In a Convenience Economy, Restaurants Have the Power

DoorDash and Postmates capture more delivery orders during breakfast; Grubhub has higher market share during afternoon and dinner day parts, …

Much is made of the perceived leverage third-party services have over the restaurants whose food they deliver, but in reality, “Operators have the real leverage because the third-party apps need you as much as you need them.”

That was the conclusion from Eli Portnoy, founder and CEO of data insight firm Sense360, after he analyzed survey responses from 5,000 consumers, along with transaction data, to learn how they think about and use convenience-oriented services. “At the end of the day, fees are the No. 1 consideration” for customers, followed closely by restaurant selection, said Portnoy, who presented during the Food On Demand Conference in Chicago last week.

Ninety-three percent of respondents said they already knew about the restaurant before ordering through a delivery platform, and 91 percent had visited in person, meaning delivery services aren’t the driver of customer acquisition for restaurants—it’s the other way around.

“Restaurants and brands are actually the customer acquisition tools for the apps,” said Portnoy, and partnerships with franchise and chain restaurants are driving growth for the likes of DoorDash and UberEats.

“Having the right restaurants and variety of chains are massively important” to customer acquisition, said Portnoy, who encouraged operators to first determine how they want delivery to function in their restaurant, such as to boost incremental orders during a specific day part, and then identify the best service. DoorDash and Postmates capture more delivery orders during breakfast; Grubhub has higher market share during afternoon and dinner day parts, and UberEats is popular for late night orders.

The numbers from Sense360 showed 63 percent of orders are incremental, but “cannibalism is a real threat,” said Portnoy, and operators need to closely track delivery sales to continually validate performance.

Joshua Clarkson’s insight into consumers’ perspective on third-party delivery reinforced Portnoy’s survey data as he noted consumers are actually brand agnostic when it comes to selecting a delivery service. Instead, it’s the restaurants they care about.

Clarkson, a consumer psychologist and associate professor of marketing at the University of Cincinnati, called the third-party delivery providers a “homogenous choice set,” and said consumers don’t view them as being that different.

“They’re saying, ‘I want lunch from this restaurant, this service offers it, so I’m going to use it,’” said Clarkson.

“We complain about a lack of consumer loyalty, but there’s no value in loyalty when brands are substitutable,” continued Clarkson. In his survey of self-identified restaurant delivery service users, 65 percent said they’re not loyal to a particular service and 73 percent are open to using a new platform.

“Promotional tactics are not building loyalty—they’re building a false sense of market share,” he said. “But there is some hope. Consumers are drawn to consistency.”

Third-party platforms can stand out with high-level customer service, Clarkson said, such as allowing them a short window to make a change or add to their order before it’s submitted. “Loyalty is what matters when the promotion isn’t there,” he said.

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Schools Ban Food Deliveries by Grubhub, DoorDash, Uber Eats

A number of schools in Michigan, Deleware, and Ohio have banned food deliveries during the school day from companies like Grubhub, Doordash, …

A number of schools in Michigan, Deleware, and Ohio have banned food deliveries during the school day from companies like Grubhub, Doordash, and Uber Eats.

“It was getting to the point where you’d have eight, 10, 15 deliveries a day,” Pat Watson, principal at West Bloomfield High School in Michigan, told the Detroit Free Press. “It’s a building policy: You can’t have food delivered during the school day.”

Diane Blain, spokeswoman for Chippewa Valley Schools in Macomb County, said that the district’s two high schools banned the practice.

“We view it as a safety concern,” she said. “Having strangers and people that we don’t know coming to our buildings with delivery bags, we just don’t allow it.”

Students: just a reminder that food deliveries are not allowed during school hours. pic.twitter.com/vvOoFP0P5O

— Mr. Watson (@wbhslakernation) March 26, 2019

While some schools have formal bans, others are discouraging the deliveries. Nearly all face an explosion in interest in food deliveries, coming from ubiquitous cellphones and the fast-growing popularity of food delivery apps.

Even elementary school students get pizza delivered for lunch, Jeff Hueter, assistant manager of Jet’s Pizza, told the Free Press.

“The parents will call and say my kid’s lunch is at noon, can you deliver a pizza to the office and maybe throw in a bottle of water?” Hueter said.

Parents will pay using the Jet app or with a credit card. Teachers have been known to order a pie for lunch as well.

This picture taken on June 14, 2018 shows a man setting off by bicycle to deliver an order of food to a customer for meal delivery service Uber Eats in Tokyo, Japan. (Kazuhiro Nogi/AFP/Getty Images)

Two schools in Wilmington, Delaware, recently announced bans on food deliveries, also citing safety concerns.

Red Clay Consolidated School District spokeswoman Pati Nash told the News Journal that meal deliveries were increasing, causing safety problems, adding that allowing “random people to bring Thai food is not part of the safety plan.”

Dale Franklin, superintendent of the district, said that delivery cars would converge in front of the school around lunch time.

Local schools ban use of food delivery apps over safety concerns https://t.co/B8FBdYWCPx

— FOX 29 (@FOX29philly) April 9, 2019

“I just think it creates more of a safety risk,” he told Fox 29.

A similar ban was being enforced in Ohio over food deliveries.

Copley Fairlawn Schools Superintendent Brian Poe said that the phenomenon of deliveries is new enough that there isn’t an official board policy, but that the deliveries violate an existing district policy that states unauthorized visitors are not allowed on school grounds.

No food delivery services allowed in local school district https://t.co/aSkksIhJcH via @fox8news

— fox8news (@fox8news) March 12, 2019

“Our concern is allowing unauthorized folks on property who are going to deliver a bag or a box. We take safety and security very seriously in our district, so we want to make sure that our students are safe at all times,” Poe told Fox 8.

