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.

Ford and Postmates Deliver with "Self-Driving" Delivery Vehicles in Miami

Ford and Postmates Deliver with "Self-Driving" Delivery Vehicles in Miami

Ford and Postmates have partnered up to create an on-demand delivery platform powered by a self-driving delivery service that is currently being tested in Miami.

In a self-penned article on Medium, Ford Autonomous Vehicle Business Team member, Alexandra Ford English says the on-demand delivery platform is currently being tested in Miami and Miami Beach with more than 70 businesses participating, including local favorite, Coyo Taco. For residents in the area, when you order through Postmates, you could be given the option to have your food delivered by a self-driving research vehicle.

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Yext is Driving Restaurant Discovery and Online Orders

Yext is Driving Restaurant Discovery and Online Orders

It’s no secret we live in a very competitive restaurant environment.

Not only do we have more cuisine options, but we have more brick-and-mortars that offer different atmospheres and experiences than ever before.

There’s also the increasing shift towards online ordering and food delivery by consumers with a fast-paced lifestyle who are looking for convenience and speed.

Needless to say, restaurant visits have been declining year over year and it’s more important than ever to capitalize on the few opportunities available to amp foot traffic to your restaurants.

So how can restaurants maximize visibility in such a saturated environment?

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Uber Eats— "...A Necessary Evil" ?

Uber Eats— "...A Necessary Evil" ?

Is the food delivery service market lopsided?

Apparently, it is. Or, at least, in Miami, where Uber Eats launched its delivery services in the summer of 2016.

“From some restaurants, [Uber Eats] takes a 33 percent cut,” reports “Miami New Times.” “And though other delivery services, such as Postmates, Amazon, and GrubHub, take a smaller percentage, many restaurant owners say Uber’s market share makes its service a must-have, whatever the cost.”

So what is it exactly about Uber Eats that makes some restaurant operators think it’s indispensable?

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Square's Caviar Is Another Food Ordering Service Player in the Delivery Space

Have you ever tried Caviar? No. I don’t mean the pickled roe of sturgeon eaten as a delicacy.

Caviar is a food ordering service for popular restaurants that was acquired in August of 2014 by Square, Inc., the business tools company famous for its point-of-sale software.

What’s interesting about this platform is that it only features a hand-curated list of restaurant partners.

“We have teams with deep local knowledge that hand-curate our restaurant list focused on working with the best restaurants in every city across cuisine types and price points,” said Nick Adler, Caviar’s market operations lead. “Our close restaurant partnerships, in combination with our full logistics and marketing solution, enable Caviar to offer quick and reliable delivery and pickup, helping businesses to reach more customers, grow their sales, and expand their reach.”

Since the acquisition, Caviar’s weekly order volume has grown more than 11 times according to Adler, who’s been working for the company for over two and half years leading all locals teams that work with the couriers and restaurants on the ground in each market the platform serves. “Delivery and pickup are great ways for restaurants to grow sales beyond their tables, which is aligned with Square’s founding mission to ensure that a seller never misses a sale,” explains Adler referring to the reason why Square decided to get into the food delivery business.

To further Square’s mission, Caviar provides a variety of cross-channel, co-marketing services for restaurant partners, which includes in-app alerts and banners, email, and social mentions. In addition, professional photography of each restaurant and every dish available for delivery is provided by the San Francisco-based company. 

One of Caviar’s exclusive restaurant partners is Souvla, a greek-inspired fast casual concept that continues to expand in the Bay Area. The restaurant’s owner, Charles Bililies, told the San Francisco Chronicle, “In 2014, delivery was zero percent of the business...now, it’s about 24 percent of the business, which is pretty remarkable,” leading him to take into account orders from Caviar with each new location opening. This explains the need to food delivery services like Caviar, UberEATS and Postmates, to name a few.

Caviar has partnered with thousands of restaurants across the country, featuring high-profile chefs like Ivan Orkin of Ivan Ramen, Rick Bayless of XOCO and Red O, Ken Oringer of Coppa and Toro and recognized restaurant groups like Garces Group in Philadelphia and The Meatball Shop in New York. The platform operates in specific areas, in the following locations: California, District of Columbia, Illinois, Maryland, New York, Oregon, Pennsylvania, Texas and Washington State.

To learn more about Caviar, Foodable asked Nick Adler the following questions:

How does Caviar differentiate itself from its competitors?

Adler: Without referring to specific competitors, many of them don’t have a true partnership with restaurants and place phone orders without partnering with them. We are 100% focused on food. We don’t transport people, retail products, or other non-food items. Due to this focus on food, we’ve built unique competencies around food delivery - inclusive of presentation, packaging, operations and logistics - which allows us to deliver the best experience for diners, restaurants and couriers.

How do you ensure quality of the food when it’s being delivered through the Caviar courier service?

Adler: We only partner with couriers with thermal bags and the best equipment (like food separators, bikes with racks for pizza when applicable, etc.), work with our restaurant partners to use the best packaging for every type of food we deliver, and use smart algorithms to make sure the timing for each order is seamless and matches with the right courier. Our restaurant partnerships give us more data and information to learn from, and we’re always improving our algorithms with more inputs and variables that make them super accurate.

New life goal: Make sure #Fridays always taste this good 🍩

A post shared by Caviar (@trycaviar) on

Timing is a huge consideration when thinking of keeping food fresh and at the right temperature. The courier needs to arrive at the restaurant just as the restaurant finishes preparing the food, so it’s not waiting around on the counter, and the courier needs the right equipment and information to get the order to the diner fast.

What are all the services you provide to your restaurant partners?

Adler: We provide restaurants with an app to manage all their orders, pickup and delivery logistics such as matching couriers to deliver food, a range of marketing solutions, as well as consultation and expertise about their online menu and packaging. We also ship in-house [print] collateral to restaurants we work with to help educate their customers about all the ways they can order their favorite food. Some additional features include: pre-order for up to a week in advance, shared carts for large groups, and Caviar for Teams, a streamlined catering option. We do share high-level, anonymized data with our restaurants so they can better understand where their customers are ordering from, when they’re ordering, and what they’re ordering to make smarter business decisions.

How does the Caviar app for the back-of-house kitchen staff work?

Adler: Every restaurant can customize their app and experience for the kitchen staff to receive orders and to make sure that the process is optimized for their restaurant and operation. Each establishment has the option to integrate with kitchen printers directly so back-of-house staff can review orders as they come in, directly from the restaurant’s Caviar app.