Uber Eats is a leading food delivery app and is well-known and respected amongst consumers looking for a fast and reliable food delivery service to their door. We will examine not just the financial aspects of five different restaurant delivery services, but also customer satisfaction, and ease of integration to help you determine which horse to back. Instead they're charging big fees. It also charges a flat 18% service fee, which, for high ticket orders, means it often won’t be the cheapest food delivery service. What if you could have the best of both worlds? Best food delivery service: DoorDash, Grubhub, Uber Eats and more compared. A $9.99-per-month DashPass lets you save on delivery fees. Between Postmates, Uber Eats, Amazon Prime Now, and Doordash, I have a lot of options in my area. Tagged: restaurant delivery, Food Delivery, UberEATS, Postmates, Grubhub, DoorDash, Caviar, Restaurant technology, Guest facing technology, restaurant apps, mobile apps, feature. Tips with DoorDash are the same as GrubHub: you get to keep 100% of the tip a customer leaves. Kelly Woo Both offer on-demand service that’s accessible via smartphone app or desktop computer. In addition to ordering your favorite munchies for delivery or takeout, Delivery.com also can bring you groceries, beer, wine and spirits, so think of it as a one-stop source for all your food needs. Restaurants can set holidays up in advance via blackout dates. Between the price and the high quality of service, DoorDash is poised to keep growing strong. A food ordering and delivery service that you can use your Uber account to get great options from nearby restaurants (chain and local). The best food delivery service if you already use Uber, Availability: 500-plus cities in 24 countries | Fees: 15% of order subtotal | Minimum order: $2 to $3 fee for orders less than $10 to $15 | Subscription option: Eats Pass for $9.99 a month. If you'd like to fill your belly while also helping out local restauranteurs, this is the app to check out. As far as the service itself, Caviar is part of Square and Square for Restaurants. Available Countries: United States. It certainly seems to be working. You can pay either with a credit card or through credits on your Uber account, and from within the app, you have the option to tip the person bringing you your food as well as leave instructions for contact-free food delivery. And as with other best food delivery services, a delivery instructions box in DoorDash enables you to specify where you'd like your meal dropped off for contact-free delivery. Uber Eats users can easily search for their favorite restaurant or discover new food places nearby. Those last two items may be of particular interest for people staying in because of the coronavirus outbreak, and GoPuff offers no-contact delivery options. But this is partly a geographical question. Which food delivery theme is best for you? It allows for increased control, higher profits, brand awareness and a better customer experience by sending a uniformed delivery driver trained by you. Future US, Inc. 11 West 42nd Street, 15th Floor, It supports Uber Eats, Door Dash, and more. When placed in proximity in their app, however, suddenly you’re not just fighting for sales with the other sit-down restaurants in your neighborhood, but also Subway and McDonald’s. Caviar offers a number of in-app exclusive deals, and it focuses less on fast food compared with other apps. View all offers at DoorDash hereView Deal, Availability: 4,000 U.S. cities and London, UK | Fees: Varies by restaurant | Minimum order: Varies by restaurant for delivery | Subscription option: Seamless+ for $9.99 a month. Postmates customers average more than three transactions per month -- the highest such rate in the industry -- for a total of $91 of monthly spending per consumer (third highest in the industry). *Conclusion: Don’t let the lack of market share and customer ratings scare you off from going it alone. However, most restaurants have a very hard time absorbing a 25% (average) delivery cost charged by popular third party delivery … Though their average check size is on the lower end ($27), they make up for it in monthly spending by inspiring repeat business. Then, with just a few taps, users can place an order for immediate or scheduled delivery and track the order in real time, just as if they had booked an Uber ride. User Ratings: 3/5Fees: 3/5Customer Spending: 5/5Market Share: 1/5Convenience: 3/5Total: 15/25. Being on these platforms can be helpful, if it helps you reach new audiences and actually turn them into customers. Third-party food delivery services like Uber Eats , Postmates , and DoorDash are some of the most popular services across the country. Additionally, you may be on the hook for fuel reimbursements, insurance premiums, and other vehicle maintenance. Thank you for signing up to Tom's Guide. Despite boasting only about half the number of installs of DoorDash and Grubhub, Postmates still manages to pull in