Innovation And Entrepreneurship Strategies Of Deliveroo In Australia

Innovation Strategies of Deliveroo

Discuss about the Innovation and Entrepreneurship of Deliveroo.

This assignment consists of critically analyzing the Innovation and Entrepreneurship strategies of Deliveroo in Australia. As a consultant of the Organization, the researcher has the responsibility to find ways to improve the business of Deliveroo through innovation and entrepreneurship strategies of Management.

Deliveroo is known as one of the most popular Online Food Ordering Company globally. Deliveroo incorporated their business as a start up in London and now operates approximately in 12 countries including Australia. The growth rate of Deliveroo is phenomenal since its foundation on 2013. It is estimated that Deliveroo is growing at a pace of 25% to 30% every month from the day of its incorporation and they are not slowing down either. The company has more than 13,000 employees and more than 20,000 technical self-employed couriers’ services. The customers place their orders online and the company provides them courier service to transport orders from restaurants to customers (“Deliveroo”, 2017).    

The existence of Deliveroo in the Australian Market came into place in November 2016. Deliveroo the organization operates in Melbourne, Brisbane and Sydney. According to the researcher, Deliveroo can invest money towards improving their innovation and penetrating the market of Australia. This can be done by expanding their cities in which they operate and make expertise in creating better restaurant with best innovation skills. Moreover, Deliveroo needs to grow their market share in Australia, and needs to develop their brand across Australia effectively; there is a more than 400% growth of Deliveroo since its incorporation in Australia (Koorevaar, Veelenturf & Wonesel, 2016).

Deliveroo has already launched 9000 restaurants in Australia and have expanded its operations in 29 cities across Australia. The various strategies through which Deliveroo can make prosperous growth in Australia, they are as follows:

Flexible Payment Option:  In the food delivery, business riders are very important tool through which flexibility in the organization can be achieved. Riders works as the intermediary between the organizations products and the consumer, the whole responsibility of supplying the product is depended on the riders only (Lautre, 2016). Deliveroo must provide proper wages to their riders such like paying them on an hourly rate irrespective of paying them as per delivery. This will motivate the riders. Deliveroo should focus on creating a situation where the riders take decisions on which model they want to choose while delivering the products to the customers. Such as like choosing hourly rate or commission paid mode (Moran, 2014). Therefore, this will create great flexibility for the riders and enable them to enjoy their work and work more efficiently for the company.

Entrepreneurship Strategies of Deliveroo

Strong Focus: Organizations like Uber are placing huge competition to Deliveroo by launching their Eats Services in Australia. To prosper and maintain them in the competition Deliveroo needs to focus on their sole business that is selling food. Apart from their competitors, Deliveroo needs to develop a singular focus. As the company is on the business for the last four years and they should only focus with restaurants. Deliveroo needs to create a successful local team that will provide them success in the long run (Schildt, 2016).

Affordable Pricing: It is not necessary for the organization to innovate them in respect to products and services but also with innovative thinking while pricing a product. The price of Deliveroo per order is on average of $20 to $25 whereas competitors like Dominos Pizza and Mac Donald’s offer a price range of $18 to $20 (Lautre, 2016).   

Therefore, to enter the market Deliveroo need to lower their price range in respect to its competitors. Thus, it will generate an idea that Deliveroo is a reachable replacement for home cooking and more number of customer’s engagement will follow due to affordable pricing method.

Focusing on Rural Areas: Deliveroo is somewhat considered as one the urban centric brands as they are technology driven and their primary target is middle class people of Australia. However, to make their brand more accessible for all the consumers Deliveroo needs to focus on Rural Areas of Australia, where there is large residential population but very low number of restaurants availability. Deliveroo needs to create innovation in their supply chain in order to cater those customers that are living in rural areas (Casilli, 2016).  

Investing on Expansion: It is often determined that expansion leads towards innovation. Deliveroo in order to increase the growth of their company needs to expand them globally. Proper innovation in their working culture, increasing expertise in their food delivery service and expansion their business in rural areas will provide them a competitive advantage. Deliveroo needs to invest more on their research and development department to create more user-friendly website and fast delivery system for their potential customers (Johnston & Bate, 2013).

Increase in Capital: According to the researcher, Deliveroo needs to raise capital in their organization to drive towards innovation in the global food delivery industry. Proper investment in the capital structure of Deliveroo will provide them to increase efficiency in their business operations and will solve the problems that Deliveroo face while offering delivery to their potential clients (Nylen & Holmstrom, 2015).

Risk Confronting the Firm: According to the researcher, Deliveroo consists of risk associated with self employed riders. The organizations must make plans to pay their riders on hourly basis rather than on pay according delivery basis. The risk prevailing here is that the employees those are self employed does not have the benefit of wage protection, sick pay and other benefit of employment. Therefore, it is necessary for Deliveroo to understand their riders needs and act accordingly to safe guard their interest and enhance their job protection (Lautre, 2016).  

