Deliveroo Case Study –

Account Management
Prepared by Valerie Chung
Q1 – Deliveroo’s
Competitor Analysis
Deliveroo’s Key Competitors in Hong Kong
 Competitor Analysis – Business Models
Deliveroo, Foodpandaand Uber Easts employ a similar business model with delivery charges and
commission fees as major sources of revenue

• Major source of • Major source of • Major source of • Self pick-up food

revenue from food revenue from food revenue from food ordering app that earns
delivery charges as well delivery charges as well delivery charges as well commission from
as commission gained as commission gained as commission gained partner restaurants
from partner from partner from partner
restaurants restaurants restaurants
• Subsidiary: Deliveroo • Subsidiary: Pandamart
Editions which develops earns a commission
‘co-working’ kitchens from partner grocery
for restaurants to stores
prepare meals off-site
and consequently earns
a fee from them
 Competitor Analysis – Competitive Advantage
Food variety and costs are the key determining factors

• Deliveroo Plus: unlimited • First to enter the HK • Large database of user • Locally developed app with
free deliveries for a market in 2014 information from Uber that local design touches
monthly subscription fee • Single delivery charge as can be used to analyze • No delivery charges
of $98 low as $5 consumer behaviour incurred to customers
• Editions: an exclusive • Ranked top among the • Shared resources with
service with a central food delivery apps on App Uber
kitchen for partner Store in Hong Kong • Free delivery on selected
restaurants • Competitive selection with restaurants
• Deliveroo Food Hall allows over 5,000 partner • Rider is reachable by
users to mix and match restaurants phone
dishes from various • Self pick-up service
restaurants under one available
single order • Pandamart: an exclusive
• Self pick-up service grocery shopping delivery
available service
• Aesthetically pleasing
interface
• Dedicated customer
hotline
 Competitor Analysis – Competitive Disadvantage
Food couriers have to create value-addedness to users

• Relatively high mark- • Lack of real time • Limited number of • No courier service –
ups tracking function partner restaurants in little value-addedness
• Deliveroo Editions and • Lack of customer Hong Kong for customers
Deliveroo Food Hall hotline • Limited coverage in the • Relatively new company
incur monthly fixed New Territories with low SOV
rental costs • Little above the line • Limited partner
promotion Vs. restaurants
Foodpanda & Deliveroo • Local company with
limited funding
 Competitor Matrix
High Cost