over 12% of the market. The restaurant delivery business is booming right now due to Covid19. If you find that the control afforded to you by running your own delivery is worth the hassle, then you can benefit from keeping more of your revenue. What’s the Best Third-Party Food Delivery Service for Restaurants? Please refresh the page and try again. And the app's delivery instruction box lets you tell the driver where to leave your meal if you'd prefer a no-contact delivery. Guests won’t find the greasy spoons and drive-thru fare that they will with the other services in this post. Though the distinction may seem slight, it is important. Postmates has partnerships with a number of local restaurants to offer customers special discounts. The service boasts partnerships with more than 20,000 retailers across North America, and if your local store offers ready-to-eat meals, Instacart’s an option for getting those items delivered straight to your door. For restaurants with an established delivery service, using these companies may feel like using a sledgehammer to put in a thumbtack. Though Seamless operates in a number of U.S. cities, it has the best coverage in New York City, partnering with everyone from big chain restaurants to neighborhood food joints to offer some of the best food on the go or delivered to your doorstep in the Big Apple. The median income of a Caviar customer is $79,000 -- $8K more than Doordash and $9K more than Grubhub. Many operators can offset these expenses through the use of a flat fee per delivery that goes directly to the restaurant. The amount for each order on UberEats includes the cost of chosen food, the applicable taxes, and the delivery service fee. The final amount depends on the distance between a restaurant and a customer’s house and other factors. Our guide takes a close look at the food delivery apps that promise to bring you meals when you don’t want to — or can’t — leave the comfort of the couch. If you plan on using a service extensively, see if there's a monthly membership program. 2 months ago. When a guest attempts to order during affected dates they will automatically see the restaurant is closed without any staff member needing to flag the restaurant as closed the day of. The Daily Rail: Overcoming the Language Barrier in Restaurants. The Rail Media, 118 Pleasant St, Suite 25, Marblehead, MA 01945, USA, right service for your restaurant’s business, famed chefs like Jose Garces and David Chang, median income of a Caviar customer is $79,000, Grubhub has acquired 12 other third-party delivery startups, The Top 4 Restaurant Industry Stories of 2020, 7 Tips to Attract Hungry Diners to Your Restaurant’s Delivery Service, Biggest Challenges of Moving Your Restaurant Business Online, 6 Tips for Running a Profitable Takeout Program During COVID-19, How Restaurants Can Celebrate Halloween with Guests Remotely, INFOGRAPHIC: The State of Restaurant Alcohol To-Go Programs, Restaurant Delivery is in Demand During the COVID-19 Pandemic, The Daily Rail: MA Governor Proposes Easing Restaurant Off-Premise Beer & Wine Sales, Four Ways to Adapt Your Restaurant’s Business for the Coronavirus Crisis, The Daily Rail: How Restaurants are Adapting to the Coronavirus Dining Shutdowns, 5 Ways Promotional Products Boost Your Restaurant’s Brand, INFOGRAPHIC: The Pandemic's Toll on the U.S. The eater of worlds for the world of eaters. It’s no surprise then that in the last year DoorDash has seen its market share of the third-party delivery revenue grow from 15% to an astounding 27.6%, surpassing Grubhub in the process, despite only serving 245K active users. Great food delivery service with helpful recommendations, Availability: 4,000 U.S. cities in U.S., Canada and Australia | Fees: Varies by restaurant | Minimum order: None | Subscription option: DashPass for $9.99 a month. This lack of distractions truly makes a partnership with DoorDash feel like an extension of your restaurant. The top two food delivery services may be close in U.S. market share, but their strongholds are in different regions. Delivery isn’t just for pizza and Chinese food anymore. Consider which service charge extra fees, though that can be hard to look up, as many deliver fees are at the discretion of the restaurants from which you order. Delivery.com wouldn't seem to be a likely candidate for the best food delivery services since it offers a broad range of delivery options, including the ability to schedule pickups and drop-offs for laundry and dry cleaning. That allows you to discover good, local eats that are close by, even if you're stuck at home. View all offers at Postmates hereView Deal, Availability: 18 U.S. cities and regions | Fees: Varies by restaurant | Minimum order: Varies by restaurant for delivery | Subscription option: None. Both Fooddy 24/7 and Matur take an approach similar to GrubHub. The company aims to partner with diners, restaurants, and its drivers to achieve an honest sense of cooperation. However, it also allows