Too lazy to cook or just don’t have to ingredients in the fridge. It’s raining outside too. Never have the stars aligned to such perfection to convince you to order take-out delivery. 20 years ago, you would have had to get in your car and pick It up or else pick one of the few places that did delivery. Now things have changed, and this problem doesn’t exist anymore.
Taking a look at the Australian market, it is packed with delivery companies happy to pick up and deliver your pizza, Chinese, Indian or whatever is on the menu that night. UberEats, Menulog and Deliveroo are all competing for space in the market so what sets them apart?
All three companies have taken up position in the major cities throughout Australia although UberEats seems to have the widest reach in Sydney servicing the eastern suburbs and CBD all the way to some of the most western suburbs.
Ubereats, launched by ride sharing company Uber, entered the market late which allowed them to capitalise on other competitor’s mistakes. Complaints about cold deliveries as well as extra hidden charges for time taken in delivering the food, convinced UberEats to stick to a flat $5 delivery fee. While the app restricts delivery within a certain radius to ensure the food will arrive on time and can work out economically.
Deliveroo, launched in London in 2013, growing quickly to deliver in 84 cities by 2016, the company has had success as an early entrant to the market. They have also created a delivery only kitchen in Melbourne. Chef’s from several different restaurants work in this Deliveroo kitchen and instead of handing the dish to a waiter it goes out to the delivery driving immediately. With similar shops in London and Singapore, revenue jumped by more than five times for the company.
Menulog, founded in 2006 and the oldest of the three competitors, has over 4,000 restaurants in its database and has had steady growth in the past 8 years. Unlike UberEats and Deliveroo, Menulog does not provide delivery with its own drivers.
With an industry worth over $600 million, Menulog is said to be leading the chasing pack. With an expectation of industry growth to be $2.4 billion by 2025 there is plenty of money to be fought for between the three big players. And in a relatively new market, much more to come by the way of inventions and development.