Little Variety Large Variety

General Cha Chan Low Cost

Teng Deliveries
Q2 – Action Plan
 An exclusive restaurant is experiencing a drop in sales
Current Issue for three consecutive months and is considering to
join a competitor platform.
 Strategic Plan – Commercial
POTENTIAL CAUSES SUGGESTIONS
• Are costs (mark-up and delivery) costs • Immediately reduce restaurant’s
too high? commission rates so that restaurant can
offer a discount to users for an instant
• Has competitor offered client a more sales boost. This can be a short term offer
attractive deal? (say for a month) to observe market
reaction. If sales rebound immediately,
that means the market is price sensitive
and pricing is the key factor to sales
generation.
• In the long run, if the restaurant agrees to
extend its exclusive contract with
Deliveroo, can reduce their commission to
a more competitive rate.
• Conduct competitor analysis to see what
other food couriers are offering to
restaurants. Adjust delivery costs /
commission rates accordingly.
 Strategic Plan – Operational
POTENTIAL CAUSES SUGGESTIONS
• Are there delivery issues? Is delivery • Review logistics for delivery. Trace cases
taking longer than expected and / or are of late and or mis-deliveries and find out
there mis-deliveries? One-off or the reason(s) behind. Is Deliveroo falling
recurring issue? Are there sufficient behind industry standards? Adjust KPIs if
riders to support the orders? necessary.
• Any problem with customer service? • Review quality of customer service – Is
• Any bugs with the Deliveroo app? customer service readily available when
customer needs help? Is the staff
• Can the restaurant be easily searched in friendly and helpful? Provide extra
the app? training for staff.
• Review app stability. Debug if necessary.
• Optimize search results for restaurant to
increase exposure on Deliveroo’s
platform.
 Strategic Plan – Restaurant Side
POTENTIAL CAUSES SUGGESTIONS
• Is there a problem with the food quality • Conduct test deliveries for restaurant and
and / or menu selection? identify areas for improvement. Can the
• Are there new restaurants opening food retain the desired temperature? Is
nearby? the food still delicious when delivered? Is
there a large variety of choices? Any
• Are the restaurant’s competitors signature dishes to be promoted? Any
experiencing a drop in sales as well? If seasonal dishes that can be incorporated
so, any relationship in between? in the menu? Review and edit menu
• Is there a problem with the geographical where necessary.
location of the restaurant? • Conduct competitor analysis for restaurant
to review restaurant’s competitiveness – is
• Any negative news related to the the pricing competitive? What is the
restaurant? restaurant’s competitive edge over
competitors? What are the competitors’
current promotions and offers? Any new
direct competitor(s) in the market?
Compile findings and propose business
plan for restaurant.
 Strategic Plan – Marketing
POTENTIAL CAUSES SUGGESTIONS
• Is competitor’s brand awareness higher • Employ third party research house to
than Deliveroo? evaluate Deliveroo’s brand awareness
and develop action plan to increase
• Is competitor offering special discounts Deliveroo’s share of voice in the market.
and promotions to users? • Evaluate Deliveroo’s and competitor’s
advertising strategies – focus on key
media platforms to reach out to target
customers. Consider employing a brand
ambassador / mascot to gain awareness.
• Reinforce PR and CRM strategies – host
events and create reward / loyalty
programmes to retain users.
• Research on competitors’ latest offers
and develop new promotion ideas to
attract users.
Q3 – Cashflow Model
 Part One – Deliveroo’s Cashflow
Based on the assumptions provided, Deliveroo’scommission revenue from the restaurant could reach HK$51.3k in Dec 2018
(in HK Dollars) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Deliveroo
Sales $ 100,000 $ 105,000 $ 110,250 $ 115,763 $ 121,551 $ 127,628 $ 134,010 $ 140,710 $ 147,746 $ 155,133 $ 162,889 $ 171,034
Sales Growth Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Number of Orders 500 550 605 666 732 805 886 974 1,072 1,179 1,297 1,427
Order Growth Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
AOV $ 200 $ 191 $ 182 $ 174 $ 166 $ 158 $ 151 $ 144 $ 138 $ 132 $ 126 $ 120
Deliveroo - Commission Revenue $ 30,000 $ 31,500 $ 33,075 $ 34,729 $ 36,465 $ 38,288 $ 40,203 $ 42,213 $ 44,324 $ 46,540 $ 48,867 $ 51,310
Deliveroo Commission Rate 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%
Net Revenue for Restaurant $ 70,000 $ 73,500 $ 77,175 $ 81,034 $ 85,085 $ 89,340 $ 93,807 $ 98,497 $ 103,422 $ 108,593 $ 114,023 $ 119,724

Note: Please refer to the excel file regarding actual calculations

Key Assumptions Provided:

A. The restaurants’ total Deliveroo sales in January 2018 was $100,000
B. The restaurants’ total number of orders on Deliveroo was 500
C. The restaurants’ month on month sales growth rate in 2018 was 5%
D. The restaurants’ month on month order growth rate in 2018 was 10%
E. The commission rate taken by Deliveroo in 2018 was 30%
 Part Two – UberEATS’ Cashflow
Based on the assumptions provided, UberEATS’ commission revenue rose from HK$5.1k in Jan 2018 to HK$12.0k in Dec 2018
(in HK Dollars) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
UberEATS
Sales $ 36,499 $ 37,411 $ 38,346 $ 39,305 $ 40,288 $ 41,295 $ 42,327 $ 43,386 $ 44,470 $ 45,582 $ 46,721 $ 47,890
Sales Growth Rate 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Number of Orders 304 318 332 346 362 379 396 414 434 454 476 499
Order Growth Rate 4.4% 4.4% 4.5% 4.5% 4.5% 4.6% 4.6% 4.7% 4.7% 4.8% 4.8%
AOV $ 120 $ 118 $ 116 $ 113 $ 111 $ 109 $ 107 $ 105 $ 103 $ 100 $ 98 $ 96
UberEATS - Commission Revenue $ 5,110 $ 5,612 $ 6,135 $ 6,682 $ 7,252 $ 7,846 $ 8,465 $ 9,111 $ 9,783 $ 10,484 $ 11,213 $ 11,972
UberEats Commission Rate 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25%
Net Revenue for Restaurant $ 31,389 $ 31,800 $ 32,211 $ 32,623 $ 33,036 $ 33,449 $ 33,862 $ 34,275 $ 34,687 $ 35,098 $ 35,508 $ 35,917

