 Which delivery platform should you be signing up for your restaurant? Ultimately, the question is choosing the delivery app that gives you the best support at the lowest cost possible and that's why we're making this video for you Hello friends, it's Wilson here your friend in helping you build a profitable restaurant today We're gonna be comparing the four major food delivery apps side by side and comparing four different components The commission they charge the market share they have the accessibility and last but not least their terms of service Now we're gonna dive into why terms of service is key in determining the future of the restaurant business And for now, I want to thank my great friend actually for making this video happen He writes about food and technology and the future of where ghost kitchen is going So if you want to get the latest news if you want to get the latest insights from someone who's been there done that Then you must follow his blog at superfoods.substack.com in the link below go follow him and Without further ado, let's dive right in today We're gonna be comparing the four biggest food delivery apps out there Postmates uber eats door-dash and grub hub and we're gonna be comparing them with four of the biggest metrics commission availability Market share and terms and now we're gonna dive into commission first commission is basically what these Delivery apps will be charging you up front and ultimately determining how much money you can put into your pocket Now keep in mind the commission that I'm sharing with you is on a rough estimate only because each of these apps will send someone out and to Negotiate a customized Percentage with you. So this is for reference purpose only so make sure that you guys don't sue me for any of The information that we're gonna give out for you to start off. We have postmates postmate charges around 30% in commission What does that mean? That means for postmates to process your order to deliver your order They charge 30% if you were to have a burger that you sell for $10 on postmates They're gonna give you back $7 at the end of the month and they're gonna keep $3 for them to fulfill for you Also on postmates website They also claim that you don't need to pay any upfront cost to sign up as a merchant with uber eats You pay around 15 to 30% commission depending on the type of services that you sign up for So if you have your own delivery driver or if you want to do your own deliveries You can do that all you have to do is sign up with uber eats for them to process your order for you to get exposed to all the different customers that uber eats has to offer and You do your own fulfillment and that would cost you around 15% in commission But if you want to utilize the whole system that uber eats has to offer from ordering to delivery That would run you up to 30% roughly as well Door dash is by far the cheapest one that is out there for a collective of their services Around 20 ish percent is what I'm seeing now once again with these commissions You are and you can negotiate directly with their reps depending on your volume depending on your brand and Depending on your negotiation skills You would have different types of commission door dash try charges around 20% and on top of that That would include basically other insurance the onboarding of their drivers and all those items with grubhub They charge around 15 to 30% as well depending on the services that you sign up for Next up we have Availability what does that mean that means how many restaurants are on board these different apps? The more restaurants on these apps the more happier your customers are going to be because they have more choices To choose from and that's the reason why if you're going to be signing up with apps You would want to choose one that has more Availability and more choices to choose from now with postmates. They have around 500,000 restaurants grocery markets traditional retailers that are on their platform their Strategy is a little bit more broad now with Uber Eats. They have 320,000 restaurants that are signed up with them And their focus is much more international and having that presence next up door dash 310,000 restaurants sign up with them primarily all in the United States and lastly we have grubhub at 140,000 restaurants Next up we have market share. What does that mean? That means how much? Users are on these platforms the more users that are on these platforms the more Possibility for them to buy from your restaurant So that's the reason why you would always want to sign up the one with a more more market share It has direct impact to your restaurant postmates has 7% market share Uber Eats has around 23% and door dash having 50% market share in the United States and Primarily the reason is because they are really really focused on having most locations in the United States And lastly we have grubhub at 18% market share in the United States Before we dive into the metrics here We're gonna have to talk about what is the terms of services and why it is so crucial for you as the restaurant owner to understand this before Choosing the right food delivery partner to start off. What is the terms and services? It is basically how friendly it is to work with these food delivery apps are the contract easy to find and are they easy to Understand that's one metric the second one is who owns the data Is it you as the restaurant or is it the food delivery apps and what data are we talking about? How many people are ordering from you? When are they ordering from you? What are they ordering from you? And third of all it is how you as the restaurant can utilize these data Can you utilize these data as insights for you to market better to your customers? Can you sell these data to bigger corporations? What can you do with this data and lastly is what can the food delivery apps do with this data? Can they use the data and sell this data off to other big corporations? Or they can they only use this data for the purpose of conducting food delivery? Combining the four metrics I just shared with you We came up and generated these numbers Which is what we ranked for the different delivery apps and the reason why this is so important is because Moving forward data is everything being able to understand and utilize the data Gives you the insight of what promotions to do next what kind of marketing campaigns are going to do Where are you going to open up your new restaurant and the worst thing that can happen is? When these apps become more mature and for them to come in and create something very very similar To your concept and to hijack your listing so then that way they push your listing all the way down and put their Own concept at the top to take all your market share and this is something called the Amazon effect So what it is is basically Amazon had a lot of third-party retailer that sells on their platform And Amazon sees what's selling really well and which has the highest margins and they go and create their own concept Very very similar to the top dogs that are selling on their platform And that itself allowed them to be even more profitable and to really push out the competitors And this is called the Amazon effect which you do not want to happen for your restaurant And that's the reason why the higher the number here the more protected you are for your restaurants So now we understand why terms and conditions are so important with postmates They rank the highest because not only do they let you know what the contract is about They basically decode Every single clause as you can see right here making it super easy for you to understand their terms and condition And on top of that you own all your data and you can use your data. However the way you wish and on top of that Postmates would not use and sell any of your data in any way that causes harm to you as the restaurant owner So that's the reason why they rank super high in our list Next up we have Uber Eats Uber Eats make it super easy for you to find their contract and to read their contract and their terms and condition Yet on that note you co-owned the data with Uber Eats And they also reserve the right to use the data wherever they see fit So that's really that means that technically speaking they can sell your data in the future Then we have DoorDash DoorDash makes it difficult for us to find their contract and on top of that They own the data and once again, they reserve the right to use the data as they see fit Once again, allowing them to potentially sell the data to bigger corporations or to come up with their own concept down the road Worst of all is Grubhub. Grubhub makes you send in your tax receipt in order for you to get the latest terms and condition agreement Not only that Do they also reserve to write to use the data as they see fit and on top of that You are required to delete your data if They say so and that's the reason why they're on the bottom of our list That is the least friendliest when it comes to terms and conditions Now to help you out a little bit further I've compiled these sets of questions that you can start asking your representative So then that way you can get clarity to protect yourself and to ensure you get the best deal from the delivery apps So there you go friends the side-by-side comparison of the four biggest delivery apps out there Whichever platform you choose to use one thing is for sure is that the industry is shifting and changing every single day Technology is rapidly advancing So we need to make sure that we keep an open mind and be receiving and adapting to new technology at the same time Customer's behavior is changing all the time as well So we need to make sure that we stay on top of the game in order for us to thrive If you guys like this video if you guys like the content and want to learn more About the food technology space definitely give my great friend a follow in the link below superfoods.substack.com Follow him because he shares a lot of great insight within this industry I really really hope you enjoyed this video if you guys enjoyed it make sure you smash like button Leave me a comment. Let me know how you think about this video. Otherwise, I'll see you guys in the next video