Deliveroo cuts ~15% of staff as coronavirus challenges food delivery

Is it feast or destitution for meat bringing startups during the coronavirus pandemic? The UK’s Deliveroo has confirmed it’s axing more than 350 personnel — or around 15% of its world-wide headcount.

Late yesterday the Telegraph reported that the London-based startup will be cutting 367 staff and furloughing a further 50 out of a total headcount of more than 2, 500.

A Deliveroo spokesman blamed the trimmeds on the coronavirus crisis, saying the public health emergency has put pressure on the business to reduce long-term costs.

He did not confirm which the different types of roles are being eliminated nor the markets where the axe is falling.

” The extraordinary world health crisis we are living through has impacted nearly all ventures. As a solution, like so many others, Deliveroo has had to examine how to overcome the challenges we all face, as well as ensure we are in the strongest position possible following the crisis ,” the spokesman said in a statement.

” This requires us to look at how we operate in order to reduce long-term payments, which sadly intends some characters is at stake of redundancy and others will be put on furlough. This has been extremely difficult for everyone at the company, and our absolute priority is to make sure those who are impacted are fully supported.”

The UK startup operates in 13 marketplaces globally, principally split between Europe and the Middle East and Asia.

Last year it learnt a big jump in revenue for full-year 2018, after expanding into brand-new markets, but its losses also wide — and that was before COVID-1 9 snowballed into a pandemic.

The highly infectious virus has thwarted business as usual for different kinds of corporations but, at first glance, banquet give startups may have seemed positioned to benefit from nationwide quarantines that have people locked down at home.

However, with countless eateries shuttering at least temporarily and home-bound customers worry about economic indecision so likely to rein in discretionary spend grocery delivery searches to be surfacing as “the worlds biggest” winner.

A lot more people spending a lot more time at home appears to be a recipe for cooking more, rather than ordering lots of take out. Certainly in the short term. While the metropolitan density and convenience-led demand that powered on-demand food delivery growth in the years prior to the coronavirus pandemic remains dangerously disrupted by the pandemic and its tricky requirement for social distancing.

Earlier this month CNBC reported on plummeting involve in the UK leaving delivery escorts struggling to earn fairly fund to live on.

How all this shakes out will be dependent on countless parts, including the way in which authorities organize the lifting of lockdowns( in Spain, for example, the government has said it will let diners reopen for takeaway merely, initially, which could help generate demand ).

But the kind of mass appetite for fast food at the push of a button — which has led to years of frenzied rival in the on require infinite — may be a longer term casualty of the pandemic.

Delivery Hero CEO shares what he’s learned about managing logistics during a pandemic

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