What is 3rd‑Party Delivery?

Third-party delivery services refer to restaurants that work together to allow food to be brought from restaurants to customers' homes. Many restaurants partner with 3rd party delivery services, such as Uber Eats, DoorDash, Grubhub, and Postmates, to expand the delivery services available to customers who like to order food for delivery. This service model has grown in popularity due to the increase in ordering apps.

Why is Third-Party Delivery Important?

The popularity and accessibility of 3rd party delivery services would not exist without extreme technological advances, such as smartphones, integration of software programs with POS systems, and improvements in GPS tracking technology. Since the creation of the first 3rd party delivery services nearly 30 years ago, these technologies have increased tremendously.

In addition, the desire for efficient online ordering is increasing, according to a recent Deloitte study on the future of restaurants. As consumers increasingly seek out convenience and friction-free digital experiences, off-premises dining will be an important source of growth in the entire food industry.

Analysts predict a compound annual growth rate (CAGR) in the online food delivery market of over 10% by 2028, and a recent DoorDash study found that 70% of consumers surveyed had ordered food via delivery within the last month, with one-third of them placing more delivery orders so far this year when compared to last year.

For Restaurants, capitalizing on this demand and growth opportunity is very important, but every situation is different. Ultimately, you need to evaluate whether a 3rd party delivery service is a suitable approach for your restaurant.