How Heavy Aggregator Commissions are Bad for your Restaurant Business

Are you tired of paying heavy commissions and hefty discounts on aggregator websites ?

Delivery management has always been most complex, time consuming and error prone operational part of managing a food business. Reason why food aggregator's were to able to capture the delivery market so quickly was that restaurant's were quite happy to give up this part of operations to the aggregator's. This way restaurant's were able to save huge costs by letting go of there own riders and managers who use to manage the delivery aspect of the business.

Aggregator's put in a lot of money to build efficient delivery systems and offered customer great discounts, this resulted in restaurants getting 2x to 3x more delivery orders than what they used to get. While saving money restaurants were getting huge order volume, letting aggregator's control their delivery business was a no-brainer.

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The picture is not all that rosy, specially when online food delivery is going to be a $200 billion industry by 2025. Letting aggregator's control the delivery part of the business lead to losing all your customers to the aggregator's. Customer placing an order to your restaurant thru aggregator website are not your customer, they customers of the aggregator. As we all know aggregator's don't provide customer information to the restaurants, there is no way to build a loyal customer base. With a single click the aggregator can divert the customers ordering on your restaurants to their own kitchens or to restaurants paying more commissions.

Not only this the average commission value after taking in consideration the heavy discounts that needs to be offered on aggregator website has increased by 2 to 3 times over the last few years.

Lets do a simple calculation and calculate the number of orders required type=number to maintain your own delivery fleet and maintaining the same profits.

Feel free to change the values according to your business!

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Orders required per month per rider is coming to  while maintaining the same amount of profit as you would on aggregator order. If you feel that this number is easily attainable then read further...

Posify comes with an online ordering website (desktop & Mobile) and also an efficient delivery management system with complete rider tracking and auto order allotment. Our delivery algorithm increase the efficiency of riders by 30 - 50%.
System comes equipped with mobile app (IOS & Android) for riders to receive the orders. This enables both the restaurant manager and customer to track the riders realtime. Our delivery algorithm comes builtin with queueing and batching, which enables managers and riders to completely process orders with human intervention. The algorithm keeps running in the background working on orders and re-allotting orders as realtime situation changes.

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