Technological advances, particularly in mobile ordering platforms, continue to revolutionize the food delivery market. This popularity has led to a $43 billion market valuation¹ in the U.S. alone that shows no signs of slowing. In fact, global adoption of food delivery ordering platforms is expected to grow at an astonishing 12% CAGR through 2022.
However, food delivery companies face unique challenges:
- Delivery speed is crucial to customer satisfaction.
- Repeat customers are crucial for growth.
- High competition means that every opportunity to cut costs can represent a competitive advantage.
- Logistics are complicated by issues like staffing, safety, and unpredictable changes in road conditions which can affect speed and logistics plans without warning.
Route optimization software can help food delivery companies meet these challenges, streamline operations and gain an advantage in a highly competitive industry.
Route optimization software acts as a tool for increasing efficiency in the use of employee time, resources, and overall fleet management.
Manual route planning, or relying on your drivers to figure out the best route themselves, is time-intensive and inefficient, with no way to manage traffic, construction, road hazards, and other unplanned delays.
Route optimization not only improves driver efficiency by eliminating empty miles, but it can also be set to update routes to avoid congestion, ensure that you are using the optimal driver/vehicle ratio in your fleet, and allow you to run different scenarios to prepare your business for changes in demand or delivery requirements.
Route optimization software can help drivers to become more fuel efficient, by planning routes that eliminate empty miles and reduce driver speeds. Additionally, an application that provides real-time updates can notify drivers of road delays, helping them to avoid conditions including traffic and road congestion. Preventing unplanned delays helps with fuel efficiency, as well as the speed of delivery and driver safety.
Route optimization also allows you to plan deliveries carefully, ensuring that drivers make fewer mistakes on the road, and eliminating the need for expensive overtime.
Perhaps most importantly, route optimization software can help to improve customer satisfaction and retention. In food delivery, more than in other industries, customer satisfaction is dependent on delivery speed. And a quick delivery affects not just customer expectations for service, but also the quality of the product delivered, which deteriorates over time.
Speedy deliveries will help to ensure customer satisfaction, which in turn increases the likelihood that they will use your service again.
A recent case study by GetSwift showed that route optimization led to:
- 24% faster deliveries
- 132% increase in repeat customers, and
- 260% increase in customers who placed four or more delivery orders during the study period.
Route optimization software offers many benefits for food delivery companies. Control costs, streamline processes, and keep your drivers safe and customers happy with an easy-to-implement optimization solution.
Accelerate customer acquisition and repeat business, while gaining a competitive advantage in delivery services. Get a free trial of GetSwift to see how route optimization and other delivery management tools can make your business efficient and profitable.