The Role of Location Intelligence in Food Delivery

To say that restaurants make money only by selling food on their premises would be not only archaic but also quite misinformed. Research has shown that most restaurants now earn significantly via off-premises sales; they make up 44 percent of their total earnings. But what’s interesting is that 1/4th of these off-premises food orders are designated for delivery. And if that weren’t true, brands like FoodPanda, Uber Eats along with many others, would have never existed. But the truth is that not only is there an abundance of food delivery service providers in the world, but they continue to flourish at a rapid pace, alluding to the vast potential of this industry.

And with the industry expected to touch $15 billion in value by 2023, it is a given that more and more restaurant businesses are looking to climb on the food delivery bandwagon. This pursuit, in turn, has led them to the doorstep of location intelligence. Why? Because it allows them to gauge and monitor various factors critical to the success of a food delivery business. It includes real-time traffic updates and locating delivery addresses among so many other things. To help you gain a better perspective in this context, we have listed some of the most critical ways in which location intelligence impacts food delivery.
  1. Effective assignment of delivery jobs: Assigning orders to delivery executives may sound ample, but it is anything but. To ensure the utmost efficiency in this process, location intelligence helps companies calculate the distance between the delivery executive’s location. It affected the restaurants as well as the time it would take for the executive to complete the delivery. It also enables concepts like batching, wherein one executive can make two deliveries if the delivery addresses are close enough to warrant it.
  2. Serviceability: Of course, not all restaurants operate all the time. But how do you relay that information to customers? No points for guessing, but yes, location intelligence. It not only helps customers to look for restaurants in their vicinity but also sees which of them are currently accepting orders. And we don’t have to tell you just how important this is for delivering high-quality customer experiences.
  3. Keep an eye on the competition: Another vital benefit of location intelligence is that it comes in handy for keeping track of rivals by enabling business owners to identify other nearby restaurants also engaged in the food delivery business, gain insights about their driver's patterns and more. As a result, they can better understand their competition in the market and adapt their strategies based on insights gained via location intelligence to achieve better business.

It is clear to see that food delivery isn’t merely another fad — it is here to stay! And for anyone who wishes to stay ahead of the curve in a market that presents intense competition, one must turn to geo-location-based mobile apps, for they are the metaphorical silver bullet that can enable extraordinary growth for any restaurant.
DorothyBrown 13 december 2019, 10:30
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