Damien Cordner typed: "McDonald's is broken no. Twin drive-thrus, table service, click and collect, Uber and instore orders yet the kitchen is the same size. Berto MacDonald opined that Uber Eat's policy of paying drivers for each delivery was causing the issue, writing: "As I say hire their own drivers and they won't mind waiting.
This pay per delivery doesn't work for anyone. Some people claiming to be drivers for Uber also shared that they didn't willingly accept delivery orders from McDonald's. An account by the name of Porridge explained: "As a delivery driver I purposefully never accept McDonald's orders.
Then it could open up these capabilities to other restaurants to drive additional revenue, while the additional scale would also drive down the cost per delivery for its core business. This is, in effect, the Amazon Web Services approach to delivery, and it's one that McDonald's is well positioned to execute.
By owning the delivery platform directly, rather than merely partnering with one, McDonald's would maintain ownership of its customers, instead of handing them off to a third party.
Additionally, it would earn revenue by taking a cut of every transaction that other restaurants complete on the platform. This platform revenue would be a boon for McDonald's stock price, as platform revenue is typically valued at much higher multiple than its core business is. Additionally, McDonald's would also gain a treasure trove of customer data on what food customers are ordering - and when.
With this data, it could more easily adapt its menu at its restaurants, as well as identifying new food categories or restaurant opportunities that it could invest in. Additionally, since food delivery is a hyper-local market, a delivery platform would give McDonald's location-specific data, meaning that it could much better personalize its offerings based on where the store is located.
With the current partnership approach, McDonald's is passing up a huge opportunity to grow its business, as well as an opportunity to build a strong competitive moat that would help prevent future downturns in its core business. With a strong delivery platform business , the company would be much less likely to miss big changes in consumer demand ever again. The challenge for McDonald's, or other restaurant chains like it, is that delivery is a hyper-competitive market. However, there are a number of potential acquisition targets that could help jumpstart a chain's delivery platform.
Postmates, for example, has notably been looking for an acquirer. About the author:. Paul Hosford. See more articles by Paul Hosford. Contribute to this story: Send a Correction. Read next:. Embed this post.
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