Skipcart, one of the largest on-demand delivery companies in the United States, today announced an innovative partnership with technology platform DeliverB4 aimed at leveling the playing field by saving restaurants $2 or more per marketplace order through their new outsourced delivery program.
Restaurants are hurting on all fronts with limited staffing, high cost of goods and fixed costs. A recent National Restaurant Association survey showed nearly 90% of operators are less profitable than when the pandemic began with no relief in sight. The Association's State of the Restaurant Industry report issued in February of 2022 stated “Food, labor, and occupancy costs expected to remain elevated, and continue to impact restaurant profit margins in 2022.”
Restaurants are dependent on the marketplaces, stuck in a one-sided relationship built on the backs of hard-working, captured restaurants. Predatory tactics and commissions are too high, delivery service is unreliable and there’s no data sharing for customer loyalty. Gone are the days of traditional brand building. Unfortunately, this now occurs with the help of the marketplaces to get initial scale, forcing restaurants into an unhealthy partnership from the start. Something must change, or the restaurant industry will continue to suffer.
Increased marketplace competition for customer acquisition continues to exacerbate operator challenges, and with marketplaces starting with an unbelievable 30% fee in a 15% or less margin business, there is no silver lining. With marketplaces now allowing for outsourced delivery through products such as Self-Delivery by DoorDash, Bring Your Own Courier by UberEats, and Self-Fulfillment by GrubHub, marketplace orders can now be delivered by DeliverB4 powered by Skipcart.
Restaurants still receive the orders, but now realize increased revenue and margin for the same process, and finally get visibility to the consumer. Skipcart CEO, Ben Jones explains, “DeliverB4 Powered by Skipcart is changing the game for marketplace self delivery orders. Today’s marketplace commission fees on delivery and hoarding of data are crippling to restaurants and there has not been a real solution until now. With the restaurant outsourcing delivery to us through our driver network, we can save them 15% or more on fees per order and give visibility to their customers. This is the future of on-demand delivery and we are excited to challenge the big 3 that have held restaurants captive for so long.”
DeliverB4 Powered by Skipcart is simple to sign up for and requires no operational change to the restaurant receiving marketplace orders. DeliverB4 captures marketplace orders and connects those orders with Skipcart drivers, saving $2 or more per order or as much as 18% in marketplace fees. “This new approach levels the playing field between restaurants and predatory marketplaces and we are thrilled to partner with delivery fleet leader, Skipcart. With 2.5 billion annual food deliveries, the potential can be to redistribute $5 billion back to restaurant merchants every year which inspires us.” states Randy Murphy, Founder & CEO - DeliverB4.
News and information presented in this release has not been corroborated by WTWH Media LLC.