Introduced as a response to the growing demands for lower delivery charges from restaurants who lose money on many orders when using third party delivery apps, Trip Delivers promises a low flat delivery fee for restaurants, as well as better income for drivers. Trip Delivers opened its first market in Nashville in early November and plans on quickly launching in multiple cities in the United States.
Trip Delivers Began as a Rideshare Service to Empower Drivers
Robert McNulty had never been in an Uber until four years ago when his son booked him one. He soon began using ridesharing services regularly, which meant he heard a lot of drivers complain about their employers treating them unfairly. McNulty’s curiosity was roused as much as his sympathy. “If you don’t have happy drivers, you’re not going to have a happy client who is the recipient of the ride or delivery, right? So that kind of triggered me to look at the business model. But I had no intentions of going into it,” he said, explaining how he did end up getting into the business.
“Over about an 18-month process, I started thinking, geez, I could do this. I mean, you just need to change the model, and you can make more money for the driver’s pocket, lower the fees for the consumer. Surge pricing was an issue, and the way the drivers were being treated,” he continued. Trip Delivers was to start as a ridesharing business with a business model that squeezed down operating margins to be able to put more money into the driver’s pocket. But it was the restaurant delivery business where Trip Delivers found its true calling.
How COVID-19 Prompted the Launch of Trip Delivers
Atlanta Business Journal recently conducted a survey that found 87% of restaurant owners to be unhappy with the delivery fees they were being charged by third party delivery business, like UberEats. 94% of them also preferred a flat delivery rate instead of being charged a percentage of total profit.
Trip Delivers not only charges a flat delivery rate, it also allows clients to register on a transparent software platform that cuts out third-party charges by allowing money to flow directly from the consumer to the vendor. “There are a lot of issues inside the restaurant industry; the way the menus are marked up and controlled by rideshare companies,” says McNulty. These services have come under fire this year as their profits surged during COVID-19 while their clients have suffered. This was when Trip Delivers shifted to the delivery market. “In February, we were going to do a beta launch on just rideshare. Then COVID-19 hit … and we decided to pivot. We spent the last five months putting the restaurant programs together and we’ve finally launched,” McNulty said.
The interview concluded with McNulty explaining how Trip Delivers plans to expand its services to delivering groceries and retail supplies. Supply chains nationwide were disrupted when COVID-19 first hit, which made grocery delivery services all the more popular. McNulty likens this to the situation at hand during the second wave. While supplies aren’t an issue anymore, delivering them is still important as people continue to self-isolate. “That opportunity is still there,” he said. “And it’s still going to grow at an exponential rate; it’s not going to slow down.”
As it continues to focuses on food and grocery delivery, Trip Delivers will be taking a break from the rideshare sector for the foreseeable future. “We could do rideshare tomorrow morning if we wanted to. But really, we’re set up for restaurant pickup and deliveries,” McNulty concluded.
To find out more about Trip Delivers, or to register as a restaurant or a driver, visit:
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