Deliveroo is using its “size and scale” to negotiate cheaper deals from suppliers on behalf of restaurants.
The restaurant delivery company has created a “food procurement team” to drive down the prices of cooking ingredients.
All Deliveroo’s UK partners, as well as those in France, Spain and the UAE, can apply to take advantage of the cheaper deals from tomorrow. The company expects 5,000 to have signed up by the end of the year, the bulk of them in the UK.
“Several hundred” are already using the free-of-charge service following a year-long trial, saving them between 20% and 40% on ingredients from vegetables to meat, according to Deliveroo.
Deliveroo was “leveraging its size, existing partnerships with both restaurants and suppliers and industry know-how to get lower costs” as well as better-quality ingredients, said a spokesman.
It was also “supporting suppliers, who will be able to access more restaurants,” he added.
Deliveroo VP of new business Ajay Lakhwani 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 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.”
Earlier this month, the Competition & Markets Authority said there were grounds to suspect Deliveroo had ‘ceased to be distinct’ from Amazon, after the tech giant invested an undisclosed sum in the delivery company in May. The CMA issued an initial enforcement order halting any integration of the two companies.