| The problem is that these delivery apps are trying to scale a business on top of a product that already has thin margins. They're trying to squeeze in between the restaurants and consumer and both sizes is feeling the squish. IMO the relationship between delivery apps and restaurants could be a bit more mutually beneficial. How this could potentially work - 1. Restaurants modernize their web presence with the help of the app company. They make it easy for consumers to order online through their website, or some sort of aggregation app, but the restaurants maintain their brand, and process payments. 2. Restaurants put out a bid to deliver an order through the delivery app and someone in the area agrees to pick it up 3. The delivery person receives the fee and perhaps a few bucks as tips upon delivery The app company would make money through long term contracts (partnerships) with the restaurants to service their delivery needs. These types of long term partnerships could be much more valuable to both the app (tech company) and the restaurant - the app company could help the restaurant modernize and maintain their online presence which is much more valuable than pinching them with fees. Obviously this is more challenging for both sides since it requires buy-in, long-term collaboration, etc but the other option is to not adapt and continue fighting delivery apps for tight margins. I feel like Yelp would be in a perfect place to do this if they weren't too busy pinching restaurant owners for ad money. |