Tampa Third-Party Delivery Apps

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Part
01

Tampa Third-Party Delivery Apps

Doorstep and FoodNow were both acquired by Bite Squad, so we provided user fee, user review, and active user count information about Bite Squad instead. Further, Bite Squad was recently acquired by Waitr, so the market share, restaurant fees, and restaurant review information pertains to Waitr, as that is the source for such information as the parent company. Taking this into consideration, the requested information with the adjustments explained is included in the attached spreadsheet.

Findings

1. Bite Squad/Waitr (Doorstep and FoodNow)

  • Waitr's market ;share in 2018 (most-recent information available) was 1%.
  • Bite Squad has 889,000 active users.
  • Bite Squad's delivery fee for users is determined by how far the restaurant is from the customer.
  • Bite Squad has a 3-star-out-of-5 rating on Google Play based on 3,382 reviews. In the App Store, Bite Squad has a 3.8-star-out-of-5 rating based on 3,400 reviews.
  • Waitr implements a 15% commission fee for restaurants that generate more than $20,000 sales per month from using its platform, which stair steps to a 25% commission cap for restaurants that generate $1,000 or less in sales per month.
  • In the words of a restaurant owner that has been using Waitr: "Everybody is upset. I've talked to 20 restaurants, and they've said, 'If this is it, we're out.'" We found that sentiment echoed in other sources as well.

2. GrubHub

  • GrubHub's market share in July 2019 was 33.3%.
  • GrubHub has 17.7 million active diners.
  • User fees are not charged by GrubHub, but rather by restaurant customers ordering through its app, which usually costs $4-$8 per order.
  • GrubHub has a 4-star-out-of-5 rating on Google Play based on 247,500 reviews. In the App Store, GrubHub has a 4.7-star-out-of-5 rating based on 1.3 million reviews.
  • The following is a synopsis of restaurants' opinions about GrubHub: "Restaurants, meanwhile, have a love-hate relationship with the Grubhub platform (all of them, really). They see orders, but not always profitable ones, with Grubhub’s burgeoning customer list built at their expense."

Your Research Team Applied The Following Strategy:

In looking for information about Doorstep Delivery and FoodNow, we learned that Bite Squad had acquired both those companies. Thus, we realized that such acquisition would impact our findings with respect to financial-related information mainly, such as market share and restaurant fees. However, some of the information was available specifically for Bite Squad and we included such information as was available with notations specifying which information applies to Waitr and Bite Squad. Throughout our research, the sources we consulted ranged from the companies' direct websites, to news articles, and app ratings on both the Google Play and App Store.
Sources
Sources