A platform called Spreadis taking aim at Grubhub and other third-party delivery companies for their high commission fees. The site connects restaurants with local customers who have opted to receive promotional details via text and email. Rather than advertising a special on Instagram, for example, founder Andy Wang says restaurant owners can text promo codes and weekly specials directly to customers, who are then directed back to the restaurant’s website instead of a third-party delivery service. Restaurants can pay flat fees based on how many customers view the promotion or actually end up ordering food, charging around $2 per click or order.
“Getting folks to order through your website and not a third party service seems like a simple ask, but for restaurants, it’s actually quite difficult,” Wang says. Of the approximately 1,000 restaurant owners that Wang has spoken with in the four years since he founded Spread, only one to 3 percent have been able to successfully pivot to accepting more direct orders than third-party delivery orders. “Our goal is to hopefully get all restaurants to that point, where they have more orders coming through their own platforms than through Grubhub,” he says. The New York-based company is currently partnering with local chain restaurants — like Joe’s Pizza, Junzi Kitchen, Blank Slate, and Two Boots — but ultimately hopes to be of service to New York City’s smaller, independent operators, as well.
While ordering from food delivery services like Grubhub and UberEats does connect restaurants with new customers, these third-party apps can charge anywhere from 15 to 35 percent of each sale in commissions. The platforms can also make meals cost up to 91 percent more for customers. These fees are the subject of a new class-action lawsuit against delivery companies Grubhub, Doordash, UberEats, and Postmates. Many owners have tried to get diners to order directly through their websites to avoid fees.