August 2, 2019 Fanale

Say goodbye to Uber Eats & Deliveroo

In the last six years, we have seen tremendous growth of online food ordering platforms. Globally there is a myriad of players, here in Australia the dominant players are Uber Eats, Deliveroo and Menulog. They have provided a high level of convenience for the consumer which has resulted in takeaway food being delivered to our homes more than ever before. But, at what cost to the restaurant or cafe providing the food. You would think that restaurant owners would be dancing in the streets with all this new business coming in, but the aggregator model is proving to be more of a cranky neighbour telling you to turn the music down than a DJ pumping up the party. 

Aggregators are reportedly taking up to 35% + the delivery fee charged to the customer, that doesn’t leave much profit for the restaurant. Restaurants all around Australia are starting to take a stand and are either choosing to not offer home delivery anymore, stick with old school delivery promotion and receive orders over the phone or build their own app or web ordering system.

55% of all home deliveries are still ordered over the phone ☎️

Just ask Tony Plunkett, a veteran restaurateur who helped the ride-sharing giant break into the Sydney market with their food delivery app, and who recently told News Corp that ‘UberEats is responsible for decimating his once successful burger business and leaving him hundreds of thousands of dollars in debt’.

According to Plunkett, his business, On It Burgers’ ‘dark kitchen’ (delivery-only), whose menu was exclusive to UberEats became so overwhelmingly popular that Uber was struggling to keep up with the demand. As a result, Plunkett claims, Uber effectively killed his reach. As he told News Corp, Uber allegedly limited his delivery zone during peak time in order to better keep up with On It Burgers’ volume of orders. This decimated the number of deliveries and as a result, the amount of revenue coming through the door.

This is the case for many QSR businesses as they not only lose control over their own marketing and therefore demand but they also lose the direct relationship with the customer. So, what could Mr Plunkett have done? Are there other avenues for businesses looking to take their last-mile delivery away from the clutches of the big aggregators?

The good news is Drive Yello offers a solution that puts the control back in the hands of the retailer, where it ought to be. The ‘Yello’ last-mile delivery platform can help you manage your own fleet of drivers or book a crowdsourced courier for a single delivery or an entire shift. Most importantly it also enables businesses to provide an “Uber” like experience to their customers without giving away all their margin. Many businesses simply don’t have the time or the means to implement their own last-mile delivery infrastructure, but with Yello, you don’t have to.

 With Yello, you can track and manage each delivery with complete visibility. Post shifts to the Yello marketplace or select an on-demand single delivery to find qualified and rated drivers or riders who will get your product to customers fast and on time. Meanwhile, our crowdsourced courier service ensures your Yello experience grows and scales with your business.

Drive Yello makes it easy to get up and running as we are integrated with POS and Online ordering platforms such as Mobi2Go, DeliverIT (DPOS), Ordermate, Order Up, Menulog and Kounta with more integrations coming in the next couple of months. Even if we’re not integrated with your POS you can still get started tomorrow by asking the courier to put the customer details into the Yello Courier app and then you and your customer can track them to their door.

Demand for convenience is not going to go away anytime soon, with the Yello platform QSRs can improve the experience for home diners without having to foot the Uber bill. The slide show below provides a quick overview of Yello’s features that can help QSRs take back control of their delivery business. We can provide the tech to manage their own team or help them find couriers to deliver their food. Either option gives QSRs an option to meet the demands and expectations of their customers without giving up all their profits.

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