Deliveroo delivers more than food: Betting on health and beauty for growth

Deliveroo, the popular food delivery platform, announced its plans to expand its offerings beyond food delivery. The company is now looking to bet on the health and beauty sector to grow its orders.

According to a recent report, the company plans to launch a new service allowing customers to order products from local pharmacies, health stores, and beauty retailers for delivery. This move comes as Deliveroo looks to diversify its offerings and increase revenue streams.

As we continue to see the spike in demand for online deliveries of essential products post-pandemic, Deliveroo is looking to capitalize on this trend and offer its customers more. By expanding into the health and beauty sectors, the company can tap into a new market and attract a broader customer base.

The move into health and beauty is familiar to Deliveroo. The company has partnered with some health and beauty retailers, such as Boots, to deliver products to customers. However, this new initiative marks a more concerted effort to expand into the sector.

Fadel Belmahdi, Director of Groceries at Deliveroo Middle East, confirmed that the company was “exploring opportunities in the health and beauty sector and considering various options to broaden our services across various categories, thus expanding our business”. In the UAE, he confirmed that Deliveroo has partnerships with leading pharmacies that cater to customers' needs in the health & beauty sectors, such as Al Ain Pharmacy, Supercare, Al Manara, and 800 Pharmacy.

Deliveroo's move into health and beauty is also an intelligent business strategy. According to a report by Euromonitor International, the global beauty and personal care market is expected to grow by 5 percent, reaching a value of $511 billion. Meanwhile, the global wellness industry is expected to grow by 5.6 percent, reaching a value of $4.2 trillion. By tapping into these growing markets, Deliveroo could see a significant boost in revenue.

The move into health and beauty could also help Deliveroo differentiate itself from its competitors. While many food delivery platforms exist, only some offer a wide range of products beyond food. By offering customers the convenience of ordering their health and beauty products online and having them delivered, Deliveroo could carve out a unique position in the market.

So what is their overall positioning of the delivery app and views on the trends, especially with the recent focus on the super app?

Belmahdi said, “We want to be the platform people turn to whenever they think about food. We aim to achieve this by offering the best value proposition to all three sides of the marketplace: consumers, riders and merchants. Additionally, we have expanded our network to include adjacent categories such as health and beauty products and retailers as we have partnered with the largest and most reputable restaurants and grocers in each of our markets and small independent partners”.

However, there are some potential challenges that Deliveroo will need to overcome to expand into the health and beauty sectors successfully. One challenge is the need for specialized knowledge and ability in these sectors. Unlike food delivery, where the focus is primarily on logistics, health and beauty products require greater understanding and knowledge. Deliveroo must ensure its delivery staff are professionally trained and equipped to manage these products.

Another challenge is setting up partnerships with local health and beauty retailers. While Deliveroo has already set up some partnerships in this space, it will need to expand its network to offer customers a wide range of products. This will require time, effort, and resources.

Deliveroo's move into health and beauty is a bold new initiative for the company. However, the company must overcome some challenges to expand into these sectors successfully. If it can do so, Deliveroo could stand out in a unique position in the market and set itself up as a leader in online delivery services beyond food.