Bob McNulty
Yeah, right. So if you look at their, which is interesting, business is the grocery business and how it actually intersects with the restaurant business. So food consumption, if you look at those two, in that sense, restaurants and grocery, that’s about 1 trillion,600 to $700 billion a year in the United States. And our GDP is like 21 trillion. So you can see it’s a significant part of our GDP. And if you look at that number, and you said, What happened with, you know, pre COVID, everything’s rocking and rolling. And there are a lot of issues also, inside the restaurant industry, the way the menus are marked up and controlled by the rideshare. companies. So there’s a real big dislike for that. So you when you start looking at that, you said, Wow, it’s 1, trillion, 600 to 700 billion, how much of those would be deliveries? How many, you know, would it be 5% of the business 10% of business, restaurant businesses growing at 35%-40% a year right now on deliveries, and groceries is on full steam ahead. And I don’t think that’s going to change that much. Once COVID is over, I think people will be conditioned to getting groceries delivered and getting more and more food delivered out of restaurants. So when you look at the issues, and you say geez, you’re now talking about an industry that’s, you know, delivery alone, that’s got to be somewhere between 60 and 100 billion dollars. That’s a huge industry. And what happened when COVID hit Remember, the shelves are empty, and you couldn’t get toilet paper, you can well what happened to disruption in the supply chain, not just because people were hoarding, but restaurants were closed. So they couldn’t you know, so your people are still going to eat right, they got to eat. So the restaurants are closed to where they’ve gone, they’re going back to the retail stores, the grocery stores, the small mom and pop markets are seven elevens, whatever. And that supply chain is being disrupted. And that’s why it’s taken six months. Now you start to see shelves are full, and the disruptions pretty much over on that. But that opportunity is still there. And that’s still going to grow at an exponential rate. That’s not going to slow down. So we made a decision to get in that space, and not worry about the rideshare. For now, although we are set up we could do rideshare tomorrow morning if we wanted to. But really, we’re set up for, you know, deliveries and grocery pickup and deliveries.
Neil Howe
Well, it seems like a good decision. And like you said, people are forming habits now getting their groceries delivered getting their meals delivered, and they will come to rely on that. So I see that skyrocketing in the years to come. Let’s talk about the restaurant industry right now. They have services available to them like Uber Eats doordash grubhub Postmates. What kind of issues are the restaurants having with these companies and talk about their business model versus Trip Delivers?
Bob McNulty
Yeah, our business model is totally different than everybody else in the space. And if you read through any white papers, there’s plenty of them online to read. You can see immediately the problems and the problem in the restaurants is they get charged money. And they also get their menus marked up. So it’s a combination of pricing that goes on by Uber Eats or any of the other Grubhub are those guys. So the restauranteurs really don’t like the business model, but they can’t do without the business. They still got to serve up food and get their efficiencies going. Particularly with COVID because they reach a lot of the retail restaurants have limited patronage or they have none at all in the stores or in the restaurants. So the only way they can keep their business up and running and pay their bills is to do outsourcing of third parties. So we looked at the business said, again, just taken our business model and said, Hey, we’re a SaaS business model, let’s just charge the drivers kind of the same pricing that we’re going to do in the rideshare. But let’s go to the restaurant and just do a flat fee pickup and delivery. So while the other rest the other providers for delivery charge anywhere from 20, to 40%, sometimes more, it’s all hidden. In the receipt, the driver doesn’t see the receipt that the consumer sees. The restauranteur doesn’t see the receipt that this other person sees. So ours are very transparent. We all are line items line up for everybody to see, we charge our week, we have a membership program. So if you’re a member restaurant, we charge you $2, a pickup and delivery. And if you’re a non-member, he charged at three bucks. So you can save you know, the dollar per delivery, probably very quickly, just if you’re doing 15 to 20 deliveries a day. Not that we’re going to get all the deliveries a day, we don’t expect that. But we do expect that over time, we’ll be able to, you know, get into the market share business with these guys. Because the power of having a reduced price. For the restauranteur that’s significant. It’s not like a little bit, it’s like 75% cheaper, well drive revenue growth to the side. And if you look at most disruptive business models, whether it’s where you are like one Home Depot, for example, which was really disruptive back in the day when they started and to this day, to this day, they’re still disruptive. It’s just not the pricing model. It’s is the configuration of service in their business, the configuration of other product lines that they’ve added, like kitchen cabinets, and decor and all those kinds of things. So they’ve evolved their business to stay disruptive ahead of the competition, same thing is going to happen here, if you look at almost all businesses, particularly when it’s like retail, and I consider rideshare all this kind of stuff we’re done is customer driven. So it’s more of a retail play. But if you look up the cost goes to the world and people like that you see their competitive edge they’ve had since day one. As long as the company is staying in front of the game, nobody can beat them. It’s only when they don’t stand for the game, that they beat themselves, actually.
