In a recent survey conducted by AtlantaBusinessJournal.com they found that 87% of restaurant owners are not happy with the fees they are being charged by third party delivery services such as UberEats, DoorDash, GrubHub and Postmates. Further, 94% of the 100 Atlanta restaurants surveyed said they would prefer a flat fee per order, rather than a percentage of the total order.
Third-party delivery services have been under fire recently as they have been making a massive profit from the increase of delivery service need due to the Coronavirus lockdown and subsequent mandates. But, as companies like Uber, GrubHub, DoorDash and Postmates have seen a surge in profits, 250,000-300,000 restaurants will have to close their doors this year because of the current restrictions. Delivery service fees make it difficult to make any profit on the delivery of food. In fact, many restaurants are running at a loss hoping that things will improve once things get back to normal. But, the new normal seems to be delivery and the current model is not working in favor of restaurant owners.
“For an industry built on service and hospitality, the last six months have challenged the core understanding of our business,” Tom Bené, President and CEO of the National Restaurant Association, said in a news release. ” … . Across the board, from independent owners to multiunit franchise operators, restaurants are losing money every month, and they continue to struggle to serve their communities and support their employees.”
The six-month impact of the pandemic on restaurants found 40% of operators saying that without additional federal relief aid packages “they are unlikely to stay in business six months from now” and don’t expect things to improve.
Like so many companies have had to do in the past 6 months, Tryp Technologies, Inc. had to make a pivot. They were gearing up to launch Trip Rides, a rides share company with a different business model to Uber and Lyft. But, as that market crumbled at the beginning of the lockdown Tryp moved to launch Trip Delivers, a software as a service (SAAS) platform for restaurant owners to deliver food to their local customers.
Mr. Robert McNulty is the Founder and CEO of TRYP Technologies, Inc. He is an accomplished entrepreneur with over 40 years of significant experience in specialty retail, eCommerce, branded consumer products, start-ups and developing new concepts and technology platforms for utilization of the consumer. Mr. McNulty founded Shopping.com and served as its President and CEO. Shopping.com was the world’s first online retailer selling a comprehensive range of consumer brand name products on the Internet in 25 major categories, and offering 2,000,000 SKUs while utilizing comparison shopping engines to drive sales. Shopping.com was acquired for $220 million in an all cash transaction by Compaq Computers.
Trip Delivers charges a low fee per delivery to restaurant owners instead of a percentage of the order. By providing access to the software the money flows directly from the consumer to the restaurant without going through a third party vendor like Uber Eats, Door Dash and all the other third party delivery service providers. This means extra fees and service charges are cut out and restaurants don’t have to up their prices on their menus to make a profit.
Restaurants pay a flat fee of $2-$3 per delivery regardless of the price and can even buy that down to $1-$2 per delivery by signing up for an annual membership of currently at $99.
The average restaurant makes 20-30 deliveries a day. Some make 75-100 if delivery is their primary business. Most third party delivery services charge between 20-40% of the menu cost with an average order around $26. That is $5.20 on the low end to $10.40 per delivery on the high end for a $26 order.
McNulty states, “We are straightforward on our pricing. We beat these guys all day, every day, 24-7. This business model is going to wreak havoc on this industry once we get traction. Once this business catches fire and the press really learn about it and the restaurant news learns about it they are going to be printing stories because we are so competitive. We are the only delivery service out there that does what we are doing.”
Trip Delivers is seeking market share in Atlanta and cities all across the country. Their business model is sure to attract the attention of restaurant owners as well as consumers and drivers.
For more information about Trip Delivers, visit: https://tripdelivers.com where Restaurant Owners can sign up as well as drivers and customers by downloading the app in the Apple App Store or Google Play Store. Use Code: ATLdelivers to get started.
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