My venture included a third party delivery service for restaurants in which I would offer the actual customers of the restaurants free delivery. The way that I would make money would by charging the restaurant 25-30% of the order. My competitors, like GoWaiter or DoorStep Delivery for example, do the same thing except they do not offer free delivery, making them more expensive on the consumer and less attractive overall.
The next service I could provide is online ordering for pick-up in addition to just delivery. I would take a smaller fee for that, perhaps 8-10%, for each order that comes through our website. We would essentially be offering a way for a restaurant to take online orders that does not currently do so. It would be convenient for the restaurants' customers and provide a potentially new form of income of the restaurant itself.
This new service would not increase customer switching costs, but, as aforementioned, would be convenient in case they wanted to actually stop by the restaurant as opposed to getting their food delivered, increasing customer loyalty. There is already a switching cost for the end-consumer because, by using another third-party delivery service, they would have to pay delivery fees, which they do not have to with my service.
Since this is a service I am providing as opposed to a tangible product, you can't find this anywhere on amazon. As far as reviews go for similar services, one of the biggest things is the time that it takes for the delivery to get there. The driver would need to leave our office, assuming that we had one, drive to the restaurant, pick the food up, and then drive to the customers' place. As a result, that would be something that we would need to stress to our drivers and employees in general. The food needs to get to the customer as quickly as possible.
Even if a restaurant already had a delivery service, but no way for their consumers to order online, or if a restaurant simply did not want to deliver for whatever reason, we could still offer them this pick-up option. This is also another option for a restaurant that does not want to pay the 25-30% per order for delivery. This would still allow for the customers to view the restaurant more favorably by giving them an option to order online while potentially generating more sales for the restaurant.
Hey Abraham,
ReplyDeleteI just want to start off by saying that I really like your concept. Free delivery is definitely a need on campus here at UF. I've been through situations where I decided to eat whatever what was in my fridge rather than order food and pay the high delivery fee for it. I think you are the right track with your concept. I think your concept is second to none and you provide great competition for your competitors. The time problem is something that can most likely be worked on but besides that I think your concept will become very profitable. Goodluck!
Here's my link: http://brekts.blogspot.com/2016/03/amazon-whisperer.html