 Hello hello friends today we're going to be covering one of the biggest stories out there for food delivery industry and that news is Uber Eats is acquiring Grubhub. We're going to be covering what is exactly happening and some of the insights that we can draw from it and lastly why it's super important and the impact that it's going to make for you as a restauranteer and basically how you can take advantage of it and some of the action steps that you should take. Like majority of you guys out there you guys must have a love hate relationship with food delivery apps. You love them because it brings in tons of revenue but you hate them because of the fact that they charge 20 even 30% commission off your top line and as restauranteers we know for a fact that the margins that we're looking at is probably around 5 to 10 percent of the top line only. Now with third-party apps and delivery services charging 30% we cannot use these apps as a profit-generating item. We definitely need to be smart about how we leverage off these brands and leverage off these traffic and that's part of the reason why I shot this video right here as we talk about the different strategies that we can leverage off these food delivery app services so then that way we don't lose money and they make the money and it becomes a win-win situation. So definitely check out that video right there. Now today we're going to be talking about what is exactly that is happening. Uber Eats is planning to acquire Rubhub and according to Bloomberg this can happen as soon as this month May 2020 and basically what does that mean? There are four key takeaways and insights that are happening within the industry and the first one is that this deal could very well put Uber on the top of the throne. They're going to be as of March of 2020 DoorDash owns the biggest slice of the food delivery service at a pie at 42% of the market share and that the second runner up is Rubhub at 28% and the third comes Uber Eats at 20%. So after the fact that Uber Eats does acquire Rubhub then they would become the market leader at 48% and the second would be DoorDash. What does that mean for you as a restaurant owner? That means that you shouldn't wave off Uber Eats. I know for a fact that a lot of people don't like using Uber Eats because of their service, because of all the different strict rules that they have and they're not as lenient and on top of that they charge a really high percentage out of all the different food delivery services out there. Now having said that if and when they do acquire Rubhub then you know for a fact that they're going to be acquiring all the different customers that Rubhub has and what does that mean for you as a restaurant? That means that you should definitely jump back on board with Uber Eats if you're thinking and considering scrapping them and I would stay on that train because as a market leader they're going to be able to make a lot more waves and leverage a lot more of the advertisements and get a lot more users on Uber Eats and that itself would generate a lot more traffic for your restaurant. So definitely do not wave them off as they are going to be making a comeback for sure. The second insight that we can grab from the data is that this could very well amplify the recent growths for Uber Eats as a lot of the different analysis actually are out there. Uber Eats is losing a ton of money through this service. They themselves started off as Uber as a ride-sharing service but since they went into the Uber Eats and food delivery industry they have been losing tons of money with promotions with market share and acquiring customers. So what does that really mean for you? That means that this deal could make them become the market leader and in turn once again it is going to be they're going to have a lot much more leverage and this would probably turn it around for them in terms of financially, in terms of market share and for you as a restaurant owner you definitely need to pay attention to Uber Eats. One thing that I do get asked quite a bit is hey you know what I run a cloud kitchen and should I consider going with Uber Eats as an exclusive for delivering my services and my offering? This answer is yes now. You should definitely consider doing that because there are different cloud service, cloud kitchen models out there that I talk about right here. Check out this video as we talk about the different types of cloud kitchen models out there and one of the models states that hey you know what you can only put your offering on specific exclusive food delivery apps such as Uber Eats or DoorDash and a lot of people previously did not like that kind of model because they feel like that they're limiting their exposure, they're limiting the people that they can reach. Now with this news coming on board I would highly recommend even considering that in the future because with exclusive feature with only one platform they do a lot more in promoting your offering to the customers around the town because hey they need to guarantee that they have traffic for you and in turn you have the loyalty and you have their back so it's like scratching each other's back and which is the reason why I would super super bullish on this whole acquisition so if you're considering once again whether you want to be hopping on the Uber Eats train then now really is the time to do so. The third news which is not as applicable to the food industry is that Uber Eats is making even more moves outside of the food delivery apps they are planning to acquire scooter company Lime which is one of the biggest transportation Limes scooter services out there in North America and in Europe so that itself really shows that Uber has a lot of potential and their ambition is really to dominate different industries so definitely do not write them off just because they charge a ton of money they also will be giving back in acquiring a lot of customers which in turn allows you to benefit from that now it all comes back down to how you leverage the different types of traffic sources coming in so definitely don't write them off use it smartly leverage their service leverage the traffic that are coming in at the end of the day one thing that you can do perhaps is to make sure that you set up a different menu menu with high margin items so then that way it counteracts the high percentage that Uber Eats is charging and that's just one of the strategies I shared with you guys in my previous videos last but not least the fourth insight that we can gather from this acquisition is that this is the first major food delivery acquisition that we're seeing and it's not going to be the last it seems like that the whole industry itself is going to be consolidating in the upcoming months that means that it's going to be a huge huge fight for market share and all these smaller brands like Postmates excuse me would be consolidating into only one or two big big competition and food delivery providers out there so we're going to be able to see a lot more mergers in the future in the coming months and once again what does that really mean to you as a restaurateur it means that the rules of the game have changed and I always preach that and if you think that after this whole COVID-19 thing passes by things will become normal again I can tell you that for a fact it will not become the normal it will become the new normal and the new normal in the food industry means that delivery as a service is going to be a core offering second is that dine-in will only be part of the offering it's not going to be the sole thing that everyone is relying on anymore curbside pickup is going to be huge as well and family meals at home is going to be huge as well as well all in all we need to understand the market and the rules have changed it's up to us as restaurantiers as entrepreneurs to actually understand that and to adapt to that and definitely check out my live here we talk about like what we can do to bring in additional revenues we talk about different ways that the market is changing how we can adapt to it and the faster that we can adapt to it the faster that we can actually benefit from that and I basically recently I interviewed a friend of mine Mark Handless and he basically is one of the top restaurants in the United States they do fine dining $230 average ticket costs and because of this whole COVID thing they were able to change on the dime and change their food offering to $14 burgers and in turn they're selling 1500 servings per day and while he's able still to keep his employees 100 employees on payroll because he was able to pivot and because he was able to adapt all in all having said that the restaurant game has changed you need to make sure that you and the forefront and to understand what has changed and not wait for things to be normal again when doors open up it is for the people who are ready to actually take advantage of this whole changing landscape having said that you definitely know that it's actually a really really big plus for you who is listening to this right now because basically a reset button has been pressed everyone is on the same starting line it's the people who are adapting people who see the differences and people who are taking matters in their own hands that will come out on top of others so now it's fair game for everyone and if you guys want to be in the forefront if you guys want to make sure you guys get the fastest news most insightful news and also the different strategies about the food and beverage industry definitely make sure you guys subscribe along the journey as I will be doing a lot more of these coverages with you and sharing a lot more resources with you in my channel so if it's your first time here make sure you guys subscribe and check out all the different videos that we've been doing and aside from that if you want more resources on how to you start a restaurant in this environment definitely check it out in the description below we have some resources that we can share with you on how you can build a restaurant from scratch from talking about dealing with your landlords to menu menus for marketing to social media basically all the different resources are in there for you to help you out once again my name is Wilson I really hope you guys enjoy this smash that like button 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