Pros and Cons of Third Party Delivery System

1. In thirds party delivery system all delivery related things are outsourced by restaurant
management and their entire focus remain on the quality of the product/food to attract
maximum customer towards their eating joints. Third party provides all types of logistical
support and related delivery solution to restaurant owner. It reduces the burden of
restaurant of logistical related issues. (Digibeingz, 2019)
For
 Focus on quality of product/food: Since all logistical supports are outsourced to third party,
restaurant management focus remains on quality of foods that have to be delivered to
customer.
 Covering advertising and Marketing need: Third party Company’s use online app to collect
orders from customers, which reduces marketing and advertising cost for company.
 Outsourcing of delivery staff remove the cost that associated in delivering food to
customers.
 Wider Visibility: Get access to third party Company’s large pool of customer base through
third-party Delivery Company’s app. (Restolabs.com. 2019)
Against
 With the outsourcing to third Party, restaurant losses control over one of the most
important aspects of the customer experience. Yes, the delivery experience is vital part of
a business, and company has to relay on third party on quality logistical services it provide
to customers.
 Third party introduction increases the issue of proper communication with customer related
to delivery and logistical support.
 Less Brand Focus: Customers attention on food providing company/restaurant are less
than those who delivered food to them like third party Company, which reduces food chain
brand focus.
 No control over delivery process: Restaurant owner virtually had no control over delivery
process with the partnership with third-party delivery companies, which is very crucial
aspect. If negative things done by third party staff it could impact overall business.
 Communication related issues: Communication gap of any type by third party delivering
company can affect the credibility and trust of customer and can hurt business
performance. So, updating regularly about the price and menu on delivering app is very
important. (Restolabs.com. 2019)
Financially third party delivery system is very much viable but may be with fewer margins but
it will also take care of all your logistic problems. As discussed above, it would be advisable
here, that if you have financial efficiency, introduce your own delivery system instead of
hiring third party. In longer time period it will be more suitable option and financial more
profitable option. Or one can even start, with third party system and gradual as business
expand develop your own delivery and logistic system later on. (McKinsey & Company, 2019)
These are the points to consider:
 Increasing Your Bottom line: Third party’s customer base can help improve profitability and
sales of company.
 Cost Cutting – Can save lot of money of hiring any type of staff and avoid all the issues
that come with hiring, staffing, training and logistic.
 Revenue sharing: Sometimes Company has to share its revenue with Thirds Party to get
its food delivered to customers; this revenue can be between 10% to 30%. This can hugely
impact the profit of company. (Restolabs.com. 2019)

 Third-party delivering company’s apps also charged hefty premium from their clients for
premium space in their app to showcase your restaurant on the premium space.
2. There can be many other venues, other than restaurant, where similar delivery system can
be introduced. These can be:
These can be online delivery of clothes stores, cosmetic stores, and general e-commerce
marketplaces all can be categorised in upcoming online delivery business.
In general e-commerce one can think of hiring short term office staff, consultant for short-
term projects, hiring staff for general day to day household work through mobile app or
online portal at very short time period and sitting at your home.
3. Customers generally drawn to these online platform due to convenience of sitting at home
and order their favourite food with very nominal price escalation or even at same price.
Economic aspects effects positively for customers in following ways: (Schwartz, E. 2019)
Save time: It saves lots of time if one is short of time and also feeling hingry while working
in home or office, just click of a button would bring food at one’s doorstep in very short
span of time.
Save Energy: Not only time, but it also save your energy as well, because you don’t have
to run around, searching for best food joints in your city. Just select from online menu and
order it at your convenience and time, no need of running around.
Provide lots of option sitting at home: One can chose his or her food items from menu
which include everything vegetarian food, non-vegetarian food, continental, Chinese,
Italian, Indian, European or anything which you could wish to order from comfort of your
home.
For customers, third party delivery option provide more choices rather than one particular
restaurant delivery system, where choices are not many, just limited to one.
In third party delivery option people get list of food offered by many eating joints, hence,
menus are bigger and verities are also many as compared to one particular restaurant
delivery system.
So, for customer point of view it is online delivery platform of third party is better option.
4. Consumers concern for both the options are as following:
For both option restaurant deliveries as well as for third party delivery following point are
very important to be as consumer friendly restaurant:
For Restaurant delivery:
Quality of food and hygiene:
Price of food item
Option available, variety of food
Delivery time, time taken to deliver the food
Convenience of ordering
Conduct of customer care behaviour
Conduct and understanding of staff who is handling order of consumers