In an indication of the clout of online purchase habits, the UK’s biggest food delivery service (Just Eat) has announced it’s buying the 2nd biggest delivery service Hungryhouse. (Until recently I always though they were called Hungry Horse)!
I assume for takeaway owners now being part of Just Eat will be an almost necessity to really survive online, and with restaurants paying about 11% commission to Just Eat it’s quite a price they pay for membership. I’m curious to know if restaurants also have to pay for branding signage for Just Eat as well (which they recently changed again).
Just Eat is one of many businesses that don’t actually really sell anything, they link up consumers with suppliers (Ebay have been doing it since 1995, recent addition Airbnb basically match those with spare rooms with those looking for somewhere to stay).
‘I hear ya baby, chicken madras’. From a Just Eat advert (click to see it above). It’s been watched 1.6 million times.
A business making money from not actually selling anything, just getting people to talk and sell to each other- a clever business model.
In the video production market there are several companies that link buyers with sellers, one example is Bark– they link up many consumers with local services and get the companies to almost ‘bid’ for the work.
So far I have chosen not to go down the route of accepting enquiries from websites like Bark, and that is because they will probably attract the wrong type of customers. Those that are making a purchase decision by looking for an absolute bargain or lowest price tend to not be the ideal people to deal with when you want a positive relationship, and for the buyers, well they get what they pay for.
On the subject of money… what makes a website video look cheap? Have a read here.
Its’ creating a ruthless culture where people are not valuing people and their businesses or building up relationships as regular customers, they become aggressive bargain hunters online, and the moment the supplier steps out of line a nasty review is posted in a heart beat (often when they are pi**ed with half a curry down their shirt- have a look at the tweets @JustEatUK receives on any weekend evening as an idea).
A survey of Just Eat restaurant owner members said 49% found it harder to build up relationships with their customers, as the customer considers the relationship to be with Just Eat.
It’s hard work running a business, so just think about how we use these websites- they can be great research tools but sometimes just contacting directly a company or supplier directly can give you better service and quality, and they may even knock off the commission they would have paid to the ‘middleman’.
Author: Jonathan is the founder of Bellyflop.tv and sells his video making services direct to the customer!
Imagery is owned by Just Eat Holding Ltd.