The development of food ordering apps have completely flipped the food industry upside down. One of the biggest disruptors of the food industry in the past twenty years has been the development of food delivery apps. The first delivery app, GrubHub, was founded in 2004 and started a growing trend of people preferring ordering food from the comfort of their couch then going out to grab a meal.
The popularity of these applications have grown steadily over the past few years creating several multi-billion dollar companies, and developed a new market within the food industry that revolves around convenience for the customer. However, despite the billions of dollars in sales made through these apps every year, the average person knows very little about these companies from a financial and management perspective.
Look, the end goal of these food delivery apps is to make money, often at your expense. They charge restaurants commission fees up to 30%-40% and some even have a standard price increase for the amount of items ordered.
This not only forces you to pay out nearly half of your revenue to these companies, but your customers get charged anywhere between $3-$7 extra as a result.
Your customers may think they are using delivery apps to support you, their favorite local restaurants, but they often don’t realize that the high commission rates are actually harming the local business. In fact, Grubhub was called out in 2019 for overcharging restaurants with marking and service fees and buying up domain names to prevent their vendors from creating their own websites, thus forcing those vendors to use Grubhub.
They're all competing to see who can take the most amount of money away from you without you noticing.
Even with those high commission rates, delivery drivers are still making minimal revenue from working with these companies. 15% of delivery app customers choose not to leave a tip and 45% leave less than 10% of their bill. With that said, Doordash pays its drivers a minimum quoted fee called the “Guaranteed Amount,” which essentially means if a customer leaves a larger tip, Doordash will lower the drivers paycheck.
(source: Pressure is mounting on food delivery app DoorDash to change its controversial tipping policy)
These are just a few of the issues that are present within the food delivery industry that are currently hurting restaurants and the vast majority of companies are entirely unaware.
However, some have noticed these problems and have stepped up to the plate in the hopes of creating a better solution for both you and your customers. One of these entities is a food order start-up company called BYPPO.
In its mission to help restaurants and customers alike save money, BYPPO offers all the same services as its competitors including an online ordering platform, order management, and delivery, for 0% delivery commission. BYPPO gives you control over your online platform and assures you keep the money you earn.
To learn more about BYPPO, click the button contact us directly! Additionally, follow BYPPO on social media through the links below to keep up with all updates and offers.