Another restaurant delivery service arrives

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Another restaurant delivery service arrives

Not all restaurants see enough demand to make it worth operating their own delivery service, and that's where Delivery Hero and Gourmet Deliveries come in, picking up your order from a restaurant and delivering it to your home, office or hotel room.

Now there's a new player: UK-based Deliveroo has just launched in Melbourne and Sydney - along with Hong Kong, Singapore and Dubai.

The suburbs initially covered are St. Kilda, Prahran, South Yarra, Toorak, Richmond, Sydney’s CBD, Haymarket, Potts Point, Kings Cross, Woolloomooloo, Darlinghurst, Elizabeth Bay, Rushcutters Bay and Surry Hills, with more to be added in the coming weeks. 

The average delivery time is said to be 32 minutes, and customers pay just $5 per order for delivery. Restaurants are encouraged to charge menu prices for delivery orders, but there was no mention of whether they pay a commission or other fee to Deliveroo. 

According to the company, Deliveroo's point of difference is that it works with premium restaurants that typically did not offer delivery service. It's the now-familiar story of matching excess capacity with unmet demand: restaurants can apply their spare kitchen capacity to make more money (it's up to the restaurant to decide the days and times that they offer delivery service), while people seeking home-delivered meals get a wider range of choices.

Participating Australian restaurants include 38 Chairs, Uncle, Huxtaburger, Sugarcane, Spice Room and The Roosevelt.

"We've experienced extraordinary demand for our service as consumers want high-quality food delivered quickly and restaurants seek a new significant source of revenue," said William Shu, co-founder and CEO of Deliveroo. "It's been phenomenal to see the business quickly expand from London to European capitals and some of the most exciting cities in Asia Pacific and the Middle East."

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