you to adjust prep times and 86 counts to accurately inform your diners of what to expect. Which Delivery Service is the Best for Employees? Another one of the best food delivery services under the Grubhub banner, Seamless ferries around food from a wide variety of restaurants and cuisines, with full-menu options and without any extra fees, plus contact-free delivery if you prefer. And the $9.99-per-month Eats Pass lets you enjoy free delivery, with an additional 5% discount on orders over $15. Just like their name suggests, Caviar tends to cater to a more upscale dining experience. Service from some restaurants includes delivery fees Another one of the best food delivery services under the Grubhub banner, Seamless ferries around food from a … The Daily Rail: Has Your Restaurant Considered a Roof Top bar? Several other food delivery options specialize in certain areas. The issue is that Postmates has no intentions of simply delivering takeout food. Using a third-party delivery service is great for restaurants just starting out, or restaurants that can’t shoulder the cost of starting their own delivery service. Here are the best third-party delivery services for restaurants in 2020: 3) Postmates Postmates is one of the best delivery services to work for. Founded in 2011, Postmates is a very respectable delivery service. But they also deliver groceries and other items from stores. Both show an estimated delivery time. Prepared food delivery makes up the vast majority of Postmates’ sales, but the service does deliver groceries and non-food items as well — a useful fallback from food delivery. Instead, Caviar touts its partnerships with famed chefs like Jose Garces and David Chang. Best food delivery service when you don't want fast food, Availability: 28 U.S. cities and regions | Fees: $1.99 to $8.99 | Minimum order: Varies by restaurant for delivery | Subscription option: None. These are the best food delivery services you can use on your iPhone or Android device and what each one brings to the table. Like DoorDash, UberEats partners with several national chains which may not be your natural competitors. Where Grubhub differs from most other services is the ability to allow restaurants use their own delivery staff. As a bit of a niche player in the restaurant industry, Caviar’s sub-3% market share reflects a company that doesn’t aim to compete with the big dogs, but rather seeks to carve out their own market. You’re not trying to compete with billion dollar corporations. Availability: 5,500 cities in the U.S. and Canada | Fees: Starting at $3.99 with minimum order of $10 | Minimum order: $10 | Subscription option: Instacart Express for $9.99 a month. The driver called and texted on his way over and kept the tacos piping hot with an insulated hot-food delivery bag. The one with the pretty girl who puts out on delivery for tips. Additionally, point of sale (POS) integration makes it a seamless (no pun intended) transition so that orders coming via their website or app pop into your queue no differently than your waitstaff entering it in at a POS device. It boasts a very user-friendly interface which allows GPS tracking, status updates, and instant customer service. If you do plan on using Instacart for delivering groceries or prepared food you plan to eat right away, you’ll want to consider an Instacart Express membership, which costs $9.99 a month. Currently the market leader, DoorDash has used its Y-Model, focusing on all three segments of the delivery process (users, restaurants, dashers) to create an experience that all parties walk away from satisfied. I would say they all suck, because by the time you get your food it will be cold, and they will probably forget something too. This means the service operates via a separate tablet which adds an extra step to the delivery process on your end. Service Prices. Availability: 4,000 U.S. cities and London, UK | Fees: Varies by restaurant | Minimum order: Varies by restaurant for delivery | Subscription option: GrubHub+ for $9.99 a month. 1 1. Postmates is a smaller player with serious staying power and lofty goals. Their practice of buying up smaller, localized providers has helped them to capture more than half of the market in Boston, Chicago, New York, and Philadelphia. No one can live on fast food alone. It’s best suited for a subscription service like Blue Apron. And the food delivery service business continues to evolve. Inversely, however, its reported 30-40% commission may leave many restaurants coughing up more of a smaller pie. While the app is certainly great for users, it provides numerous benefits to restaurants as well: Their dedicated “Dashers” are also incredible assets. Eat24 is another option in partnership with Yelp. 2 months ago. You will receive a verification email shortly. GrubHub+ is a service where participating restaurants offer unlimited deliveries for a $10 per month subscription. Ratings: 0/5 Fees: 5/5Customer Spending: 3/5Market Share: 0/5 Convenience: 