How Skip the Dishes Work: Business Model and Revenue Model

Introduction

Have you ever felt a desire to eat your favorite dessert but stuck at your workplace, or did you feel too lazy to go out and let go of your desire? Today the food industry is filled with companies who are providing online food delivery services at our doorstep. 

With the changing scenarios in demand, restaurants, or cafes are taking the help of food delivery apps like Skip the dishes to make their food delivered to the customers.

The on demand food delivery services work both ways as it benefits both the restaurants (they can reach many customers) and the food delivery apps (they get a commission from the restaurants on each order).

About Skip the Dishes

Skip the Dishes is an online food delivery company that provides food deliveries to the customer where the customer accesses the application provided by Skip the Dishes. A customer can operate the skip services through the Skip the Dishes application or its website.

Interesting facts about Skip the dishes are mentioned below:

Skip the Dishes was founded by Andrew Chau, Dan Simair, Chris Simair, Jeff Adamson, and Josh Simair in 2012.

This Winnipeg-based app, like Skip the Dishes, is one of the largest firms in Canada, with around 2500 employees.

Skip the dishes, or apps like Skip the dishes operates in multiple Canadian cities such as Burnaby, East Vancouver, Calgary, Edmonton, Red Deer, Prince Albert, Grande Prairie, Regina, Saskatoon, Winnipeg, Mississauga, and so on, and some American cities like Columbus, Cleveland, Cincinnati, Buffalo, and to name a few.

In 2016, Skip the Dishes was acquired by JustEat in exchange for a whopping amount of $200 million. With this indulgence, JustEat CEO, Peter Plumb informed that JustEat has shown significant growth in the business as well and this helped them to expand the business to more areas

In 2017, Skip the Dishes expanded its business by starting to deliver alcohol in specific markets.

By March 2019, Skip the Dishes had overtaken the US market. GrubHub app got hold of the market.

Business Model: How Does Apps Like Skip the Dishes Work?

Skip the dishes or other apps like Skip the dishes in Canada have changed the food market in Canada and the UK drastically. Skipping the dishes provided people with varieties of food when people did not have time to go out and dine or people who wanted doorstep service. Such circumstances led to a rise in food on demand that was provided by such apps.

Skip the dishes or food delivery apps such as Skip the dishes in Canada follow some value proportions that make these apps more likable. The following are some target customers that apps like skip the dishes take care of. They are mentioned below:

Consumer

Skip the dishes or apps like Skip the dishes make sure that its users get the most out of the services. In order to do so, Skip app partners with maximum restaurants. This adds up to more and more flavor in the Skip application.

Restaurant 

Skip the dishes or food delivery apps such as Skip app have the ability to maintain a healthy partnership with the restaurants. Quality apps like skip the dishes ensure that all the partnered restaurants get full advantage of the online platform by helping the restaurants to grab public attention towards the restaurant.

Delivery Men

Skip app in Canada takes care of the people that it hires for delivering the orders that the customers make through the website or app.

Skip the Dishes Revenue Model

Where adaptability is not just an asset but a necessity, Skip The Dishes goes beyond the traditional to redefine the art of delivery. 

As consumer behavior evolves, so does the canvas of opportunities for a platform dedicated to satisfying culinary cravings. This is a tale of innovation, of venturing into realms previously uncharted by a food delivery service.

Delving into the framework of Skip The Dishes’ revenue model reveals a narrative richer than previously unpacked. Each strategy, from subscription services to partnerships beyond restaurants, is a thread in the intricate tapestry of its financial blueprint. It’s about foresight, about capturing markets yet untouched by their rivals.

Here, we explore these innovative revenue avenues — some already in motion, others potentials waiting to be tapped. 

Each represents a pivot towards a holistic service offering, merging traditional delivery with innovative solutions. Welcome to the vanguard of delivery services, where Skip The Dishes is setting the table for the future of convenience.

Innovative Revenue Avenues

Beyond the conventional revenue streams highlighted, Skip The Dishes has demonstrated adaptability by exploring innovative avenues to boost its profitability and market presence. 

A key element not extensively discussed is the platform’s strategic expansion into ancillary services and how they potentially contribute to its revenue model.

Subscription Services

Following a trend popularized by various online platforms, Skip could explore or has explored introducing a subscription model: 'SkipTheDishes Plus'. 

This hypothetical premium service offers subscribers perks such as waived delivery fees on orders over a certain amount, discounts on multiple restaurant partners, and perhaps even priority support. 

Subscription models bring in consistent revenue and increase customer loyalty and order frequency.

Partnership with Grocery Stores

In the wake of changing consumer demands, especially accentuated during global events like the COVID-19 pandemic, there's a shift towards delivering not just prepared meals but also groceries. 

Engaging in partnerships with local and chain grocery stores to deliver essentials directly to consumers’ doorsteps could open new revenue channels. 

This extension provides a commission-based income from grocery stores while also attracting a different segment of consumers to the app.

Corporate Partnerships and Catering

Tailoring services for the corporate sector by offering business accounts can pave another revenue path. Businesses can use Skip for catering meetings, events, or regular employee meals, with Skip acting as the intermediary and profiting from bulk orders. 

Special corporate packages or subscriptions can further enhance this revenue stream.

