Deliveroo to boost merchants with minimal mark-up on app

Deliveroo to boost merchants with minimal mark-up on app

Deliveroo, the popular food delivery platform, is introducing a new initiative aimed at steering users towards better-value restaurants and merchants while making it clear when a merchant is not providing good pricing. This move comes as Deliveroo strives to enhance its value perception among consumers and respond to the growing demand for cost-effective food delivery.

The initiative, set to be implemented over the coming months, will be first applied to takeaway restaurants, with the potential for extension to supermarkets and convenience stores. Carlo Mocci, Deliveroo UK’s Chief Business Officer, emphasized that the program would prioritize and provide visibility to partners who offer the same food at the same price as their physical stores. He highlighted the importance of building long-term trust for customers and fostering a sustainable ecosystem.

Merchants’ value ranking will be assessed based on price checks comparing on-app prices with in-store prices and customer-supplied scores evaluating perceived value. Mocci emphasized that this ranking is grounded in statistics and science and cannot be influenced through monetary means.

This initiative is a part of Deliveroo’s ongoing efforts to improve its value perception among consumers, which had declined over the past two years, according to YouGov’s BrandIndex platform. Research by Which? conducted in June found that grocery orders through delivery apps can cost up to a third more than ordering from a supermarket’s website, and takeout orders through apps can be up to a fifth more expensive than ordering directly from restaurants.

Deliveroo has been working to address these concerns through various measures. It invested £20 million in a summer savings campaign and collaborated with supermarkets to match app-listed product prices with in-store prices. The platform has also introduced more promotional features for restaurants and stores.

Deliveroo CEO Will Shu emphasized that the initiative is not an editorial decision but is data-driven. It aims to address the occasional but significant examples of price mark-ups that should not be prominently featured on the platform. By aligning restaurants’ interests with the interests of consumers, Deliveroo aims to enhance customer satisfaction and value perception in its service.

This move reflects Deliveroo’s commitment to delivering a service that offers fair pricing and high value to its users. The initiative is expected to have a positive impact on the overall value perception of the platform among consumers.

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