Dive Brief:
- TripAdvisor now offers a direct link to order online through DoorDash in 1,800 North American cities, the company announced in a release. The partnership integrates online ordering to more than 24,000 restaurant listings on the travel site that previously lacked ordering links.
- Restaurants have proved to be a lucrative business for TripAdvisor, head of key accounts Evan Becker told Skift Table. Owners can claim their listings and buy sponsored placement or opt for a premium program that gives them control over what photos and reviews users see.
- TripAdvisor already partners with Delivery.com and Grubhub, plus OpenTable for reservations. Earlier this month, it teamed up with Slice, a pizza-focused delivery app with 11,000 independent clients in 2,800 cities.
Dive Insight:
DoorDash has been on the move this year, garnering $750 million in funding, launching in-store pickup and a subscription service, according to Skift Table.
The second-most popular delivery platform works with 90% of the top 100 restaurants that offer delivery, according to the company release. Just this year, DoorDash snagged contracts with Wingstop, Chipotle and Chick-fil-A and The Cheesecake Factory, on top of an existing deal with Wendy’s. Industry leader Grubhub lost its COO in October after the company lowered profits for the year, though it remains the most popular delivery app with millennials — followed closely by DoorDash. Uber Eats hangs in there, too, but it has pursued global growth over domestic expansion.
Though the third-party delivery service market is fierce, DoorDash's expanded footprint thanks to the TripAdvisor partnership could give it a boost. Still, competitors like Uber Eats are working hard to differentiate and capture consumer dollars. Earlier this month, for example, Uber launched a rewards program that's applicable to both the company's ride hailing and food delivery services. Users can sign up for the program for free and gain cash rewards when they use the tiered system — a bonus that could keep the company top-of-mind for hungry consumers.
Though DoorDash's subscription program offers free delivery, the monthly fee may be enough of an obstacle to deter signups. But by integrating with TripAdvisor's website, DoorDash gains access to a host of new consumers on a trusted platform, and offers a convenient way to order immediately from reviewed restaurants — a value-add that makes the most of consumer propensity toward impulse purchases.
It's unclear if this deal will be enough to shrink the gap between Grubhub and DoorDash, but one thing is certain: as demand for delivery continues to rise, third-party delivery services will need to seek out partnerships and invest in value-adds that will make their offering stand out.
