With the changing dynamics of the F&B industry, home delivery has become a must-have feature for any restaurant to add to its sales. With food aggregators like Swiggy and Zomato coming into the picture, it has been a big advantage for restaurants to extend their home delivery option for the end customers. But would it make sense for a brand to have its own fleet of riders to provide the delivery option for the customers? Let’s find out.
Advantages of in-house delivery
Having an in-house delivery system not only helps with having better control over the operations and quality of service but also lets the brand have direct interaction with the customers with the last-mile delivery. This also helps brands know about their customer’s demography and better identify the trends of the customers. This information can be useful on the business level to analyse the trends of the market and the average frequency of repeat orders and customer life cycle.
Marketing becomes easier and more effective as the brand can run campaigns based on the customer’s activity. For example, marketing to a loyal customer who places multiple orders in a week would be different when compared to one time customers.
Although a brand can benefit from having in-house delivery operations, there are challenges that come with it. Firstly, this can be an expensive affair as it would require a larger capital investment. The brand would need to invest in logistics — for instance, buying or renting bikes, fuel and would need to incur the expenses of hiring and training the delivery staff.
There are complexities when it comes to logistics. Estimating the peak delivery hours and using the resources accordingly is the key to efficiency. It’s important for a brand to define the trade area radius and the delivery time within the radius to better plan the operations.
UrbanPiper to the rescue
With an in-house delivery system, a brand needs a reliable technology partner to manage the operations better. UrbanPiper helps brands set up a user interface and order management system and a solution to manage the delivery fleet.
Order Management System (OMS): UrbanPiper helps set up apps and a website to provide a medium for a brand to receive orders from the customers. On the back-end, it becomes simpler to manage the menu, define the delivery area radius, and accept the orders, just like that of aggregators. This reduces the resource cost to manage the orders. It also helps with marketing efforts and branding as the platform can be used by the brand to connect with customers and run promotions based on the customer life cycle stage. Brands that rely heavily on orders through phone can use the Satellite order taker to punch in the order and assign it to the delivery person.
Comet: A tool that helps businesses with fleet management. Comet can be used to manage and assign orders to riders efficiently. A rider can know which order is assigned to him/her and also get the direction to the location using the map in the app. A delivery person can also prioritise the deliveries of picked up items based on the distance and remaining time shown in the app for an easy job. It gives more visibility on the rider efficiency to the brand.
Automated notifications and SMS help keep the customer in the loop on their order status, making it easier for them to track the orders. Comet also helps in reconciliation with the delivery agents for the payments collected in cash on delivery mode.
To be or not to be?
It’s a numbers game. Based on the brand value and expected order volume, a brand can plan to have an in-house delivery option for the customers. Setting up one can be an expensive affair, but when done right, with streamlined processes and a good marketing strategy, a brand can not only grow it’s sales numbers but also enhance its brand recognition and brand value in the market.