Delivery Wars Are Out, Food Pickup Is In, New Study Shows

Photo Credit: Shutterstock
October 30, 2019

Winning the delivery wars isn't the answer to success in the fast-food business. Instead, consumers want a seamless in-store pickup experience, said CEO of Rakuten Ready, Jaron Waldman.

"Mobile order ahead for pickup is growing really, really quickly, 57 percent year-on-year. There's been a lot of focus on delivery, and the delivery wars," Waldman told Cheddar in an interview Tuesday. "But mobile order for pickup is growing a lot faster than delivery as a whole."

Customers who wait less than two minutes to receive their orders are four times more likely to reorder in the future than customers who wait 10 minutes, according to a Rakuten Ready study. Rakuten Ready is a location-centric mobile commerce platform that assists with the mobile order-ahead experience for stores and restaurants.

Rakuten looked at 25 brands across QSR, Grocery, and retail. The leaders in quick service were Taco Bell, Chipotle, and Starbucks, Waldman said.

In addition to speed, Rakuten took a close look at the consumer experience on the digital side. Waldman said customers wanted an easy checkout with one click, and an effective use of notifications related to the order.

And while fast-food shoppers prefer speed at the pickup counter, Rakuten said grocery consumers put an emphasis on curbside pickup.

"In grocery, the thing that is really taking off is curbside pickup. We look at things like what's the signage like in the parking lot if you're driving to pick up groceries."