eliveroo, the UK-based food delivery company, has been making headlines lately for its successful IPO and subsequent share price surge. However, the company’s recent partnership with Durable Capital Partners and its management of 7B Bradshaw, a new investment vehicle, has also caught the attention of investors and industry experts. In this article, we will take a closer look at this partnership and what it means for Deliveroo’s future.
Background
In March 2021, Deliveroo announced that it had secured a £114m investment from Durable Capital Partners, a US-based investment firm founded by former T. Rowe Price portfolio manager Henry Ellenbogen. As part of the deal, Ellenbogen joined Deliveroo’s board of directors. The investment was seen as a vote of confidence in Deliveroo’s business model and growth potential.
Shortly after the investment was announced, Deliveroo revealed that it had set up a new investment vehicle called 7B Bradshaw. The purpose of this vehicle is to invest in early-stage companies that are focused on food, logistics, or related technology. Deliveroo has committed £50m to the vehicle, while Durable Capital Partners has committed £20m.
The Benefits of the Partnership
The partnership between Deliveroo and Durable Capital Partners brings several benefits to both parties. For Deliveroo, the investment provides additional capital to fund its expansion plans and invest in new technologies. The partnership with Durable Capital Partners also brings valuable expertise and experience in the tech industry, which can help Deliveroo navigate the challenges of scaling its business.
For Durable Capital Partners, the partnership provides exposure to one of the fastest-growing companies in the food delivery industry. It also gives the firm access to Deliveroo’s extensive network of restaurant partners and customers. Additionally, the partnership with Deliveroo aligns with Durable Capital Partners’ focus on investing in companies that are disrupting traditional industries.
Investment Strategy
7B Bradshaw’s investment strategy is focused on early-stage companies that are developing innovative solutions for the food and logistics industries. The vehicle will invest in companies that are leveraging technology to improve the efficiency and effectiveness of food delivery, logistics, and related services. The goal is to identify companies that have the potential to become leaders in their respective markets and provide them with the capital and support they need to succeed.
The investment strategy is aligned with Deliveroo’s overall mission to transform the way people order and receive food. By investing in early-stage companies that are developing new technologies and solutions, Deliveroo can stay ahead of the curve and continue to innovate in a rapidly changing industry.
Impact on Deliveroo’s Future
The partnership with Durable Capital Partners and the creation of 7B Bradshaw have significant implications for Deliveroo’s future. By investing in early-stage companies, Deliveroo can expand its reach beyond food delivery and into related industries such as logistics and technology. This could help the company diversify its revenue streams and reduce its reliance on the highly competitive food delivery market.
Additionally, the partnership with Durable Capital Partners brings valuable expertise and experience to Deliveroo’s board of directors. Henry Ellenbogen’s background in tech investing could help Deliveroo identify new opportunities and navigate the challenges of scaling its business.
However, there are also potential risks associated with the partnership. Investing in early-stage companies is inherently risky, and there is no guarantee that all of 7B Bradshaw’s investments will be successful. Additionally, focusing on industries outside of food delivery could distract Deliveroo from its core business and dilute its brand.
Conclusion
The partnership between Deliveroo and Durable Capital Partners, as well as the creation of 7B Bradshaw, represents an exciting new chapter in Deliveroo’s growth story. By investing in early-stage companies that are developing innovative solutions for the food and logistics industries, Deliveroo can stay ahead of the curve and continue to innovate in a rapidly changing industry. However, there are also potential risks associated with this strategy, and it remains to be seen how successful 7B Bradshaw will be in identifying and investing in the right companies. Overall, though, the partnership with Durable Capital Partners is a positive development for Deliveroo and could help the company achieve its long-term goals.
