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Updated by Lightspeed APAC on Jul 15, 2021
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5 Pros and Cons of Partnering with a Delivery Platform

This list explores the pros and cons of hospitality venues partnering with an online delivery service.


Pro: Boost revenue during quiet periods and unpredictable lockdown

Offering takeout through a delivery partner gives you an extra revenue stream to fall back on when there’s less foot traffic, such as bad weather days or typically slow periods like Sunday nights. And, with ongoing covid restrictions and lockdowns, it’s best to be prepared. Partnering with a third-party delivery platform will future-proof your venue so you’re ready to serve your customers, even if you’re forced to close your doors for dine-in service.


Con: High commissions

Let’s address the elephant in the room. Food delivery services, such as Uber Eats, can charge up to (and sometimes more than) 30% commission which undoubtedly eats into profits. Margins are already tight for most hospitality businesses and every dollar really does count. However, the pros of partnering with a delivery service need some serious consideration as they can provide a wealth of new customers and revenue streams.


Pro: Reach new customers

Partnering with an online food delivery service will mean more customers and more revenue. It opens up a whole new base of people previously restricted by location or because they didn’t know about your venue.

Tempting new customers with delicious sounding dishes and providing them with great food will go a long way in encouraging them to visit you in person, or at least order from you again.


Pro: Enhance your marketing

Delivery platforms actively advertise venues on their apps and websites, helping you to reach even more customers without having to lift a finger. Plus, this extra exposure can also encourage people to check you out in person.

It also means you’ll be able to benefit from gaining access to things like expert advice on tailoring your home-delivery menus, and demographic data to improve your marketing or grow your delivery reach.


Con: Lack of brand control

Outsourcing delivery can be nerve-wracking as you have less control over your brand & how customers experience it. Late deliveries & cold or spilt dishes can reflect badly on your business, even if you get them out of the door on time.

It’s important to remember that you’re ultimately still in control of the customer journey. You can tweak your delivery menu to only offer dishes that will travel well and include special touches such as signature condiments to set you apart and keep your brand top of mind.


Future-proof your venue with online delivery

Food delivery platforms are a great way to open up an extra stream of revenue, even during quiet periods. If you do choose to partner with a food delivery platform it’s important the integration causes as little disruption as possible to your current operations. Lightspeed Delivery, for example, lets you automatically sync delivery orders from Uber Eats, DoorDash and Deliveroo, straight to your POS and kitchen printer just like a dine-in order.