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Different food delivery models: who should I sleep with
August 13, 2018

The rule of digitization is simple, if you can keep up with the ongoing trend and foresee the future trends, the world will be your oyster and nothing can stop you from making a fortune. There are always more than one ways to accomplish your goals. If model A doesn't work for your business, you can always try model B and keep moving forth until you find your sweet spot. The same stands true for on-demand food delivery companies such as Amazon, UberEats, Deliveroo, Zomato and GrubHub who occupy a major share in the digital food online business. These companies recognized the  "$100 billion opportunity"  and since their launch, they've been giving F&B businesses something serious to snack on. Most importantly, they found their “sweet spot” and have been evolving thereafter.

The food delivery market is divided into two segments - “Aggregators” and “New Delivery” models. Both the platforms allow customers to compare the menu and place orders from a variety of restaurants with a single click. The only difference is that Aggregators simply take orders from customers and route them to restaurants while New Delivery players leverage their own logistics networks and provide delivery for restaurants that don’t have their own delivery teams.

Cowen & Co. has predicted that by 2022 U.S. food delivery market will grow from $43 billion to $76 billion.

While food delivery competition is heating up, it has become all the way more important for restaurant owners to figure out how they would manage their delivery systems. Would you launch your own delivery service or partner with an on-demand delivery company, like Zomato, UberEats etc.? Having your set up would demand a heavy investment and if you are not ready yet to take the leap, the best option is to find a suitable food delivery company to partner with.

With this in mind, here are a few things to consider before partnering with third-party delivery services:

Does the customer experience match your brand?

If the delivery company does not have an efficient logistics system in place, it's doubtful if you'll get a second chance to serve the customer. Before you sign yourself up with an on-demand delivery platform, it’s advised to do some research on the company's reliability and customer service. What is their process to deliver orders, how do they handle complaints and whether the delivery staff has been trained to meet the set benchmarks? You can also check statistics on customer satisfaction and average delivery time.

What is the speed of delivery?

A recent report by McKinsey and Co. revealed that the speed of delivery plays the biggest role in determining customer satisfaction. Most people would like to get their food delivered in less than an hour i.e. 60 minutes. It is strongly advised to ask the food delivery company for statistics on average delivery time. A new delivery platform, like Zomato and Ubereats, offers a robust logistic network for restaurants that clearly win the race in this segment.

Does it offer free marketing?

Implementing a marketing plan is expensive, especially for small restaurants. A food delivery company that offers free marketing is beneficial for restaurants looking for healthier and affordable alternatives to reach their target audience. Make sure the company you choose to partner with has a massive online following and an expansive email list.

The demand for delivery is higher than ever, and your restaurant should be able to provide it. Choosing the right partner will lead to long-term success as well as customer loyalty. Additionally, you can get a competitive edge by creating a strong web presence for your restaurant.

At Restolabs, we help you get online and develop long-term relationships with people who rely on online interaction to find their favorite eateries. Get in touch today to know more!

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