Order food with yelp app8/14/2023 ![]() T hird-party delivery services provide more visibility for a restaurant. Let’s start with the pros of third-party delivery services -there are plenty. For reference, Yelp has partnerships with Grubhub, , ChowNow, and EatStreet-but we’re not getting into the specifics of individual services here. Pros of third-party delivery servicesįor the purposes of this article, we’ll refer to third-party delivery services as one general concept rather than point to individual ones. You likely won’t be surprised when we answer our own rhetorical question with, “Well, it depends.” Let’s find out what it depends on and then look at how to set up delivery services. But should restaurants partner with third-party delivery services or rely on in-house delivery services? What’s the best way forward? We can be sure in-house delivery or takeout apps are valuable. Now, while there may be some contradictory numbers here, the most important takeaway is that customers across the board are ordering delivery and takeout more often, and rely on apps more than ever. Furthermore, 61% of customers order takeout or delivery once a week-a significant increase. And a Deloitte survey showed that 57% of customers prefer ordering on an app, though they don’t specify in-house or third party. This is promising news for restaurants considering forming their own delivery team, but the numbers are shifting in favor of third-party apps.Ī more recent 2021 survey indicated 57% of customers used mostly or all in-house apps versus third-party. While these companies jockey for position, their fortunes wax and wane with the preferences of customers.Īt the same time, some 78% of delivery orders in 2019 were still placed directly through restaurants themselves rather than third-party vendors. Postmates claimed a modest 3% before it was acquired by Uber and absorbed into Uber Eats in November 2020.Ĭombine those four services and you’re looking at nearly 100% of the third-party delivery service market. As of December 2021, DoorDash claimed the lion’s share of the delivery market at 58%, while Uber Eats and Grubhub came in at 24% and 15%, respectively. There has been significant consolidation in the apps as well. More recent studies predict that the industry will climb to north of $50 billion by 2027. Things accelerated significantly after that. So, while the customer base nearly doubled, the money customers spent on delivery food more than tripled-demonstrating that not only are there more customers wanting delivery food, but they’re willing to spend more than before.Īnd remember, that was pre- pandemic. Users grew from roughly 65 million in 2015 to more than 110 million during the same time frame in 2020. between 20-from $8.7 billion to a whopping $26.5 billion. The current situation in numbersĪccording to McKinsey and Morgan Stanley research, the food delivery revenue stream exploded in the U.S. Let’s weigh the benefits and drawbacks of third-party delivery apps, discuss how to get started with delivery apps, and explore this skyrocketing sector of the restaurant industry. So, we’re here to help restaurant owners figure out just how to navigate third-party delivery services. So can figuring out the best way to do it while still remaining profitable. īut restaurant delivery can seem like a complicated business. Well, the numbers are in, and you can be darn sure that customers will continue to place orders via third-party delivery platforms. Questions lingered about whether or not the surge in takeout during the pandemic was here to stay. But with the rise of third-party delivery services, restaurateurs have much more to consider regarding food delivery than they previously have, including some notable pros and cons. Consider how long delivery pizza has been a staple, and you’ll quickly grasp just how ingrained in restaurant culture it is. After deciding to proceed with a third-party delivery service, consider five important steps to ensure things go smoothlyĭelivery services have long been a part of the restaurant industry, and they’ve really taken a leap lately.While in-house delivery services ensure all profits stay in house, third-party delivery services add valuable business.Delivery food is more popular than ever, and is here to stay. ![]()
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