The current state of the food delivery ecosystem is worrying. The industry is controlled by the three leading companies: UberEats, Deliveroo, and Just Eat. These companies have achieved market dominance across the globe, and have utilised the unique situation created by the pandemic in order to charge commission of up to 35% on top of orders.
The market leaders are benefitting from the overworking of delivery drivers and underpaid restaurants, whilst independent restaurants and takeaways are struggling to survive. The surge in demand for food deliveries during the pandemic gave the market dominators an opportunity to charge a premium for their services, knowing that restaurants had no choice but to use them.
This has led to an acceptance of an unsustainable business model, with many restaurants going out of business as a combined result of these fees, and if this continues, the impact on the hospitality industry will soon be irreversible.
The 0% commission model is designed to help businesses get back on their feet after what has been a turbulent year, and can end up bringing the overall percentage paid to the delivery platform to around 6–7%. Hopefully as vaccines are rolled out and restrictions are lifted, a return to physical locations will boost all restaurant businesses, however it is likely that people will continue to use delivery services more than previously.
The availability of services such as eStart4, which offer zero commission, plus API tracked delivery, and SMS marketing at a fixed fee, will be crucial in providing a better dining experience for both diners and eateries.
eStart4 utilises API integration in order to provide live updates and tracking for restaurants, drivers and customers, improving the overall efficiency of the delivery service, at a great price. Not only this, but we have a fleet of over 200 dedicated drivers who are on call at all times to deliver your food.
We specifically use local independent last-mile couriers to ensure that delivery is as rapid as possible, and that your food is in perfect condition when you receive it, to emulate the restaurant experience. For restaurants, this cuts out a lot of hassle when it comes to sourcing reliable drivers, and prevents having to organise their payment on your payroll.
eStart4 aims to ‘add value’ to your business, and save money. Our unique subscription model means that not only do you avoid paying commission for the food delivery service, but you also benefit from our team’s management services, helping you to both increase your online presence, and effectively manage your business. The below infographic highlights the savings you can potentially make by switching from one of the market leaders such as Uber Eats to our service.
To put this into context, in March 2020, the owner of Chicago Pizza Boss shared the following receipt in March 2020, which showed that after the commission fees, delivery fees and other charges, the final amount earned by the restaurant was next to nothing.
Whilst one solution to prevent this would be for customers to contact the restaurant directly, we appreciate that many restaurant owners simply do not have the capacity to both run their business and also manage deliveries.
This is why we launched eStart4, as we want to empower restaurant owners to launch an online business, without any hidden or excessive fees. By charging a fixed monthly rate, we provide the transparency and stability that independent restaurants need in order to thrive.
For more information visit our website.
