, many restaurant operators would take up the offer, especially those who want to enter the market with a small initial investment.
Online delivery providers
are now entering the market with a business model
based on a customer-oriented app
, a website
or telephone number
and an enormous amount of back-office computing power to increase order volume
To be successful, the aggregator
must be a world-class matchmaker for food orders
. It needs a large customer database
and a wide range of restaurant menus
offered in major cities. For many ODPs, the biggest hurdle to market entry
is the cost of customer acquisition
. In contrast, they do not need their own fleet of
drivers for delivery in this delivery model. The drivers work on a fee basis as independent deliverers with their own vehicles.
6. consolidator - bulk drop system
The most expensive piece
of the delivery puzzle is delivering the food to the front door, also known as "the last mile"
. One way to minimize
is for the customer to receive the delivery at a central delivery point
. Yun Ban Bao
, a start-up in New York City,
targets food desserts for the many Chinese-born residents
. It uses direct marketing
via the Chinese online service provider WeChat.
This creates a separate supply market
with the advantage of pre-ordering
Yun Ban Bao accepts online orders for the next working day
and then sends the orders out in a mass delivery model
. In this way, the company reduces delivery costs
and retains control of its driver fleet. With a fixed delivery network
and pre-determined distribution points
, often outside of parks, office buildings or homes, this system is more like a bus route
than the taxi route model with individual delivery.
7. Aggregator ODP - Owned Fleet Just Eat,
one of the world's largest and most successful ODPs, launched into the market with its own delivery fleet of permanently employed drivers
. The company also works directly with restaurants that have their own delivery fleets. Just Eat acts as an online ordering platform
and offers the local company the opportunity to
be the face at the door of its customers. Thanks to the Just Eat delivery fleet
, restaurants without their own delivery infrastructure
list their menus in the app.
8. aggregator ODP - Dark Kitchen One of the biggest threats to traditional restaurants
is the concept of dark kitchens. This is a space created by an ODP
with the aim of supplying as many customers as possible - at a minimum cost per delivery kilometre
from the restaurant kitchen to the hotspots. Although this is similar to the Cloud Kitchen model
, in this case the ODP establishes
a group of small but competitive restaurant kitchens
in one location and leases these dark kitchens
to various partner restaurants.
A Dark Kitchen is also in line with the trend towards the food hall concept, but has no direct customer interaction - no guest ever sets foot in these facilities
. In the UK
this has been driven by Deliveroo with its urban RooBox or Editions concepts
. Partner restaurants rent mobile kitchen space
from the ODP and pay a higher percentage fee
to cover the expansion costs for their space. The restaurants equip the kitchens with staff at their own expense
European Food Trends Report 2019
This analysis is part of the European Food Trends Report 2019 of the Gottlieb Duttweiler Institute (GDI) in Zurich. Interested parties can request the report with many more insights at: gdi.ch/eftr19
Future Times: Between growth and losses
It is an exciting and challenging time
for both restaurateurs and online delivery providers. So far
, neither side
seems to have found out
how to make the most of consumers' growing demand for convenience and delivery
Many restaurants are unlikely to survive if they have to give away up to 30 percent of their sales to ODP partners
with average net profits of less than 10 percent. No increase in sales will be able to compensate for this. At the same time,
it appears that almost none of the largest online delivery providers actually
report a profit
in any of the segments. At first
glance, it may seem that the ODPs are the restaurants'
partners, friends, or perhaps even saviors
by giving them access to the delivery market
. But this appearance is deceptive.
More and more OPDs
are striving to make profits that they
can pass on to their investors
. For they have financed the rapid growth of the ODPs
Therefore, in the medium term
will probably have to try to eliminate the middlemen and become direct competitors of the restaurants
by providing meals themselves. This will bring higher margins. Many small and independent restaurants
will not be able to survive in this highly competitive market. In the end, it is their kitchens that have to turn off the lights and actually become "dark".