Why Third-Party Delivery Providers Are Offering New Features

With consumers continuing to avoid dining rooms, pickup has become especially popular since the start of the pandemic. Third-party delivery has been a major part of that trend, with UberEats noting it has also started to see an increase in pickup orders from users on its platform. According to data from Second Measure, through the end of May, sales for third-party delivery services more than doubled year-over-year, collectively.

While franchisors have been quick to pivot towards off-premises services to meet consumers where they are, third-party delivery aggregators have also responded by expanding pickup features in the last few months to create a more seamless experience. Postmates rolled out a curbside pickup feature while DoorDash added customer tracking for pickup orders. 

This competition among third-party delivery services to enhance their pickup options will likely increase as the country continues to shy away from dine-in options. 

UberEats, in particular, has been very active in expanding features recently. Just last week it added priority delivery and a loyalty program. In 2019 it also added a user-friendly tracking feature and the ability for customers to resolve issues with delays and order cancellations.

For its latest feature, UberEats has added a map for pickups. The map feature is meant to provide another way for users to view which nearby restaurants are open and accept pickup orders. 

This comes after Google quietly rolled out a feature that allows consumers to order from restaurants via the Maps app. Considering so many searches occur through Google Maps, there is a very big possibility that Maps may one day become the default app that most consumers use to place their digital orders.

When considering third-party delivery partnerships, the service fees have long been a sticking point for restaurants. However, UberEats has extended a 0% marketplace fee for at least the summer, providing an additional incentive for restaurants to choose its services over a competitor. As restaurant owners look to choose a specific aggregator in order to add pickup to its services, this bonus will ensure that UberEats becomes an attractive option, especially as restaurant owners look to drive additional revenue without more cost.

UberEats certainly isn’t the only third-party delivery aggregator looking into incentives in order to entice restaurant owners during this time. For example, DoorDash offers its own incentive to sign on with its services through its Storefronts feature, which was announced last month and is currently in the pilot phase. The company said it will be widely available in July. This feature helps restaurants manage both pickup and delivery orders, while waiving numerous fees for independent restaurants in 2020, including setup, software and merchant delivery fees.

There is no doubt that this has been a strange time for franchise owners everywhere, especially in the foodservice industry. Although third-party aggregators were already vying for users prior to the pandemic, the race to dominate the industry has never been more heated.