With the explosion of online food delivery, marketplace delivery apps like Uber Eats, Just Eat, and Deliveroo have significantly changed the restaurant industry in the UK. They provide easy and quick access for customers and have become a popular option for restaurants looking to reach a broad customer base without the need for an in-house delivery team. However, while these marketplace platforms offer benefits, they also come with challenges that can impact brand control, profits, and customer relationships.
In this article, we’ll explore the advantages and drawbacks of using marketplace delivery apps and explain how establishing a direct online ordering channel through a service like Slerp can provide you with greater control, profitability, and customer loyalty.
Drawbacks of marketplace delivery apps
High commission fees
Marketplace apps typically charge commissions ranging from 25 – 35% per order, which can erode profit margins—especially for smaller businesses. These fees often lead restaurants to raise prices on these platforms, which can discourage customers from ordering.
No data, loyalty or ability to drive repeat business
With marketplace apps, you lose the ability to create a personal, branded experience. These apps standardise the ordering process, making it difficult to distinguish your restaurant’s identity and values. Since they control the customer relationship, you miss out on capturing valuable customer data, which limits your ability to create targeted promotions or personalised communications.
Competition
Apps create a standard experience mixed amongst the competition, making it tough for a brand to stand out and build true customer loyalty. Some marketplaces even allow adverts from a direct competitor on a menu page.
A barrier between restaurants and their customers
Marketplaces own the customer relationship, not the restaurant they buy from. This forces a barrier between restaurants and their customers.
Benefits of Marketplace delivery apps
Access to a larger customer base
Marketplace apps open your restaurant to a massive, diverse audience, including customers who may not have discovered your location otherwise. For independent restaurants or those in quieter areas, this visibility can mean a steady influx of new orders and increased brand awareness.
Increased order volume
Apps can boost order volumes, especially during peak times, helping you increase revenue without requiring an in-house delivery team. This online ordering boost is beneficial for periods when more people are inclined to order food from home.
Lower upfront delivery costs
For restaurants without the resources to create their own delivery service, marketplace platforms can be a cost-effective solution. They take care of logistics, including driver management and delivery coordination, which can save restaurants the expense and complexity of handling these operations independently.
Benefits of a direct online ordering channel
While marketplace delivery apps help with visibility, brands like Zia Lucia and Honi Poke are taking advantage of their direct online ordering channel that offers distinct advantages such as control their brand experience and profitability. Here’s how establishing a direct channel can benefit your business:
Lower fees and higher profit margins
A direct ordering system like Slerp’s restaurant order system avoids high commissions, helping you retain more revenue from each order. This enables you to keep prices competitive without compromising your bottom line.
A better brand experience
Your own channel can be fully branded on your terms and not mixed amongst the pack of marketplaces. Set your own loyalty program and have exclusive products only offered direct.
Stronger customer relationships
By building your database of customers (not the marketplaces), you can have direct personalised communication with them to drive repeat custom.
More control over your operations
As your direct channel builds up, you create optionality into how you spend your limited time and resources. The less dependent you are on marketplaces, the more control you are of your delivery channels.
Maximising the benefits of a restaurant order system
Many restaurants successfully combine marketplace delivery apps and a direct online ordering channel to balance reach and profitability. Use marketplace apps to bring in new customers, and direct them to your ordering channel by offering special incentives, loyalty programs, or personalised promotions.
This hybrid approach allows you to grow your audience while building relationships and encouraging repeat orders through your direct channel. It’s a powerful way to leverage the best of both worlds and strengthen your business.
Take control of your delivery with Slerp
At Slerp, we offer a robust online ordering solution that enables restaurants to establish and grow their direct delivery channels. With Slerp, you can manage every aspect of the customer journey, protect your profit margins, and create lasting relationships with customers.
Ready to start your own direct delivery service? Discover how Slerp’s restaurant order system can help your restaurant stand out in a crowded delivery landscape and provide a seamless, branded experience for your customers.
