After raising over $180 million in its latest round of fundraising, UK-based food delivery company Deliveroo is valued at over $7 billion, according to a company statement.
With financial backers such as Amazon.com Inc., Deliveroo has received a valuation in line with blue-chip companies such as grocery chain J Sainsbury Plc. Its unexpectedly high valuation comes as a result of an increasing demand for food delivery services now that the United Kingdom finds itself on yet another nationwide coronavirus lockdown.
While its current business activities have proven to be financially lucrative, Deliveroo has revealed plans to delve into a host of new ventures, including an expansion of its grocery delivery services and a dark-kitchen concept called “Editions”.
In 2019, Deliveroo hit its record-highest operating revenue of $771.8 million; a 62% increase from the previous year. To date, the company has been a partner with over 140,000 restaurants and 110,000 delivery drivers across the globe.
Despite its impressive financial results, Deliveroo still faces strict competition in the food delivery market. Fierce rival Delivery Hero raised a whopping $1.6 billion in a share sale aimed at raising funds. Just Eat Takeaway is another food delivery service that has been making recent strides.
