Pickup vs Delivery Services – Which is Right for Your Business?

Should your business offer curbside pickup, delivery or both? What are the pros and cons of curbside pickup and delivery? Find out here:

Pickup and delivery services have become quite popular across the globe and even more so in recent months due to social/physical distancing. The fact of the matter is, most businesses will probably need one or both of these services as we adjust to the new normal. While some businesses, like Pizza Shops and major grocery stores, offer their own internal pickup/delivery services, others outsource using apps such as SkiptheDishes, DoorDash, UberEats, GrubHub and more.

According to your business size, needs and/or budget, this article will break down some of the costs and features of each of these services. Let’s weight out some of the pros and cons.

 

Pros of Delivery Services

Convenience

One of the number one benefits of offering delivery services is convenience. The customer doesn’t have to leave their home and depending on whether you offer in-house delivery services or outsource them to a delivery service, this can be quite convenient for businesses as well.

 

Reach New Customers

Offering delivery can allow businesses to reach new customers outside of their local and surrounding neighbourhoods. However, this is dependent on the radius at which the delivery service is willing to travel; this can also ignite cons, such as high delivery fees, due to distance.

 

Caters to Physical Distancing Protocols

Delivery service is one of the most popular ways to cater to social/physical distancing protocols; especially for food service businesses, like restaurants. This can be beneficial during times where businesses are operating at half capacity due to physical distancing protocols.

 

Cons of Delivery Services

Costly

Delivery services can be costly. During the COVID lockdown, many small businesses across Canada expressed their concern over the pricing of delivery/pickup services; with many being charged up to 30% per order. In times like these, many locally-owned businesses and restaurants cannot afford such a cost. This has led some of these businesses to markup their prices for individual items on these apps. A product that is regularly priced for $10 in-store, may cost up to $2 more on these apps to cover the app’s service fees. To add insult to injury, these apps also charge a service fee to consumers when making orders.

 

JustPickup vs Other Pickup/Delivery Services
Price Comparison

 

Pros of Curbside Pickup

Satisfaction

According to Invesp, 77% of consumers prefer curbside pickup because they are able to see their product(s) before taking them home. This way the customer can ensure they are receiving the correct item and that they are happy with their product before taking it home.

Convenience

Along with being able to ensure satisfaction, curbside pickup also provides the convenience of avoiding long lines or wait times and being able to return or switch out a product instantly if the customer is not happy with it. Often with delivery service, the customer will be offered a refund or credit, if an item is incorrect. When this happens, the business is penalized by delivery apps when a customer requests a refund or receives an incorrect order with no way to rectify the issue without the customer coming into the store (which defeats the purpose of delivery). With curbside pickup, customers and businesses are able to communicate directly at the time of pickup to ensure customer satisfaction.

Cost-Effective

Curbside pickup is cost-effective and small business-friendly. It’s quite simple for a business to set up curbside pickup or “takeout” services on their own and many are already offering this option via phone call. This cuts the costs of delivery vehicles, drivers, gas and more. Many consumers prefer this option because it removes delivery/shipping fees.


JustPickup offers plans starting at $0
for businesses looking to get started with curbside pickup!


Cons of Curbside Pickup

Catering to the Needs of all Customers

In comparison to delivery, curbside pickup doesn’t cater to customers who may not be able to drive or get transportation to businesses located in rural areas.

Logistics

According to Invesp, 45.6% of businesses said that the biggest challenge they face with curbside pickup and similar practices is logistics. Coordinating this operation over the phone can result in busy phone lines and disorganization. Not to mention, most consumers prefer to order products online as opposed to calling in and making an order. The price and time of building an online store/website can often be a large investment for many businesses.


Worried about Logistics?

We’ll handle it. JustPickup is the easiest way to offer online curbside pickup. All you have to do is create an account, list your products and start taking orders instantly. We handle all the communication with your customer. No more phone calls, sticky notes or social media DMs.

It’s really that easy! Click here to get started.


 

Delivery and curbside pickup are long-term investments that can be either beneficial or costly to your business, which is why it’s important to do some research before deciding which is right for your business.

Regardless of whether physical distancing is our new “normal”, it’s important to note that curbside pickup and delivery are here to stay. So, if there’s ever a time to hop on the trend– it’s now.