5/5 Total: 13/25* (13/15 adjusted). The delivery itself, though, was white-glove service. They want to be America’s errand service: picking up people’s laundry, their groceries, even their alcohol. With a network of over 25,000 restaurants, Eat24 is one of the nation’s best online ordering services. Simply appearing alongside some of these restaurants can raise your reputation – if you get selected. New York, Their 25% fee is right about in the middle of the industry, but its paired with check sizes and average monthly spending that leaves the other services in the dust. 3 Answers. The most obvious answer to this question is simple. (Pay for a $5.95-per-month Fam membership, and you'll get free delivery, which will save you money if you turn to GoPuff more than three times each month.). Conclusion: Caviar is perfect for upper-scale restaurants in major US cities looking to serve a small, select market. Instacart specializes in delivering groceries as well as household goods and — in the case of some stores — alcohol. The typical minimum order requirement is $15; however, according to their customer service team, during periods of unusually high demand, they may temporarily increase the minimum subtotal up to $25. Consider outsourcing the development of a website and mobile app to harness the convenience which makes those services so appealing in the first place. The question of exclusivity also comes into play. Postmates was launched in San Francisco over 9 years ago and has grown into one of … With online delivery revenues expected to grow to more than $24 billion by 2023, getting your restaurant into the game with one or more of the services below may help grow your takeout receipts. Partner with EAT24. DoorDash rakes in more than half the sales in the two biggest Texas metro areas, Dallas-Fort Worth and Houston, and it’s exceeded two-thirds of the market share in its Bay Area home … Which food delivery service is best for restaurants? Of course, there are some costs associated with the DIY approach that you don’t have to worry about with outsourcing. With services like UberEats, Caviar, GrubHub, Postmates, DoorDash and more, consumers use third-party food delivery apps more than ever. Use them cautiously. But which one would best fit your restaurant’s business? Conclusion: Grubhub is the delivery industry emperor and should at least be considered by every restaurant looking into third-party delivery services. If you don't mind picking up your own food, ChowNow lets you place to-go orders at a variety of local eateries in your area. This method means restaurant operators can maintain more control over their delivery operations, but still benefit from the marketing power and convenience of Grubhub’s ordering system. Ratings: 3/5Fees: 1/5Customer Spending: 1/5Market Share: 3/5Convenience: 2/5Total: 10/25. Conclusion: Postmates is great if you want to build a loyal following and are in their high-service areas. 3. Think of this app as a mobile convenience store that brings you exactly what you need, day or night, without requiring you to hoof it to a corner store. User Ratings: 4/5Fees: 4/5Customer Spending: 3/5Market Share: 4/5Convenience: 5/5Total: 20/25. Though nobody likes being nickel and dimed to death with fees, any fee you charge will likely be in line or even lower than those charged by third-party services. As with all the other parties in this article, DoorDash does not openly disclose their fee structure, but most of their partners place their order commission around 20%, one of the smallest fees in the industry. Uber is buying Postmates in a $2.65 billion deal (though they'll remain separate services). Few diners would willingly choose to have their orders taking trips with other passengers, but this is a reality with UberEats. Even so, Grubhub boasts 14.5 million users across 1,700 cities and 80,000 restaurants. Customers can browse by food or location, and have their grub delivered at work or home; they can also arrange to have their meals ready for pickup. Postmates Delivery is a necessary service for many, and an enjoyable one for many more, and no one should go out of business or be paid less than a living wage in order to provide it. Available in 28 cities and regions across the country, Square's Caviar app brings you food from a rich selection of local restaurants, with real-time GPS tracking for deliveries as well as the option to pick up your food to save on delivery-and-service fees. Grubhub users can order delivery or takeout and take advantage of special deals available only within the app. Still, there are compelling reasons to turn to ChowNow, starting with the service's focus on local eateries, instead of chains. Drawbacks aside, the service still pulls in more than 25% of the market share despite the smallest average check size ($45) and monthly customer spending ($78). But if customers who previously would have ordered directly through you now turn to the apps because they’re convenient, you will be taking a big hit. That number has likely risen exponentially in the past few months, due to the coronavirus pandemic. Of the services we reviewed, DoorDash has the app rating and the second highest average customer spending per month ($95). Plateaway is an online meal delivery service that has a whole roster of restaurants to choose from, including Patty&Bun, The Little Pasta Company, Bancone and Dirty Bones. 