Aggregators are eating into your profits

Aggregators often become the first step for new delivery services. It is indeed convenient. Registration takes minimal time, the launch happens quickly, and the first orders can appear within the first few days. For a start, this seems like a simple and almost risk-free solution.

For many businesses, aggregators over time become the main source of clients. A large flow of orders seems like an obvious plus. However, behind this convenience lies a serious risk. A business can easily become dependent on the platform and lose a significant portion of its profits.

Pros and Cons of Aggregators

Advantages:

• simple and quick start;

• access to a wide audience ready to place an order;

• initial promotion without investment with some aggregators;

• opportunity to test new menu items;

• quick acquisition of the first client base.

Disadvantages:

• high commission on orders, averaging 20–30%, which often takes away a large part of the net profit;

• after the end of free promotion, delivery gradually loses its position in the listings;

• to reach the top, paid promotion within the aggregator is required, which does not always pay off.

A Little Math

Let's consider a simple example.

The average check is 1500 ₽. Approximately 65% of this amount goes to production, salaries, rent, taxes, and other expenses. The net profit is about 525 ₽ if the order came directly, without advertising and without an aggregator.

Now add an aggregator. To the same 65% of expenses, a commission of about 20% is added. As a result, from an order of 1500 ₽, about 225 ₽ of net profit remains, which is about 15%. This is already less than half of the initial profit. If you additionally connect advertising within the aggregator even at the minimum rate, for example, 100 ₽ per order, the net profit decreases to 125 ₽. With a lower average check, the order easily becomes unprofitable.

Whether such a result is worth the advantages gained is up to you to decide.

What Are the Solutions?

1. Increase prices and remove low-margin items from the aggregator

However, this approach has limitations. A significant price increase makes the offer less competitive. A slight increase still does not compensate for the commission losses.

2. Develop your own website and app
This is the most promising option. It requires time and effort, but in the long run, it allows you to build your own client base and reduce dependence on aggregators.

It is important to understand that the clients of the aggregator belong to the aggregator. If you simply disconnect from the platform, the audience will not automatically transfer to you.

Your Own Website and App for Delivery Without Development Costs

FoodSoul is a platform for launching and developing food and flower deliveries. We release websites and mobile apps for free from 3 days and provide a unified software package for managing orders and their delivery. Support and updates on the platform are also provided for free. Terms of work: a small percentage from each confirmed order.

Difference in Client Behavior

Aggregator Clients:

• are often focused on price and speed;

• easily switch to a competitor at the first promotion;

• rarely show loyalty to the brand.

Clients Ordering Through the Website or App:

• are more likely to return with repeat orders;

• place orders with a higher average check;

• are more active in participating in bonus programs and promotions;

• are interested in new products and brand offers.

Therefore, transferring clients from the aggregator to your own sales channels is a strategically more advantageous solution.

How to Transfer Clients to the Website or App

1. Develop special offers for guests transitioning from aggregators to your platform.

For example: “15% discount on everything when ordering through the website!”, “10% discount on the first order on the website with promo code FIRST”, “Free roll with an order over 1500₽”.

2. Prepare flyers with these offers and include them in every order from the aggregator.

3. Set up a bonus system on the website to make it beneficial for the client to return to it.

4. Continue to develop your own channels. Launch advertising, place ads in local communities, regularly update promotions and offers.

Summing Up

Aggregators are not evil in themselves. They are a tool that is important to use wisely.

We recommend adhering to the following principles:

• Consider aggregators as a source of new clients;

• Transfer these clients to the website and app, forming your own audience;

• Use the aggregator more as an advertising channel rather than the main source of profit;

• Avoid thoughtless advertising launches within aggregators;

• Aim for your own courier service for greater control and cost reduction.

A smart balance between aggregators and your own sales channels allows you to maintain profit and build a sustainable business.

Best Regards,

The FoodSoul Team