Interview, Fireside Chat
Deliveroo Founder: From £0 to £5 Billion: Will Shu | E88
- Founder Background: Will Shu, an American who moved to London at age 24 after working in finance (Morgan Stanley, hedge funds) and attending Northwestern University and Wharton, founded Deliveroo after observing the poor state of food delivery in London.
- Origin Story: The concept was born in 2012 when Shu, working 100-hour weeks, realized London's culinary landscape lacked quality delivery options compared to New York, prompting him to quit business school and launch the venture.
- Early Operations: The business started with Shu and co-founder Greg (his childhood friend) operating as a two-person team; Shu handled on-ground logistics and restaurant acquisition while Greg managed technology from Chicago.
- Launch Strategy: Deliveroo launched in February 2013 in a single London neighborhood (Chelsea) with no consumer app, relying solely on a mobile-optimized website and direct outreach to restaurants.
- Initial Marketing: Shu bypassed traditional advertising, instead hanging "Do Not Disturb" signs listing local restaurants on neighbors' doors to generate awareness, a tactic that initially drew police scrutiny regarding potential burglary rings.
- Founder Identity: Shu rejects the "entrepreneur" label, defining himself instead as a problem-solver who wanted to fix a consumer issue rather than a status-seeker, noting that many founders fail because they pursue ideas they don't personally care about.
- Rider Empathy: Shu continues to perform deliveries (five in the past week) to test the app, exercise, and observe restaurant interactions, driven by an early personal incident where he witnessed his Pakistani riders being treated with prejudice by a Starbucks barista.
- Co-Founder Departure: Co-founder Greg left the company in late 2015/early 2016, a decision Shu views as difficult but necessary, citing Greg's inability to relocate to the UK and the need for a centralized, in-person team for a hybrid digital-physical business model.
- Financial Crises: The company faced a critical funding crisis in summer 2017 when a $600–700 million investment from a major global fund collapsed days before closing, forcing Shu to rapidly secure alternative funding from Fidelity and Tree Line.
- Regulatory & Pandemic Challenges: An 18-month antitrust investigation by the UK CMA blocked Amazon's investment, coinciding with the onset of the pandemic which caused restaurant partners to close, leading to a significant drop in user growth and a massive, difficult layoff of employees.
- Layoff Decision: Shu describes the pandemic-era layoffs as the "hardest thing" he has ever done, noting the moral burden of cutting jobs during a crisis while being at the mercy of government institutions with no control over the outcome.
- IPO Status: Deliveroo went public via a reverse merger; Shu reports that while the initial weeks of public scrutiny regarding stock price and media narratives were difficult, he remains focused on long-term business strategy rather than short-term market fluctuations.
- Competitive Landscape: Shu views the market as highly underpenetrated (3–5% online penetration vs. 50% for travel) and believes the future lies in transforming the platform from a transactional tool into an emotional, social experience for food.
- Future Vision: Deliveroo aims to integrate restaurant-generated content and reviews to create a deeper emotional connection, moving beyond simple delivery to encompass dine-in, private chefs, and recipe kits.
- Personal Philosophy: Shu admits to struggling with work-life balance and the isolating nature of founding, acknowledging he has prioritized the business over relationships and friendships, though he maintains a low-key lifestyle despite his wealth.
- Current Mindset: Shu is actively seeking to separate his personal identity from the company's "gravitational pull," planning to take longer holidays to step back and evaluate his long-term life goals beyond the business.