The document suggests that investing in technology and processes can help restaurants overcome these challenges and provide a high-quality delivery experience.
Direct-to-consumer (DTC) refers to businesses that sell their products or services directly to customers, without relying on third-party retailers or other intermediaries.
As we head into 2023, the delivery industry faces a new set of challenges, with one of the biggest being the high fees charged by delivery marketplaces like Uber Eats and Rappi.
While these platforms have provided a lifeline for many businesses during the pandemic, the high fees they charge for their services are putting a significant strain on businesses.
For example, Uber Eats charges restaurants a commission fee of up to 30% on each order, which can eat into already slim profit margins. Rappi's fees are even higher, with some reports indicating that the company charges up to 35% commission.
For small and independent restaurants, the fees can be especially burdensome, as they lack the bargaining power of larger chains. Some are even opting to stop using these platforms altogether, which can lead to a loss of revenue and customers.
As a result, many in the industry are calling for greater transparency and regulation of these delivery marketplaces. Some have suggested that restaurants should be allowed to charge customers a delivery fee to help offset some of the costs.
In the meantime, restaurant owners are having to get creative to stay afloat. Some are offering curbside pickup or in-house delivery to avoid the high fees of third-party platforms. Others are focusing on improving their online ordering systems to encourage customers to order directly from their websites.
As the restaurant industry continues to navigate the challenges of the pandemic and beyond, finding a way to manage the high costs of food delivery marketplaces will be crucial for many businesses to survive.
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