Why your business should avoid using third party delivery apps

Hiring a third party company for your deliveries has the ability to boost orders by appealing to new customers.

This is particularly beneficial to small businesses and start-ups as it can significantly increase discoverability.

However, the fees that come with these apps can be taking your business two steps backwards with reports finding that they can make takeaway orders up to 44% more expensive.

Our blog shares why using food delivery apps isn’t always the best route for your food business.

Why you should ditch the delivery app

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Third-party delivery companies like Deliveroo, UberEats and Just Eat are known to often come with hefty commission fees.

This can have ripple effects throughout your food business which can not only negatively impact you but your customers too as you’re forced to increase prices on your menu.

Prices on apps are normally set by restaurants before being increased to cover the service fees charged.

Studies also conducted by Which? have found that on average, a takeaway costs 23% more on an app than ordering directly.

Which? found that orders on Deliveroo were the most expensive, costing an average of 31% more than ordering directly. UberEats cost an extra 25% and Just Eat orders were 7% more expensive.

The most expensive order was a burrito and a taco from a Mexican restaurant, which cost £43.94 on Deliveroo – £12.29 (44%) more than ordering directly.

What are the benefits of an integrated online ordering platform?

Instead of using a large third=party partner, choosing an integrated online ordering platform such as Hungrrr or Preoday allows businesses to create their own app complete with their own branding.

Take back control
By setting up your own integrated ordering platform, your restaurant can take back control over the entire delivery experience.

Today, creating a smooth and professional user experience for the customer is crucial for getting them to order again, so keeping the delivery process in-house may be the best way to ensure this.

Not only do you get to train your delivery staff, you’ll also be able to choose your own business model and product offering.

Improve communication
Choosing in-house delivery removes the communication barriers that can come with third-party companies.

By opting for an integrated online ordering platform, you’ll be able to stay in touch with your customers throughout their order, which makes it easier to obtain feedback and implement changes where needed.

What’s more, it will be much easier to update your online offerings and include any deals and promotions your business is running if customers opt in to receive marketing .

Gain insights
Another perk of using an ordering platform opposed to a delivery app is that you can access and collect customer data.

Such data allows your business to gather a much better understanding of the way your consumers behave online, define their overall demographics, and identify the ways in which you can improve.

You’ll be able to gain invaluable insights into customer ordering trends, behaviour and habits to see what works and allow you to make informed decisions moving forward.

No extra fees
While setting up a delivery operation of your own does require a serious investment, not having to pay commission fees can make it worthwhile in the long run if your profit margins are higher.

The fact is, lower prices make your food more attractive to customers and therefore boost sales.

Choosing the best option for you

Both third-party and in-house delivery come with advantages and drawbacks.

Although not signing up with delivery partners may result in less visibility and potential customers, your existing clientele may well order directly from your app.

Before making a decision, make sure you balance the options to determine which type of delivery is the best fit for your business.

We hope you now have a better idea about how food delivery apps work and why they’re not always the best option for your business.

Image source: 1.) www.bbc.co.uk/news/technology-57497997