FOOD DELIVERY COMPANY Deliveroo has just raised $275 million after what the company has called a “successful global expansion”.
The Series E investment investment represents a vote of confidence from investors that Deliveroo will win out against logistics juggernaut Uber, which unveiled plans to roll out its own food delivery service called UberEats earlier this year.
It is less than a 12 months since Deliveroo’s last investment round, during which it raised $100 million. Since it was founded in 2013, total investment in the company has reached $472 million.
Speaking about the funding announcement, Deliveroo founder and chief executive Will Shu said the company has experienced five-fold growth since November last year, launching in 29 cities, recruiting 9,000 new restaurant partners and hiring 6,500 delivery riders.
He added that the new funding will allow Deliveroo to roll out its new project called RooBox, which is a new remote delivery-only kitchen service for restaurants, in more regions.
“Our new focus is to drive further innovation in food delivery. In particular, I’m excited about exploring completely new ways to solve the hardest problems restaurants face when offering delivery,” he said.
“RooBox is the first illustration of this approach, and innovations like these are at the heart of our mission.”
Earlier this year, Deliveroo Ireland announced plans to bring the Roobox concept to Ireland as part of a drive to extend its reach to other Irish cities.
War with Uber
The funding comes as the UK company comes under pressure to combat the risk posed by Uber, which has shown every intention of trying to seize a chunk of the market.
The ride-sharing company announced plans to hop into the food delivery trade earlier this summer, launching the business in select cities worldwide.
UberEats provides a similar service to that of Deliveroo, offering restaurants that don’t have their own delivery operation access to a network of drivers.
However, UberEats has already come under fire for slow delivery times as it struggles to compete with Deliveroo’s claimed 30-minute average wait.
Deliveroo has also faced criticism in recent months over its treatment of delivery drivers and riders, who have complained of being transferred onto new delivery-based contracts.