Accel Partners has led a $25 million Series B funding round in Deliveroo, a food delivery service. Other participants in the funding round include Index Ventures, Hoxton Ventures and Hummingbird Ventures. Funding will help Deliveroo expand in the UK and internationally. The company already operates in London and Brighton. Accel Partners’ Fred Destin will join Deliveroo’s board.
Deliveroo, the food delivery service that brings high-quality local restaurant meals to your door, today announces a $25m Series B investment round led by Accel Partners, with participation from Index Ventures, Hoxton Ventures and Hummingbird Ventures. The investment will help drive expansion across the UK and internationally. Deliveroo is already live in London and Brighton and launches in Manchester this week.
Founded in 2013 by William Shu and Greg Orlowski, Deliveroo is focused on providing the ultimate food delivery experience. Customers use the service to get meals from a variety of leading local independent and high-quality chain restaurants, delivered to their homes and offices quickly and conveniently by one of the hundreds of Deliveroo drivers and cyclists. National quality restaurant operators like Nando’s already trust the service with their brand.
The current food delivery landscape is dominated by pure online marketplaces that predominantly work with lower-end takeaway restaurants that utilise their own drivers. This generally results in an inconsistent customer experience and choice that’s limited to restaurants that are already set up for takeaways.
By contrast, Deliveroo is all about a delightful consumer experience – bringing the high-quality cuisine of local restaurants that customers know and love to their door in a very short amount of time. Customers can get great food from local restaurants prepared and delivered in 32 minutes on average, whilst maintaining real-time visibility on every step of the food preparation and delivery process.
Restaurants benefit from Deliveroo’s hyper-local approach, drivers and logistics platform. Deliveroo enables partner restaurants to utilise excess kitchen capacity and fixed costs, generating uplift in restaurant sales of up to 30%, with none of the hassle of running their own fleet of drivers. By handling all the delivery and technology elements, Deliveroo allows restaurants to earn these significant incremental revenues whilst retaining focus on their in-house customer experience.
To provide consistent high-quality service and short delivery times, Deliveroo has created a network of hundreds of drivers and cyclists who are paid for each completed delivery. Since launch in 2014, it has built a team of 300 drivers and cyclists.
Deliveroo has expanded significantly since its Series A announced 8 months ago, when it delivered to a few thousand customers in a handful of London neighbourhoods. Today, Deliveroo serves over 120 neighbourhoods in London, Brighton and Manchester and has built a loyal customer base of over 50,000 who use the service regularly. Over the same period, the company has seen its office team grow to over 50 people.
This week’s launch in Manchester is the continuation of the company’s fast expansion across London and Brighton. Deliveroo plans to use the new funds to aggressively roll out its service to neighbourhoods across the UK and internationally, with a particular focus on hiring and marketing activities.
“This is a significant moment for Deliveroo. We’ve seen high demand for our service in London and Brighton and are excited to be launching this week in Manchester, the first step in our ambitious expansion plan. Today’s funding gives us the ammunition we need to bring our first-class delivery service to a much wider audience, and we’re delighted to have the Accel team and our existing investors on board to help us reach our goal,” said William Shu, CEO of Deliveroo.
Accel Partners’ Fred Destin will join the board, while Luciana Lixandru will be an observer. Destin said: “Will, Greg and the team have achieved very impressive traction to date and created a service that speaks to a much larger global trend in how people want to discover and experience local food. Both customers and restaurants absolutely love Deliveroo; we’re looking forward to helping the team scale even faster and bring that delightful food experience to a much larger audience.”
Martin Mignot from Index Ventures, the venture capital firm that led the company’s Series A round, added: “Deliveroo is one of the fastest growing companies in our portfolio. The main reason behind this growth is its win-win-win proposition. Customers get access to good food they couldn’t get delivered before, restaurants increase their revenues and hundreds of drivers generate new income.”
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Deliveroo is an end-to-end food delivery service that brings high-quality local restaurant food to homes and offices through a proprietary technology and logistics platform. Founded in 2013 by William Shu and Greg Orlowski, the company delivers dishes from leading independents, such as Ollie Dabbous’ Barnyard and Martin Morales’ Andina, and high-quality chain restaurants including Busaba Eathai, Honest Burgers, Nando’s and Gourmet Burger Kitchen. To date, Deliveroo has raised $28m from investors including Accel Partners, Index Ventures, Hoxton Ventures and JamJar Investments. www.deliveroo.co.uk
About Accel Partners
Founded in 1983, Accel Partners has a long history of partnering with outstanding entrepreneurs and management teams to build world-class businesses. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, New York City, London and Bangalore. Accel has helped entrepreneurs build over 300 successful companies, many of which have defined their categories, including Alfresco, Angry Birds (Rovio), Atlassian, Cloudera, ComScore, Dropbox, Facebook, Gameforge, Groupon, Imperva, Kayak, Nimble Storage, Playfish, QlikTech, Spotify, Supercell and Varonis.
For more information, please visit the Accel Partners web site at www.accel.com. Find us on Facebook at www.facebook.com/accel.
About Index Ventures
Index Ventures is a multi-stage international venture capital firm that backs the best and most ambitious entrepreneurs in the US, Europe and Israel. These leaders are building truly transformative companies that are reshaping the world around us, including ASOS, BlaBlaCar, Criteo, Dropbox, Etsy, Funding Circle, Just Eat, King, Squarespace, Sonos, SoundCloud and Supercell – among many others. Find out more about Index and its companies at www.indexventures.com.
About Hoxton Ventures
Hoxton is a $40 million ‘micro-cap’ early stage technology venture capital firm. The fund partners with European founders seeking to invent new market categories or transform large, existing industries. The firm is based in London and invests across greater Europe.
About Hummingbird Ventures
Hummingbird Ventures is a venture capital fund for high-growth digital media and software companies. Hummingbird Ventures leverages its extensive operational experience and worldwide network to actively help startups accelerate their growth. Hummingbird, with offices in London, Ghent, and Istanbul, invests primarily in Europe, Turkey and the Middle East.