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Deliveroo boosts jobs

Major report reveals how Deliveroo is creating jobs and boosting revenue across UK restaurant sector

  • Deliveroo has helped create 7,200 restaurant jobs across the UK and increased revenue of the restaurant sector by £460 million, a new economic study finds
  • Deliveroo's business operations helped add £372 million in value to the UK economy over the past year, according to the report
  • If Deliveroo continues to grow at its current rate, it is projected to have created 23,700 jobs in partner restaurants and contribute £1.5 billion to the economy in 2018/19

A major new independent study has revealed how Deliveroo is helping to strengthen the UK restaurant sector and bring significant benefits to the wider UK economy.

Deliveroo has helped create 7,200 jobs across the restaurant industry since launching in the UK four years ago, and increased revenues of restaurants and their wider supply chain by £460 million over the past year, according to analysis by Capital Economics.

The study examined the impact of Deliveroo on the restaurants who partner with the app, their suppliers and the wider economy. It reveals that Deliveroo's operations helped to add £372 million in value to the UK economy in the 12 months to June 2017.

Looking ahead, the report concludes that if Deliveroo were to continue to expand at its current pace, in 2018/19 the company is projected to have created 23,700 jobs in partner restaurants and grow the economy by £1.5 billion. This would generate £200 million worth of tax to the UK public purse.

Deliveroo works with 10,000 restaurants across the UK, more than half of which are small independent restaurants rather than large chains. Deliveroo helps these restaurants access new customers, bolster demand and increase their sales. This rise in revenue not only means they increase spending in their supply chain, which benefits food and restaurant suppliers, but it also enables restaurants to expand into new premises, take on new staff, offer existing staff more work and to diversify their menus.

Shops on the high street have faced pressures from technological changes and the growth in online retail, leading to the closure of traditional high street outlets such as banks and post offices. However, contrary to this trend, Deliveroo has helped the restaurant industry and the wider supply chain thrive amid this challenging environment.

Commenting, Dan Warne Managing Director for the UK and Ireland said:

'Deliveroo is proud to be boosting British restaurants, helping restaurants large and small throughout the UK grow.

'We're committed to giving people more access to quality food, and are thrilled that restaurants are benefiting as more people use Deliveroo to get great meals delivered straight to their door.

'We look forward to building on this success and helping more restaurants across the country reach new customers with exciting new food.'

ENDS

NOTES TO EDITORS

Helping the restaurant sector grow

Capital Economics used survey data from Deliveroo's partner restaurants to look at the number of jobs created in these restaurants due to their partnership with Deliveroo. They also examined the increased spend across the supply chain of these partner restaurants and the resultant job creation from this. In total, the report found that Deliveroo's operations have helped create 7,200 jobs across its partner restaurants and their suppliers.

The total figure of jobs created in partner restaurants specifically is 5,600. The table below shows how this is broken down regionally

Region

Jobs created in partner restaurants

Scotland

330

North East

110

North West

390

Yorkshire

280

East Midlands

190

West Midlands

280

East

240

Wales

110

London

2,780

South West

330

South East

580

The macroeconomic consultancy also looked at the increase in total sales of Deliveroo's partner restaurants, and the resultant rise in spending on suppliers by these restaurants. The report found that Deliveroo's operations had increased the revenue of its partner restaurants and their supply chain by £460 million in 2016/17.

It is also useful to compare these figures to a recent report by the Local Data Company which reveals that the number of new food and beverage outlets opening across the UK reached a new peak in the 12 months to September 2017. In the last five years the average annual growth rate of food and drinks sites was 743 new units per year, but in the last 12 months the number of new units nearly doubled this number to 1,333. Although this is only circumstantial evidence, it is noteworthy that as Deliveroo has increased its operations in the UK and added more restaurants onto its platform, the number of food and drink outlets has also increased.

Gross Value Added

Capital Economics examined the contribution to GDP made by Deliveroo's core business, its riders and the additional activity of restaurants generated by their partnership with Deliveroo. To do this, Capital Economics looked at the direct impact of Deliveroo, its riders and restaurant partners, as well as the indirect impact of these operations on spending on suppliers, spending of wages/fees and spending in restaurants' supply chains.

The study found that Deliveroo's operations supported £372 million in gross value added to the UK economy:

£ millions

Gross value added

Core Deliveroo business

74

Riders

118

Partner restaurants

180

Total

372

Future growth

Capital Economics also examined the economic impact of Deliveroo's future expansion. The study finds that, were Deliveroo to continue to grow at the same rate over the next two years, then it will likely support £1.5 billion of value added to the UK economy in 2018/19, and generate £200 million in tax.

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