Can Any Startup Take Down OpenTable and How?
The restaurant reservation industry has been dominated by a few key players, notably OpenTable. However, is it possible for any startup to disrupt this landscape and take down OpenTable? The answer lies in innovative consumer solutions and strategic market entry.
Understanding the Competition
OpenTable has arguably the largest market share and has been a leader in the restaurant reservation space for years. Its success is largely due to its robust sales software and efficient user experience. However, if a startup can find a scalable way to drive more foot traffic into restaurants than OpenTable, it could very well put a dent in OpenTable's dominance.
Who Could Take Down OpenTable?
The question of who could possibly take down OpenTable is intriguing. Based on the current landscape, a promising candidate is Rezbook, which is part of Urbanspoon. Although other startups like Urbanspoon have tried and failed, Rezbook stands out as a potentially viable contender. Unlike previous competitors like UberEats, Rezbook leverages better pricing, more advanced hardware, and integration with a popular consumer app for foodies, giving it a competitive edge.
The Strategy: A Platform with a Consumer Focus
The key to disrupting OpenTable lies in building a consumer-facing product that resonates with regular diners. Traditional competition through sales software or direct price competition is challenging due to OpenTable's well-established market position. However, by focusing on a compelling consumer product that gathers a massive user base in a highly disruptive manner, any startup can create a viable alternative.
Building a Consumer-Friendly Solution
Rezbook's approach is particularly noteworthy. It offers better pricing options, integrates with popular consumer apps, and leverages iPad hardware. The focus on attracting sales to a critical mass is crucial. While this can take substantial time, the strategic use of consumer centricity and advanced technology can significantly accelerate the process.
Market Analysis and Pricing Comparison
To understand the competitive landscape, it's important to look at the pricing strategies of different reservation platforms. According to the Wall Street Journal (WSJ), OpenTable charges an initiation fee ranging from $600 to $700, with an average monthly fee of $270 and a charge of $1 for each diner seated. On the other hand, Urbanspoon charges a monthly fee of $99 and $1 per head. A third service for 31 restaurants charges $49 a month and $2 per head.
Full Article Details
For a comprehensive comparison and more detailed analysis, you can refer to the full article from DailyFinance.
Conclusion
While OpenTable currently holds a significant position in the restaurant reservation market, it is not impossible for a startup to take it down. By focusing on creating a consumer-friendly product, leveraging better pricing and technology, and strategically growing a massive user base, any startup can challenge OpenTable's dominance. Rezbook, as part of Urbanspoon, is an example of a promising contender in this race.