Square, a point-of-sale and payment processing platform, has launched a new on-demand delivery service for its sellers. Restaurants and others can now dispatch delivery drivers for orders that customers place on their websites without paying commissions. Square is competing with third-party delivery services, such as DoorDash.
“In this challenging new business environment, it’s more important than ever that sellers have access to the tools they need to sell online quickly, efficiently, and affordably. Now, with on-demand delivery, Square Online Store sellers can dispatch a courier through delivery partners for orders placed directly on their website,” Square shared.
Square explains that new on-demand delivery allows sellers to avoid using other third-party services to have their products reach customers quickly. Once a customer makes a selection on a seller’s website, the platform can dispatch a delivery driver to the business to get the order. Then, customers can track the status of the delivery on a map and receive text updates about the order.
Sellers benefit by avoiding expensive commissions that other third-party food delivery parties charge. However, this is not a free service, and sellers have to pay $1.50 per order to Square in addition to paying the delivery partner. Sellers have the option of passing on the fee to their customers.
“Additionally, when buyers place an order through Square Online Store, sellers receive their contact information in the Square Customer Directory and are able to maintain sales history for those customers. When paired with other products like Square Marketing and Square Loyalty, sellers can strengthen customer relationships, create open lines of communication, and incentivize patrons to keep coming back,” Square shared.
For now, Square is partnering with Postmates to do the deliveries, but it plans to include others soon. The company’s on-demand service may save restaurants a significant amount of money because it is less expensive to use than DoorDash and other options, which tend to charge very high commissions.
During the coronavirus outbreak, the demand for food delivery put a strain on many restaurants as they tried to keep up with hungry customers who could no longer eat inside their businesses. Third-party delivery services, like DoorDash and Uber Eats, benefited greatly from the surge in food deliveries. However, many restaurants have been unhappy with the high fees and commissions these services charge. Square is offering another option that may lead to more competition for these services.