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Deliveroo launches food-buying service for restaurants amid rapid expansion

By Henry Saker-Clark, PA City Reporter
The new Food Procurement arm allows restaurants to buy ingredients and supplies at better prices through Deliveroo, the company said.

Deliveroo has expanded its services for restaurants by launching a new platform for buying ingredients.

The new Food Procurement arm allows restaurants to buy ingredients and supplies at better prices through Deliveroo, the company said.

The expansion is part of Deliveroo’s efforts to become a one-stop shop for restaurants after securing a recent £450 million cash injection from an Amazon-backed funding round.

Restaurants will be able to save more than 20% on their ingredients bills while smaller independent outlets could save 40% through the new food procurement platform, Deliveroo claimed.

The scheme will improve the economies of scale of smaller restaurants by buying produce on behalf of numerous restaurants at the same time to increase their buying power during negotiations with suppliers.

Following a year-long UK trial of the scheme, it has been made available to all restaurants in the UK this summer.

It said it expects around 5,000 partners to take up the service by the end of the year.

Founder Will Shu has previously said the company has sought to expand its services for restaurants in order to act as a “strategic partner” rather than just a delivery vehicle.

Deliveroo has continued to accelerate its growth across the UK, announcing plans to launch in another 50 towns and cities across the country earlier this month.

Bosses said they believe the move will see Deliveroo become available to 6.5 million homes as the company sets its sights on finally turning a profit.

Ajay Lakhwani, vice president of new business at Deliveroo, said: “Food Procurement is an exciting new service for restaurants, which will cut costs while raising the quality of ingredients.

“By using our size and scale to negotiate great prices we can both simplify the procurement process and help independents and chains can make big savings.

“Restaurants and their suppliers are the winners. And of course this is great news for customers, as restaurants cook with better quality ingredients.”

Karthik Ramakrishnan, group operations manager at pan-Asian chain Banana Tree, said: “Deliveroo’s Food Procurement not only helps reduce costs, but also makes it easier to get the right ingredients at the right time.

“The scheme matches the needs of our business and has quickly become a vital cog in our procurement operations.”