Understanding How Delivery App Algorithms Work
When a customer opens a food delivery app, they are presented with a list of restaurant options. However, the restaurants that appear on the list are not random. They are chosen by an algorithm that uses a set of rules to determine which restaurants to display.
There are several factors that go into how the algorithm chooses which restaurants to show to a customer. These factors include the customer’s location, the type of cuisine they usually order, and their ordering history.
Promotions & Marketing
Delivery app algorithms also take into account any promotions or discounts being offered by the restaurants. If a restaurant is offering a special deal, the algorithm will give that restaurant more prominence in the app to encourage customers to order from them.
Marketing also plays a role in how the algorithm displays restaurants. Restaurants that invest in advertising with the delivery app will be given priority placement in the app’s search results. Running a promotion or ad will increase the likelihood of your restaurant showing up on the homepage of your food delivery partners.
Delivery Commissions
Another factor that impacts the algorithm’s decision-making is the commission rate that the restaurant pays to the delivery app. In some cases, restaurants that pay higher commission rates may be given priority placement in the app’s search results.
Restaurant Performance
The algorithm also considers the performance of a restaurant when deciding which ones to display to customers. Restaurants that have higher ratings, faster delivery times, and fewer cancelled orders are more likely to be displayed prominently in the app.
Customer Ordering Habits
Finally, the algorithm takes into account a customer’s ordering habits. If a customer frequently orders from a specific restaurant, the algorithm may show that restaurant more often to that customer.
Conclusion
In summary, delivery app algorithms use a complex set of rules to determine which restaurants to display to customers. The algorithm considers a variety of factors, including location, cuisine, promotions, commissions, restaurant performance, and customer ordering habits, to provide the most relevant and personalized restaurant options to each customer.
According to statistics, 80% of customers order from the homepage of online food delivery platforms. As a result, if your restaurant fails to rank on the homepage, you could be losing out on potential customers. One way to increase the chances of your restaurant appearing on the homepage of your food delivery partners is by running a promotion