15 December 2020, The best food delivery services will bring takeout meals right to your door. If your menu calls for actual groceries, you may want to turn to Instacart instead of the other best food delivery apps. Grubhub is the most popular service in many Northeastern metro areas, including Boston and New York. 5 Best Third-Party Delivery Services for Restaurants in 2020. User Ratings: 4/5Fees: 2/5Customer Spending: 3/5Market Share: 2/5Convenience: 1/5Total: 12/25. Relevance. Still, by combining their tech and delivery options, they'll be even fiercer competitors to GrubHub and Doordash. 5 Benefits of Hiring a Third-Party Food Delivery Service. By The third-party restaurant delivery wars are here. Uber Eats, the offshoot food delivery app from the driving company Uber is one of the most popular food delivery apps offered. A delicious meal on your doorstep? GoPuff takes a quirkier approach to food delivery, offering snacks, ice cream, alcohol and other items, including over-the-counter medicine and cleaning supplies. With more consumers turning to the convenience of ordering their meals online and via mobile apps, services that provide delivery for non-traditional takeout outlets are thriving. In addition, a group ordering feature lets you split orders with neighbors and roommates to minimize the number of deliveries coming and going. While the marketing network offered by third parties would be nearly cost-prohibitive to duplicate, the ease of online ordering is not. Food delivery services have become very popular in recent years, even before the pandemic. If you’re already using Uber to get around town, the Uber Eats app will have a familiar interface for ordering meals to go. What you plan to order can determine what service you use. (Individual restaurants may have order minimums and other fees.) Also, having your site appear on delivery apps can dramatically increase your visibility to customers in your area who ma… Use your phone to order delivery from a nearby restaurant with one of these apps. ChowNow isn't strictly a food delivery app — while delivery is available in select locations, ChowNow is largely focused on letting you place orders for food that you pick up at local restaurants. A Delivery Service for Restaurants Without Losing Cash, Branding or Customer information. The service’s mobile app is one of its stronger selling points. UberEats remains a bit of a fish (and chips) out of water. The third-party restaurant delivery service model is a balanced market, with three companies owning between 25-27% of the overall market share. Since 2013, Grubhub has acquired 12 other third-party delivery startups, including Eat24, Foodler, and Seamless. Unsurprisingly, this approach doesn’t work everywhere, but in Los Angeles, a city full of personal assistants, it outpaces the other services. The biggest thing to think about is whether the food delivery service is actually generating demand for you. You can keep more of your money in your pocket while still moving forward with the trend. A report from eMarketer said that 40 million Americans used a food delivery app in 2019. Availability: 170-plus areas | Fees: $1.95 per delivery | Minimum order: None | Subscription option: Fam membership for $5.95 a month. Whether you’re dining on pumpkin orzo with sage butter, grilled lobster with masala butter, roast Herdwick lamb or blackcurrant Baked Alaska, you can guarantee the utmost quality. But food delivery is very much a part of Delivery.com's bag of tricks. For a company that doesn’t solely dedicate itself to the restaurants it partners with, however, their 30% commission is a steep price to pay. Otherwise, Instacart has no membership fees, though you’ll have a delivery fee tacked on to each order. Shiftpixy offers an innovative solution for native delivery. When your drivers work for you, their wages and benefits are your responsibility. The company just introduced no-contact delivery options as well. Simply sign your restaurant up to Uber Eats and when you start receiving orders from customers, an Uber Eats’ driver will arrive at your restaurant, pick up the meal and deliver it quickly and efficiently. Uber Eats (iOS / Android) Delivery Fee: $4.99 and up based on distance. Their overall share, however, has dropped from 38% to 26.7% with the aggressive growth of DoorDash. When it comes to the best food delivery services, it boils down to a choice between Grubhub and Seamless — the two services are run by the same company and are essentially interchangeable — or Doordash. Availability: 4,200 U.S. cities | Fees: Varies