Trip Delivers is a new company in the rideshare market competing in the delivery space with third party delivery services such as Uber Eats, Grub Hub, Door Dash and Postmates.
The BUSINESS MODEL.
The food delivery business is a fast growing market sprurred on by the COVID pandemic of 2020, but set to continue to rise 300% or more by 2025 to a 80-100 Billion dollar market.
There are currently 4 multi billion dollar companies serving the food delivery market in Uber Eats, Grub Hub, Door Dash and Postmates as well as many in the hundred million plus income.
They ALL do the same thing, which is act as the Middle Men, or the Third Party and squeeze as much money as possible from the restaurants, consumers and drivers to make big profits for their investors.
While these companies have done well and have come to be integral to the day to day running of a restaurant in 2020 there are many who are unhappy with the way that business is being done.
From the driver’s perspective…they have no idea how much they make for each trip. If the consumer is paying a delivery fee…shouldn’t that go to the driver? You’d think so, but they only get a percentage and have to rely on tips to make any decent income.
From the restaurants perspective…they have to pay a percentage of each delivery to their third party vendor usually between 20%-40% of the order. PLUS, the vendors mark up their prices so they have to pay even more.
When you factor in food cost, delivery and overhead…it leaves very little profit if any at all. Some deliveries actually go out at a loss!
Finally, for the consumer, without whom there would be no business…they are getting screwed with higher prices and service fees added in to pad the pockets of the billion dollar giants.
It can cost almost double the price listed in the restaurant to get food delivered to your door. Shouldn’t it just be a food cost plus delivery fee like the pizza joints used to do?
Now a $10 burger can be marked up 30% by the vendor (not the restaurant…they don’t get the extra money), then they tack on delivery fees plus service fees. All this is added into the final bill which can make your $10 burger as much as $20+
No, I don’t think so either.
So, what has Trip Delivers done differently?
Well, for a start, they cut out the middle men.
That’s right…instead of charging a percentage of the delivery total they charge a flat fee of $3 per delivery.
Let’s compare that to a typical $40 order.
Other delivery companies charge 20-40% or $8-$16 in this case.
Trip Delivers charges $3…AND if the restaurant decides to enroll in an annual membership @ $99 at the time of this writing, they can lower EVERY delivery to $2 flat fee.
That can be saving the restaurant as much as $14 on a typical $40 order.
That’s an extra $14 PROFIT on EVERY delivery.
Can you see how this alone can save some restaurants from going under?
So, how does Trip Delivers Make Money?
Well, they charge the drivers to use the software that allows them to deliver the meals!
WAIT A MINUTE!
They charge the DRIVERS?
Yes, but hold on…let me explain.
Drivers are not accustomed to paying anything to be able to drive for these other third party companies, but what they don’t realize is that they are not making all the money from the delivery fees. They only get a percentage of it. The rest goes to Uber, or Grub Hub etc.
With Trip Delivers…Drivers get to keep it all!
They get 100% of the delivery fee, plus tip, plus wait time if there is any and they get paid more for every delivery starting at around $5.50 for the first mile and $0.75 per mile after that.
Now, that adds up!
So, if the average is about $10 per delivery and you do 75 deliveries a month you make $750.
To drive for Trip Delivers as a “Side Hustle” driver you pay a monthly fee to use their software of $39.99 so, there is a $710 profit. Not bad!
One of the big problems with all the other companies out there is we don’t really know how much they pay out to their drivers, but I can guarantee it is nowhere near 100%.
Let’s say it is 70% to the driver and 30% goes to the third party delivery company.
That means a driver would make 70% of $750 which is $525 instead of $710.
So, actually, the driver is paying $225 to make those same 75 rides which Trip Delivers charges $39.99 for.
How Does Trip Delivers Benefit the Consumer?
Well, as I said above, without the consumer, there is no business, so Trip Delivers wants to treat the consumer well. The way they do that is by cutting out all the hidden fees.
It might seems like the consumer is paying more for delivery with Trip Delivers as they are not used to seeing high delivery fees as they are often hidden. But, ultimately, they are paying in other ways. Whether it is the price hike on the menu items that the restaurant has no control over, or the service fees, which nobody knows what they are for, the consumer ends up paying a higher price to get food delivered than they should.
Trip Delivers also gives an individual merchant account to both drivers and restaurants so money travels straight from the consumer to the driver an restaurant without any interference.
The receipt that the restaurant gets as well as the driver and the consumer are all the same, 100% transparent so everyone knows what they are being charged for.
It is a simple business model that benefits everyone. But, there is one more REALLY important element.
Trip Delivers is NOT like all the third party companies who have raised millions of dollars in investments to start their business. Trip Delivers is a grass roots business that relies on word of mouth from people on the street to share their message. And, in doing so, they are willing to compensate very well when actions are taken, like signing up a restaurant or a driver to their system.
They have factored in affiliate commissions for referring people into the Trip Deliver Business Model that can be quite generous to the right-minded business person.
Each delivery has a small commission factored in so whoever referred the restaurant to Trip Delivers gets a commission on every delivery in perpetuity that the restaurant sends out.
That small commission is $0.40…which may not sound like much, but if a typical restaurant does 20 deliveries a day through Trip Delivers that adds up to $8/day. Multiply that by 30 and you get $240/month and for 12 months that comes to $2880/year.
Not bad for sharing the message of savings to the restaurant owner.
But, what happens when you introduce 10 restaurants or even 100 restaurants in your area to Trip Delivers?
That $2880/year per restaurant all of a sudden adds up to a huge income for many.
Trip Delivers NEEDS the people to get out there and share the message with restaurants, drivers and consumers to make their business model work.
This is only one area of Trip Delivers Compensation Plan that allows everyone to earn while doing something that they are already doing. Ordering, delivering and preparing food.
To learn more about Trip Delivers you can listen to this interview I did with Trip Delivers CEO Bob McNulty (a fellow Scotsman in heritage)
To read along with the interview, view this article on Business Innovators Magazine https://businessinnovatorsmagazine.com/bob-mcnulty-shares-how-trip-delivers-saves-restaurants-thousands-while-giving-drivers-a-serious-pay-rise/
To get started as a restaurant owner, driver or consumer, click one of the links below.