A third-party delivery service brings packages to businesses on behalf of other businesses. Restaurants and other businesses often use third-party delivery services to let their customers order online and have food delivered whenever they want. With these app-based services, people can use their phones to order meals, beverages, and other things whenever they want.
What is a Third-Party Delivery Service?
A third-party delivery service acts as an intermediary, establishing connections between customers and restaurants or businesses to deliver products, primarily food, in an efficient manner. These services function as intermediaries, taking on the logistical tasks associated with the delivery procedure.
The way most third-party delivery services work is the same:
- People get the provider’s app and use it to make orders at stores or restaurants.
- The ordering system on the platform sends those orders to your company via your POS system or a mobile device.
- You get in touch with local delivery drivers who will bring your packages to the right place.
- In exchange for making it easier to order and get deliveries, these companies charge cut fees. People also pay for delivery and leave a tip for the driver.
When business owners work with these service providers, they do have some choices. You might be able to use only the platform’s ordering system if you want to hire your driver for delivery or let people pick up their orders.
List of the Best Third-Party Delivery Services
1. DoorDash
DoorDash is a big name in food delivery. It works in most big cities and has partnerships with both small businesses and some of the biggest chain restaurants in the business.
There are a lot of people who use DoorDash, which means that if your restaurant is in this marketplace, a lot of people will see it.
DoorDash Pricing
Depending on the plan you choose, DoorDash charges most businesses between 15% and 30% of each order as a delivery fee. You can also use DoorDash for “white-labeled” delivery, which lets you connect DoorDash to a delivery website that you already have. You can also offer self-delivery (using DoorDash’s ordering network but your delivery drivers) and consumer pickup. For these two order types, you’ll be charged 12% and 6%, respectively.
DoorDash charges a set price of $6.99 to $10.99 for this type of order, and you can use their drivers with your restaurant’s website or online ordering app.
On the regular DoorDash app, merchants don’t have to pay any fees to process credit cards. But if you use DoorDash Storefront to offer DoorDash delivery from your website with your own logo, you’ll have to pay 2.9% plus $0.30. DoorDash Storefront doesn’t charge any fees other than the cost of processing credit cards.
Integrations with DoorDash POS Systems
DoorDash works with many of the best point-of-sale (POS) systems for small businesses, such as Square (a free POS system), Toast, Aloha, Clover, Harbortouch, and more. You can also use an order aggregation service like Chowly, Deliverect (which lets you connect Lightspeed POS), or ItsaCheckmate to connect DoorDash to your POS.
2. Grubhub
If you’re in the US, Grubhub is another big third-party delivery service that you can use in most of the big cities.
Grubhub can get pricey according to your marketing package, but their website has a handy price calculator that can help you figure out how much money your restaurant will make each month if you add Grubhub as an option for delivery.
Grubhub Pricing
Grubhub’s commission fees range from 15% to 30%, based on how many marketing tools you choose. This includes a base price of 5% to 20% and a delivery fee of 10%. You can change your marketing fee to get more people to see your app. For higher plan levels, you can get loyalty bonuses and sales that help you make more sales, and your clients will pay less too.
For as little as 10% of the total order price, Grubhub offers on-demand delivery services with Grubhub delivery drivers but not any of the other Grubhub services.
Businesses also have to pay a 3.05% + $0.30 payment processing fee to Grubhub.
Integrations of Grubhub POS Systems
Grubhub works with a lot of well-known point-of-sale (POS) systems, like Clover, Revel, Toast, Upserve, and NCR. It also works with third-party order aggregators, like Delivery, Chowly (which lets you send Grubhub orders to your Square KDS), Ordermark, and ItsaCheckmate.
The Grubhub is best for small business owners who:
- Need to use a good marketing suite.
- Want free things like a consultation and a photo shoot for your menu?
- Are willing to pay processing fees for their clients.
3. Uber Eats
After DoorDash, Uber Eats is the most-used food delivery service in the US. However, Uber Eats does not just deliver food. It also works with NimbleRx to deliver prescriptions.
The huge Uber network helps Uber Eats. This network includes customers of Uber who use the popular taxi service.
Uber Eats Pricing
There is a standard delivery option on Uber Eats, as well as a pickup option with a lower fee, a self-delivery option, and a white-label delivery on-demand option. According to your plan, Uber Eats charges a 15–30% delivery fee or a 6% fee for orders picked up at the restaurant (the same as DoorDash). You’ll have to pay 15% for self-delivery orders, which is a little more than what DoorDash charges for this kind of order. Prices for on-demand delivery aren’t shown because they depend on how far away the delivery is.
Businesses don’t have to pay Uber Eats any fees to process orders placed on the app. The processing fee for Uber Eats webshop is 2.5% plus $0.29 per order. This is an online ordering service that lets you add Uber Eats to your existing websites.
