The On-Demand Delivery Trends and the Technology Driving Them

The future of on-demand ordering could be summed up to one simple statement– It’s just beginning.

According to Foodable Labs, over 30% of the U.S. Restaurant industry is offering some kind of on-demand third-party ordering solution. Over 80% of consumers under the age of 35 are using on-demand food ordering apps about two times a week, proving the delivery segment has exploded thanks to the new age consumer and their dining habits.

The Big 6 are the lion's share of the market, but our research now shows over 100 on-demand food delivery companies serving the 1.2MM restaurant and food companies in the US.

The breakdown of Engagement and Sentiment tells an underlying story of these companies and how consumers view them and eventually, how restaurant operators may view them as well.

Engagement is scored by an analysis of how often consumers mention the use of the app or service on social along with an analysis of the Sentiment of the service based on food delivery speed, quality, accuracy.

The Engagement and Sentiment Scores of the Leading Third-Party Delivery Companies

According to this data, the Best Quality goes to the company Caviar. As the leader in the Sentiment area of Quality, this may be based on great service, but the company also recently acquired by Square. Remember Square is also a POS company and is tied to transaction-based business models. Recently Caviar added a spotlight that says "who's making your food" and has labels like women-owned restaurants. The overwhelming support by their users has given their consumer Sentiment score a boost.

Best Accuracy: Caviar came through as the leader in this area as well with a unique Sentiment score that showed this as one of the most appreciated aspects of its user base. Caviar's, along with other delivery apps', performance is being measured by the Chicago-based delivery search engine Food Boss, which is being led by the former McDonald's CEO Don Thompson.

Best Speed: Uber Eats takes this slot with what was one of the best Sentiment scores based on the overall app Sentiment. This has little to do with the ordering process and making a restaurant selection, which for most users ties into the overall speed of the order. As they continue to use their technology to analyze user behavior, Uber continues to have the upper hand when it comes to speed that other companies may not be able to pace.

I had a chance to explore one of the technology companies that has created a solution to centralize the on-demand challenge of being listed on multiple platforms mainly for discovery.

Ordermark has created a solution to centralize the in-store technology to create a more seamless integration into food operations which over time has become one of the most challenging aspects of the on-demand food ordering explosion.

Every restaurant operator understands discovery is the key to success and the solution in today’s world is not Facebook or Twitter, instead, it's being on as many on-demand platforms that you can handle. Alex Canter, CEO and founder of Ordermark and I discuss the growth aspects of the company and the delivery sector, as well as technology and operational challenges of the future of on-demand food ordering and where it might be heading.

Will Thrive Market Become Amazon's Biggest Competitor in the Organic Food Space?

The E-commerce giant Amazon made its plans known to conquer the organic food space about a year ago when it acquired Whole Foods.

While the tech giant was working to revive the organic grocery chain, Thrive Market, the online grocery store specializing in natural and organic products, was quietly and rapidly expanding across the country.

Now, Thrive Market has expanded with new categories and is offering membership perks to compete with Amazon.

Customers pay $5 a month to be a Thrive member and are given access to a marketplace of all-natural foods, beverages, wines, supplements and medicines at a discount, ranging from 25 to 50 percent off. Thrive offers free two-day shipping too.

So what does Thrive Market offer that Amazon doesn't?

It's all about the products and how they are sourced.

“Amazon buying Whole Foods has created a big opportunity for us,” said Nick Green, the co-founder and CEO of Thrive Market. “Whole Foods has been the standard bearer for natural foods and organic products, but the challenge it has had is that many people don’t live near one, and many people can’t afford it. When you think about the Amazonification of Whole Foods, Amazon bought it for the real estate, and it’s tried to make it more accessible for everyone. That means you’re going to see different products on the shelves.”

Thrive Market won't be losing sight of its standards. All products on the marketplace are ethically sourced and non-GMO, along with other requirements.

“Already, Whole Foods shelves have Honey Nut Cheerios and Amazon Echos,” said Green.

Although Amazon has introduced products like these to the Whole Foods stores, Whole Foods CEO John Mackey recently said that the chain will be keeping niche products on the shelves that aren't found at common grocery stores.

“Not only are we not decreasing local foods, we’re increasing them," said Mackey to "Well + Good" in November.

But Amazon has lofty plans for Whole Foods and it is bound to change what products the chain carries.

“Amazon doesn’t want Whole Foods to be a top-five regional or specialty grocer,” said Cooper Smith, principal analyst at Gartner L2 to "Digiday." “It wants it to be a top-five national grocery chain. That’s going to impact the products you see being carried. National brands are hitting the shelves and are in talks whereas they might not have gotten a foot in before.”

According to Green, Thrive Market grew its 2018 revenue by 50 percent compared to the year prior.

See what else Thrive plans to do in the next year to become Whole Foods' biggest competitor at "Digiay" now.

But Amazon isn’t just going after the on-the-go consumer with its grocery deliveries, its cashier-less Amazon Go stores are going to pop-up across the country offering food options. Watch The Barron Report episode below to see how these stores will make an impact on restaurants, especially those in the QSR and fast casual segment.

UberEATS Plans to Serve 70 Percent of the U.S. Market by the End of the Year

UberEats delivery bike

The food delivery platform UberEATS is aiming to achieve its lofty goal of serving 70 percent of the U.S. population by the end of this year.

The service currently is offering food delivery for 50 percent of the U.S. population.

Although the parent company Uber had a competitive advantage over competitors in the food delivery space due to its popular sister ride-sharing app, 40 percent of UberEATS' business is made up of entirely new customers to Uber.

“Eats is growing just as fast if not faster,” said Ana Mahony, Head of U.S. Cities for UberEATS to "TechCrunch."

But how does the platform plan to expand so quickly?

Well, Uber is launching a new self sign-up service for operators. This is supposed to streamline the signing-up progress, making it easier for restaurants to become a UberEATS partner.

While Uber is seeing a lot of potential in the food delivery market, Mahony said the company is still very much focused on providing logistics for transportation and goods.

“Uber is really evolving into a platform brand where we are moving very many different types of goods and services and people from point A to point B,” said Mahony.

Earlier this week, the WSJ reported that UberEATS was hiring personnel to oversee the implementation of drone technology for food delivery in San Francisco. In a job posting, the company said it was looking into using drones for delivery by as early as 2021. However, the company was quick to remove the job listing that outlined some of UberEATS’ upcoming plans.

Nonetheless, it’s safe to say that UberEATS has several innovative projects in the works.

Read more about the tech giant’s plans to expand to more areas at “TechCrunch.”

But will the increasing price for restaurants detour operators from partnering with UberEATS?

Watch the video below to learn how some operators see the platform as a "necessary evil."