Industry Breakdown: The Growth of Third Party Logistics

DoorDash 5/25/19

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Why should restaurants be thinking about third party logistics?

We are in the age of convenience. Now more than ever, customers want on-demand service and instant gratification. However, these new demands can cause challenges for restaurant owners: there is only so much they can do in order to expedite the cooking and delivery processes. That’s why more and more are turning to third party logistics platforms to ease them into delivery.

What are third party logistics?

Many restaurant owners aren’t entirely sure what “third party logistics” actually means. It sounds intimidating, but third party logistics are a simple way for restaurant owners to incorporate delivery into their business model. Instead of worrying about things like delivery timing and drivers, third party companies handle all delivery logistics for them. This allows restaurateurs to focus on the thing most important to them: creating the best possible food.

What does the third party industry look like?

Third party logistics--aka the food delivery industry--is booming. This industry is relatively new, but it’s growing fast: the $43 billion in 2018 delivery is expected to rise to $76 billion by 2022. According to industry sources, there is a possibility that “by 2030 most meals currently cooked at home are instead ordered online and delivered from either restaurants or central kitchens.”

Why wait until 2030, though? There’s an opportunity for restaurant owners to increase their orders and profits now, while outside companies like DoorDash take on all delivery pains. Restaurateurs leave delivery up to DoorDash because we have developed the most robust, sophisticated, and fastest growing logistics platform within the industry. This means we:

  • Do over 800,000 deliveries per day
  • Operate in +3,000 cities across the US
  • Work with 245,000 merchants
  • Own 27% of the market within the industry

All of these things come together to make DoorDash the fastest growing delivery platform in the industry. DoorDash knows that restaurant owners aren’t experts on delivering food, but that’s why we are.

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