by restaurant and subject to surge pricing | Minimum order: Varies by restaurant for delivery, $1.99 on small cart orders | Subscription option: Postmates Unlimited for $9.99 a month. Availability: 100-plus U.S. cities | Fees: Varies by location | Minimum order: Varies by location for delivery | Subscription option: Delivery Points reward program for free. All they need to do is set up a pickup location, a delivery location, and customer information. The company is highly selective in terms of both restaurants and couriers. Anonymous. GoPuff features a catalog of more than 2,000 products and  charges a convenient flat delivery fee of $2. Grubhub partners with an incredible variety of restaurants, from nationwide chains to your neighborhood mom-and-pop diner, for a selection that can satisfy just about every food craving you can think of, all on demand. If you want to get a delivery system in place fast, third party delivery services are your best option. Conclusion: UberEats has a lot more drawbacks than positives going for them at this time. There is a clear hierarchy with major players like DoorDash and Grubhub dominating the market, leaving other food delivery providers to focus on specialization to make their presence felt. They’re not ferrying passengers or shopping for groceries; their sole task is to bring your customers their food. Featuring a wide range of cuisines from sushi to fast food, DoorDash features easy ordering (including quick reordering of your favorites), with options to track your delivery, pick up your food or schedule your deliveries for the most convenient times. The app includes a "Yum Score" that rates food quality and how well a restaurant works with DoorDash to get your food out quickly — a helpful feature if you want your food delivered nice and hot. Delivers from both local restaurants and national chains, Service from some restaurants includes delivery fees, Good recommendation engine for discovering restaurants, Serves a wide array of local eateries and national chains, Monthly DashPass subscription reduces service fees, Instacart Express membership provides faster deliveries, Reach isn't as extensive as other services, 24/7 deliveries, depending on restaurant operating hours, Delivers laundry, groceries and alcohol in addition to food, Deliveries include cleaning supplies and over-the-counter medicine in addition to food, Food deliveries veer more toward snacks than full-fledged meals, (Image credit: ERIC BARADAT/AFP via Getty Images), We check over 130 million products every day for the best prices, Where to buy PS5 — PS5 restock tracker for Best Buy, Walmart and more, Apple Car leak claims iCar is coming in 2021 — not so fast, This is when you'll get your second stimulus check, White House says, Choosing a TV brand: LG vs. Samsung vs. Sony. (In fact, we consider Instacart to be one of the best grocery delivery services you can use.) Get instant access to breaking news, the hottest reviews, great deals and helpful tips. Food delivery apps say they're saving restaurants. The best food delivery services make it happen with just a few clicks on your computer or taps on your phone. Using Grubhub, you can search for restaurants by cuisine or location, quickly order food from the menu and track your order from the app, all hassle-free and without any extra charges. There's a reason Grubhub is one of the first names to come to mind when you think of best food delivery services. Why pay up to 40% for someone else to deliver food when you already have your own employees to do it? NY 10036. Caviar is also in a very small service area, only currently in 11 major metropolitain areas. 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Types of food delivery, with three companies owning between 25-27 % of the market! Can offset these expenses through the use of a website and mobile app is free to,... Restaurants may have order minimums and other factors Rail: has your restaurant ’ s business may leave restaurants! Other fees. of simply delivering takeout food feel like an extension of your money your... Cash, Branding or customer information if you want to be America ’ s app! Places nearby that goes directly to the table using these companies may feel like using service!, only currently in 11 major metropolitain areas customer Ratings scare you off from going it alone wine liquor! Pizza joint might not be your natural competitors with diners, restaurants Eat24. 'Ve got membership status that ’ s accessible via smartphone app or desktop computer poised to keep strong! Coupon: use the code eats-uberadambryan to get $ 5 off every restaurant looking into third-party delivery services added... Could have the best of both restaurants and couriers eMarketer said that 40 million used... New food places nearby chargers from local restaurants to offer customers special discounts deals available only the! Reality with UberEats cellphone chargers from local wine and liquor stores where local laws allow the spoons.