The online food ordering and delivery industry is growing by the day and experts project it will reach a $365 billion value by 2030. Each day, new ordering solutions and delivery aggregators arrive in the arena with different business practices. In this article, we present the current state of the industry and show you how GonnaOrder leads the way in the democratization of online ordering.
The food delivery industry is adopting technology at a high rate, with restaurants looking to reach wider markets and boost sales. This has led to the sprouting of new food delivery aggregators and online ordering solutions across cities in the world. And while delivery aggregators bring with them the benefits of a wider market, this does not usually translate to increased profitability for restaurants. A larger percentage of online ordering and delivery aggregators use a commission-based business model. They focus their innovation on new ways to charge stores more for their services.
Along with the promise of a wider market, delivery apps also bring with them commissions and fees that can at times be as high as 35% of the order value. And given that business owners do not usually have their own order channels, they tend to use multiple aggregators to drive their sales. In turn, they are exposed to different pricing models, and essentially more commissions, not to mention the additional order management complexities and low-profit margins as a result.
Using multiple delivery order aggregators leads business owners to more problems than benefits. For example, if your primary delivery aggregator knows that you are also using a competitor to receive orders, they may impose higher commissions and insert an exclusivity requirement clause in your agreement. This ties you down to a single delivery provider and leaves you with little to no control of your online ordering business.
Customer data is becoming an increasingly important asset for businesses by the day. However, small businesses relying on third-party delivery platforms to receive and fulfil orders do not have access to customer data collected by these platforms. The delivery aggregators own data and insights about customers. Consequently, businesses do not have a way of utilizing customer data to drive sales. Even worse, the aggregators use such data to promote their dark kitchens.
With delivery aggregators receiving and processing all customer data, they can utilize it to learn customer ordering patterns. For example, they can use the data to learn what products sell more in the morning for a particular area. With such insights, delivery platforms can establish and promote virtual brands and dark kitchens through their platforms and have them prepare the products in time for the orders. While at it, aggregators may also give their dark kitchens more visibility, ensuring they receive more orders than independent and legitimate businesses. In turn, this exposes restaurants to unfair competition and infiltrates the market with poor quality products.
All is not lost for restaurants and other small businesses in the hospitality industry. Democratization of online ordering will free business owners from the shackles of commission-hungry order platforms.
Reducing overreliance on third party order delivery apps, government policy, and adopting business-centric ordering approaches can help restaurants maintain higher profitability.
To begin with, countries across the world are establishing and improving policies that will see third party delivery providers charging lower commissions. For example, in February this year, Chinese authorities ordered delivery providers in the country to reduce the service fees paid by food and beverage businesses. This move aimed to help food businesses cut their operating costs and remain viable.
There is hope that other governments across the world will follow suit and improve legal frameworks that guide the industry and hence reduce overexploitation of vendors by delivery firms.
Third-party delivery platforms encourage you to rely on them to get online orders in your store. This is a major problem and most businesses end up neglecting other channels that would significantly increase their online orders.
Going forward, food and beverage businesses should focus on creating and promoting their market generation channels. These include Facebook and Instagram pages along with other locally popular social media platforms.
A business-centric model of online ordering is more ethical and promotes your growth. Unlike the commission-based model used by popular delivery platforms, a business-centric model allows you to receive unlimited orders at a fixed rate. Additionally, such a model empowers you to cultivate and grow your ordering channels. A platform built on this model allows you to interact directly with your customers and manage your delivery logistics seamlessly.
GonnaOrder enables you to take back control of your business and grow your customer base and revenue. We enable you to receive direct orders in your restaurant without acting as a middle man. Additionally, we empower you to promote your online ordering business by giving you control over customer data collected through your store.
GonnaOrder is built for businesses of all sizes and our pricing model reflects this. Additionally, GonnaOrder does not charge commissions per order. Therefore, you can promote your online ordering business without worrying about increasing commissions or platform limitations.
Joining GonnaOrder gives you full control over your business. We do not tie you down to prohibitive contracts. Instead, we focus on providing the technology that you can use to ensure the efficiency and profitability of your business. We focus on the technology, you focus on hospitality.
GonnaOrder enables business owners to cut operating costs by promoting their ordering channels. Consequently, you can keep the commissions that you would otherwise pay to delivery platforms to improve customer service. You can have a branded ordering website and a mobile app which you can then promote through your Facebook and Instagram pages.
As a solution designed for all sized but having small and medium-sized businesses in mind, GonnaOrder does not impose any prerequisite requirements for businesses looking to join. Every business can have an online ordering tool regardless of the size of their customer base, or whether they are connected to third-party delivery platforms.
GonnaOrder does not run dark kitchens or virtual brands and we, therefore, do not expose you to unfair competition. You are the sole owner of your ordering channels and you can promote them in whichever way you like. A branded website and social media accounts allow customers to interact with your store. This gives you the opportunity to promote your business reputation and cultivate customer loyalty.
Food and beverage businesses are exposed to unethical ordering processes through order aggregators. This jeopardizes their profitability and their business reputation. However, businesses can take strategic steps towards freedom. One such step is to join a platform that guarantees business independence and promotes ethical ordering processes. Companies can focus more on the democratization of online ordering and follow the steps of GonnaOrder.
With GonnaOrder as your online ordering solution, you do not need any more partners. You can take back the control of your business and we take care of the rest.