How does a Deliveroo business model actually work and make revenue?

Dec 07, 2021

How does a Deliveroo business model actually work and make revenue?
Deliveroo Clone

Deliveroo is a UK based online food delivery platform that laid its foundation in 2013. It has become one of the biggest, popular online food suppliers and grew faster to extend its services across major parts of the world. It is a large network connecting more than 1.40 lakh food outlets in these years.

Their journey began with the aim of fulfilling food appetizers with convenient doorstep services from the best local restaurants. It establishes partnership with various restaurants and serves customers their relishing, authentic dishes from favorite cuisines.

What do you know about the Deliveroo business model?

This intuitive business model functions with high-quality food delivery and customer satisfaction as its prime goals. Customers can directly connect with the nearby food outlets and place orders through websites and android and ios supporting mobile applications. The delivery partners are assigned to perform food deliveries based on incoming demands.

Deliveroo operates globally handling unlimited customers and vendors under a single platform. This is an effective business model that entrepreneurs should consider for developing their own food delivery application for a growing venture.

The defined solution for restaurant panel

Deliveroo has launched this online food delivery concept for the restaurants in that region to serve a huge customer base with its attractive delicacies. It is a wide opportunity for the startup restaurants and others to gain customer reach and expand their growth over a short period of time without any investment. This platform enables restaurants to give more online presence to be an active player in the competitive market.

  • The application acts as a medium for promotion and branding of restaurants. It is a rescue for many restaurants as they cannot afford much for promotional activities. Deliveroo steadily continues its business enhancement activities thereby creating a brand name for restaurants.
  • It provides constant technical support throughout their delivery services.The fully scripted ready-made solution is easy to understand and implement practically. A complete assistance will be provided for carrying out the ongoing operations
  • Deliveroo ensures to provide online assessment for evaluating the performance of the restaurants in this subtle platform. Based on these evaluations, the restaurants think about new business strategies and ideas that boost their growth.

How does deliveroo work?

Deliveroo can be installed in web browsers and mobile devices and accessed instantly. Let us discuss how the Deliveroo business model works.

  1. When a customer selects the area at which the food has to be delivered, the app provides a list of restaurants located nearby . The customer can view the menu of the listed restaurants and choose their desired food that they want.
  1. Customers can place their order and checkout by making online payment through any of the multi-payment gateways offered by the app. The platform enables secured transactions in a faster way.
  1. Once a customer sends an order request, the restaurant lets the customer know if the order is accepted and starts food preparation and dispatching activities. The order can be tracked by the user till its delivered using Google maps API.

How does Deliveroo earn money?

Deliveroo earns its revenue for every customer sign up, every order placed and fee charged to restaurants for its registration.

The delivery executives are paid for food pickup, delivery and extra distance coverage charges. The remaining money from the total sum up has to be paid to Deliveroo.

A collective information has been obtained from many restaurants that 20 percent is charged as commission for restaurants for every single order. But till now, this model has never provided the accurate information on commission charges that they collect.

It is evident that nearly 50,000 people are Deliveroo users. The plenty of user signups and recurrent usage of app usage is a source for system outflow.

The story of triumphs

Deliveroo has attained an unimaginary growth over these years due to its relentless services. The technology that it has adapted for the online food industry has witnessed earthbound records. The platform has excelled its services in many aspects like brand recognition, economical cost service, easy accessibility and others. Are you eager to build a successful food app like Deliveroo?Shopurfood is the right place to make your choice come true.

Kiruthika Blogger


Kiruthika is a Content writer and blogger at Qono Technologies. Other than her interest in writing, she can be seen listening to songs, reading or traveling.