Going back into the Captive Conversations archive, this bonus clip features Lawrence Pelletier from RedCat.Using a simple £100 order, Lawrence breaks down the difference between a third-party marketplace fee and a direct ordering model.The example moves from roughly £30 in marketplace fees to a net cost of around £7, while giving the operator more control over pricing and the customer relations...
Speaker 1 and Speaker 0 are discussing the cost of delivery on Uber. Speaker 0 explains that the cost is £10 to deliver in two pounds, and that the delivery fee is £7 to be charged to the customer. They also discuss the possibility of lowering prices for delivery partners and the need for a contract with Uber.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: The commercials are pretty interesting because what happens is it tends to change. In know, we said it's 30% right.
Adam Forman: Yeah Yeah.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Yeah. So if you took... I always do a 100...
Adam Forman: I guess you're saying because you're we... You're doing all the work. Right? So so if you're... If the result in the work then it's theoretically the price down.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: So if you look at this, if you looked at the 30% thing. Let's say took a 100 pound order. That's pretty big order, but Yeah. Take a 100 pound order. The math easy.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: That's why thing. Take a 100 pound order. Yeah. And you and you do it through Uber marketplace. Mh you're gonna pay around about £30 roughly.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: That's a fee. Right? Give or take. In the white label scenario, you gotta get the order. Let's say that cost you including credit card fees and maybe your online ordering fees whatever...
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Let's say it cost you 5%. Yeah. Because life's easy. So that's what about five pounds. Yeah.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Now the second part of that is, I've gotta to pay Uber is gonna come pick it up and deliver it. Mh. That's gonna cost me give or take. Let's call it between five and seven pounds. Right?
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: So let's go to seven. We'll make it expensive. So now we're we're at somewhere around 12 pounds that I've spent. Right? Yeah?
Adam Forman: Massive difference.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Now, here's the other bit. If you have a consumer who orders on Uber, Mh or the other apps. Right? They're gonna pay a delivery fee. And in the new world.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Yeah. Those guys are all very creatively separated into a service fee and a every fee. Right. So what would you pay here? I I'm guessing it's probably £3 to deliver in two pounds service give or take.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Right? Yeah. So let's call it five pounds in there. So in the rate cap platform, we allow you to give to charge the consumer, a delivery fee, and we base that on, like, Poly gon of is in delivery areas. Yep.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: And then a service fee. If you wanna cut it up that way. Yep, you can do it. So let's just say you do the same five pounds. So the consumer was gonna give that to Uber?
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Yeah. You tell the consumer, we'd like to take that money. And, generally, the consumer goes, yeah. Fair. It's the same money as Yeah.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Uber charge? Yeah. So I'll give you every five pounds. So now remember I said it was five pounds to get the order. Seven pounds to deliver.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Yeah. Now I'm getting five pounds back. Yeah. Right? So now I'm down to seven pounds.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: So now I've got for to... For that 100 pound order. Yeah. It's costing me give or take around about seven pounds. That's crazy, versus 30.
Adam Forman: That's crazy.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: So very interesting Different. So I can afford to, for example, lower my prices a bit. If... So I can say, so if you're gonna order it from Uber In gonna charge you this month. Yes.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: If you ordered on my delivery platform. So you order a direct from Nand whatever.
Adam Forman: But do you charge a little, if the... If, like, tea... Like, you know, Uber rush prices and stuff like that, Like, do you think that when uber gets really busy?
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: Yeah.
Adam Forman: Well, how does it... Who gets preference?
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: We only do the tech. Yes. So we get all of our customers?
Adam Forman: You guys can throw in five different delivery partners.
Bonus Clip: How a £30 Delivery Fee Becomes £7 | Lawrence Pelletier: But. Then so go the next though. So first of all, is you have you as the restaurant, you need to have your a contract direct with Uber direct with Yeah. Jordan asterisk. So we don't we don't broker
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