How might we make food delivery affordable for people by providing a platform for restaurants to achieve in house food delivery?
Ordering food from the comfort of home is not anymore just a convenience but a luxury. Restaurant owners are hiking the price of the food in order to make up for the high commissions to third-party food delivery services.
There is no effective platform that unites local restaurants who are willing to do in-house delivery to help grow their sales and reduce the cost to their customers.
User Pain Points
- Customers are not able to book from local restaurants that provide dine-in only
- Customers pay more for food delivery services from existing third-party delivery apps
- Restaurant owners are paying high commission on third-party delivery services
- Restaurant owners have reduced sales because customers are ordering less
- Third party delivery apps orders are not fulfilled if tips provided by customer is low, thus restaurants are making a loss by wasting food
According to Paytronix, 63% of restaurant customers have not used a third-party delivery service since early 2020. Four in 10 said it’s because they don’t want to pay delivery fees, and more than a quarter said it’s simply too expensive.
While conducting our own user research, 100% of customers interviewed are affected by delivery surcharge. People are not able to order food from restaurants at nominal delivery charge. 75% of customers I interviewed opt to pick up or cook at home because of the high overall cost of the food delivered to home. 100% of people interviewed were not able to order from their favorite restaurant which they are willing to support by paying a nominal fee whereas the restaurants are depending on third party delivery apps like Uber Eats, Doordash, Skip meals etc. which are costing more for users.
Landing on the Solution
Based on our customers and restaurant owner’s pain points, we would like to create a platform Localite which lists local restaurants having their in-house delivery system. In-house delivery systems would be a new norm, as it can reduce the cost to customers thereby increasing restaurant sales and more satisfied customers.
Possible additional problems to address,
- Support accessibility
- Provide services from in home delivery/catering
- One click place order
- Support chatbots
Product Manager Learnings:
Swathi Rumale Shivarudra
- I am more empathetic than ever
- Understood how pain points of people can be simplified and resolved
- Mentor feedback was valuable to understand my mistakes which helped me to improve on spec
- User story helped me to place in different people shoes
- Co.lab is very engaging and I got to meet some really cool folks