Tuesday, March 21, 2017

McDonalds Delivery Service

Back in 2014, this odd commercial company started up in Germany.  Foodora GmbH.

The original concept was designed around Berlin.  They would become a delivery mechanism for various restaurants to go onto the next level of offering home-delivery.  Instead of an operation or restaurant having to run their delivery service....Foodora would be the delivery mechanism.

You would browse Foodora's app or web-site.....find the type of food you desired (hamburgers, pizza, pasta, schnitzel, Asian, chicken, etc)....order, and your food would be delivered by a bike guy or delivery driver.

They branched out....more cities....more restaurants (over 6,000 at present).

I noticed this morning that McDonalds now says that by the end of 2017....at least 200 of their operations will be on the delivery track (roughly 1,400 McDonalds now exist in Germany) with Foodora as their mechanism of advertising and ordering for home-delivery.

It used to be....twenty years ago in Germany....that the most you could hope for on delivery was pizza.  That's all changed now.

Does it help McDonalds?  I would question that it really changes their dynamics much.  You might have teens who flip over from being pizza-freaks to burger-freaks.  But I seriously doubt that they never go past three-percent of their sales via delivery mechanisms.  Course, it opens up this interesting idea of lunch-time situations within companies, and where you might have a boss who orders up 200 burgers for his 100 employees once a month.  Or you might have a small office of eight people who have a McDonalds day every two weeks.

Helped by urbanization?  Well, that's part of the bigger story.  You might be able to operate some system like this in a couple of US cities....but in Germany....because of the structure of society and people tied to larger urbanized areas, this has more potential.

As for Foodora?  They've gotten a brilliant idea and run to maximum potential with it.

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