Friday, October 23, 2020

Uber Spends $2.56 Billon for Food Delivery Service - October, 2020

 

Uber Spends 2.65 Billion to Acquire
Top Food Delivery Service, Postmates

Tallahassee, Florida – October 23, 2020 – In 2020, delivery services are thriving – especially food-based options. The demand for outsourced meal delivery solutions surged as the coronavirus pandemic shut down indoor and outdoor dining and stay-at-home orders urged people to opt for to-go options.
 
UberEats, Postmates, GrubHub, DoorDash, and other services stood as staples during the pandemic. Yet with users depending on their favorite services now more than ever before, the market is getting smaller as companies collide.
 
Uber recently announced a $2.65 billion deal to purchase Postmates. This acquisition marks the largest merger for the food delivery industry at a time when the business is booming.
 
Tallahassee, Florida also felt the Covid-19 restraints on food availability. During the Covid-19 peak, NAI TALCOR utilized their social media platforms in an effort to spotlight local restaurants and their to-go accessibility. NAI TALCOR created “When in Doubt, Take Out!” An online compilation of a number of eateries, this list included restaurants’ specials and what delivery options they offered. BiteSquad, DoorDash, and ChowNow were just some of the more popular options at that time and allowed restaurants to reach cautious customers. With the help of food delivery services many local favorites were able to continue serving their local customers.

“We love helping our community,” Frank Langston, CCIM, NAI TALCOR Principal. “Getting the word out for these local favorites was a small service that we were happy to be a part of.”

If you haven’t been doing so already, here’s why you need to be watching the food delivery sector. 

The Value in Food Delivery
In the past, not every restaurant was compatible with food delivery services. Only a select few in every community were operational with these convenience-based order pick-up options.
However, the tables have turned during the pandemic as food delivery services became a necessity for restaurants to stay alive.

In the post-COVID world of business, this integration no longer stands as a commodity, luxury, or option - it’s a must. Even 5-star restaurants are fulfilling orders through services like UberEats, which before was unheard of.

Stats collected in the past few unprecedented months showcase the importance of third-party delivery apps. A small local restaurant reported that, before the coronavirus, it only saw about 20% of its orders being made through food delivery services. But, during the pandemic, a whopping 75% of orders are coming from these same apps.
For restaurants as a whole, 92% of traffic is now off-premise, while the average online order is 23% larger than in-person checks.

Consumers are concentrating their spending on these services right now, and it doesn’t seem like things are set to slow down anytime soon. In order to stay afloat and keep the orders coming, restaurants are linking up with third-party delivery service providers.
The future of the restaurant industry looks like it lies in the hands of delivery apps. 

Keeping Up with Competitors
Even restaurants with their own delivery services are being forced to transition into the world of third-party delivery apps.

In today’s business atmosphere, restaurants that are not listed on delivery apps risk being overstepped by competitors. As customers stay at home and don’t know who’s open, it seems like an eatery’s delivery-app presence is their primary presence.

All About Trust
In a climate like this one, it’s not surprising that restaurant customers are choosing app-powered delivery services rather than the in-house model. This extreme funneling of business all boils down to trust.

With these tech-powered apps, consumers are able to track their orders from the kitchen to their door. They’ve already used these services in the past - and even if they haven’t, they surely know someone who has. These businesses are socially established and in good favor with consumers, so it’s no wonder why they’re beating any other alternative.

This monopoly on the restaurant scene is gaining momentum with the recent merger between Uber and Postmates. Be sure to keep an eye on this service industry as it’s set up for success in the future.
ABOUT NAI TALCOR
With 70 team members including 30 licensed commercial sales advisors, NAI TALCOR is the leader in the North Florida, South Georgia and South Alabama markets. NAI TALCOR is a full service commercial real estate brokerage, property management, development and construction management firm. Providing commercial real estate services since 1990, NAI TALCOR has steadily grown by meeting client needs and partnering with others to promote mutual growth and prosperity in all aspects of commercial property ownership.
NAI TALCOR clients receive global reach with local expertise, a truly distinct advantage in commercial real estate services. Whether real estate requirements are in one market or many, we help our clients understand the market, acquire, dispose of, develop or manage their property with ease.  
NAI TALCOR provides comprehensive brokerage, leasing, property management, receivership services, and facility/construction management to the North Florida, South Georgia and South Alabama commercial real estate marketplace. Our collaborative services platform is an expansive, yet nimble, responsive structure which enables efficient, full services delivery of all elements of Commercial Real Estate Services to the region. NAI TALCOR is involved with the leasing, selling, and property management throughout North Florida, South Georgia and South Alabama. Our skilled professional specialize in office, retail, multi-family, special-purpose, medical, and other properties.

ABOUT NAI GLOBAL
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 offices strategically located throughout North America, Latin America and the Caribbean, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing in excess of 425 million square feet of property. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world. Whether you need to buy, sell, lease, finance, or manage commercial property in your town, across the U.S. or in Asia, Europe, Latin America, and beyond, your nearby NAI Global local office is your local point of entry into a world of creative solutions in commercial real estate.
Exceptional global commercial real estate solutions begin with local market leadership and expertise. NAI Global offices are respected local-market roles models that are passionate about the commercial real estate business. With long histories of success across market cycles, NAI Global offices have a hard-earned, unusually deep level of local market knowledge and insight beyond the commoditized data you find elsewhere. This depth of knowledge is borne from their local relationships nurtured for generations-relationships that give our local-market leading offices the edge with the know-how, who, what, where, and when to achieve exceptional results for clients.
As an organization, NAI Global actively manages this industry-leading platform of local market knowledge and leadership, providing support and services that yield seamless integration and the consistent delivery of exceptional services to clients worldwide.

To learn more, visit www.TALCOR.com or www.naiglobal.com

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