Spread is a Food Delivery Startup That's Free of Commission Fees
Katherine Pendrill — May 26, 2020 — Business
References: instagram & businessinsider
Spread is a promising new food delivery startup that's providing a commission-free service to local restaurants.
With the COVID-19 pandemic forcing restaurants to close their dining rooms, many have pivoted to takeout and delivery. The problem is, many of the third-party companies that facilitate these deliveries, such as Grubhub and Seamless, charge hefty fees that cut into restaurants' already razor-thin profit margins.
Spread wants to change all that with a commission-free business model. Currently operating in New York City, the company provides its members with text message notifications about exclusive takeout and delivery options from local restaurants. Users can control the number of texts they receive each week, and can then order from the restaurants of their choosing simply by tapping a promo code shared in the message. Instead of charging a commission fee, restaurants working with Sprea pay a flat fee of around $2 USD per click or order.
Though only available in New York City right now, the company hopes to eventually expand the service.
Image Credit: @tryspread.
With the COVID-19 pandemic forcing restaurants to close their dining rooms, many have pivoted to takeout and delivery. The problem is, many of the third-party companies that facilitate these deliveries, such as Grubhub and Seamless, charge hefty fees that cut into restaurants' already razor-thin profit margins.
Spread wants to change all that with a commission-free business model. Currently operating in New York City, the company provides its members with text message notifications about exclusive takeout and delivery options from local restaurants. Users can control the number of texts they receive each week, and can then order from the restaurants of their choosing simply by tapping a promo code shared in the message. Instead of charging a commission fee, restaurants working with Sprea pay a flat fee of around $2 USD per click or order.
Though only available in New York City right now, the company hopes to eventually expand the service.
Image Credit: @tryspread.
Trend Themes
1. Commission-free Delivery Services - Disruptive innovation opportunity for startups aiming to provide cost-effective delivery solutions to restaurants.
2. Exclusive Restaurant Access Programs - Innovative opportunity for startups creating exclusive restaurant access programs that allow users to order directly from local restaurants.
3. Flat-fee Delivery Models - Disruptive innovation opportunity for delivery startups creating a flat-fee model that charges restaurants a reasonable amount based on clicks or orders rather than commission fees.
Industry Implications
1. Food Delivery Industry - Industry that may be disrupted by commission-free delivery services to cater to the needs of restaurants.
2. Restaurant Industry - Industry that can benefit from innovative solutions such as exclusive restaurant access programs that enable users to order directly from local restaurants.
3. Technology Industry - Industry that can capitalize on flat-fee delivery models by creating solutions for startups to streamline their delivery processes.
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