Note: Please refer to the excel file regarding actual calculations

Key Assumptions Provided:

A. The restaurants’ net revenue from UberEATS in December 2018 was 30% that of Deliveroo’s in the same month
B. The restaurants’ commission rate with UberEATS increased by 1% every month in 2018
C. The commission rate was 25% in December
D. The restaurants’ total sales growth (before commission) with UberEATS was half that of Deliveroo’s growth rate each month in 2018.
E. AOV December 2018 with UberEATS was $96. AOV in January 2018 was $120.
F. AOV dropped linearly throughout 2018.
 Order Share and Difference in AOV
In January 2018, the order share of Deliverooand UberEATSwas 62% and 38%, respectively.
Number of Orders Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Deliveroo 500 550 605 666 732 805 886 974 1,072 1,179 1,297 1,427
UberEATS 304 318 332 346 362 379 396 414 434 454 476 499
Total Number of Orders 804 868 937 1,012 1,094 1,184 1,282 1,389 1,505 1,633 1,773 1,925
Order Share (in %)
Deliveroo 62% 63% 65% 66% 67% 68% 69% 70% 71% 72% 73% 74%
UberEATS 38% 37% 35% 34% 33% 32% 31% 30% 29% 28% 27% 26%

In June 2018, Deliveroo’sAOV was HK$49 higher than that of UberEATS’ in the same month.

AOV (in HK$) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Deliveroo $ 200 $ 191 $ 182 $ 174 $ 166 $ 158 $ 151 $ 144 $ 138 $ 132 $ 126 $ 120
UberEATS $ 120 $ 118 $ 116 $ 113 $ 111 $ 109 $ 107 $ 105 $ 103 $ 100 $ 98 $ 96
Difference in AOV $ 80 $ 73 $ 67 $ 60 $ 55 $ 49 $ 44 $ 40 $ 35 $ 31 $ 27 $ 24

Note: Please refer to the excel file regarding actual calculations

Q4 – Exclusive offer to
restaurant in November
 Would like to make an exclusive offer to the restaurant in
November to drop UberEATS in December.
Situation “What growth rate would you assume and what commission
rate would you offer in order to increase the likelihood that the
restaurant accepts?”

1) One of the key considerations is how quickly Deliveroo can

capture majority, if not all, of those customers who
Suggested Key previously used EberEATS to order food from this restaurant
2) Goal for the restaurant is to make more revenue even after
Goals & dropping UberEATS
Considerations 3) Goal for Deliveroo is to at least make the same monthly
commission revenue even after offering lower commission to
the restaurant to order to attract the restaurant to drop
UberEATS
Six-month Forecasts – Using Same Growth Assumptions Provided
(in HK Dollars) Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
Deliveroo
Explanation:
Sales $ 162,889 $ 171,034 $ 179,586 $ 188,565 $ 197,993 $ 207,893 $ 218,287 $ 229,202 1. Using the same provided assumptions to forecast Number
Sales Growth Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Number of Orders 1,297 1,427 1,569 1,726 1,899 2,089 2,297 2,527
of Orders, Commission Revenue and Net Revenue for
Order Growth Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Restaurant under Deliveroo and UberEATS
AOV $ 126 $ 120 $ 114 $ 109 $ 104 $ 100 $ 95 $ 91
Deliveroo - Commission Revenue $ 48,867 $ 51,310 $ 53,876 $ 56,569 $ 59,398 $ 62,368 $ 65,486 $ 68,761 2. Number of Orders for Deliveroo and UberEATS in June 2019
Deliveroo Commission Rate 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% would be 2,577 and 670, respectively. Hence, total Number
Net Revenue for Restaurant $ 114,023 $ 119,724 $ 125,710 $ 131,995 $ 138,595 $ 145,525 $ 152,801 $ 160,441 of Orders would be 3,197
(in HK Dollars) Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 3. Assume that if the restaurant has dropped UberEATS and
UberEATS Deliveroo gives restaurant an exclusive offer starting from
Sales $ 46,721 $ 47,890 $ 49,087 $ 50,314 $ 51,572 $ 52,861 $ 54,183 $ 55,537
Sales Growth Rate 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Dec 2018, the Number of Order will grow linearly month on
Number of Orders 476 499 523 549 577 606 637 670 month to achieve 3,197 in June 2019. That is capturing all
Order Growth Rate 4.8% 4.8% 4.9% 4.9% 5.0% 5.1% 5.1% 5.2% customers who previously used UberEATS to order from this
AOV $ 98 $ 96 $ 94 $ 92 $ 89 $ 87 $ 85 $ 83
restaurant
UberEATS - Commission Revenue $ 11,213 $ 11,972 $ 12,763 $ 13,585 $ 14,440 $ 15,330 $ 16,255 $ 17,217
UberEats Commission Rate 24% 25% 26% 27% 28% 29% 30% 31% 4. Assume Deliveroo would like to keep the projected
Net Revenue for Restaurant $ 35,508 $ 35,917 $ 36,324 $ 36,729 $ 37,132 $ 37,531 $ 37,928 $ 38,321
Commission Revenue of HK$68,761 in June 2019 even after
Total Net Revenue for Restaurant $ 149,531 $ 155,641 $ 162,034 $ 168,725 $ 175,727 $ 183,056 $ 190,729 $ 198,762 offering the exclusive offer to the restaurant

Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

5. Based on Point 4 above, Deliveroo’s Commission Rate could
Same Assumptions Provided Applied to 6-months Forecasts - Deliveroo (Post Offer to Restaurant to kick out UberEats) drop to 23.7% in order to maintain the same Commission
Sales $ 162,889 $ 188,031 $ 210,551 $ 230,635 $ 248,459 $ 264,185 $ 277,968 $ 289,953 Revenue from this restaurant after offering exclusive offer
Sales Growth Rate 5.0% 15.4% 12.0% 9.5% 7.7% 6.3% 5.2% 4.3%
Number of Orders 1,297 1,568 1,840 2,111 2,383 2,654 2,926 3,197 6. Restaurant’s Net Revenue would become HK$221k in June
Order Growth Rate 10.0% 20.9% 17.3% 14.8% 12.9% 11.4% 10.2% 9.3% 2019, which will be 11% more than the Total Net Revenue
AOV $ 126 $ 120 $ 114 $ 109 $ 104 $ 100 $ 95 $ 91
of HK$199k from Deliveroo and UberEATS if it has not
Deliveroo - Commission Revenue $ 48,867 $ 44,591 $ 49,931 $ 54,694 $ 58,921 $ 62,650 $ 65,919 $ 68,761
Commission Rate 30.0% 23.7% 23.7% 23.7% 23.7% 23.7% 23.7% 23.7% dropped UberEATS. Thus, it makes sense financially for the
Net Revenue for Restaurant $ 114,023 $ 143,441 $ 160,620 $ 175,941 $ 189,538 $ 201,535 $ 212,049 $ 221,192 restaurant to accept Deliveroo’s exclusive offer
Commission Revenue Increase for Deliveroo -13% -7% -3% -1% 0% 1% 0%
Net Revenue Increase for Restaurant -8% -1% 4% 8% 10% 11% 11%

Note: Please refer to the excel file regarding actual calculations

12-month Forecasts – Using Same Growth Assumptions Provided
Utilizing the same methodology in the previous slide, assuming it will take Deliveroo12 months to capture all the ex-UberEATScustomers to
order food from the restaurant, the commission rate can drop to 24.9% and the restaurant will make more net revenue in 2019
(in HK Dollars) Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19
Deliveroo
Sales $ 162,889 $ 171,034 $ 179,586 $ 188,565 $ 197,993 $ 207,893 $ 218,287 $ 229,202 $ 240,662 $ 252,695 $ 265,330 $ 278,596 $ 292,526 $ 307,152
Sales Growth Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Number of Orders 1,297 1,427 1,569 1,726 1,899 2,089 2,297 2,527 2,780 3,058 3,364 3,700 4,070 4,477
Order Growth Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
AOV $ 126 $ 120 $ 114 $ 109 $ 104 $ 100 $ 95 $ 91 $ 87 $ 83 $ 79 $ 75 $ 72 $ 69
Deliveroo - Commission Revenue $ 48,867 $ 51,310 $ 53,876 $ 56,569 $ 59,398 $ 62,368 $ 65,486 $ 68,761 $ 72,199 $ 75,809 $ 79,599 $ 83,579 $ 87,758 $ 92,146
Deliveroo Commission Rate 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%
Net Revenue for Restaurant $ 114,023 $ 119,724 $ 125,710 $ 131,995 $ 138,595 $ 145,525 $ 152,801 $ 160,441 $ 168,463 $ 176,887 $ 185,731 $ 195,017 $ 204,768 $ 215,007

