The delivery service industry is quickly turning into the most competitive industry worldwide. While this is good news for customers looking to save money and get better services, it might not be the case for businesses looking to profit.
The U.S. food delivery industry is expected to grow to nearly 47 billion dollars in 2027. Such desperate times demand food delivery hacks that help delivery services have an easier time making a profit.
Worry not business owner, for we are here to give you the food delivery hacks that you need. These hacks give you an advantage over your competition which converts to you making more profits.
Table of Content
What are Delivery Hacks?
A hack is when any simple activity creates a profitable outcome for the person using the hack.
While the term is mostly used by consumers when asking for ways to get food for cheaper, in this scenario it is used for business owners.
So for a food delivery business, a delivery hack would comprise a way to increase the profitability of their business by either selling more or saving more. These solutions are very diverse and might require you to spend next to nothing or invest a big chunk of money.
What are the Challenges in Food Delivery Logistics?
No matter the kind of dishes you deliver, the expectations of customers and restaurants stay the same. They do not and will not understand the reason behind a high delivery fee. Well, in order to understand the solutions to the plight of delivery services we must understand the problems.
High competition among food delivery services
One of the biggest challenges faced by the delivery logistics industry is that the cost of delivery leaves little to no room for making profits. The rise of competition doesn’t help either as it pushes businesses into a downward spiral of competitive pricing.
Inability to meet customer’s expectations
Another issue is the inability to meet the customer’s expectations. When ordering meals on food delivery apps, customers expect their meals to be delivered in an instant. This expectation is already inflated and when delivery services delay their shipments it is even more disappointing.
With the food delivery industry turning into such a fierce battleground it is no wonder that they are constantly looking for ways to gain an edge over the competition. This is why a few hacks will come in handy for delivery companies.
6 Food Shipping Hacks Approved by Industry Experts
Now let’s dive into the list of smart food delivery hacks that we have in store for you. These solutions are great for any business at any level with the last one being one of the best hacks ever. Either of these hacks will greatly improve your business’s profitability.
1. Offer free delivery by pairing delivery fees to the overall cost
This cliche method of getting more orders is popular because it works. Most people would rather go with an expensive product that offers free delivery over a product that is cheaper but charges additional delivery charges.
Any food delivery service can cover delivery charges by slightly increasing the price of their takeout menu items. Using this method you can not only cut down on costs but also get more clients.
2. Incentivize curbside pickup
If you make a lot of deliveries in a certain area then you might want to give customers the option to pick up at a nearby location at their convenience. This is called curbside pickup and It will let you deliver to multiple clients by just going to one location.
Though the problem comes when customers are unwilling to comply with these cost-saving measures. This is why you might want to offer free food or cashback to customers that comply and pick up their orders from an alternative location.
3. Make cutlery and condiments optional
Food delivery services need to realize that the extra condiments that they offer usually go to waste. While leftover plastic containers can be reused, the same cannot be said for cutlery and condiments.
Asking customers to pay for extra mayo helps you cut down on costs or increase profits by charging for the condiment. You can also introduce new sauces such as hot sauce to make customers more likely to spend money on them.
The same goes for cutlery. While the whole container is required for the takeout, the extras are not. People have spoons and forks at home and mostly don’t need them when they place orders.
4. Offer special preset meals
Preset meals are a great way to boost the number of orders that you get while cutting down on costs. Though making a preset meal is no easy job. While pizza with chicken wings might be a good meal in your book, other users might be different.
This is why it is a great idea to also collect comments, as the comment will give you an insight into your customer’s meal preferences. With this data, you could also create a whole new meal that caters better to your audience.
If creating a completely new dish sounds complex, then you might simply want to create a high-quality healthy meal to rake in more customers. You can also offer new customer discounts for those that opt to buy these preset meals.
5. Eliminate uncertainty in your customer’s mind
Food delivery apps cater to some of the most fickle-minded customers on the planet. They are quick to cut ties with a business if their pizza is a few minutes late. This is why it is essential for you to build as much trust as possible from the start.
There are many ways to go about building trust though, the most effective way to build trust is by consistently being good at your job. The time of delivery is where this matters the most. You will have to provide highly accurate estimated times of arrival and get to your customers as fast as possible.
It is also a good idea to have such efficient systems in place in case you ever have to deal with difficult customers. This bit of advice does seem hard until you realize that are tools here to deal with those issues for you.
6. Invest in tools that boost your earnings
Much like how a logger needs a great chainsaw, a delivery business needs a great tool that guides its every move to the utmost accuracy. This tool can be anything from a reliable car to a great route planner.
The only parameter for such a tool is its ability to save or make you more money. The food delivery industry already has a thin profit margin. This is why it is crucial to first start by reducing the money spent on regular processes.
It is rare for tools to be versatile enough to allow you to save money on regular tasks. Though an example of such software that will help you increase profitability by both saving and making more money is Upper.
Get the Best Hacks for Your Delivery Routes on Upper
Be it grocery stores or restaurants, Upper is a route planner that fits all. Without Upper, a delivery service can never hope to reach the apex of its field. Food delivery is complex as it is and without Upper, route planning quickly turns into a nightmare.
Route planning shouldn’t be a task that requires putting in a lot of effort. This is why Upper allows you to plan the most optimized routes known to mankind with the click of a button. Just click and forget your concerns about planning routes.
Upper also lets you forget your fears of incomplete deliveries by giving you access to proof of delivery. With the driver’s app, the driver has many options to reassure you of the delivery’s success including getting the sign of the customer online!
Route planning and optimization are as easy as eating a pizza with Upper. Don’t let the opportunity sit on the counter for way too long. Start your journey of optimization as soon as possible with Upper.
Generate Unlimited Routes for Your Food Deliveries
Worrying about poorly planned routes is a thing of the past. Plan the most efficient routes within seconds for your food deliveries.
You can attract and retain customers to your food delivery service by following these 7 tips.
- Advertising your business locally
- Offering discounts on checkout to new customers
- Implementing creative marketing strategies
- Offering cashback to regular customers
- Offering free delivery
- Creating group order menus for those looking to order with their friends
- Expanding your services
Being a delivery driver is worth it for anyone that has the time and willingness to work a simple job. It can be stressful at times but most people that do opt for this profession deal with it with relative ease.
There can be plenty of reasons behind the failure of a delivery service though the most common reason is failure to meet customer demands. Usually, this is because transport is delayed consistently over a long period tarnishing the brand’s reputation.
Management is indeed a tricky part of running a delivery service however there exist tools that aid you in your journey. Here are 3 ways in which you can better manage a delivery service.
As previously stated, running a food delivery service is no joke. It requires the owner and employees to be highly involved in every single step of the business for it to be successful and not tarnish its own image.
The customer’s expectations don’t help either. A food delivery service is bound to run into a customer with inflated expectations and there is no way to satiate some of their needs. The best a business can do in this scenario is to offer the best service possible at a consistent rate.
Though all is not lost thanks to software such as Upper that significantly boosts the efficiency and quality of your deliveries. When you’re given a perfectly planned route within minutes, most of your concerns are instantly eliminated.
Such amazing software like Upper is of critical importance to any business that dabbles with delivery routes. Without Upper offering accurate and optimized solutions a business can never hope to reach the pinnacle of its class.