Deliveroo, the food delivery service that brings local restaurant meals to your door, has received $25 million (£16.5 million) in a Series B funding round led by Accel Partners, with participation from Index Ventures, Hoxton Ventures and Hummingbird Ventures.

The investment will help drive expansion across the UK and internationally, said the company. Deliveroo is already live in London and Brighton and launches in Manchester this week.

Deliveroo meals are delivered to homes and offices by one of the hundreds of Deliveroo drivers and cyclists. Image credit: Deliveroo

Founded in 2013 by William Shu and Greg Orlowski, Deliveroo allows customers to get meals from a variety of leading local independent and chain restaurants, delivered to their homes and offices by one of the hundreds of Deliveroo drivers and cyclists.

The current food delivery landscape, says Deliveroo, is dominated by pure online marketplaces that predominantly work with “lower-end” takeaway restaurants that use their own drivers. “This generally results in an inconsistent customer experience and choice that’s limited to restaurants that are already set up for takeaways,” Deliveroo maintains.

Deliveroo says customers using its service can get food from local restaurants prepared and delivered in “32 minutes on average”, whilst maintaining “real-time visibility on every step of the food preparation and delivery process”.

By handling all the delivery and technology elements, Deliveroo allows restaurants to earn extra revenues whilst retaining focus on their in-house customer experience. Deliveroo has created a network of hundreds of drivers and cyclists who are paid for each completed delivery. Since launch in 2014, it has built a team of 300 drivers and cyclists.

Deliveroo says it has expanded significantly since its Series A funding round announced 8 months ago, when it delivered to a few thousand customers in a handful of London neighbourhoods. Today, Deliveroo says it serves over 120 neighbourhoods in London, Brighton and Manchester, and says it has built a loyal customer base of over 50,000 who use the service regularly. Over the same period, the company has seen its office team grow to over 50 people.

William Shu, CEO of Deliveroo, said: “This is a significant moment for Deliveroo. We’ve seen high demand for our service in London and Brighton and are excited to be launching this week in Manchester, the first step in our ambitious expansion plan. Today’s funding gives us the ammunition we need to bring our first-class delivery service to a much wider audience.”

Accel Partners’ Fred Destin will join the board, while Luciana Lixandru will be an observer. Destin said: “Will, Greg and the team have achieved very impressive traction to date and created a service that speaks to a much larger global trend in how people want to discover and experience local food.”

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