(in HK Dollars) Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19
UberEATS
Sales $ 46,721 $ 47,890 $ 49,087 $ 50,314 $ 51,572 $ 52,861 $ 54,183 $ 55,537 $ 56,926 $ 58,349 $ 59,807 $ 61,303 $ 62,835 $ 64,406
Sales Growth Rate 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Number of Orders 476 499 523 549 577 606 637 670 705 743 783 826 873 922
Order Growth Rate 4.8% 4.8% 4.9% 4.9% 5.0% 5.1% 5.1% 5.2% 5.3% 5.3% 5.4% 5.5% 5.6% 5.7%
AOV $ 98 $ 96 $ 94 $ 92 $ 89 $ 87 $ 85 $ 83 $ 81 $ 79 $ 76 $ 74 $ 72 $ 70
UberEATS - Commission Revenue $ 11,213 $ 11,972 $ 12,763 $ 13,585 $ 14,440 $ 15,330 $ 16,255 $ 17,217 $ 18,216 $ 19,255 $ 20,335 $ 21,456 $ 22,621 $ 23,830
UberEats Commission Rate 24% 25% 26% 27% 28% 29% 30% 31% 32% 33% 34% 35% 36% 37%
Net Revenue for Restaurant $ 35,508 $ 35,917 $ 36,324 $ 36,729 $ 37,132 $ 37,531 $ 37,928 $ 38,321 $ 38,709 $ 39,094 $ 39,473 $ 39,847 $ 40,215 $ 40,576

Total Net Revenue for Restaurant $ 149,531 $ 155,641 $ 162,034 $ 168,725 $ 175,727 $ 183,056 $ 190,729 $ 198,762 $ 207,173 $ 215,980 $ 225,204 $ 234,864 $ 244,983 $ 255,582

Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19
Same Assumptions Provided Applied to 12-months Forecasts - Deliveroo (Post Offer to Restaurant to kick out UberEats)
Sales $ 162,889 $ 193,323 $ 220,654 $ 245,100 $ 266,868 $ 286,151 $ 303,130 $ 317,973 $ 330,841 $ 341,883 $ 351,236 $ 359,034 $ 365,396 $ 370,439
Sales Growth Rate 5.0% 18.7% 14.1% 11.1% 8.9% 7.2% 5.9% 4.9% 4.0% 3.3% 2.7% 2.2% 1.8% 1.4%
Number of Orders 1,297 1,612 1,928 2,244 2,559 2,875 3,190 3,506 3,822 4,137 4,453 4,768 5,084 5,400
Order Growth Rate 10.0% 24.3% 19.6% 16.4% 14.1% 12.3% 11.0% 9.9% 9.0% 8.3% 7.6% 7.1% 6.6% 6.2%
AOV $ 126 $ 120 $ 114 $ 109 $ 104 $ 100 $ 95 $ 91 $ 87 $ 83 $ 79 $ 75 $ 72 $ 69
Deliveroo - Commission Revenue $ 48,867 $ 48,089 $ 54,887 $ 60,968 $ 66,383 $ 71,180 $ 75,403 $ 79,095 $ 82,296 $ 85,043 $ 87,369 $ 89,309 $ 90,892 $ 92,146
Commission Rate 30.0% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9%
Net Revenue for Restaurant $ 114,023 $ 145,234 $ 165,766 $ 184,132 $ 200,485 $ 214,972 $ 227,727 $ 238,878 $ 248,545 $ 256,840 $ 263,867 $ 269,725 $ 274,505 $ 278,293

Commission Revenue Increase for Deliveroo -6% 2% 8% 12% 14% 15% 15% 14% 12% 10% 7% 4% 0%
Net Revenue Increase for Restaurant -7% 2% 9% 14% 17% 19% 20% 20% 19% 17% 15% 12% 9%

