Why restaurants are ditching third-party delivery services

How third-party food portals are negatively affecting your restaurant or takeaway business:


Delivery offers a fresh channel for restaurants and takeaways to increase their sales. According to Statista, online food delivery sales revenue is expected to show an annual growth rate of 9.3%, resulting in a market volume of €119,107m by 2023.

With multiple delivery options now available, consumers are becoming more conscious of delivery costs and have increasing expectations about the entire delivery experience from start to finish.


55% of the global market for online orders is made up of 18 to 35 year-olds.

Using the Flipdish online ordering platform allows restaurants to operate mutually beneficial food delivery and collection services for their customers. By integrating your own in-house delivery strategy with our online ordering system you can have complete control over the customers experience and retain your customers data for future loyalty and marketing campaigns. This helps you to build long-lasting relationships with your customers, long after their initial order.

What you need to know:

Customers order food from restaurants and takeaways listed on third-party aggregator apps and websites who contract drivers to make the deliveries using their own transport. These aggregator services earn money through restaurant commissions, delivery fees, or both.

Some restaurants and takeaways may use third-party delivery services today because of the demand for them. By outsourcing delivery, however, restaurants lose control of their brand from the moment the food leaves the restaurant to when it arrives at the customer’s home. You risk damaging continuity, reliability, accuracy, delivery timing and food presentation.

For Example, McDonald’s is listed on UberEats, Postmates and Doordash.

Several key third-party food delivery services currently dominate online restaurant ordering and delivery. But, the market is shifting and more people are ordering directly from a restaurant’s website rather than third-party ordering sites. And as a result, restaurants are starting to take ownership of their own delivery. 


Reasons they are leaving aggregate sites:

#1 Cost

The cost of using third-party delivery services can be prohibitive. Turning a profit in the food industry is tough and partnering with delivery aggregators squeezes margins even tighter. Restaurants can end up paying up to 30% in fees for each order placed through their portals.


#2 Control

Misinformation on third-party portals can cause major issues and the customer will generally blame the restaurant for any problems occurring during the order/delivery process. For example, sometimes orders are placed through third-party delivery services in a region that is out of range and cannot be delivered. By having control over your menu and details across your website and app you will avoid losing dissatisfied customers.


#3 Customer Loyalty

With third-party delivery you’re unable to control the condition in which your food reaches the customer. Delivery services work with several restaurants at a time- including direct competitors- and there’s no guarantee for the restaurant that their food will be the first stop. Contacting the restaurant through third-party services can be complicated meaning the restaurant becomes one step removed from the customer and their reputation is compromised.


#4 Convenience

50 percent of customers prefer to order directly from a restaurant’s website or app. Familiarity, secure payment and delivery times are factors which affect the customers experience greatly. Even the most popular of the service providers average at 49 minutes to deliver. This is significant as 33 percent of consumers say they would be willing to pay a higher fee for faster delivery service.


Reasons for direct delivery:

  1. With your own drivers you can limit the delivery zone, provide training and uniforms.
  2. You can integrate your delivery system with your online ordering platform powered by Flipdish.
  3. Customers ordering directly from you won’t get redirected from your restaurants app or website.
  4. You can ensure optimal delivery times for your food through appropriate staffing situations and storage facilities at peak times.
  5. Options to save past orders and send out personalised offers to customers.
  6. Makes it possible for restaurants to turn off delivery orders directly from their POS.
  7. Using in-house controlled maps with Zip codes can provide clear boundaries for drivers that will automatically be triggered when an area is inaccessible.

Have questions for us? Contact our Customer Success Team on [email protected]

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