With more than half of all pizza orders placed for delivery or takeout, the decision to use a third-party aggregator or run your own in-house fleet can impact your profit margins. So, which model is best?
What Are Aggregators Really Costing You?
While third-party platforms like Uber Eats and DoorDash offer instant access to a massive customer base, that convenience comes at a steep price. The most significant cost is the commission fee, which can range from 15% to 30% or more on the total order value. According to a 2024 National Restaurant Association report, a restaurant with $1 million in annual third-party sales might surrender between $150,000 and $350,000 in commission fees.
While this seems like a simple trade-off for not having to manage drivers, those percentages eat directly into your already thin profit margins. A study by Orders.co found that a meal with a 15% in-house profit can drop to a 7.6% loss once aggregator fees are added.
Beyond the financial cost, these platforms own the customer relationship and data. When a customer orders through an aggregator, their data belongs to the aggregator. This makes it nearly impossible to run targeted marketing campaigns or re-engage lapsed customers. Angelo Gonzales, owner of Lee Angelo’s Pizza, notes that: “For every dollar I give that machine, it gives me $8 in return, but it’s only on their platform and they get to save and keep all the information. I don’t even know who my customers are.”
The Power of Direct Ordering
In-house delivery gives you full control, which often translates to a more profitable and sustainable business.
Higher Ticket Size: Our analysis of customer data shows a clear pattern: customers spend more when ordering delivery directly from the store. The average ticket size for a direct delivery was $40.86, compared to $32.03 on DoorDash and $36.70 on Uber Eats. This shows that direct ordering doesn’t just save you on commission fees—it increases your revenue per order.
Customer Data Ownership: When a customer orders directly from you, you own their valuable order history. This data is gold for targeted marketing campaigns and building loyalty.
Brand Control & Service Quality: Your drivers are an extension of your brand, and you have complete control over the customer experience. You can ensure pizzas are delivered hot and fresh, which directly impacts customer satisfaction.
While in-house delivery has its own costs—including labor, vehicle expenses, and insurance—they are an investment in your business, not a percentage of revenue lost to a third party.
The Hybrid Strategy: Combining the Best of Both Worlds
For many pizzerias, the answer isn’t either/or. A smart hybrid approach combines an in-house fleet with the on-demand support of a white-label service like DoorDash Drive.
This strategy allows you to use your in-house drivers when they’re available and leverage DoorDash Drive for peak hours, staff shortages, or overflow orders. Unlike the marketplace, a white-label service is used for orders placed directly through your own website or phone. You retain control of the customer data and the entire experience while gaining the flexibility to meet demand. A sophisticated delivery management system is essential to making this work, allowing you to seamlessly dispatch orders to your own drivers or to DoorDash Drive on the fly.
By focusing on building a loyal customer base that orders directly, you can reduce your reliance on third-party platforms and build a more sustainable, profitable business.
Ready to Take Control of Your Delivery?
Building a delivery operation with an in-house or hybrid model can be a game-changer for your pizzeria’s profitability and brand. It’s an investment that pays for itself by increasing margins, strengthening customer relationships, and giving you full control over your delivery experience. To learn more about how a complete delivery management system can transform your operations, click below.