How did Will Shu start Deliveroo with his co-founder Greg?

Will Shu reconnected with his childhood friend Greg, a software developer, and convinced him to join the venture. They built the initial technology and signed up restaurants themselves, bootstrapping the company with limited resources.

Why did Will Shu choose London over the US to launch Deliveroo?

Shu believed London had a greater unmet need for improved food delivery services, finding the existing takeaway options and late-night availability lacking. He also had prior experience living in London while working in finance.

What were some of the unconventional marketing tactics used by Deliveroo in its early days?

With limited funds, Deliveroo used creative methods like Will Shu wearing a kangaroo costume in public and distributing fliers by hanging them on people's doors, likened to 'do not disturb' signs.

How did Deliveroo handle rider treatment and discrimination?

Will Shu emphasized the importance of treating riders with respect, having experienced firsthand the prejudice and dehumanizing treatment they could face, such as being asked to leave coffee shops. He believes this experience fuels his commitment to ensuring riders' voices are heard.

What were the biggest challenges Deliveroo faced early on?

Key challenges included a lack of funding, managing cash burn, and the difficulty of scaling operations with a small team. Shu highlights the constant pressure and the feeling of 'chewing glass' that is common in startup environments.

Can you describe a major crisis Deliveroo faced regarding funding?

In 2017, Deliveroo was days away from closing a $600 million funding round when the deal abruptly fell through. Shu had to rally the team to secure 25 new investor meetings globally to secure the necessary capital, which was critical as they were a loss-making entity.

What was the impact of the CMA's antitrust review on Deliveroo's Amazon investment?

An 18-month antitrust investigation by the CMA into Amazon's investment prevented Deliveroo from accessing crucial capital during a period when they desperately needed it to compete, leading to significant uncertainty and the necessity of layoffs.

What was the toughest moment in Deliveroo's history?

Will Shu cites the period around 2020, coinciding with the CMA investigation and the onset of COVID-19, as the toughest. The inability to access funds, coupled with restaurant shutdowns and plummeting users, forced significant layoffs.

How does Will Shu manage anxiety and mental health as a founder?

Shu admits to not being naturally prone to extreme emotional swings but has experienced anxiety due to uncertainty. He tries breathing exercises and has used the Calm app. He also finds long walks to be a helpful way to relax and clear his mind.

What is Will Shu's perspective on balancing work obsession with personal relationships?

He acknowledges that his obsessive nature has made sustaining relationships difficult, recognizing the importance of meaningful connections based on studies. He admits he might have prioritized his career over relationships and wonders if he needs to create more space for them.

What is Will Shu's relationship with money?

Shu states that money is secondary to him and he doesn't live significantly differently than before Deliveroo's success. While he prefers having more money, he doesn't buy many possessions and is unsure if it directly correlates to increased happiness.

Why does Will Shu still do delivery orders himself?

He does it to test the rider app, get exercise, and observe restaurants in action. He finds the process relaxing and uses the direct experience to identify issues, like rude restaurant staff, which he then addresses with the respective partners.

What is the future vision for Deliveroo?

The future involves making food delivery more emotional and social, moving beyond transactional experiences. Deliveroo aims to be an app used not just for hunger but also for learning about food, allowing chefs to tell their stories online.

Key Moments

Deliveroo Founder: From £0 to £5 Billion: Will Shu | E88

The Diary Of A CEO

People & Blogs4 min read86 min video

Jul 12, 2021|322,703 views|6,203|453

The Diary Of A CEO steven bartlett steve bartlett podcast the diary of a CEO podcast life lessons CEO deliveroo deliveroo driver uk deliveroo advert deliveroo uk deliveroo ipo deliveroo driver

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Key Moments

TL;DR

Deliveroo founder Will Shu discusses his journey, the hardships, and the evolution of his company from a humble idea to a multi-billion dollar enterprise.

Key Insights

Will Shu's entrepreneurial journey began with a personal problem: the lack of quality food delivery options in London.

Humble beginnings involved Shu personally delivering food and signing up restaurants, embodying a hands-on approach.

The early success of Deliveroo was driven by organic growth and a focus on solving customer and rider problems, not by large marketing budgets.

Shu's leadership is characterized by deep empathy for riders, stemming from his personal experience, making rider welfare a core value.

The company faced significant challenges, including near-bankruptcy, regulatory hurdles, and devastating layoffs during the pandemic.

Shu emphasizes the importance of solving a problem you're passionate about, rather than pursuing entrepreneurship for status or financial gain.

FROM A PERSONAL GRIEVANCE TO A BUSINESS IDEA

Will Shu's entrepreneurial journey began not with a grand business plan, but with a personal frustration during his time in London. He found the food delivery options from classic takeaways to be inadequate, especially compared to the late-night options available in New York. This gap in the market, coupled with his own experiences as a consumer, sparked the initial idea for Deliveroo. The core of his motivation was solving a problem he personally faced, a principle that would guide the company's early development and its focus on consumer value.

EARLY DAYS: THE GRIND AND UNCONVENTIONAL GROWTH

Deliveroo's inception was marked by extreme frugality and hands-on effort. Shu and his co-founder Greg built the initial technology themselves, with Shu personally signing up restaurants and even delivering food during the first year. The company eschewed traditional marketing, relying on word-of-mouth and unconventional tactics like distributing flyers disguised as 'do not disturb' signs. This lean approach, born out of necessity and a lack of funding, forced creative problem-solving and a deep understanding of operational efficiency.

