The UK's food delivery market continues to heat up, with a major cash injection for homegrown service Deliveroo and a trial online delivery option launched by upscale grocer Marks & Spencer (M&S).
According to a report by Sky News, Deliveroo is expected to announce £285 million ($385 million) in funding from US investment fund managers Fidelity and T. Rowe Price in a deal that values the London-based startup at around £1.48 billion (nearly $2 billion).
In addition to the UK, Deliveroo offers app-based restaurant delivery services in eight other countries in Europe, plus the United Arab Emirates, Australia and Hong Kong. Reuters, citing venture funding data from Crunchbase, reported that the company has raised $474.6 million since it was founded in 2012.
Deliveroo's revenues rose 611% worldwide to £129 million ($174 million) in 2016, according to Business Insider. That tally is no doubt being helped by a growing appetite for food delivery in the UK, Deliveroo's oldest market. According to data from the NPD Group cited by The Guardian, nearly 600 million food deliveries were made in the UK in 2016, up about 10% from a year earlier.
Apps like Deliveroo’s are likely beneficiaries of this rising demand for food delivery. A June 2017 study by On Device Research of smartphone users in the UK found that food delivery was the second most common product or service category purchased via mobile phone, behind only clothing and footwear.