The Future of Pizza Delivery: Will It Transition to DoorDash, GrubHub, or Uber Eats?

With the rise of online ordering and delivery services, the pizza and food delivery industry is on the cusp of significant change. But as ever, the question remains: will pizza delivery services like Pizza Hut, Domino's, and local pizzerias transition fully to third-party delivery platforms like DoorDash, GrubHub, or Uber Eats? It's a toss-up whether these platforms will become the primary means of delivery for pizza and other home-cooked meals.

Benefits of Third-Party Delivery Services

The advantages for food service providers are clear. Third-party delivery platforms like DoorDash, GrubHub, and Uber Eats can bring in more orders by expanding the delivery range beyond what the restaurant's own drivers can achieve. These platforms also handle the logistics of delivery, including payment processing and order tracking, reducing the management burden for restaurants.

The flipside, however, is that these platforms take a cut of the profits. This commission can significantly reduce the profit margins for the restaurants. For instance, DoorDash and GrubHub typically take a commission ranging from 10% to 25% of the order value, while Uber Eats is slightly more generous, taking up to 30%.

Delivery Roles and Responsibilities

A common misconception is that third-party delivery services will fully replace the roles of restaurant employees. However, this is far from the truth. Delivery drivers still perform a myriad of tasks once handled by restaurant staff.

These duties include:

Washing dishes: In many cases, delivery drivers also clean the dishes before and after each delivery. Cleaning the restaurant: The janitorial tasks that ensure the restaurant remains clean and hygienic are also handled by the delivery drivers. Frying and cooking: While not as common, some drivers are responsible for preparing the food, especially during off-peak hours. Food preparation: From making the dough to rolling pizzas, drivers can help with these tasks to ensure fresh and hot food arrives with each delivery. Sorting the orders: Sorting and packing the pizzas and other items ensure they are ready for delivery.

The reality is that if a restaurant fully transitions to third-party delivery, many of these roles will still need to be filled, either by the restaurant staff or by the delivery service. This makes the complete transition less likely, as it would not substantially reduce operational costs.

Current Practices and Future Trends

Currently, many pizza and food delivery services use third-party platforms to augment their own delivery teams. This way, they can capitalize on the benefits of increased delivery volume and reduced management burden without completely relying on third-party fees. For example, Domino's and Pizza Hut use platforms like Grubhub to get more orders, but still have their own drivers deliver the pizzas. This hybrid model allows them to leverage the advantages of third-party services while maintaining operational control.

Looking to the future, we expect to see a blend of third-party and in-house delivery services. While third-party platforms will continue to grow, their reliance on drivers for food preparation and management tasks will ensure that restaurants retain some level of control over their operations. As regulations and consumer preferences evolve, we anticipate more innovative solutions to emerge.

Conclusion

The pizza and food delivery industry is evolving, but a total transition to third-party delivery platforms is unlikely. While these platforms offer substantial benefits in terms of order volume and operational efficiency, the roles of delivery drivers and the underlying operational tasks cannot be entirely outsourced. As such, we can expect a continued mix of in-house and third-party delivery services, ensuring that restaurants and consumers can enjoy the convenience and quality of delivery without substantial changes in their current workflows.

Keywords: pizza delivery, DoorDash, GrubHub, Uber Eats