Some students weren’t pleased with the bans.

“That’s ludicrous, honestly, in my opinion, because they’re not coming on to do anything threatening, except deliver food,” Rocky Nguyen, a student, told Fox 8.

Nguyen said that delivery “saves a lot of time and I prefer to pay for delivery than pay for gas, honestly.”

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District puts brakes on food delivery during school hours

>>Read: Officials tell parents please, no more Uber Eats, DoorDash during school time. Hueter said teachers also order a pizza on occasion. Schools …

If mom or dad forget to pack a lunch and the cafeteria food is, well, cafeteria food, what is a student to do?

Until recently, some were getting food from an app like DoorDash, Uber Eats and Grubhub, The Detroit Free Press reported.

But no longer.

The principal at West Bloomfield High School said there were dozens of deliveries each day.

“It was getting to the point where you’d have eight, 10, 15 deliveries a day. It’s building policy. You can’t have food delivered during the school day,” Pat Watson told the Free Press.

>> Read more trending news

He reminded students that the school didn’t allow food deliveries in a way he could make sure they’d see it — by text message, the paper reported.

Some schools have put the brakes on delivery because of safety.

“Having strangers and people that we don’t know coming to our buildings with delivery bags, we just don’t allow it,” Diane Blain, a spokeswoman for Chippewa Valley Schools told the newspaper.

But it isn’t just high school students taking advantage of food delivery.

Elementary school students are also getting in on the game, and it is sometimes the parents who are facilitating it.

“The parents will call and say ‘My kid’s lunch is at noon, can you deliver a pizza to the office and maybe throw in a bottle of water?’,” Jeff Hueter told the Free Press. Hueter is an assistant manager of Jet’s Pizza in West Bloomfield Township in Michigan. Parents pay with either a credit card or though the business’ app.

>>Read: Officials tell parents please, no more Uber Eats, DoorDash during school time

Hueter said teachers also order a pizza on occasion.

Schools outside of Michigan are also curbing deliveries. Two schools in the Red Clay Consolidated School District in Delaware have stopped deliveries, WTXF reported.

The district also said no to parents bringing their kids lunch during the school day, WTXF reported.

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Daily Ninja achieves feat of 2 million orders per month in March 2019

… Sagar Yarnalkar and Anurag Gupta and is based out of Bengaluru. The company is backed by Sequoia India, Matrix Partners and Saama Capital.

Bengaluru-based milk & grocery delivery start-up DailyNinja today announced that the company completed more than 2 million orders in the month of March 2019. This is a major milestone in the hotly contested space of hyperlocal deliveries where DailyNinja has established a clear lead over its rivals. Established in late 2015, DailyNinja has seen the scorching pace of growth in its daily deliveries and has raced ahead of others in the market.

DailyNinja currently does 70,000+ deliveries per day and operates out of six cities viz Bangalore, Hyderabad, Chennai, Mumbai, Pune & Mysore. It works on a subscription model that delivers items ranging from milk, bread, eggs & other breakfast items to vegetables & groceries as well. DailyNinja.customers can order all their household needs by 11 pm and get their orders delivered by 7 am the next morning. Timely & reliable deliveries and ease-of-use of the platform for the regular customer has made DailyNinja the go-to choice for the milk & grocery delivery needs of the customers.

“We were doing about 17k orders a day 12 months ago. We have grown 4x over the last year to touch 70k orders a day and it has been a tremendous effort by our team. This has allowed us to widen our margin as the largest player in the country in this segment. Our endeavour is to bring the DailyNinja experience to customers in different parts of the country & transform their milk & grocery buying experience,” said, Sagar Yarnalkar, CEO and Co-founder of DailyNinja. The company hopes to provide the customers with greater choice & flexibility in their daily delivery needs and replicate the success that it has enjoyed in rest of India till date.

DailyNinja delivers milk and grocery through an early morning delivery network right at your doorstep. The company was incorporated in June 2015 by Sagar Yarnalkar and Anurag Gupta and is based out of Bengaluru. The company is backed by Sequoia India, Matrix Partners and Saama Capital.

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Emerging Opportunities in Third-Party Food Delivery Service Market with Major Eminent Key …

Emerging Opportunities in Third-Party Food Delivery Service Market with Major Eminent Key Players UberEATS, GrubHub, DoorDash, Seamless, …

The competitive landscape of the global Third-Party Food Delivery Service market has newly published by Report Consultant to its vast database. The informative report of the global market has been aggregated on the basis of recent trends, technological advancements, market size, shares and pricing structures. It offers a fundamental overview of the market to understand the dynamic aspects of the market.

Investing in delivery can be a very smart choice for any restaurant, especially third-party. Consumers love the convenience of ordering third party delivery, too. In fact, 87% of consumers say third-party restaurant delivery services make their lives easier, and 31% use the services at least twice a week. Also, third-party apps provide operators with a market share that they might otherwise not have. UberEats reported over 8 million users, providing plenty of opportunities to gain new business.

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Third-Party Food Delivery Service Market Top Leading Vendors :- UberEATS, GrubHub, DoorDash, Seamless, ChowNow, EatStreet, Papa John’s, Eat24, Postmates, DoorDash, Cavlar, Delivery.com, Bite Squad

Market segment by Type –

  • Delivery
  • Takeaway

Market segment by Application –

  • Family
  • Non-Family

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  • Recommendations for new startups in terms of investment measures
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  • Forward-looking perspectives based on drivers and restraints
  • Analysis of market by using SWOT and Porter’s five techniques

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