Episode 27, Part 2 - Inside Deliveroo’s Go-To-Market Engine
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What is the main topic discussed in this episode?
Hello and welcome to the Growth Workshop podcast. In this podcast, we'll be sharing insights and hearing from other industry leaders to get their thoughts and perspectives on what growth looks like in modern business. You're listening to part two of our conversation. Before we get on to more questions, I think you're going on, I just, for the audience, I just want to give a concept and then get a bit deeper on Deliveroo if we can, because if we use that as an anchor for some of these conversations. And it's important to think about you, Matt, as an individual, that how are you going to apply these tools and frameworks that you've learned in the organizations moving forward? But just give a concept of delivery.
How many countries are you in? So delivery is currently in nine countries. Okay. And when you think about that, what is the concept? How big, how much revenue? You know, just what?
Yeah, absolutely. So Deliveroo, you know, currently generates over 2 billion in terms of total transactions. And so what that means is the collection of the menu item cost and then the fees that our platform charges. So as a customer, you might pay 15 pounds for your pizza and then you might pay some fees for us to deliver it to you as well.
And riders? Have I got the right term?
Correct.
Riders. Did you say how many? Sorry. I didn't say how many.
That's a good question.
Sorry, that's an unfair question. Thousands. Thousands. Tens of thousands. Yeah, good answer. Good answer. I don't think it was the scale, right? I thought you were going to start asking, can you name them individually?
And just for context, Deliveroo was recently acquired by DoorDash, which is a large American delivery firm. And they also own another delivery firm called Walt, who operate in Europe and further east as well.
And I suppose when you think about that, that's big scale, isn't it?
How does Deliveroo operate in multiple countries?
To do some go-to-market market transformation. So if we describe what go-to-market transformation looks and looks like at Deliveroo, how does it function day in, day out?
Okay. So what we do is we take, we've already talked about the t-shirt sizing. And as a reminder, that's about the size of the change and the number of people that are required to be told about the change. But what we do first is we basically have a big input funnel. So we have a request form effectively, which allows all subject matter experts across the business, whether they're on the rider side, the consumer side, the product marketing side. To tell us what are they going to launch when. And we look at the six month horizon and we look at the next three month horizon. So we take all of that in and we overlay our t-shirt sizing framework to that. And then what that gives us is a big list of a lot of things that are likely to change and what are going to come.
And just give us an example. I know you've gone into cover.
Give us some tips. So for example, we've got, you know, it's a product called rider check-in. So this is when a rider goes into a restaurant and they have to physically say, I am here at the restaurant. And what that does is it gives us a really strong signal that they have arrived when they said they were going to arrive, when we thought they were going to arrive, and when we told the restaurant that they were going to arrive. And so we use that data to basically make sure that we're the journey time from the restaurant to the customer.
Stupid question time. Why? Why do that? Because I get it, but what's the so what to that?
The so what is when you're at home and you order your pizza and we tell you it's going to come in 20 minutes, it comes in 20 minutes. So customer loyalty. It's a customer experience which drives repeat purchase, which drives retention.
And that's the aim of the game. And how is revenue generated in delivery?
So revenue is generated through the commission that we take off each order and some transaction fees that we collect from the customers as well. We obviously have to pay the riders as well. So it's a very tightly optimized business model.
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