How does SkipTheDishes make money?

By   |   Verified by Andrew Boyd   |   Updated 10th November 2021

  • SkipTheDishes is a third-party food delivery app connecting hungry consumers with nearly 20,000 restaurants in Canada.
  • Get the breakdown of SkipTheDishes’ business model and revenue streams.
  • Review SkipTheDishes’s competitors and how the company plans to expand in the future.

The unprecedented emergence of third-party delivery apps in the last couple of years has transformed the entire food delivery market in Canada.

Consumers’ tendency to place online food orders is increasing. Third-party food delivery apps have bridged the gap between sellers (restaurants) and buyers by leveraging innovative and smart technology that enables customers to get food at their doorstep.

As one of the most popular options in the market for hungry Canadians, this is how SkipTheDishes makes their money.

What does SkipTheDishes do?

SkipTheDishes is Canada’s biggest online restaurant ordering and food delivery network with more than 30,000 restaurants across the country as its stakeholders. It allows customers to order food from local Canadian restaurants using SkipTheDishes app.

Using their service to order food is fairly simple. You can browse different food menus on the app, place an order, make payment, and get the food delivered to your doorstep. SkipTheDishes is designed to cater to both restaurants and customers by filling the gap between them. By outsourcing the delivery function to third-party apps, restaurants can cut costs.

How does SkipTheDishes work?

SkipTheDishes' technology enables you to place online food orders using their website or app for Android and iOS. You can either pay for your order online with a debit or credit card or pay in-person upon the delivery of the order. SkipTheDishes also has a pick-up option if you don’t want to pay the delivery add-on.

Restaurants can view your orders and couriers are assigned orders through their integrated mobile apps.

SkipTheDishes keeps you updated about the status of your order through the app. After receiving your order, you can provide feedback on the app. This communicates to the network the efficiency of its stakeholders and the effectiveness of the business model.

How SkipTheDishes makes money

SkipTheDishes makes money by charging a commission on each order, restaurant advertising, and events.

Commission

SkipTheDishes charges the ordering customer a set percentage of commission out of each order placed via its app or website. The commission percentage charged may vary depending on your location, type of contract with the company, and the number of orders you make weekly. All restaurant and courier partners of SkipTheDishes pay a commission fee on every order as well.

Advertising

SkipTheDishes provides restaurants and other food outlets with a platform to promote their business. They charge an advertising fee to increase online visibility by ranking that restaurant higher when users search for any particular dishes, which increases their visibility and — hopefully — generates more orders. They also place ads for the restaurant on their app.

Events

SkipTheDishes also hosts different events and programs to promote restaurants for which restaurants have to pay a small fee. These events allow restaurant owners to promote their business without spending a lot of money.

Future growth engine

Since they launched in 2012, SkipTheDishes have maintained consistent growth of 20% per month. Their current business model is based on creating a three-sided marketplace that provides value to restaurants, drivers, and consumers. It has automated the entire delivery process for their restaurant partners.

SkipTheDishes can grow by entering more markets, expanding to provide a similar service in other industries, and developing more ways for restaurants to promote themselves on the platform.

Competitors

Some of the leading competitors of SkipTheDishes include food delivery and takeout softwares, restaurant management systems, and other delivery on-demand services.

  • Uber Eats
  • DoorDash
  • Zomato
  • ChowNow
  • Swiggy
  • Postmates
  • GrubHub
  • Caviar
  • Swiggy