The relationship between marketplace apps and restaurant operators can be best described as love-hate. On the one hand, marketplace apps have revolutionized the food delivery industry by bringing exposure and increasing customer acquisition opportunities for restaurant brands.
On the other hand, they charge high commission fees (anywhere from 15-30% on each order) and offer limited control over the delivery process. This makes it difficult for restaurants to generate profits and build relationships with their customers when it comes to delivery orders.
According to BusinessofApps, Doordash had 25 million active users and 390,000 merchant partners as of 2021. With restaurant delivery growth in double digits, marketplace apps will only grow their share of a restaurant’s business.
Therefore, restaurant operators should start optimizing their relationships with marketplace apps instead of avoiding them.
In order to make the relationship more sustainable, operators must find a solution that reduces delivery fees, helps them to take back ownership of customer engagement, and improve service levels.
The Opportunity at Stake
The restaurant food delivery industry in the US is predicted to reach $231bn by 2023. If restaurants don’t find a better solution, their dependence on marketplace apps will increase while their margins continue to dwindle.
In order to address the high-cost fees and visibility issues associated with marketplace fleet delivery, many restaurants are turning to delivery management software. The right software solution can help restaurant brands to drive down their delivery fees, automate their dispatch efforts, and dramatically improve their end-customer experience.
When it comes to marketplace delivery, the economics fail to stack up. Paying up to 15% to capture more order volume makes sense for restaurant brands. However, paying an additional 15% for delivery means sacrificing most of the remaining margin to be made.Luckily, however, delivery management partners can help you to achieve more favorable rates for your marketplace delivery. This is the most sustainable solution for restaurants that wish to continue using marketplace fleets without compromising their revenue.
By using a delivery management solution with extensive partnerships, restaurants can save up to 24% on delivery fees while continuing to access new customers and revenue from the marketplace platform. Ultimately, turning delivery into a profitable channel for restaurants.
Greater Visibility Over the Delivery Process
When a delivery driver from a marketplace fleet fulfills an order, the restaurant has no control over the service level the end customer will receive.
In light of this, having delivered an order to your customer, a delivery driver could have also fulfilled multiple orders along the way. This often results in late delivery times, cold food, and negative reviews for operators who are ultimately blind to the issues at hand.
Using a delivery software solution can help to provide the restaurant with detailed data and analytics on delivery orders – even the orders fulfilled by third-party fleets, giving operators full visibility over the entire delivery process.
With access to this information, restaurants can identify areas for improvement, make datadriven decisions, and optimize their delivery operations accordingly.
Courtesy of Total Food Service