Integrations with Uber Eats POS Systems
Uber Eats works directly with POS systems like Toast and Lightspeed Restaurant, as well as with Deliverect, Chowly (which lets you connect to Square for Restaurants and other systems), and ItsaCheckmate.
You can also add your own point-of-sale (POS) to the system. Not only that, but Uber Eats can also be used with pharmacy point-of-sale systems because it can deliver prescriptions.
It’s best for small business owners who:
- Need to take advantage of a large user base and well-known names.
- Do not want to pay fees for app orders.
- Requires a basic, easy-to-use layout that could be used for more than just food delivery.
4. Instacart
Instacart delivers groceries most of the time, but they also deliver alcohol and other items from stores.
When a store partners with Instacart, they don’t have to think about as many things as they do when they work with restaurant delivery services. Instacart has individual buyers who will pick up the items themselves, and your business may be on their platform even if you don’t know it.
Instacart Pricing
Online, Instacart doesn’t say how much it costs businesses, and it’s not clear how stores can work with Instacart right away. To learn how to put your goods on Instacart, you’ll need to get in touch with the business. As Forstacart says, stores can establish their own prices on the app, and those prices may be higher than what they offer in person.
Integrations with Instacart POS Systems
While Instacart doesn’t have built-in POS integrations, you can use its API to sync your POS transaction data with Instacart and get a more accurate picture of your sales.
You can also add Instacart to your eCommerce site with the help of the Instacart API.
This app works best for small business owners who:
- Want to avoid having to market to both drivers as well as clients that
- Need more than just basic food delivery
5. Roadie
Roadie is a UPS company that wants to use the public to help with delivery. Ninety percent of American homes, from New York City to Los Angeles, are covered by the platform. You can get same-day delivery, but it might not be as quick as DoorDash or other companies that deliver food on time.
If you make meal kits or bring food to restaurants, Roadie might be a good choice.
Roadie Pricing
You can get catering delivered, and it’s about $11 per delivery for five to nine small items within a five-mile radius. Roadie says that if a business sends five or more deliveries every day, it can save up to twenty-five percent on delivery fees.
The cost of each delivery goes down as more packages are sent. With Roadie and UPS’s improved delivery system, small businesses can grow.
Why is Third-Party Delivery Service Apps Important?
- You can save money with third-party apps.
People who use third-party delivery apps instead of in-house delivery may be able to save money on costs. Not only that, but you won’t have to pay expensive petrol or hire delivery drivers. Saving money on hiring expenses is especially important right now, when there aren’t enough workers and a lot of restaurants are firing their staff.
- You can use more than one third-party delivery app at the same time.
Since most delivery apps work on a commission-based system, your restaurant can use more than one at the same time without necessarily spending more each month. This makes your business visible in more than one online market, attracting more customers.
- It is easy to use third-party delivery apps.
It’s easy to set up and use third-party delivery apps. Most of the time, using a delivery app is simpler and quicker than setting up your own delivery service. The whole ordering process is done automatically, so you don’t have to worry about setting up deliveries. Your delivery apps should be able to work with your point of sale (POS). This will make the process even easier.
Because you are aware of the legal and compliance issues and have considered the pros and cons, you can decide if third-party delivery services are the best choice for your business.
Explore NextBillion.ai’s Delivery Solution
If you are a business that wants to explore in-house delivery options, then NextBillion.ai is a perfect partner for you. We offer end-to-end solutions for all the delivery requirements. NextBillion.ai offers various Delivery solutions for different use cases, such as:
Last-Mile Delivery
Businesses can Streamline Last-Mile Delivery Routing — No Need for Post-Processing.
Streamline the pre-planning, capacity planning, and zone-based allocation for deliveries. Implement dynamic route reoptimization to enhance operational flexibility and ensure reliable performance.
Our last-mile delivery solution offers businesses the following capabilities:
- Make sure that grocery delivery services are on time and work well so that you can make more money and your customers are happy.
- Take care of new job delivery times based on current demand and capacity.
- Make it easier for people to send goods back to the companies that made them.
- Add last-minute jobs, changed addresses, and other unplanned events without problems.
Explore NextBillion.ai’s Last-Mile Delivery Solution.
Food and On-Demand Delivery
NextBillion.ai offers mapping solutions for every on-demand services like:
- Food and Grocery Delivery: Group and send orders in real-time
- Healthcare and Diagnostic Services: Enable quick and easy collection of test samples.
- Pharmacy Delivery: Determine accurate arrival times for medicine deliveries.
- Home care Service Providers: Based on skills, give cleaning, installation, and repair jobs.
- Beauty Services: Manage beauty and salon service schedules in an efficient manner.
- Courier Services: Enhance mail and package delivery cost estimations.