App creator AppInstitute has seen a three-fold increase in the number of takeaways using its platform since lockdown began and has helped deliver more than £726,000 in orders in the same period.
The online and mobile food ordering app claims this has saved businesses £181,500 on delivery service commissions and charges had they’d sold the equivalent orders via the likes of Deliveroo and Uber Eats, which charge around 30% per order.
What’s more, its says during lockdown takeaways using its app have seen the value of their average orders increase from £17.69 to £22.15.
One of the growing number of new subscribers to App Builder is Kulbir Singh, owner of the Sea King Fish Bar in Derby, who launched an app in the first week of lockdown. He explains how it helped maintain trade at a difficult time: “Customers were staying at home and we needed a way to keep orders flowing, but were reluctant to use the online platforms because of the large commissions and lack of control.
“AppInstitute helped us build an app in under 48 hours and it’s been a lifeline for many customers, especially those in the shielding category who can’t leave their house. I’d estimate around 25% of our total orders since lockdown have been via the app.”
Ian Naylor, the CEO at AppInstitute, commets: “Even before the lockdown, takeaway owners already operated in a tough environment. Margins are tight and making a decent profit is made harder by the likes of Uber Eats and Deliveroo hoovering up market share and demanding eye-watering commission fees. Lockdown has seen many takeaways look at their options and to find alternatives to giving away around a third of their takings to middle-men.
“They realise they don’t need to invest thousands of pounds in technology that enables them to sell direct to consumers. App Builder means they can create their own sales app in hours and pay less than £50 per month in charges. Even when they factor in the costs of hiring their own delivery drivers, they’re still keeping much more of the revenue they’re making.”