Will a recession spell doom for third party food delivery services? It’s hard not to be discouraged by the near obscene costs of ordering from
$UBER Eats or
$DASH compared to ordering directly through the restaurant. Personally, I never use these services anymore because I pay almost double what it would cost to just go pick something up. Take-out culture is here to stay, so a recession could lead to a shake-up in how we choose to order food. Enter (or re-enter) direct ordering.
Direct Ordering Advantages:
- Up to 30% discount to 3rd party marketplaces
- Access to loyalty programs
- Data sharing for improved customer experience
- Greater insulation from market conditions relative to third party marketplaces
Can direct ordering SaaS platform
$OLO actually benefit from a recession by taking market share? DoorDash and other third party delivery services seem to be positioned to struggle in a recessionary environment. On the other hand, direct ordering fills the need created by the take-out culture. It doesn’t feel like a stretch to suggest that this space could see some consolidation and shrinking competition as decreased consumer spending puts pressure on expensive luxury services.
You can read more about it
here.