KFC and DoorDash, a delivery service, are working together to make sure California's chicken lovers are able to get their fix -- delivered right to their doorstep. The service will operate out of Los Angeles and San Francisco for now, with plans to expand into other cities.
Depending on a consumer's location however, a fee between $4.99 and $6.99 will be charged, and prices for some items will be higher on the delivery service compared to restaurants.
This recent announcement from KFC comes at the heels of other fast food chains entering the delivery market. Chipotle, McDonald’s and Starbucks all have introduced projects, but are utilizing Postmates. Perhaps these co-branded efforts between restaurants and courier apps signal a shift towards an increased availability of fast food delivery.
Key Themes Behind This Trend
- Increased Fast Food Delivery
- The trend of fast food chains partnering with delivery services such as DoorDash and Postmates signal a shift towards an increased availability of fast food delivery.
- Co-branded Restaurant-courier Apps
- Co-branded efforts between restaurants and courier apps seen in KFC-DoorDash and Postmates partnerships can create disruptive innovation opportunities in the delivery service industry.
- Higher Online Prices and Fees
- As seen through the $4.99-$6.99 fee and increase in prices for some items on the delivery service, online delivery platforms can capitalize on opportunities to increase profit margin through higher prices and fees.
Where This Applies
- Fast Food Industry
- The fast food industry can benefit by partnering with delivery services to increase their revenue and access to customers.
- Delivery Service Industry
- The delivery service industry can benefit from co-branding opportunities with fast food chains, expanding their customer base and market share.
- Online Ordering and Delivery Platform Industry
- Online ordering and delivery platforms can benefit by utilizing pricing strategies to increase profit margins and motivate demand for their services.
