The Mexican chain Chipotle has introduced a delivery service for mobile and online orders in 67 cities. This week the company has announced its partnership with the food delivery app Postmates.
Postmates could have delivered Chipotle products before the announcement as well. The app employs drivers who go to any restaurant and bring the order to you. The food which was delivered using this app in the first quarter of this year is worth $500.000. Re/Code’ Jason Del Rey found out that for a burrito order the fee exceeds $11 so the total amount of money which needs to be paid is over $20.
Although this service was available before as well, only restaurants which have an official partnership with Postmates have advantages on the app, such as the complete menu and detailed logistical information including the hours. If you order food from a non-partner restaurant you have to provide the list with the items you want to order and you will not know how much the cost is going to be. In addition sometimes it may happen that the restaurant you are trying to buy from is closed. With the new partnership such things will not be a problem anymore. Postmates CEO, Bastian Lehmann, did not say whether the official partnership will lower the prices.
Other chain which has an official partnership with Postmates is Starbucks. The company will enable a delivery service to function in some selected cities. The trial period will be at the end of this year. Earlier this month Brian Niccol, Taco Bell CEO, announced that he also wants to try a delivery service before the end of this year.
For chains such as Chipotle and Starbucks this is a great deal since Postmates makes everything easy for them by taking care of all the logistics. Other chains like Burger Kings have tried to start their own delivery system, but this requires too much time, effort and risk.
Professor of hospitality from Boston University, Christopher Muller, said:
“This is about the changing dynamics of retail. It’s the fallout of the Internet shopping world.”
According to Lehmann the Postmates delivery service collaborates with almost 10.000 private contractors. Deliveries start from $5 if they are almost 1 mile outside the range of the store. 75% of the orders are delivered by car and 25% are delivered by bicycle or scooter.