June 29 2020

‘IN THE LOOP’ - The Alternative to UBER and DELIVEROO

UBER and Deliveroo have made a strong emergence over the past years. From 2009 and 2013 respectively, they have had an obvious, and increasingly strong presence amongst restaurants and Delivery Services.
As I’m sure you know, they have been able to offer affordable, great quality delivery services, compiling almost any cuisine from any restaurant you could possibly want.
Cheap delivery prices alongside a swing in consumer behaviour towards take-out rather than eat-in has seen these online delivery companies almost monopolise the marketplace.

Delivering the Downside

The Restaurant Industry generally relies on every penny possible. Particularly Independent Restaurants are often on tight budgets, and high profits are rare.
This means that having customers eat in is a preference, yet the growing trend of delivered meals means Restaurants are cut short on these profits. The increasing number of delivery services and options means competition rises and prices must be matched or lowered to achieve the same level of orders and success.

sourced from www.foodnavigator.com

This ties in poorly with the commissions taken by Deliveroo and UBER, who use their market presence to guarantee more business for restaurants but do not guarantee financial security.
One source suggested that ”Deliveroo takes up to 35% commission and Uber Eats takes up to 30%.” As you can imagine, this is not light change for Businesses who are struggling to stay profitable as it is, and even more so given the current Coronavirus disruptions.
The Bristol Post spoke with two local restaurants; My Burrito and Chomp, who have stopped using Deliveroo as a service. They said that:
"It's demoralising and frustrating to see how little we actually get from Deliveroo considering the effort we're putting in." (The Bristol Post)
Restaurants also complain about the unnecessarily complex pricing structures set out by these Delivery Companies, which contribute to the minimal profits made each day for restaurants.

A Subscription-Based Alternative?

Restaurants who adopt their own delivery system, manage orders and demand through their own ordering system and can employ their own drivers have a much better chance at boosting profits while adhering to consumer changes.
Delivery Management Systems offer Office Systems which manage orders as well as mobile delivery apps which match the driver-tracking, specific ETA’s and delivery times found using Deliveroo or UBER eats.
Furthermore, Subscription-Based monthly payment models allow Restaurants to keep on top of finances and provide Businesses with more predictable costs and revenues.

The Question of Convenience

The element of convenience that Deliveroo and UBER offer is unparalleled - This does not mean that independent businesses cannot switch to alternatives which would actually benefit them in the long run.
Adopting their own Delivery Systems and managing their own telephone and online orders means that customers can still have their desired meals when they want them.
Our Delivery System is incredibly easy to set up, and the learning curve is short meaning Restaurants can have a fully operational Delivery System in less than a few weeks.
If you’d like to talk to one of our team about how we can tailor our System to your specific needs, you can request a call back here.
Follow us on Social Media below:
Twitter
Linkedin
Youtube
Medium
References:

'Two Bristol restaurants stop using Deliveroo as service takes 'whopping cut', https://www.bristolpost.co.uk/whats-on/food-drink/restaurants-stop-deliveroo-cut-takeaway-4031306

“Restaurant owners in Britain call on Deliveroo to drop commission fees”, https://www.cnbc.com/2020/05/01/restaurant-owners-in-britain-call-on-deliveroo-to-drop-commission-fees.html

Deliveroo image - www.foodnavigator.com