar to popular American entertainment company Netflix.
Netflix established itself as an on-demand provider of existing media that was produced by other companies.
In 2013, Netflix produced its first piece of original content, the popular political thriller House of Cards.
Netflix has since evolved into a major force in the entertainment industry, both as a producer and distributor.
The growth and development of Netflix provides a useful analogy when compared to the food industry.
Through Deliveroo Editions, the food delivery company is trying its hand at food production, charging restaurants a higher premium to prepare and package food on its own premises.
Deliveroo aims to set itself apart from its competitors
Deliveroo’s newest project has already been tested in Britain, the Netherlands and Dubai.
Deliveroo’s Australian manager Levi Aron said the company aims to build 200 of these kitchens globally before Christmas.
Each Deliveroo Editions location will have eight or nine purpose-built kitchens fit for delivery, with each allocated to a different restaurant brand.
“We are working with the best restaurants around Australia to bring supply to the demand,” Aron said.
Deliveroo has not revealed the commission it takes from restaurants, with restauranteurs reporting it to be between 25 per cent and 35 per cent.
The British company launched in Australia in November 2015 and was one of the first entrants into the food delivery market.
Currently, its major competitors are Uber Eats and Foodora.
Deliveroo has 3,800 restaurants signed up to its service Australia-wide, covering the largest distance of any food delivery business in Australia.