Food delivery and take-out services are two of the fastest growing segments of the restaurant industry. The increasing popularity of these services can be attributed to the incredible amount of convenience they bring to the customers.  Customers can not only order and pay for food from their choice of restaurants using a single app interface, but many of their favorite eating joints which did not previously offer delivery, are now available on these apps. With the growing demand for these services, more and more restaurants are expected to jump on the bandwagon. Here is a quick overview of some of the best food delivery services.

Uber Eats

Uber Eats is a food delivery platform powered by Uber. They promote the partner Restaurant’s menu through the Uber Eats app, website, and various other channels.

How Does it Work?

After you have partnered with Uber Eats, customers can place an order from your restaurant on the Uber Eats App interface. Once you accept the order, the customer can track the order’s progress through the app. Uber Eats sends a delivery partner to pick up the order and deliver it to the customer.  

Commission

Uber Eats charges somewhere around a 30% cut on each order placed through their app, which includes delivery.  So, if your restaurant already has its own delivery service, Uber Eats may not be a very lucrative choice for you. Further, customers can not place pickup orders on Uber Eats.

Marketing and Advertising for Restaurants

You can pay an additional(optional) marketing fee if you want your restaurant to show up higher in user searches or appear as a promoted listing on the UberEats app.

Restaurant sign-up

https://www.ubereats.com/restaurant/signup

DoorDash

DoorDash is food discovery and delivery app that gives restaurants access to an extended customer base.

How it works

Customers can register on the platform or download the app and select meals from restaurants of their choice. Once a restaurant accepts an order made through the app, Doordash will send a dasher to pick up the order and deliver to the customer. Restaurants can also use Doordash’s delivery services to deliver order they receive via their own online ordering system. All they need to do is set up a pickup location, a delivery location, and customer information.

Commission

DoorDash takes revenue potential, menus and customer base into account while deciding on the commission it will charge a restaurant. Depending on the agreement with a restaurant, DoorDash will set a commission for orders placed on the app which can be anywhere between 10-25%. The commission charges include delivery. If you have your own delivery guys, then maybe  DoorDash would not be your preferred choice. There is no option for customers to place pick-up orders on the app.

Marketing and Advertising for Restaurants

As part of their business model, restaurants can feature their menus and promote their food on the app by paying an additional marketing fee.

Restaurant sign-up

https://www.doordash.com/merchant/apply/

Grub Hub

GrubHub Inc. is a web commerce platform for ordering and delivering take-out food, based in Chicago.

How Does It Work?

Customers can search through a list of restaurants and place their order through the app. After receiving the order GrubHub redirects it to the particular restaurant. The restaurant in turn prepares and packs the order for delivery. GrubHub delivery personnel picks up the order from the restaurant and delivers it to the customer.

Commission

GrubHub’s commission ranges from 5% to 15 % per order depending on the location of your restaurant and the number of restaurants in your vicinity. The average commission charged from restaurants is around 13.5 % per order. This does not include delivery charges, if you want to avail their delivery services, you would have to pay an additional cost of 10% per order taking the total rev-share to 23.5% on average.

Grub hub allows customers to place pick-up orders. Further, if your restaurant has its own food delivery service in place, you can use GrubHub to expand your customer base.

Marketing and Advertising for Restaurants

Restaurants can pay an additional amount to appear on the top of user searches as sponsored listings. The average commission to appear as a sponsored listing comes close to 20% per order.

Restaurant Sign-up

https://get.grubhub.com/join

Postmates

Postmates offers delivery or pickup services from restaurants, retails shops, grocers, and more to its clients. Postmates workers move around the city waiting for an order to come in, much like Uber drivers.

How it Works

Customers can search and select the restaurant they want to order food from. After they have confirmed the order and paid for it, Postmates relays the orders to the partner restaurant. A Postmate shows up at the particular restaurant to pick up and deliver the food to the customer.

In all probability, the app connects the customer to the Postmate courier nearest to the restaurant they wish to order from.  Customers can order from your restaurant via Postmates even if the restaurant has not partnered with Postmates. However, “Postmates Partnered restaurants have access to superior marketing/visibility on the application as well as faster and cheaper deliveries for customers.”

Postmates charges the customers a flat delivery fee of $3.99 for deliveries from restaurants that have “partnered” with and $5.99 for restaurants that haven’t. In addition, no service fee is charged from customers ordering food from partnered restaurants. So, if you have partnered with Postmates customers find it cheaper to order from your restaurant.

Commission

Depending on various factors, Postmates charges a commission between 15 and 30% per order from restaurants.

Marketing and Advertising for Restaurants

Restaurants can pay an additional amount to appear on the top of user searches as sponsored listings.

Restaurant Sign-up 

Postmates- sign-up

Caviar

Caviar is an on-demand food delivery startup owned by Square. You can order from Caviar’s website or the Caviar iOS and Android app. It caters to higher quality restaurants and is selective in choosing its restaurant partners. 

How Does it Work?

Customers can place an order from your restaurant on the caviar app.  Caviar allows customers to place both pick-up and delivery orders.

Commission

The average commission for is around 12% for pick up orders. If you want to avail their delivery services, Caviar will charge a standard delivery fee of 28% of the order value.

Marketing and Advertising for Restaurants

Restaurants can pay an additional amount to appear on the top of user searches as sponsored listings.

Restaurant Sign-up 

Restaurant- Sign-Up