Aside from a handful of exclusive delivery partnerships with a few premium restaurants, consumers are instead faced with a delivery market where the services are virtually indistinguishable, yet the price they pay for exact same item from the exact same restaurant can vary by 20% or more depending on the app they use. In their quest to achieve profitability, today’s leading food delivery apps have thus far focused their innovation around new ways to charge consumers for the same items instead of innovating on differentiated products or services. And the implicit trade-off we all make as consumers is that we are willing to pay a little extra for the convenience of having things delivered to our doorstep.īut while consumers have signed on to pay a premium for convenience, the food delivery ecosystem suffers from a lack of differentiation, compounded by an opaque and confusing web of markups and fees. Thanks to technology (and VC funding) we can get a ride, laundry service, car wash and even booze or marijuana delivered to our home or office at the push of a button.
With the food delivery sector rocketing toward a projected $365 billion by the end of the decade, I’m clearly not the only one turning to delivery apps even before the pandemic hit. With the growing coronavirus pandemic closing restaurants and consumers self-isolating, it is likely we will see a spike in food delivery much like the 20% jump China reported during the peak of its crisis. There are dozens of great dining options within a few blocks of my home, yet I still end up ordering food through delivery apps four or five times per week. I’ll admit it: When it comes to food, I’m lazy. What Studying Students Teaches Us About Great Apps.
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