food delivery, yumzyx, food delivery platform, online delivery platform

Third-party delivery or own independent platform?

Nearly 70% of restaurant owners can’t decide whether they should partner with a food a third-party delivery or own independent platform.  Well, in this era of convenience consumer needs have certainly changed and restaurant owners need to align their products and services as per the changing customer needs.

If you wish to grow the bottom line of your restaurant business then you need to know what approach fits best to your business model. As the demand for the food delivery service and contactless ordering has skyrocketed in the last 2 years, the restaurateurs are facing a tough decision in accommodating their customer preferences.

With this a lot of them are hit by this question- Is it a good idea to sign up with a food aggregator or should I  invest in building an exclusive online platform?  If you have the same question in your mind, then keep reading this guide to know what works best for your restaurant business!

Deciding whether to partner with a food aggregator like GrubHub, Uber Eats, and Foodora or to go out on a venture of creating an independent online platform is a difficult decision in itself. A lot of restaurants ignore the importance of in-depth analysis and market research. It helps in segregating their target audience and understanding their needs. This is when they lie on the brink of going through a major downfall.

If you are still confused about which one to choose? Fret not, we will help you understand the industry trends, so that you would know which business model is perfect for your restaurant business.

 loyalty programs help restaurants

Food Delivery System 

While a lot of restaurateurs hold this misconception that third-party food aggregators eat up the revenues, delivery services like DoorDash, Uber Eats, Foodora, Postmates, or Just Eat could act as an opening door for a number of restaurant startups.

According to a study conducted by Zion & Zion, approximately 63% of young adults use third-party delivery apps. Therefore a major chunk of the population tends to prefer ordering food over dining at the restaurant. So, try to evaluate what things align with your restaurant business. Then find out the percentage of people that prefer to order food from your restaurant.

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Doing an In-depth Market research 

When it comes to doing an in-depth analysis of your target market. You need to segregate your audience and find out what type of people majorly prefer to order food from your restaurant. You can decide whether you should follow a third-party delivery model or set up an independent delivery platform.

Before making a decision ask yourself some basic questions like-

  • Do I have a set of loyal customers?
  • Do my customers prefer to dine in?
  • What are the demographics of my customers?
  • What kind of dishes do my customers tend to order frequently?

Here is are a few perks of using the below models-

Third-party delivery model

If you have just started out your restaurant and you are in a stage of expanding your business to a new set of audience, then a third-party food delivery model could be the perfect model for your business. But you need to make sure that you make the right decision for your business. Here are some benefits that you would get in a third party delivery model –

Hiring a third-party delivery service would open the doors to new business opportunities for your restaurant.  Each platform comes with its own loyal users and target audiences, some couldn’t have reached on your own. Therefore partnering with food aggregators in your vicinity makes you limitless. You would be exposed to a huge set of potential customers. Moreover, you are not limited to partnering with a single food aggregator. You can broaden your business horizons by affiliating with an assortment of food delivery apps.

The Dilemma

  1. Outsourcing your food deliveries to a third party would help you put your focus solely on preparing your food. This way you can make sure that you create an unforgettable experience for your customers with your delicious, mouth-watering meals.
  2. Although partnering with a food aggregator might cost you a huge amount of money. But, the amount of leads you could generate is limitless. Additionally, you would get a myriad of features. Features include a range of packaging materials, delivery tracking, secure payment methods, and a lot more.

Independent online platform 

A whopping 78% of US deliveries are placed directly through the restaurant. Therefore, people in the US prefer that their money goes straight into the restaurant rather than the third-party food aggregator. Below are some of the major benefits that you would get by setting up an independent platform.

  1. By not outsourcing delivery, you can get the freedom to try a plethora of permutations and combinations of business models for your restaurant. Moreover, you would get an opportunity to create a top-notch experience for your customers.
  2. By going out on such a venture you would be able to train your staff and mold your team in accordance with your business needs. Not only would you get to train your delivery staff you would also get to focus on the packaging of your orders.
  3. Setting up an independent online platform will set you free from hefty commissions of food aggregators and not having to pay that amount can make it worthwhile for your business especially if your profits are high.

Final Words!

To cap off the whole topic, we always recommend making a choice based on what goes well with your business. Therefore look into the demographics and needs of your customers. For Instance, 80% of people prefer to order directly within the vicinity and 20 % believe in ordering from a food app. Based on such analysis you should take your final decision. The scenario could be another way round too. Thus, decide carefully whether you want a Third-party delivery or own independent platform.  Cases in which you could be open to adapt both food delivery and In house delivery models. Having an own independent platform not only reduce the dependency on aggregator apps. It also immunes the restaurant from the events like Covid-19 pandemic. To know more you can also visit –

So, dig as deep as you can and figure out what your customers’ needs are. If you found this guide helpful then do share your valuable insights in the comment section below.

Radha Seth

Radha Seth is a writer and a marketing geek. With her penchant to weave words and communicate with people, she has amplified her knowledge by making writing, communication, and media relations the fulcrum of her professional career.

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