In-house food delivery service or with third parties?
In this article we will look at the pros and cons of in-house food delivery service, contact with hired riders and, on the other hand, food delivery service with external companies.
The delivery service in Spain has grown exponentially in recent years. Companies, with the boost of digitalisation and consumer habits in recent years, have undoubtedly opted for this type of service. The question, at this point, is to assess the best way to manage it.
ADVANTAGES AND DISADVANTAGES OF IN-HOUSE DELIVERY SERVICE
PROS
Profit margin
With this method of working, you will not have to incur commission costs that are subject to collaboration with the delivery platforms themselves.
Full control of the end customer and the delivery experience
By carrying out the entire process of managing the in-house food delivery service, you will be in control of the communication with the end customer, becoming part of your own customer database.
In addition, you will also retain the ability to offer a personalised and unique customer delivery experience with a corporate focus. Experiential marketing is nowadays a fundamental task in any business, as we live in an era where we want to enjoy and try new things.
Control of requests
With in-house food delivery service it is possible to generate complaints or suggestions about both the product and the delivery service. With this way of working, the business will have full control of these requests and will be able to work to improve the service, thus improving the customer experience.
ADVANTAGES AND DISADVANTAGES OF EXTERNAL FOOD DELIVERY SERVICE
PROS
New customers
Thanks to the professional background that the external delivery company will have, it is very likely that it will also have a database of customers, who will be loyal to this platform and who will become potential customers for your product.
Moreover, thanks to the wide range of delivery companies, you will be able to increase your market share by collaborating with different platforms at the same time, a value to consider for companies that are new to the market.
Advantage of the app
The user experience and resources used in an app for an established delivery company are not similar to the user experience and resources used in an app that would be created for a new company.
With the user experience and testing that a third-party app has, it will make it easier and faster to grow the business.
Diversification of work
Another advantage of outsourcing the delivery service is the fact that you can focus your efforts on the main activity of your business, as it will be the external company that will manage the food delivery orders through the platform.
It’s not free, but you do save
Indeed, partnering with an external delivery company is not free, as they work on a commission basis.
However, it reduces the investment in infrastructure, transport fleet and hiring of delivery riders, packaging of the products transported, any investment in an app and all the management that surrounds it, tracking of deliveries, payment methods, etc.
CONS
Commissions
One aspect to consider when contracting an external delivery service is the commissions, as depending on the collaborating company, the margin of the products may be affected and, therefore, it may not be a viable option for the business, despite providing the infrastructure and transport fleet.
Loss of control of your customer and the delivery experience
Although, on the one hand, this factor could be an advantage, on the other hand, it can become a disadvantage.
While it is true that outsourcing these tasks is an advantage in terms of optimising the main tasks of the business, it also means a loss of communication with our end customer, as we will never be in direct contact with them. This means that the delivery experience will not be part of our business objectives. As we know, when working with an external company, the packaging of the products is part of their marketing plan, including their logo on all materials.
In addition, if something goes wrong, the product arrives cold or with a less than expected presentation, the restaurant is usually blamed.
Conclusion
The food delivery service is part of an important decision in any business model, and before assessing the number of advantages and disadvantages that one way of working or another would entail, it would be necessary to assess the opportunity or the threat it could pose on a day-to-day basis and, above all, how it would affect the first push of the business.
Even so, not everything is black and not everything is white, as another viable option depending on the type of business and, therefore, it could be interesting to create a hybrid model strategy, with different objectives in the short and long term.
Banzzu offers you, through its collaborators, the option of having your own fleet of delivery riders in your restaurant who, during the contracted hours, will act as if they were your employees, thus having your own in-house food delivery service, without you having to worry about anything else. This is the way we always recommend when you start making food delivery, as you have your fleet under control (and you don’t pay high commissions…), without the need to have it contracted.
