Third-Party Platforms Deliver the Goods
By Angela Altass
Whether it’s snacks, foodservice, or groceries, Canadians continue to order items online for delivery or pickup.
DoorDash’s Restaurant & Alcohol Online Ordering Trends 2024 report shows that 18 per cent of consumers are ordering more delivery compared to 2023.
C-stores often partner with third-party delivery platforms to offer this convenience to their customers. DoorDash’s survey indicates that 54 per cent of respondents prefer third-party apps when ordering delivery.
SkipTheDishes announced an expansion to more than a dozen new cities this summer with enhanced restaurant and convenience delivery across Alberta, British Columbia, Manitoba, and Ontario.
“Supporting our ambition to deliver more of what Canadians want, we are thrilled to be bringing Skip’s unparalleled convenience to even more doorsteps across the country,” says Loraine Nyokong, head of local partnerships at Skip. “With this latest phase of our expansion, we’re proudly strengthening our partnerships with local restaurants and small businesses nationwide, connecting them with loyal customers and bringing them more hungry demand through the Skip network.”
Skip has been growing its grocery, retail and convenience offerings across the country and is now available in more than 450 cities and towns across Canada.
An Intouch Insight Third-Party Delivery Study, released in September, provides insights, across restaurant and convenience store segments, into the performance of three leading food delivery companies: DoorDash, Uber Eats, and Grubhub. The study, conducted in partnership with Informa Connect Limited, highlights factors that influence customer satisfaction and the effectiveness of delivery operations for orders placed for made-to-order food from both restaurants and convenience stores.
“Our study reveals the continued importance of speed, accuracy, and overall experience in third-party food delivery,” says Cameron Watt, president and CEO of Intouch Insight. “As the delivery market expands, understanding these key drivers is essential for restaurants and convenience stores looking to protect their brand reputation and stay competitive.”
The report explores the differences between orders placed with both restaurants and convenience stores, providing actionable insights for operators in both segments. Orders placed with restaurants outperformed convenience stores in the evaluated metrics, with independent restaurant brands leading the way over chain restaurants.
The report states that delivery partners picking up meals from c-stores often struggled to distinguish between pre-packaged snacks and made-to-order meals.
“Our report sheds light on areas for restaurant and convenience store brands to focus on to improve their performance in the third-party food delivery space,” says Watt. “Customers now have almost limitless options at their fingertips, so understanding the strengths and weaknesses of operations, including third-party providers, will be critical to ensure that brands are able to meet and exceed expectations in this ever-blurring food market.”
DoorDash emerged as the top performer in the Intouch Insight study. DoorDash’s 2024 trends report indicates that 51 per cent of consumers ordered food delivery in the past month while 66 per cent of consumers picked up takeout in the past month. Sixty-five per cent reported using food delivery for an urgent situation where they needed food last minute.
The report indicates that last minute delivery needs are slightly more common among men at 68 per cent, than women at 63 per cent and it’s more common for Gen Zers (19 per cent) and Millennials (18 per cent) than Gen Xers (nine per cent) and Baby Boomers (four per cent).
Fifty-seven per cent of customers ordered from a new store in Q1 2024 on DoorDash Marketplace compared to the stores they ordered from in Q4 2023 while there was a 19 per cent growth in same-store delivery orders.
The report shows a 65 per cent growth in alcohol orders on DoorDash Marketplace in 2023 versus 2022 and 120 per cent growth in the low and non-alcohol beverages market over the past three years.
For 28 per cent of consumers, third-party apps are their preferred way to browse for food but Gen Z and Millennials are even more likely to use these apps than older people. Third-party apps are more frequently used than telephone orders.
Friday and Saturday are the most popular days of the week to order food delivery.
The most popular food orders on DoorDash Marketplace in 2023 were chicken dishes, sandwiches, pizza, sushi, and vegetable tempura. Breakfast meals from 5-11 a.m. saw 45 per cent growth year over year and orders between midnight to 5 a.m. grew by 36 per cent.
Forty-nine per cent of consumers in Quebec ordered delivery using third-party apps two to four times in the past month. However, some of the respondents in Quebec favoured pickup over delivery because they happen to be near the restaurant (48 per cent), the fees are lower (38 per cent), or they can get the food faster (32 per cent).
Respondents to the DoorDash survey spanned a variety of ages, careers and income levels.
Convenience stores need to find ways to attract the attention of online shoppers. DoorDash advises prioritizing your online presence and ramping up marketing efforts to appeal to consumer needs. Boost visibility across third-party platforms and update your listings with keywords and high-quality photos. It also advises investing in durable, eco-friendly containers and utensils for food service orders and training staff to take care when packaging orders.
