Third Party Delivery: What You Need to Know

Third Party Delivery: What You Need to Know

By Andy Cook & Paul Schlienz


If you’re in the hospitality business, chances are that third-party delivery services are very much on your mind. And they should be.

You’ve seen the explosive growth in these services. Quick-service chains now have parking spaces reserved for third-party delivery drivers, and Uber and Amazon have jumped into the food delivery business in a big way. Other companies that focus exclusively on delivery, like Caviar, GrubHub and DoorDash, are growing by leaps and bounds.

Pentallect, a food industry strategy firm, expects the $13 billion third-party food delivery market to grow at a 13.5 percent annual rate. The market, consisting of firms delivering both restaurant meals and groceries, is projected to reach $24.5 billion by 2022. By contrast, the $1.6 trillion U.S. food industry is only growing at three percent per year.

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