EMPATHY FOR RIDERS: A CORE OPERATIONAL PILLAR

A defining aspect of Deliveroo's philosophy is Will Shu's profound empathy for its riders. Having personally experienced the challenges and discrimination riders can face, Shu prioritizes their well-being and ensures their voices are heard. This firsthand understanding makes him deeply sensitive to issues like rider treatment and welfare. His commitment stems from specific incidents, like being asked to leave a Starbucks with other riders, which highlighted the prejudices faced by those in less visible roles and reinforced the company's mission to build a model that works for all its stakeholders.

Navigating CRITICAL CHALLENGES AND NEAR-FAILURE

Deliveroo's growth was far from linear, marked by significant hurdles. Shu recounts periods of extreme financial duress, where the company teetered on the brink of collapse due to a lack of funding. A particularly harrowing moment involved the potential loss of a 600 million pound investment just before closing, forcing the team to scramble for alternative funding. These near-death experiences, compounded by external factors like regulatory investigations and the onset of the COVID-19 pandemic, led to painful decisions, including significant layoffs, underscoring the precarious nature of startup survival.

THE IMPACT OF REGULATORY HURDLES AND THE PANDEMIC

The company faced immense pressure during a prolonged antitrust review by the CMA, which delayed crucial funding for 18 months. This regulatory uncertainty, combined with the sudden onset of the COVID-19 pandemic, created a perfect storm. As restaurants temporarily closed and user numbers plummeted, Deliveroo found itself critically low on funds. This precarious situation led to the gut-wrenching decision to lay off a significant portion of the workforce, a moment Shu describes as the hardest in his career, highlighting the immense personal toll of such decisions.

FINDING BALANCE: MENTAL HEALTH, RELATIONSHIPS, AND PERSONAL GROWTH

The relentless demands of building a billion-dollar company have significantly impacted Shu's personal life. He openly discusses the challenges of maintaining romantic relationships and friendships due to his obsessive focus and time commitment. While he acknowledges the importance of these connections, his journey has often meant prioritizing the business. Shu reflects on managing stress through breathing exercises and long walks, and on the difficulty of disconnecting. He admits that a lack of personal balance might be a regret, an ongoing contemplation as he navigates the demands of leadership and personal fulfillment.

THE EVOLVING ROLE OF A FOUNDER AND THE QUEST FOR MEANING

As Deliveroo has scaled, Shu's role has shifted from a hands-on operator to a strategic leader. He finds the company's stage with 20-100 employees to be his favorite, characterized by shared understanding and camaraderie. He expresses a desire to understand if his personal journey remains aligned with Deliveroo's trajectory, acknowledging that the company has taken on a life of its own. This introspection highlights a common founder's challenge: separating personal ambition from the company's momentum and rediscovering individual purpose amidst immense professional success.

THE FUTURE OF FOOD DELIVERY: BEYOND TRANSACTIONS

Shu envisions the future of food delivery extending beyond mere transactional convenience. He sees Deliveroo evolving into a social network for food, integrating emotional and experiential aspects often missing in digital platforms. The goal is to create an app that users engage with not just when hungry, but also to learn about food, connect with chefs, and understand the broader culinary world. This vision aims to capture the emotional resonance of dining out and translate it into the online experience, differentiating Deliveroo in an increasingly competitive market.

Mentioned in This Episode

●Products

●Software & Apps

●Companies

●Organizations

●People Referenced

Common Questions

The idea for Deliveroo originated from Will Shu's observation that London lacked convenient, high-quality food delivery options, especially late at night, compared to cities like New York. A disappointing Tesco meal after a long day at Morgan Stanley highlighted this gap.

Topics

Technology & Innovation Business & Entrepreneurship Startup Growth Venture Capital Founder Journey Career & Skills Entrepreneurial Mindset Food Delivery Technology Lean Startup Principles Rider Experience Business Challenges

Mentioned in this video

Organizations

New York Times

Mentioned as a source for an article about the importance of leaving the US to appreciate one's country.

CMA

The UK's antitrust authority, which reviewed Amazon's investment in Deliveroo, causing significant delays.

Companies

Burger King

Mentioned in relation to a dollar Whopper special that Will Shu ordered on his first day at Morgan Stanley.

Spotify

Mentioned as an example of a company whose success was enabled by macro technological factors like handheld devices and streaming.

Index Ventures

An early investor in Deliveroo, providing £2.7 million.

Amazon

An investor in Deliveroo, whose investment faced a lengthy antitrust review in the UK.

Fidelity

An investor that Deliveroo secured after a previous funding deal fell through.

Huel

A meal replacement product discussed as a sponsor and tried by Will Shu.

Morgan Stanley

Will Shu's former employer where he worked in finance.

Tesco

A supermarket where Will Shu observed people buying microwave meals, sparking the initial idea for Deliveroo.

Uber

A competitor in the food delivery market and a reference point for funding and market competition.

T. Rowe Price

An investor that Deliveroo secured after a previous funding deal fell through.

My Energy

A sponsor of the podcast, focused on renewable energy.

Deliveroo

The food delivery company founded by Will Shu, discussed throughout the podcast.

Software & Apps

Gumtree

A platform where Will Shu claims to have hired initial employees for Deliveroo.

Just Eat

A competitor mentioned in the UK food delivery market that Will Shu found lacking in tracking and variety in 2007.

Calm app

A meditation app Will Shu tried for relaxation during stressful periods.

People

Lee Sutton

Co-founder of My Energy.

Will Shu

The founder and CEO of Deliveroo, sharing his journey from idea to multi-billion dollar company.

Steve Jobs

Mentioned for inventing devices like phones and tablets that enabled modern businesses.

Elon Musk

Mentioned as an example of a founder whose public image and wealth are intensely scrutinized.

Jordan Brompton

Co-founder of My Energy.

Media

TED Talk

Mentioned as a source for information on the importance of relationships for men's health and happiness.

Products

Kangaroo Costume

Will Shu wore this costume for marketing purposes in the early days of Deliveroo.

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