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Third-party Aggregators And How They Work

The third-party aggregator apps are a boon for restaurants trying to take their business online, without taking the headache of having and managing a separate app/website for the restaurant. Online food ordering has been quite a rage among the people, especially among the new generation people, since it gives them the freedom and flexibility of ordering their favorite dishes anytime, from anywhere.

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The popularity of the third-party aggregators was already on the rise and the COVID-19 virus has only added fuel to the fire. With the pandemic ravaging the entire world, enforcing strict social distancing norms all across, the third-party apps opened up a whole new dimension for the restaurants. These apps gave the businesses an opportunity to make up for the drop in the footfall at their outlets and at the same time, opening up a new avenue of income for them.

The third-party aggregator apps make use of drivers for delivering the order of the partner restaurants. The moment the food leaves the restaurants till it reaches the customer, the entire headache lies on the apps. But, like all other technological solutions, third-party aggregator apps have their own set of disadvantages. Let us now understand the major cons of third-party aggregator apps.

Unless you are the one who really cares about this, it is not terribly important. What all matters are how your hybrid mobile application development is going to work in the long run as no one will care about how it was built. A hybrid mobile application is said to be good if it performs well for its users.

Why Restaurants Are Leaving Third-party Aggregator Apps?

High Costs – The COVID-19 pandemic seems to have dealt a crushing blow to the hospitality sector. With their sales dropping down to unsustainable levels, many small establishments have even shut their businesses. So, maintaining operational costs at minimal levels has been the priority of most of the businesses off late. This is exactly where the third-party aggregator apps fail. The third-party app earns either from restaurant commissions or the delivery fees or from both. So, the restaurant can end up paying as much as 30% of every order value, placed via the apps. Thus, maintaining a personal app is a more viable option.

Minimal Control – The third-party aggregator apps tens to take full control of the orders once it leaves the restaurant. So, there is always the risk of losing the brand value due to late deliveries, improper presentation of food menu improper pricing, and a ton of other such misunderstandings, which can seriously damage the brand image of a business and might even cost them their customers.

Customer Relationship – The customers, especially the old and loyal ones, are the backbones of any business. The biggest drawback of using third-party apps is the loss of direct contact with your customers. The third-party apps use their own interface and system. The data collected by them cannot be accessed by the partner restaurants and hence the restaurants lose out on various essential information which could have helped them in growing their businesses.

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