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Deliveroo IPO: Can It Deliver More Than Just Your Lunch?

Source: https://www.similarweb.com/corp/blog/deliveroo-ipo-can-it-deliver-more-than-just-your-lunch/

The U.K. based online food delivery company is going public at the end of the month. The Deliveroo IPO is expected to be the biggest Initial Public Offering (IPO) on the London Stock Exchange (LSE) in almost a decade. Backed by Amazon, and seeking a valuation of £8.8 billion ($12 billion), this IPO is something to get excited about.

According to CNBC, Deliveroo says it will use the proceeds of the IPO to continue to invest in innovation and push deeper in on demand grocery deliveries.

With all this excitement, let’s see what our alternative data has to say about Deliveroo’s online performance.

Key takeaways:

  • Deliveroo is seeing strong year-over-year (YoY) growth in site visits (79% in 1Q21)
  • Just-eat.co.uk has the largest online market share (SoM) in the U.K. and continues to gain share
  • Deliveroo.co.uk has stronger brand recognition than just-eat.co.uk

The U.K. food delivery market

Deliveroo is capitalizing on a growing food delivery market. The sector as a whole is experiencing strong growth, largely due to the coronavirus pandemic, and all players globally are seeing the benefits.

In the U.K., Deliveroo’s core market, the industry average website traffic growth to food delivery sites was 78% YoY in the week ending March 12.

Deliveroo vs. the competition

In the U.K. just-eat.co.uk dominates the food delivery market, with more monthly visitors to its site than deliveroo.co.uk and ubereats.com combined.

Deliveroo may have increased competition in the U.K., but its traffic growth looks promising.

Despite flat YoY growth in Q1 20 (-0.2%), YoY growth in site visits accelerated in 2020, reaching 79% YoY in 1Q21, a 10 percentage point (ppt) increase from the previous quarter.

Brand strength beating the competition

Never mind the seemingly smaller SoM than just-eat.co.uk, Deliveroo’s brand is robust. Deliveroo.co.uk received more than 82% of visits directly and from organic search in the U.K. in 1Q21, indicating solid brand strength. In comparison just-eat.co.uk is more reliant on paid advertisement, receiving 15.4% of traffic from paid search in 1Q21, 4.7 ppt higher than deliveroo.co.uk.

To learn more about the data behind this article and what Similarweb has to offer, visit https://www.similarweb.com/.

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ForwardKeys

ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.

GET WEEKLY ALERTS

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LET US HELP

Data is changing the speed of business. Investors, Corporations, and Governments are buying new, differentiated data to gain visibility make better decisions. Don't fall behind. Let us help.

DATA PROVIDER SPOTLIGHT

ForwardKeys

ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.