Review of popular delivery platforms and their strengths

Hospitality businesses are being encouraged to do everything they can to make sure they are best positioned to survive through this crisis. Some restaurants and cafes – even pubs – are responding to COVID-19 by adding take-away and/or delivery to their repertoires. Alcohol delivery rules have also been relaxed.

Most delivery platforms offer both pick up as an option on top of third-party delivery, at greatly reduced commission rates. On top of this, some platforms offer restaurants the ability to deliver food ordered via the platform themselves. This option does carry a commission that is also lower than that offered for third party delivery.

“Whether it is standard takeaway, offering a pick up service, delivering yourself to your loyal customer base or taking advantage of one of the online food delivery platforms, there are many options that can keep restaurants and cafes running during these extraordinary times,” Restaurant & Catering CEO Wes Lambert said. “If the options available to businesses are either closing your doors or remaining open to offer takeaway meals, we are urging businesses wherever possible to keep their doors open, in whatever capacity possible”.

As many businesses are starting to operate through third-party online delivery platforms such as Menulog, Uber Eats and Deliveroo for the first time, we have reviewed the most popular platforms to help you make a decision that is best for your business.

Once you are ready to get started, this article will help you make the appropriate changes to your business for the best home delivery and take away results.

Sign-up fee: Waived
Ongoing fees: 20-35% of each order that’s delivered. Zero fees for pick-up.

Uber Eats has responded to pressure and unveiled a rescue package for the hospitality industry. Among several initiatives, Uber Eats confirmed it would:

• Drop service fees on pick-up orders for all Australian restaurants until June 30.
• Offer 25,000 free delivered meals to healthcare workers and other relief efforts.
• Offer $5m in funding for promotions on UberEats.
• A new opt-in program for restaurants to receive daily payments.
• Waive sign-on fees for new restaurants coming onto the platform, including caterers.

Once signed up

Depending on how many locations you have, it’s possible to become an UberEats restaurant partner and start accepting orders in a few days of applying.

• UberEats pricing has two parts.
  
  • A one-time activation fee sets restaurants up with a welcome kit, tablet, restaurant software and professional photo shoot. This has been waived during the current crisis.
  • A service fee is calculated as a percentage of each restaurant order made through UberEats. They have currently dropped service fees on pick-up orders.

• The Uber platform connects restaurants and cafes with independent drivers, bike and scooter riders and walkers who deliver to your customers.
  Because of the network of delivery people using Uber, restaurants don’t need their own delivery staff. But if you do have your own staff, Uber can use them too.
• Uber also offers a tablet with a Restaurant Dashboard to keep track of new orders, and manage deliveries daily. Restaurant Manager software gives deeper access to menus, payment information, sales data and customer insights. You also have access to a tech support team.

Cost structure

According to the UberEats website, the platform collects a service fee, which is calculated as a percentage of restaurants’ sales on UberEats. Choice states the service fee is a commission of up to 35% and drivers pay a service fee of 30-35%. Customer payment methods are by credit card or PayPal.

Here’s where to sign up: Uber Eats

Consolidated with the EatNow brand.

Sign-up fee: Free
Ongoing fees: 14-30% of each order that’s delivered. Commission on pick-up orders have been halved.

For restaurants seeking online food ordering and delivery over the coming months, Menulog will be waiving all relevant costs for restaurants or relevant businesses wanting to take advantage of Menulog’s 2.6 million customer base. Menulog has also committed additional resources to onboard new businesses seeking support. It also offers no lock-in contracts.

Among its other initiatives, Menulog has halved all commission on pick-up orders. In addition it has committed $3 million in marketing efforts to promote restaurant partners. There are no costs for any restaurant or other business to join the Menulog platform.

Once signed up

Menulog will install an Order Terminal at your restaurant to help you receive and manage new orders. Customers place orders via the Menulog website or app. The restaurant receives the order on the Incoming Order Terminal. Your driver delivers the food to the customer.

Menulog’s national delivery logistics service covers 87% of the addressable population available for those restaurants without drivers. If restaurants decide to redeploy their staff as drivers, Menulog says it can support these businesses with a lower commission model in the self-delivery marketplace. It claims 17,000 restaurant partners. Menulog says it has also invested in additional resources in order to quickly provide online ordering and delivery solutions to impacted hospitality businesses to keep them in trade.

Cost structure

Menulog takes a negotiated percentage of orders placed through the platform for each restaurant. Menulog restaurants providing their own delivery pay 14% commission.

There are no service fees or lock-in contracts. Menulog restaurant partners can also opt for an ‘Order Now’ button for their website, for a reduced rate. These restaurants can set their own minimum order amount and delivery fee, which is paid directly to the restaurant.

Here’s where to sign up: Menulog

Sign-up fee: Free
Ongoing fees: 30-35% of each order that’s delivered.

With Deliveroo, you can take orders either by using the Deliveroo rider network or your own delivery fleet.

Once signed up

Deliveroo will get you set up with the technology you need to deliver food straight away. This includes:

• Receiving an order tablet and access to an online dashboard so you can start taking orders and track your delivery.
• Deliveroo integrating with your POS to help you take more orders.
• Deliveroo provides a dedicated Account Manager and a 24/7 Support Team.
• It also offers access to Marketer, which restaurants can use to run their own promotions and target the right customer at the right time.
• Deliveroo also offers participation in local and national campaigns.

Cost structure

Customers are charged a delivery fee for their order, and Deliveroo takes a commission for orders placed through them. Customers can order either via the website or Deliveroo app.

Here’s where to sign up: Deliveroo

Sign-up fee: Free
Ongoing fees: Up to 20% of each order that’s delivered.

The controversial new entry to the market. DoorDash’s standard delivery fee in Australia is $3.99. DoorDash says its delivery service is focussed beyond inner-city areas to deliver to the suburbs as a point of difference to established players such as UberEats and Deliveroo. They say they “offer to act as a courier platform” at no cost, but it’s very much an opt-out service, not opt in. DoorDash told Business Insider Australia it does not apply mark-up to the price of menu items for unaffiliated restaurants. However, any delivery costs and rider tips are passed on to the customer, which is where DoorDash makes its money.

Cost structure

Delivery charges per order are $5 to $8 for the customer. The commission for the company is close to 20%, covered by restaurants.

Here’s where to sign up: DoorDash

Local Australian tech online delivery companies which include Bopple Technologies and Hungry Hungry are working around the clock to help the hospitality industry go digital and offer new services, from home-delivered fresh baked bread to drive-by "no contact" food pickup, reports the Australian Financial Review.

Two hundred new venues have asked to join Bopple in the past fortnight, predominantly across Australia, but also in New Zealand and Vanuatu. Bopple is also waiving sign-up fees, and all venues that use Australian Point-Of-Sale software, Kounta, get three months free.

Bopple is also offering $100 worth of geo-targeted digital ads across Facebook and Instagram to hospitality venues that sign up to help them quickly communicate to local consumers new ways of ordering their favourite food and drinks.

Some people were even supporting local venues by buying Bopple gift vouchers, essentially paying in advance for future coffees and meals to help businesses with immediate cash flow.

There is some discussion of local suburban restaurants collaborating to create a cartel to share the cost of drivers and other staff. Check your local Facebook pages.