Swot Analysis Of The Eat24 Restaurant Delivery Service Essay

Swot Analysis Of The Eat24 Restaurant Delivery Service Essay

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Eat24 Review
Eat24 is a major restaurant delivery company that offers turnkey delivery services to its partners without any startup costs. The company markets the service to local customers, posts your menu online, takes orders, collects the payments and handles the administrative chores like insurance, vehicles maintenance and screening and hiring drivers. All you have to do is cook and package the food for delivery after receiving the verified order from Eat24. You pay a 12.5 percent commission, which is based on the order’s pretax total, in most cases.

Eat24 History and Profile
The Eat24 restaurant delivery service was organized on March 1, 2008, and the company was founded by principals Hain Erez and Nadav Sharon. What began as home-based business in a South San Francisco apartment quickly expanded to more than 1,500 U.S. cities and includes more than 30,000 restaurant menus from which consumers can order. Now located in San Bruno, the company was recently acquired by Yelp, the leading online review site.

The company 's founders take pride in building their business by initially knocking on restaurant doors and growing the company without using venture capitalists -- at least until Yelp bought the company for $134 million in February of 2015. The company had already partnered with Yelp in some key areas. Restaurants might logically expect the takeover to result in an expanded suite of apps to interact with any operational system and mobile customer device, greater marketing reach and more reviews of their restaurants.

Yelp has big plans for Eat24 to grow from its initial 20,000 restaurants (at the time of the sale) to a million restaurant partners in the United States, London and other international cities where the company...


... middle of paper ...


...iveries to Eat24. There are no setup costs, and the company does all the work except cooking and packing the food.

What We Don 't Like
We don 't like the high costs of outsourcing deliveries, and Eat24 's fees are among the highest. Yelp 's high-handed review policies have troubled us in the past. We suspect that the merged companies will push the delivery service with equal fervor and tie getting the service with whether Yelp publishes favorable reviews of a restaurant, which is almost extortion.

Final Assessment
Launching a delivery service in-house can be a major headache, but restaurants are almost forced to deliver to their customers to stay competitive in today 's environment of making ordering and deliveries easy for consumers. If you want to reach Yelp 's vast network of contacts, the Eat24 service obviously offers key marketing advantages but at a price.

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