Deliveroo begins UK trial of subscription service for restaurant food delivery
Restaurant food delivery company Deliveroo has begun trialing a subscription service in the U.K. presumably targeted at its most frequent and loyal customers. Dubbed Deliveroo Plus and only available to existing customers, the new option sees Deliveroo waive its 2.50 per delivery fee in favour of a subscription costing 8.99 per month or 89 per year. The food itself, of course, is not included. The service is initially rolling out in the cities of Manchester, Birmingham, Edinburgh, Glasgow, Brighton, and York. The first batch of subscribers will get two months for free. As Warnes statement acknowledges, the new subscription service is undoubtedly designed to make Deliveroo even more sticky than it already is. The additional pricing model also serves as a reminder that a significant portion of the companys revenue is based on the percentage cut it takes on each basket not on the price it charges consumers for delivery. Meanwhile, the tentative launch of Deliveroo Plus borrows a little from the Amazon playbook. The e-commerce giant has a restaurant food delivery service of its own called Amazon Restaurants, which recently came to the U.K. following a U.S. launch, and is available to Amazon Prime subscribers only. Postmates in the U.S. also has a subscription version of its food delivery service, so the move is not without precedent.
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