On the web the winner takes all and I believe that in the takeaway food delivery business there will be one service that survives, Uber Eats.
It launched today at 11am today in a limited area of Melbourne inner city suburbs. But who knows, as both Deliveroo or Foodora are worthy challengers.
But Australian market is too small to support three upmarket food takeaway businesses.
The fact is the biggest wins. Look at Facebook versus Twitter. AirBNB versus the other guy. Look at Uber versus every other taxi service and start-up.
That’s why when it comes to takeaway food delivery it isn’t worth trying to go it alone on your website – you need to join one or more of the new services to sell takeaway food online.
The best known services in Australia are Menulog and Eat Now. Last year these two services sold to the UK’s Just Eat for a reported $855 million.
Since then we’ve seen Delivery Hero, and the more upmarketDeliveroo and Foodora (the rebranded Suppertime) launch, rolling out across Australia one suburb at a time.
Delivery services fail to deliver PR
I want to point out that most of these delivery services, with the exception of Uber Eats and Foodora, are absolutely useless in communications.
Though the social media managers from Menulog and Deliveroo were helpful, their PRs – if they exist – failed to return emails or give me any of the information I required despite repeated requests.
The service to choose is…
What each service gives a participating restaurant is either a printer or a tablet computer for access to orders. Menulog and Eat Now! charge about 10% and have traditionally supplied a docket printer.
The new up market generation of delivery services all cost about 30% with a fee for the customer.
However, in this competitive market they are all prepared to offer deals. Go exclusively and you’ll pay 25% of the order value for delivery.
If you are a big name they will offer even more incentives.
It’s all delivered for you by either bicycle with Deliveroo and Foodora or by vehicle/bicycle with Uber Eats.
They all have a better quality of restaurant supplying food than the old traditional takeaway services such as Menulog.
For my money Uber is the winner.
Why?
Well, first of all it is the most visible and best known of all the services. It also has the great bait for customers with the best selection of cafes and restaurants offering delivery. Think Supernormal, Entrecote City and South Yarra, Botherambo, Jimmy Grants, Gazi, Milk the Cow, Pidapipo…It’s an impressive list.
There again, Deliveroo offers (in my hood) Radio Mexico, Machi and Uncle – all personal faves.
Foodora in St Kilda offers Gelato Messina, Machi, Tokyo Tina, though has fewer really good venues.
The smart choice for a restaurant is to be on as many services as you can until a clear winner emerges.
Isn’t 30% too expensive?
It’s high yes, but the point is you can use spare kitchen capacity to deliver food to fans and build a new customer base. These delivery services can help shift the economics of a quiet venue and kitchen on a slow winter’s night. Or slam you come a busy summer evening.
Go forth and deliver.