The fees charged by delivery aggregators has been the hot topic of the F&B industry ever since restaurants were forced to temporarily close back in March.
A number of new platforms have emerged to challenge the established companies such as Deliveroo and Zomato, including ecommerce platform Hubb.
Offering its partners a range of options not available through the current status quo, founder and CEO Anastasia El Hage told us why she thinks it is the answer the industry is looking for.
There are a lot of options for restaurants when it comes to home delivery these days, why has Hubb entered a crowded marketplace?
While there are a lot of options when it comes to home deliveries – both for the consumer to choose from and for restaurants to advertise from – there is not one sustainable option in the market. Restaurants are struggling to turn a profit while working with the current food delivery apps and aggregators in the market as they are eating into a huge percentage of restaurants profits by charging them up to 30-35% per transaction.
Therefore, Hubb has entered the marketplace to offer restaurants an alternative option – allowing them to hold on to 100% of their profits per transaction. Restaurants that sign up to Hubb will have the option of using their own delivery drivers (to ensure all profit goes to them), or after the 1st October Hubb will provide restaurants with a third-party food delivery service option to provide a convenient and accessible service for all.
How much of a game changer do you think Hubb has the potential to be to the F&B home delivery market?
In the making for more than four years, Hubb has been designed to inject a fresh approach into the market and change the food delivery market for the better. Since its launch, it has already achieved more than 3.4m subscription sign-ups worldwide showing a desperate need for the way in which ecommerce platforms operate.
Hubb works through a minimal monthly subscription fee of AED 100. Hubb offers a platform that acts as a ‘meeting place’ between restaurants and customers while also creating a space where restaurants can distribute menus, dishes, ingredients and more.
What impact has the current coronavirus pandemic had on the industry, and does Hubb offer that will help restaurants through this crisis?
Over the last five months we’ve seen the results of the pandemic lead to devastating consequences for the industry including closures and redundancies across the board.
Independent restaurants in particular are struggling to turn a profit and are looking for more cost-effective ways to reach their customers – especially via online food delivery services and home delivery services.
Our mission is to endorse and help all businesses, whether big or small, to grow, meet their customers’ demands and enjoy a higher percentage of their profits by registering with us at a minimal cost per month.
The biggest concern we hear from restaurants on delivery platforms is that the aggregators take their data and use it against them by launching dark kitchens etc, how would Hubb address these concerns?
Hubb is a one-stop destination for a range of services including food delivery, property, manufacturing, motoring, travel, job searches and much more, via a ‘master app’ with 36 different industries. Therefore, unlike other food delivery aggregators in the market, Hubb’s food delivery service is not the only focus in the business – giving us little motivation or reason to want to launch ‘dark kitchens.’ In fact, Hubb provides restaurants directly with all leads and sales enquiries.
There is zero chance of Hubb capturing restaurants data and using them to launch ‘dark kitchens’ – plus, all restaurant data submitted into the Hubb app is protected, giving restaurants peace of mind. From the moment that a restaurant subscribes to Hubb, we promote and advertise them directly.
Once you begin offering a third-party delivery option, will your prices still be competitive?
Our customers can rest assured that we have no intention of increasing our prices – in fact, restaurants and cafés can enjoy our long-term contract which ensures no price increase for the next ten years.
Our third-party delivery service will work by adding an additional charge to each order paid for by the consumer – and will be calculated in each transaction. We do also offer restaurants the option to provide their own food delivery service.
We also predict that in two to three years’ time, restaurants that are available on Hubb will be able to offer competitive prices to their customers – subsequently increasing the demand and their profits.
How simple and straightforward will it be for restaurants to manage their menus etc. on the Hubb platform?
For every restaurant that signs up to Hubb Food, we provide them with access to one app which allows them to centrally control everything on their Hubb profile. From menus, to ingredients and delivery details – it is controlled from one place, making it as straight forward and as accessible as possible for restaurants.
Can you sum up in a sentence why restaurants should choose Hubb over the alternatives?
The Hubb model offers a lifeline to restaurants and SMEs who have struggled to pay the high fees demanded by aggregators for appearing on food delivery apps. Restaurants now have the opportunity to choose from a selection of apps and judge what works for them – as the saying goes - you do not know the difference unless you try.