Food delivery platforms are launching new features and tools to boost customer retention in 2023

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With soaring inflation, dining at restaurant has become even more expensive. This has resulted in more frequent at-home food deliveries in 2022. DoorDash, for instance, revealed that more consumers have used the platform than ever before in 2022 and has projected the demand to remain robust throughout 2023. This consumer behavior has driven revenue growth for food delivery platforms like DoorDash and UberEats in the United States.

With the growing demand, the competition in the segment has also intensified as several players are vying for market share. To stay ahead of the competition, many of the food delivery players are launching new tools and features that can help them boost customer retention and gain market share in 2023.

• In March 2023, DoorDash announced that the launch of new shopping features such as frictionless in-app communication, express delivery, delivery windows, and enhanced search within retail stores. All of these features are aimed at driving customer retention and aiding revenue growth. Furthermore, the delivery firm also announced strategic collaboration with more retailers, including Lush Cosmetics, Victoria’s Secret, and Party City.

Apart from consumer-focused features, DoorDash also launched features catering to the needs of drivers. In February 2023, the firm announced the launch of a tool that helps drivers to identify the most affordable gas in the area. The tool has been launched in partnership with GasBuddy, the gas station finder app.

Instacart, another leading player in the food delivery segment, announced the launch of new marketing solutions in March 2023. The firm, in March 2023, also announced that it would enable consumers to sign up for grocer’s loyalty programs through Instacart storefronts. The new marketing tools and expanded loyalty programs are aimed at supporting grocers that are seeking ways to retain deal-chasing customers in the United States.

Instacart Health, the health-focused division of Instacart, introduced new digital tools for healthcare providers in March 2023. These tools include Virtual Storefronts, Shoppable Recipes, and Lists for Nutrition.

• In March 2023, Grubhub, another food delivery player in the United States, announced a strategic collaboration with Transact Campus. The alliance will enable students to pay for their restaurant meals using campus cards. The new payment solution, launched by Grubhub, is aimed at securing the spending of college students in the United States.

Grubhub is not alone in targeting younger consumers to secure their long-term loyalty. Other food delivery aggregators, including DoorDash, are also seeking ways to attract this demographic. DoorDash, in particular, has been active in its efforts to do so. The firm launched a discounted version of its DashPass membership in 2022, offering students fee-free delivery for a fixed monthly or annual rate.

Like Instacart, Grubhub is also focusing its efforts on merchants. In February 2023, Grubhub revealed several updates to its Direct white-label platform, which allows restaurants to create their own branded eCommerce websites. The changes enable restaurant partners to show their online stores on their Google Search Business profiles. Furthermore, restaurant partners can also list their stores as the preferred online ordering option.

In addition to this, customers can now place orders via Direct websites as guests, without needing a Grubhub account. Moreover, the firm also announced its decision to waive the US$1.99 per order fee on delivery orders that come through Direct platforms and are fulfilled by Grubhub drivers. This is part of its strategy to build stronger and deeper relationships with its restaurant partners.

From focusing on diversifying their offerings to attract new customers to launching tools for boosting driver and merchant loyalty, food delivery platforms have adopted different approaches to accelerate their growth in the segment. As the demand for food delivery services continue to surge in the United States, competition is also expected to intensify over the next three to four years. Consequently, firms will need to continue to adapt and innovate to stay ahead of the competition in the fast-growing food delivery market in the United States.

To know more and gain a deeper understanding of the B2C E-Commerce market in the United States, click here.