Deliveroo adds $302.7m in revenue to Singapore's economy: report
It provided 5,000 jobs across the Lion City’s F&B sector.
Deliveroo supported 5,000 jobs across the economy of Singapore, which include jobs in businesses that employees/riders spend their wages, in the supply chain of Deliveroo, its partner restaurants and in the supply chain of such partner restaurants, according to a report by economic consultants Capital Economics.
The report, which looked at the increased revenues received by restaurants and their suppliers, the spending of Deliveroo riders and employees, the spending by Deliveroo on its suppliers, and the tax generated by Deliveroo’s operations, found that 4,700 additional jobs and $213.7m (GBP120m) in additional revenue was generated as a result of Deliveroo’s operations in the F&B industry in Singapore.
“This is a combination of increased revenue for partner restaurants due to increased sales through the Deliveroo app and an increase in spending by partner restaurants on suppliers,” the firm explained.
From November 2017 to 2018, Deliveroo’s operations added $302.7m (GBP170m) in additional value to Singapore’s economy in the form of increased revenue, as well as $49.3m (GBP27.7m) in tax revenue, a report revealed.
It found that globally, Deliveroo is said to support $5.3b (GBP3b) in additional revenue across the economies of the markets in which the company operates. Since its launch in November 2015, it now partners with 4,500 restaurants in Singapore, engages 6,000 riders and has three Editions sites, with its newest and most advanced site, Deliveroo Food Market, ALICE@MEDIAPOLIS which opened in early March.
The food delivery market in Singapore is said to have the room to grow, with 7 in 10 Singaporeans claiming to have ordered via food delivery apps at least once a month, in a survey of 500 Singaporeans. More than half also stated increased usage of food delivery apps over the past two years.
“Over 80% foresee they will likely use food delivery more frequently in the future. Choice, convenience and the efficiency of delivery services rank amongst the top few factors that influence consumers’ choice of food delivery service,” the firm said.
Deliveroo is reportedly committed to adding 5,000 restaurant partners and another 2,000 riders by end-2019. In addition to opening their third and most innovative Editions site, Deliveroo Food Market, Deliveroo also has plans to introduce new features for restaurants and continue to improve the way it works with riders.
By 2020, it is projected that Deliveroo’s operations would support an estimated 200,000 jobs and $7.1b (GBP4b) of economic output globally based on its current growth rate. If Deliveroo were to continue to grow at the same rate, the Capital Economics report estimates that by 2020, it would support somewhere in the region of 13,000 jobs and $284.8m (GBP160m) of economic output in Singapore.