Apps may be on the rise, but customers still want to call up for takeaways

 
Stephan Shakespeare
Follow Stephan
Taylor Review On Working Practices Suggests All Work In U.K. Should Be Fair
Forget competition with Uber: Deliveroo still needs to beat the traditional telephone (Source: Getty)

Last week, the Central Arbitration Committee ruled that Deliveroo riders were self-employed.

The ruling comes after a long debate around whether Deliveroo riders were entitled to basic protections, and was part of a wider argument around the ‘gig economy’.

YouGov brand tracking data indicates that the ongoing controversy may have impacted on its perception – Deliveroo’s impression score has been negative since early February (and currently stands at minus two).

The data also shows that, in general, the public would not be keen to work for the company.

YouGov’s reputation score measures whether someone would be proud or embarrassed to work for a brand and on this front, Deliveroo currently has a score of minus seven.

Read more: Just Eat raises revenue expectations as takeaway orders jump

Despite this, the brand has made significant in-roads into the takeaway market and looks set to continue this trend, with our data showing that seven per cent of the public have tried the service.

However, while this is higher than Uber Eats (three per cent), it is well behind both Just Eat (34 per cent) and Hungry House (14 per cent).

Our recent Food on Demand report indicates that Deliveroo and its competitors face a challenge in persuading those who are comfortable using their local takeaway by traditional means – the telephone – to instead order through an app or website.

The data shows that more than four in 10 (41 per cent) consumers who have had food delivered ordered by telephone last time they got food in.

This is ahead of the third (33 per cent) that used a website, the 18 per cent that completed their order via an app, and the eight per cent that used a mobile website.

We found that many consumers remain wedded to the traditional method of ordering-in food.

There are many reasons for this – from customers valuing the relationship they have with their local takeaway, to the fact that they can guarantee that they will get exactly what they want from where they want.

So while the Central Arbitration Committee’s ruling may well quell negative headlines about the brand for now, Deliveroo faces arguably a much bigger challenge when it comes to expanding its customer base by taking on traditional takeaways.

Read more: Deliveroo wins case confirming delivery riders are not workers

City A.M.'s opinion pages are a place for thought-provoking views and debate. These views are not necessarily shared by City A.M.

Related articles