Deliveroo is thriving in the online food industry – in 2020 its global transaction volume grew by 64.3%, providing another year of significant growth. It started using Stripe in 2014 as its primary payment solution provider. Since then, the relationship has evolved into a strategic partnership. Together with Stripe, Deliveroo has expanded globally, launched a new revenue stream with Deliveroo Plus, improved authorisation rates, reduced PCI burden, and improved its overall customer experience.
In 2020 alone, Deliveroo processed a total of £4.08 billion, with over 90% of the volume being on Stripe. It also recovered more than £100 million in revenue by using several Stripe features. Here is a closer look at the different ways Deliveroo and Stripe have worked together over the years:
With the help of Stripe, Deliveroo launched a successful new revenue stream in 2017: Deliveroo Plus, which offers free delivery for a monthly subscription fee. As well as increasing Deliveroo’s recurring revenue, Deliveroo Plus has increased retention among the users who have adopted it.
“The work Stripe has done to improve payment success rates, from the use of Stripe Billing to rapidly enabling Deliveroo Plus, makes it clear why Stripe is embedded in some of our largest initiatives,” said Will Shu, CEO and Co-founder of Deliveroo.
Deliveroo has seen an overall card authorisation rate of 96.98% as a result of Stripe’s machine learning retry logic and cross-border payouts.
Stripe’s authorisation optimisation tools – Adaptive Acceptance, Card Account Updater, Smart Dunning, and Dynamic Validation – helped Deliveroo recapture over £100 million in at-risk revenue during 2020.
With Stripe, Deliveroo increased authorisation rates across the UK and Ireland, as well as in Asia-Pacific.
Expansion and localisation
Since moving to Stripe, all of Deliveroo’s markets, which include the United Kingdom, Singapore, Spain, and Hong Kong, have grown exponentially.
Deliveroo also leveraged Stripe to provide localised payment methods in 2020, including Apple Pay, Google Pay, China Union Pay (for accounts in the UK, Australia, Hong Kong and Singapore), Dutch payment method iDeal, Bancontact in Belgium, and Cartes Bancaires for French accounts.
In seven years we went from saying, ‘These APIs look great – let’s see how this goes,’ to building a deep strategic relationship with Stripe. Stripe spends the time to identify what the long-term opportunities are and what the long-term approach should be.