Expect more attempts by tech companies to become outsourced vendors for hospitality companies. Resorts want to manage their labor costs tightly during the pandemic.
Egregious, repulsive, dumb: These are just a few of the words CEO Matt Maloney used to describe his competition’s practices, even as he argued that Grubhub is significantly better positioned to succeed long term.
We definitely expected Domino’s fortressing strategy to have a negative impact on sales, but the adverse effect from third-party delivery advertising is a new development.
As newer third-party delivery companies mature into viable businesses, each will need to differentiate itself in the marketplace. Grubhub's $390 million acquisition of LevelUp offers restaurants a comprehensive way to manage its consumer-facing business and capitalize on opportunity.
Uber Eats and Grubhub have both publicly cited losses on discounted fees charged to chain partners in financial documents. One can only imagine the case is the same for DoorDash, who's IPO is likely not far behind.
Pizza chains inking deals with third-party delivery companies will force independent pizzerias to make a choice: pay more to services to keep order counts coming or unplug and go at it alone.
Postmates has always done well in densely-populated, urban markets — just look at its logo. This new campaign, focused on delivery as a way of life in cities, is a smart way to capture diners' attention immediately.
Papa John's and Pizza Hut partnering with DoorDash and Grubhub give them access to an entirely new consumer base each company needs. But they will need more than this to dethrone Domino's.
Third-party ordering and delivery services are starting to power big chain pizza delivery, a big departure from the in-house strategy we've come to know.