Leveraging Data Insights

With a vast amount of data collected through customer orders and preferences, Skip The Dishes is in a prime position to analyze and sell these insights to restaurants and marketers looking to understand consumer trends better. 

This not just positions Skip as a partner in success for restaurants but also opens up a lucrative data monetization pathway.

How does the order reach one’s doorstep?

By following these steps one can order food on apps like Skip the dishes:

Browsing

A customer can visit such apps as Skip the dishes application and then he can choose his choice of cuisine that he wants from the multiple options of menus mentioned in the app.

Ordering

After selecting the desired food option, the user can confirm the order through the application or website. Both the user and the respective restaurant get notified of the food ordered.

Payment

The user can either pay online or pay the delivery men when the food reaches the required destination.

Tracking

Skip the dishes or other apps like Skip the dishes provide an option for tracking the order which helps the user to know the exact location of the order and the time it will take for the order to reach the customer’s place.

Receiving

Once the order reaches the destination, the customer makes the payment and receives the order.

Revenue Model- How Do Apps Like Skip the Dishes Earn?

Skip the Dishes or other apps, such as Skip the Dishes in Canada, earn through:

Partnerships

They charge the partnered restaurants a specific amount of money for each order placed through the Skip app. 

This is generally the cut that restaurants agree upon when they sign up with Skip the Dishes. The cut generally depends upon the restaurant's revenue or the number of orders received per day.

Advertisements

Advertisements of the restaurants are displayed on the application in the suggested options. 

When searching for restaurants or dishes, customers see these options at the top of the list. This also earns them some commission for marketing these restaurants or cafes. Sometimes, when the customer is satisfied with the food delivery services, he might give some tips to the delivery men. 

This adds another way for apps like Skip the dishes to generate revenue.

Delivery fee 

Skip the dishes app charges customers a certain delivery fee for the order delivery. Depending on the distance the delivery man had to travel. This becomes another revenue stream for the app.

Other Players in the Market

UberEats

Uber has been in the limelight since the beginning of the advanced services. Primarily, the Uber app gained popularity when it made transportation much cheaper and convenient for people. 

Then Uber released another service that provides instant food delivery service which was equally loved by the people. UberEats tends to be a tough competitor for Skip the Dishes as it is one of the food on-demand service providers.

JustEat

Is one of the earliest start-ups in the online food delivery segment. Founded in the UK in 2001, it has expanded swiftly and now operates in 13 countries including the US. With vast experience in the industry, JustEat could easily become one of the biggest hurdles for Skip the dishes.

Doordash

By introducing their drivers known as dashers, Doordash served as a platform for the restaurants to deliver the food to the customers. 

Along with a convenient delivery system, the Doordash app provides the customers with a variety of cuisines options from various popular restaurants. It is the biggest rival to apps like Skip the dishes and has the largest market share in the US as of 2021.

GrubHub

Owned by JustEat, GrubHub has penetrated the US market at a rapid pace. In Fact, it had the highest share of the North American market in 2016, which steadily declined thereafter. Needless to say, it remains one of the biggest and most formidable players in the industry.

Postmates: Started in 2011, Postmates has steadily expanded its operations to more than 2,000 cities in the US. It is one of the few companies that has maintained constant market share in the last five years.

Conclusion

On-demand food delivery market is a sustainable business. The industry is bound to boom in the next 5 years. Once a company is able to capture some market share, it is more or less certain that it will never be out of business.

But the industry is highly competitive and most of the biggest companies are yet to make a profit. Surviving the competition is a challenge along with managing operations. 

Still the size of the industry is so massive that there is always space for newer and more efficient players. This is evident with the rise of Doordash in the last five years. Efficiency and value to the stakeholders is the name of the game.

If you are also thinking about entering into the food delivery market and want to get an app like Skip the dishes for your business, then AppsRhino is the best platform to get your dream app built and flourishing. Our team would help you throughout your journey of developing a user-friendly app for your business.

Suggested Reading: How to use SkipTheDishes: The Ultimate guide [2024]

Frequently Asked Questions (FAQs)

How does Skip The Dishes work?

Skip The Dishes is a third-party food delivery service that partners with restaurants to deliver food to consumers. Customers can place orders through the Skip The Dishes website or app, which are then fulfilled by drivers who pick up the food from the restaurants and deliver it to the customers.

Does Skip The Dishes own its own fleet of drivers?

No, Skip The Dishes does not own its own fleet of drivers. Instead, the company partners with independent contractors who use their personal vehicles to deliver food orders. These drivers are able to accept or reject delivery requests based on their own availability and location.

How does Skip The Dishes make money?

Skip The Dishes makes money by charging restaurants a commission fee on each order placed through the platform. The commission fee varies depending on the restaurant and the location, but typically ranges from 20% to 30% of the order subtotal. Skip The Dishes also charges customers a small delivery fee for each order, which goes towards paying the drivers.

How does Skip The Dishes determine which restaurants to partner with?

Skip The Dishes partners with restaurants that meet certain criteria, including having a good reputation and providing high-quality food and service. The company also takes into account the physical location of the restaurant and the demand for its cuisine in the area.

Does Skip The Dishes offer promotions or discounts to customers?

Yes, Skip The Dishes regularly offers promotions and discounts to both new and existing customers. These promotions may include free delivery, percentage-based discounts on orders, or free items with a minimum purchase.