Deliveroo is the latest food delivery service to rack up some serious investment money, today announcing a $275 million investment. The London-based company was founded in 2013 and is now reportedly worth as much as $1 billion, according to TechCrunch.
According to a press release, the funds will be used “to expand the service in both new and existing markets, as well as provide further investment in projects such as RooBox.” (Roobox provides off-site kitchen space for select restaurants, allowing them to expand their delivery area to places that would normally be out of reach.)
While most American food delivery junkies probably haven’t heard of Deliveroo, it’s massive overseas, currently operating in more than 84 cities across 12 countries including Australia, France, United Arab Emirates, and the United Kingdom.
Uber has been working to swoop in on Deliveroo’s territory with its UberEats service — and interestingly, TechCrunch reports that Uber (along with Amazon and a number of other companies) was allegedly one of several companies previously approached about buying Deliveroo.
Those rumors are unconfirmed but it is important to note that the number of players in the delivery space will almost certainly dwindle eventually — GrubHub, for instance, has acquired a number of smaller competitors in an effort to expand its reach. Still, new delivery services — or funding announcements regarding current services — seem to crop up almost weekly.
Despite the seemingly saturated market, it’s a largely untapped industry: The food delivery market is currently estimated at about $30 billion but some reports suggest it has the potential to be much larger. A recent study conducted by Morgan Stanley analysts suggests the food delivery market has the potential to be worth some $210 billion.
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