3rd Party delivery services

Discussion in 'The Think Tank' started by mrschleg, Jul 10, 2019.

  1. mrschleg

    mrschleg Member

    Jan 28, 2008
    Likes Received:
    How is everyone handling these companies? I'm having a hard time finding/keeping drivers due to the 10% increase the customer will pay Doordash/Grubhub but will not pay the same to me. Not really sure which avenue to take here do you:

    Increase your delivery charge

    Have separate pricing for pick-up/delivery

    Allow them to take over your site and stop delivery

    I don't think it's time to panic but it does seem like everyday more of these 3rd party service companies are popping up. I mean they will deliver everything and anything.
  2. RobT

    RobT Active Member

    Jun 14, 2006
    Likes Received:
    Long Island, NY
    Once Uber started going out 30 minutes from my store , lots of drivers started cancelling orders bc they didn’t want to go the distance.

    I kept my eye out on many of these drivers and was able to hire a few part timers from them. I paid better and the tips were better.
    Over the years I was able to develop a sense of who wanted to work and who didn’t

    Sent from my iPhone using Tapatalk
  3. brad randall

    brad randall Active Member

    Jul 24, 2007
    Likes Received:
    Bloomington, IN
    We charge a $2.49 delivery fee when customers order directly from us over the phone or through our online ordering system, and charge $3.99 when they order through a 3rd-party site. That offsets about half the 3rd-party fees (as a menu service) on the average order.

    Another thought I've had is to not offer our regular slate of specials on the 3rd-party sites to offset their percentage rake. Some of our standard package deals are in the 20% to 30% range. When we cut those out in favor of some much less aggressive ones, or no deals at all, then we're earning a better return on those 3rd-party orders.

    Another option: We have a Sushi place here in town that has marked up their menu to cover the cost of having 3rd-parties deliver their food. Then they offer a 30% discount when you dine in or carry out directly from them. My business partner was confused but pleasantly surprised when he carried out there. After we thought about it, we realized what they were doing.
    idahopizzaman likes this.