Impact of Environmental Forces: To succeed in the expansion of their business and growth Deliveroo needs to take proper initiatives to solve environmental impact of their businesses. The organization needs to reduce consumption of material in their operations, increase usage of recycled materials and make proper service arrangement for vehicles and sustain the environment with proper care and diligence. Deliveroo should maintain efficiency in their environmental management system and ensure adequacy and suitability towards environment protection.  They should also try to reduce the exhaust emission of their transport vehicles in order to decrease air pollution (Nylen & Holmstrom, 2015).

The owner of Deliveroo William Shu left his job as a investment banker and started a food delivery business in Britain. According to William Shu ‘You have to got to be irrational sometimes’. Entrepreneurship is all about creating something new with the application of leadership strategies and principles Australia (Koorevaar, Veelenturf & Wonesel, 2016).   According to the researcher, the various entrepreneurship strategies through which Deliveroo can develop their business are as follows:

Reinventing the Company: According to the researcher, it is necessary to make changes in the organization to make a competitive advantage in the market place. Deliveroo needs to restructure their websites, logos and the uniforms of their riders to enhance more security and safety towards them (Schildt, 2016).  

Increase in Quality: Deliveroo has own the Best Beats First Award in the Deloitte Institute of Innovation and Entrepreneurship. According to the researcher, Deliveroo success in the future is determined by how well they provide quality to their customers. As the business is growing rapidly, it is necessary for the organization to keep their mind focus on quality rather than quantity of expansion. The primary objective of Deliveroo should be in providing hot meals to their customers at home and render superior service quality to them (Casilli, 2016).   

Technological Advancement: It is necessary for all the organizations to change their technology after some point of time and keep expertise of new and modern technology to provide efficiency in front of their customers. Deliveroo should use sophisticated technology algorithms to provide restaurants and customers and have real-time information of the riders location. Therefore, it will create consistency of the services and reduce the delivery time of orders (Sharkey-Scott, Reilly & Andersson, 2016).

Differentiation of Service: Deliveroo services are needs to be differentiated from its competitors like Uber Eat, the organization needs to compare and compete with the strategies of its competitors to make a competitive advantage in the market place. Deliveroo must provide more customer engagement in their day-to-day operations and provide feedback to their customer’s queries. Moreover, Deliveroo can also introduce new methods in their supply chain to provide decrease the time of delivery (Aaboen et al, 2016).

Brand Recognition: It is mandatory to brand an organization impressively while expanding the business overseas. According to the researcher, Deliveroo must promote their brand universally to attract customers from all around the world. Branding consists of promoting the product and services of the organizations in various platforms like social media, Internet and live events. Therefore, proper branding not only creates awareness among the customers but also creates opportunities for the organizations to accumulate various investors globally (Koorevaar, Veelenturf & Wonesel, 2016).   

Distinct USP (Unique Selling Point): Unlike other food delivery business that only provide focus on online marketplaces for takeaway restaurants Deliveroo must maintain good partnership with premium and  quality restaurants that does not only provide delivery but much more than that. Deliveroo must address the needs of customers and their preferences while selecting restaurants for their businesses. Parting with highly renowned restaurants will provide Deliveroo with a different USP than its competitors and will create a competitive advantage of the organization in the Australian market place (Kuratko, 2016).

Conclusion:

In conclusion, today’s business world every company needs to increase the innovation in its operations and infrastructure along with the application of Entrepreneurship strategies to sustain in the competitive world of business. Deliveroo is growing rapidly since its incorporation in Britain, and it has expanded its business to the every corner of the globe and it still has the potential to increase its business globally. The company has successfully implemented innovative practices in their operations and marketing accordingly and with proper entrepreneurship skills, they can achieve valuable growth and development in the long run. Deliveroo has been growing potentially in the market the main reason behind this is their innovative skills and they are providing valuable amount of services to their customers. The company growth will be depended by the way the engage customer with their organizational goals and provide complete customer satisfaction to them.

References:

Aaboen, L., La Rocca, A., Lind, F., Perna, A., & Shih, T. (Eds.). (2016). Starting Up in Business Networks: Why Relationships Matter in Entrepreneurship. Springer.

Casilli, A. (2016, April). Is There a Global Digital Labor Culture?. In 2nd symposium of the Project for Advanced Research in Global Communication (PARGC).

Deliveroo. (2017). Deliveroo.co.uk. Retrieved 18 January 2017, from https://deliveroo.co.uk/faq#story

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Koorevaar, S., Veelenturf, L. P., & van Woensel, T. (2016). Efficiency improvements in driver dispatching for dynamic PDPs.

Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning.

Lautre, Y. (2016). Auto-entrepreneur: Le Uber de la restauration débarque à Toulouse. L’indépendance, c’est l’esclavage.

Moran, K. (2014). Blog Archives.     

Nylén, D., & Holmström, J. (2015). Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation. Business Horizons, 58(1), 57-67.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill.

Schildt, H. (2016). Big data and organizational design–the brave new world of algorithmic management and computer augmented transparency. Innovation, 1-8.

Sharkey-Scott, P., Reilly, M., & Andersson, U. (2016). Strategic Initiatives: Entrepreneurship and Strategy Development Working Together. In European International Business Academy (EIBA) conference in Vienna, 2016.