LytSpid offers delivery service through a smartphone-based application targeting both individuals and corporate customer segments. It is the next generation of local delivery service. This App is Affordable, and Business, Consumer and Delivery friendly.
Due to Covid-19, the market has evolved sooner than expected with a demand for convenience of everyday food deliver services. The early-stage delivery companies base their business models on charging the restaurant between 20% to 33% of the amount of the food bill.
These delivery companies usually expect to pay half of the amount charged to the individuals making the delivery. This leads to an unaffordable delivery cost for the restaurant making it necessary to pass down expenses to the customer.
Restaurants do save approximately 15% on overhead by not having staff wait on tables. A delivery expense of 20% to 33%, absorbs ½ of the Restaurant’s Profit Margin.
This expense is unsustainable especially when the restaurants are busy. Just like having Happy Hour, a restaurant is able to recoup this cost when it isn’t busy. Some restaurants have separate online menus with higher prices to allow for higher margins. Others turn off their delivery application during peak hours.
In general, research shows that a restaurant’s net profit is up to 15%. When restaurants pay a higher percentage for delivery, it effects their net profit and are unable to sustain such a structure in a long run.
With the evolution of this business and the demand of people eating from home, LytSpid has developed a business model that provides customer service with minimal operational requirements. LytSpid will charge the restaurant 6% of the total bill.
The driver will receive the amount as agreed for the delivery and there will be no mark-up for that particular service since everything is automated. LytSpid will transfer funds in real-time to both the restaurants and drivers. This automation avoids unnecessary administration costs thereby improving cash-flow for restaurants and drivers.
A win-win situation for restaurant, drivers, customer and LytSpid.