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31st October 2017

Food Delivery Partners – Choosing The Right Partner To Carry Your Brand

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Is there any fast food outlet or franchise that doesn’t want to expand their sales options? Marketing your store and finding ways to get people within the area to visit is a constant chore, but the introduction of sales partners has offered a new revenue stream for many. However, the growth of that industry, with brands such as Mr D, OrderIn and UberEats, has got to a point where one must identify the best brand to partner with.

Sure, you could list on all available platforms to create the widest reach, but that cost could leave the sales figure flattering when looking at the actual earnings.

Each company offers different payment options for store listings, while Mr D requires a monthly subscription fee per store. UberEats, on the other hand, requires a hefty once off fee per store.

To gauge the success of each service, we analysed the impact of each on a major South African franchise to determine the value of each partnership. We also spoke to expert sources within the industry to gather information and estimates off which to work.

Interestingly, OrderIn has the lowest service fee, at 15%, which is half of the highest charging – UberEats at 30%. Mr D is in the middle with 20%.

For clients, the customer service fee from each is also different. Lunch time meals come at a cost of just R15 for OrderIn, which makes sense considering their push into corporate for meals at the office. Mr D is the highest with a fee of R35, while UberEats is good value with a flat rate of R20.

OrderIn already claims to have an active user base of around 100 000, though in terms of app downloads, UberEats unsurprisingly led with way with over 500 000, while Mr D is second with over 200 000 (as of March 2017).

For consumers, Mr D has the biggest variety with over 1400 restaurants, while OrderIn was at second with 900. UberEats is fast catching up though with 700.

All of these stats show impressive performance from all three, but here is where UberEats has the others watching carefully over their shoulders.

Uber can provide detailed user analytics as well as extra marketing opportunities, while the service experience is rated as excellent.

There were also some areas, where UberEats was used alongside OrderIn and Mr D, where sales figures rose up to 1000% more for UberEats. That being said, there were other areas that offered more of an even sales spread. The one major benefit is the quick expansion that UberEats is undergoing, largely due to the technology that they have already had available through their taxi service. With OrderIn and Mr D following more traditional routes with deliverymen, the cost of expansion would not make business sense, and could see them slipping behind in the race.

If you are currently mulling over where to place your partnership, it is essential that you research the activity within your area from each of these companies, while also being aware of the UberEats Juggernaut that is quickly gathering pace.

About the author:

Tiffany Fernandes

Founder l Senior Brand & Marketing Strategist (Effectus Group)

Our founder, Tiffany Fernandes has a BCom in Marketing Management and over 12 years experience in sales, marketing and branding. She has worked on a plethora of accounts ranging from small to international brands, over a varied range of industries, both corporate and creative. Tiffany has an abundance of practical knowledge in leadership, both in business and on the field- as a player and coach of provincial touch rugby. She is the spearhead of the Effectus team

 

 

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