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.

Food Delivery Discount Service Increases Sales During Restaurant Off-Peak Hours

Food Delivery Discount Service Increases Sales During Restaurant Off-Peak Hours

hough delivery has proven to be a huge market with the likes of UberEats and Grubhub snatching up restaurant dollars, it has also proven to be extremely expensive for operators and, consequently, for consumers.

According to Forbes, Restaurants could pay anywhere between 11% and 45% commission on each order if they sign up for a delivery service. And while restaurants admit that adding these services improve order numbers and total revenue, these rates are huge. And the delivery fees on the consumer side aren’t tiny either.

Two entrepreneurial brothers based in NYC noticed this issue while scouring for promo codes and coupons to lower their delivery order prices. Wondering, ‘why isn’t there some sort of food delivery happy hour’ Mohamed and Sidi Ahmed Merzouk set out to create this type of app.

Read More

GrubHub Drivers Ruled Contractors in Landmark Gig-Economy Case

GrubHub Drivers Ruled Contractors in Landmark Gig-Economy Case

In a landmark ruling Thursday, U.S. Magistrate Judge Jacqueline Scott Corley in San Francisco concluded that a gig-economy driver does not qualify for the protection of employees under California law.

The decision is the first of its kind, setting a standard for arguments regarding “gig-economy” workers.

The gig-economy has gotten much press as of late. With a number of businesses like Grubhub and Uber working off the model of pairing customers with products and services through apps, many workers have found a new form of income allowing high flexibility in exchange for low skill, low wage, episodic jobs.

However, the case against GrubHub, brought on by Raef Lawson, claimed the company violated California labor laws by not reimbursing his expenses, paying him less than minimum wage and failing to pay overtime. His argument was based on the idea that Grubhub exerts a certain level of control over. The company expects drivers to be available to accept assignments during shifts they sign up for and to remain in designated geographical areas.

Lawson worked as a food-delivery driver with the company for less than six months while pursuing a career as an actor and writer.

At a hearing in October, Judge Corley expressed concern that Lawson’s resume filed with the lawsuit may have tainted the trial because the actor lied about completing a three-year program. The specifics of the program weren’t provided. However, Corley said Lawson was “dishonest” and that the resume “is really problematic to me.”

Charlotte Garden, an associate law professor at Seattle University, said to Bloomberg that Corley’s decision is a “doubly big” win for GrubHub since California’s relatively high standard for establishing workers as independent contractors will mean similar arguments in other states will most likely side with this ruling.

You can read more about this case at "Bloomberg."

Read More

Is The Food Delivery Industry About to Burst?

Is The Food Delivery Industry About to Burst?

Some believe the business model of the restaurant/delivery market is not sustainable, simply because companies like Grubhub, Seamless, and UberEats are venture capital-backed upstarts. This means these delivery-based companies currently have money being funneled in to stay afloat, while it produces upside-down margins.

Why upside-down margins, you ask?

Let's take a closer look at UberEats, for example. This company “is only profitable in 27 of the 108 cities where it’s offered — meaning they are actively losing money in approximately 70 percent of their markets. That’s with Uber taking 30 percent to 40 percent of every order from the restaurant and charging the customer a $5 delivery fee,” according to “Recode.”

Read More

You Must Deliver! And Here's How...

You Must Deliver! And Here's How...

The delivery game is changing and on this episode of On Foodable Weekly: Industry Pulse, we’re looking at what you need to do to take advantage of this growing market.

More than 68 percent of consumers have ordered online delivery in the past 6 months.

Meanwhile, nearly 35 percent of millennials have reduced their restaurant visits in the past year. With online delivery orders nearly quintupling (yes, that's FIVE) in just the past year, restaurants need to recognize that while this could be a threat, it could also be an opportunity.

Foodable spoke to a number of industry experts about what restaurants need to consider before jumping into the delivery game. We talk delivery services, packaging, menus and even restaurant design in order to optimize delivery efficiency. Watch the episode above to see what they said!

Read More