Last Thursday, the IE Tech and Innovation Club hosted a very enriching talk with Deliveroo’s Spain General Manager, Jesús Muñoz. This talk encompassed a wide variety of subjects, including business, economics, law, and marketing. Muñoz shared his insights regarding the past, present, and future of food delivery services. He specifically talked about how Deliveroo had cooperated with other companies in the past, as well as, how riders and the economy are affected by amendments to the labor law.
Moreover, Muñoz also explained that data and marketing play a defining role in propagating Deliveroo’s goal. He provided his subjective view on what he thinks the company excels in and its shortcomings. He explained that Deliveroo values operational efficiency and aims to be the “definitive food company”. However, Muñoz transparently revealed that they were struggling with this goal as the aspiration is quite broad.
When asked by a student if Deliveroo would ever consider helping restaurants launch a new line of product, since they possess great knowledge of its customers, Muñoz replied that “it is very hard to help someone who does not want help.”
This answer shocked everyone, but the explanation that followed did not. As an experienced player in the restaurant industry, Muñoz declared that restaurants are conservative. And although COVID has pushed them in a direction to embrace new ways, some are still adamant. Nonetheless, he does believe that cooperation will increase in the future.
The next question was directed towards Deliveroo’s marketing strategy. As an avid fan of performance marketing, Muñoz believes that the investment ought to be concentrated on brand differentiation because the majority of customers are driven by price. Merely investing money in harvesting customers or obtaining the best partnerships does not suffice. In fact, doing this actually transforms you into a commodity, and then it is just a matter of price. That is why creating value should revolve around authentic goods, services, and cooperations.
But how will Deliveroo differentiate itself to create value in the future? Muñoz simply that they would continue to do exactly what they are doing, with an element of adaptation to the opportunities that appear. The spirit of what Deliveroo is currently doing is that it delivers a seamless experience from point A to B: operation of the platform, product, and pricing.
Many companies believe that they will grow if they are able to optimize their efficiency, explained Muñoz, and this is correct but only to a certain extent. This is correct, but only to a certain extent. The quick delivery frenzy in which one can get their delivery in 10 minutes is a dangerous phenomenon. If you get your delivery in 12 minutes instead of the promised 10, what should have been a great experience results in a not-so-great experience that will be reflected in future deliveries and will cause the company to lose extreme amounts of money. Keeping this in mind, Muñoz explained that what Deliveroo will engage in for the future is better specialization; consuming the required operation time, as opposed to mere speed.
We hoped you enjoyed this enriching event and hope to see you next time!