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Ritzy Restaurant Delivery Site Deliveroo Raises $25 Million

They plan to use the money to expand to cities across Europe and the Middle East.

Food delivery companies continue to flourish: According to the TechCrunch, London-based start-up Deliveroo just raised $25 million in a round of funding. The company — founded by William Shu and Greg Orlowski — focuses on high-end restaurants that typically do not deliver. Shu believes that most take-out food "is of poor quality" and that "most premium restaurants do not deliver."

The company has its own online ordering and logistics platform. The latter separates Deliveroo from other companies like Just Eat which relies on the restaurants to handle delivery. The Wall Street Journal writes that Deliveroo instead has its own fleet of delivery personnel who deliver the food via bicycle or scooter. When customers place an order, the restaurant is notified by a tablet that Deliveroo provides. Then, when the food is ready, all a restaurant has to do is tap a button, and one of the company's delivery staff will complete the transaction.

Customers appear to be happy with the system: The company claims they currently have 50,000 people using the service regularly. There are many advantages to Deliveroo, after all. Customers typically receive orders in 32 minutes from when they placed them and Deliveroo only charges a fixed delivery fee of £2.50 ($3.80). Currently, the company works with 750 restaurants in London. Plus, they've expanded to Manchester and Brighton.

Shu tells the WSJ that the company plans on using the most recent found of funding to expand to other cities "that are densely populated with people and restaurants and affluent." He hopes that Deliveroo will be in nearly 15 cities across Europe and the Middle East by the end of 2015.

Deliveroo is very similar to successful food delivery start-up Caviar, which was purchased by mobile payment company Square last year for a rumored $100 million. Currently, Caviar operates in a handful of American cities. Like Deliveroo, the company also employees its own delivery system and offers delivery from higher-end restaurants that typically do not offer such a service.

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