Note: Please refer to the excel file regarding actual calculations

Six-month Forecasts – Extreme Case Assuming No Growth from Jan 2019
(in HK Dollars) Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
Deliveroo
Explanation:
Sales $ 162,889 $ 171,034 $ 171,034 $ 171,034 $ 171,034 $ 171,034 $ 171,034 $ 171,034 1. Under an extreme case scenario that there will have no growth in
Sales Growth Rate 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Number of Orders 1,297 1,427 1,427 1,427 1,427 1,427 1,427 1,427
2019. That is, Number of Orders for Deliveroo and UberEATS will
Order Growth Rate 10.0% 10.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% remain 1,427 and 499, respectively, each month in 2019
AOV $ 126 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120
Deliveroo - Commission Revenue $ 48,867 $ 51,310 $ 51,310 $ 51,310 $ 51,310 $ 51,310 $ 51,310 $ 51,310 2. Assume Deliveroo would like to keep the projected Commission
Deliveroo Commission Rate 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% Revenue of HK$51,310 each month in 2019 even after offering the
Net Revenue for Restaurant $ 114,023 $ 119,724 $ 119,724 $ 119,724 $ 119,724 $ 119,724 $ 119,724 $ 119,724 exclusive offer to the restaurant
(in HK Dollars) Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 3. Based on Point 2 above, Deliveroo’s Commission Rate could drop to
UberEATS 22.2% in order to maintain the same Commission Revenue from this
Sales $ 46,721 $ 47,890 $ 47,890 $ 47,890 $ 47,890 $ 47,890 $ 47,890 $ 47,890
Sales Growth Rate 2.5% 2.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
restaurant after making exclusive offer under an extreme no growth
Number of Orders 476 499 499 499 499 499 499 499 scenario
Order Growth Rate 4.8% 4.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
AOV $ 98 $ 96 $ 96 $ 96 $ 96 $ 96 $ 96 $ 96 4. Restaurant’s Net Revenue would become HK$180k each month in
UberEATS - Commission Revenue $ 11,213 $ 11,972 $ 11,972 $ 11,972 $ 11,972 $ 11,972 $ 11,972 $ 11,972 2019, which will be 15% more than the Total Net Revenue of
UberEats Commission Rate 24% 25% 25% 25% 25% 25% 25% 25% HK$156k from Deliveroo and UberEATS if it has not dropped
Net Revenue for Restaurant $ 35,508 $ 35,917 $ 35,917 $ 35,917 $ 35,917 $ 35,917 $ 35,917 $ 35,917
UberEATS
Total Net Revenue for Restaurant $ 149,531 $ 155,641 $ 155,641 $ 155,641 $ 155,641 $ 155,641 $ 155,641 $ 155,641
Conclusion:
Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
Assume No Growth since January 2019 - Deliveroo (Post Offer to Restaurant to kick out UberEats) ▪No matter how quickly Deliveroo can capture all those ex-
Sales $ 162,889 $ 230,842 $ 230,842 $ 230,842 $ 230,842 $ 230,842 $ 230,842 $ 230,842
Sales Growth Rate 5.0% 41.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
UberEATS customers to use Deliveroo’s platform to order food
Number of Orders 1,297 1,925 1,925 1,925 1,925 1,925 1,925 1,925 from this restaurant, commission rate for making an exclusive
Order Growth Rate 10.0% 48.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
AOV $ 126 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120
offer should not fall below 24%
Deliveroo - Commission Revenue $ 48,867 $ 51,310 $ 51,310 $ 51,310 $ 51,310 $ 51,310 $ 51,310 $ 51,310
Commission Rate 30.0% 22.2% 22.2% 22.2% 22.2% 22.2% 22.2% 22.2%
▪If prefer not to use linear growth assumption on Number of
Net Revenue for Restaurant $ 114,023 $ 179,532 $ 179,532 $ 179,532 $ 179,532 $ 179,532 $ 179,532 $ 179,532 Orders, one may want to use a Compound Monthly Growth
Commission Revenue Increase for Deliveroo 0% 0% 0% 0% 0% 0% 0%
Rate (CMGR) of 12-14% for Number of Orders
Net Revenue Increase for Restaurant 15% 15% 15% 15% 15% 15% 15%

Note: Please refer to the excel file regarding actual calculations

Thank You