November 26, 2019

Growing Pains with Food Aggregators: What’s The Solution?

Online food delivery is one of the most talked-about growth industries of the current age, having birthed multiple unicorns and even decacorns (exactly what it sounds like) across Silicon Valley and the Asia Pacific region alike. Having forged relationships with courier drivers everywhere from Brisbane to Melbourne and supplying courier driver jobs from Melbourne to Adelaide, we’ve been right on the cusp of this rapidly rising new industry.

Part of what makes online food delivery so exciting to entrepreneurs and venture capitalists alike isn’t just the numbers, though they are impressive.

"Frost & Sullivan estimates that taking into account the industry’s 14% growth rate, online food delivery currently sits around $82 billion in gross revenue ($2.4 billion in Australia alone) and will rise to double that figure by 2025."

Recent reports also show that even the baby boomers are on-board with more off-premise dining. The National Restaurant Association shows that 51% of baby boomers want to order food delivery more often than they do now.

However, what’s really getting investors and pundits riled is the fact that food delivery dovetails so well with some of the other big tech trends set to define the 21st century: automation, driverless automotive tech, personalisation at scale, and the gig economy.

However, the industry has recently been running into some trouble, dovetailing instead with aggregators increasingly dictating the terms of business in the hospitality industry. Five years ago, there were only a handful of online food aggregators. Today, the industry is a behemoth that sends 80 million orders each month. Ordering food online is convenient, and restaurants can gain from the extra visibility. But who is raking in the profits? Five years into the food delivery boom, many restaurants have now come to the conclusion that they are losing more than they gain. The biggest irritant is the steep discounting game which has started to hurt margins.

There’s a lot of confusion in the food delivery market, with a lot of people and businesses burnt by the big aggregators in the food delivery space. These players are charging restaurants upwards of 30 percent of each order in fees. While hospitality can be a balancing act, gripped by FOMO (fear of missing out), the next step to meet customer expectations and drive business will be the integration of last mile delivery. But how can restaurants dodge the often-unreasonable requirements of the big aggregators?

We at Drive Yello are proud to be at the forefront of giving vendors a platform to integrate the next wave of service at a custom and manageable scale. Creating space for giving restaurants back their profit margins. Our platform gives businesses the freedom to choose one or more Drive Yello products to deliver on their last mile goals.

Restaurants providing, or planning on providing, a last mile delivery service have found that delivery profit can be elusive when finding a business to partner with. The hurdles faced are most prevalent when a third-party becomes the order management system too. No such thing with Yello. Your customers are yours. By keeping the order-processing in house and having flexible delivery solutions, eateries are able to develop a direct delivery experience for their customers.

"“The [hybrid model] has economic benefits. It helps you leverage your existing infrastructure with your online ordering.”"

Scott Gladstone, VP of Strategy and Development, Applebee's

At Drive Yello, we like to think we do things a bit differently from other providers. One of the reasons our courier community enjoy being an independent contractor on the Yello platform and utilising our platform is because we make as big of a commitment to the courier as we do to the businesses who use our services. We offer real flexibility with a selection of on-demand, shift, and scheduled deliveries; which gives the courier the ability to deliver for a range of different retailers with hassle-free contracting. No one’s pocketing the money the courier has earned, all of the invoicing and payment is automatic and above board.

Moving beyond the invisible boundaries that couriers face, Drive Yello is also at the forefront of other delivery industries. Couriers may have thought they were stuck at a dead end in the food industry. The breadth of industry covered by the Yello platform partnerships gives drivers new opportunities. Moving into retail, where the consumer pays for the deliveries, couriers can move forward into other industries too.

Drive Yello is outshining the competition and ensuring fairness is met in all industries. Restaurants and eateries are a great example of how we can get the last mile delivery solutions right for everyone.

Yello makes it easy to manage all of your deliveries in a single platform mainslider_element3_yello examplebar3_2 A Quick Tour Tracking your couriers LIVE, every step of the way.
Know when your courier is on their way to pick up , picking up, on the way to the customer or heading back to pick up again.
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Driver app gets your couriers delivering
Employees are set up, trackable and given instructions to optimise deliveries.
Next - Consumer experience • start work with a single click
• see available shifts
• pick up bundled orders
• directions for optimised routes
The perfect tool to help your couriers deliver driverhomescreen drivertracking drivershifts driverruns
Provide optimal customer experience
Don't only meet but exceed customer expectation.
Next - Data Visualisation • branded text sent on assignment
• advance notification of status
• live tracking of courier
• sign on glass & delivery validation
Communication is key to increasing customer satisfaction txtmessage signature consumernotification consumertracking
Data Visualisation Learn from your past to create a better future Next Slide - Manage your rosters reporting_1 Overall delivery data Heatmap your regions Detailed courier reporting reporting_3 reporting_2 clickhere.Drive yello Roster your own drivers Place shifts that are only available to your couriers. Next - Driver communication roster2 Plan your roster weeks in advance and enable your employees to apply. Easier to manage shift allocation and swapping Dont want to roster?
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Couriers can activate a shift at a click of a buttom
Communication is key Easily communicate to your couriers via in app messaging This is Great! Where do I sign up messaging Yello messaging available in on the web and mobile apps

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