Square has announced the launch of its On-Demand Delivery service for Square Online orders in Canada through DoorDash Drive.
With on-demand delivery, restaurants, bars, breweries, convenience stores, or sellers using Square Online in Canada can use DoorDash’s network and dispatch a courier to deliver orders placed on their websites.
This feature provides Canadian businesses with a new revenue stream while limiting the need to implement costly delivery services or hire and train additional staff.
“This [delivery service] has really been a lifeline for restaurants during the pandemic when we first launched it in 2020. We immediately got that feedback and right now in Canada with British Columbia, Ontario, and Quebec, all experiencing some restrictions like limits on in-person dining, we think this is going to be a great offering for sellers,” said Justin Scott, head of product, eCommerce Platform at Square.
Here’s how it works:
When an order is placed on an online store, a DoorDash courier is dispatched to the business’s location, and picks up the order for delivery to the customer. The customer receives text updates with links to a live map tracking delivery progress.
What sets this apart from other delivery services is the amount of money sellers save on commission.
“Typically, marketplaces will take 20 to 30 per cent commissions on these orders, which can really eat into a restaurant’s bottom line. With on-demand delivery, there’s no percentage-based commission fee,” Scott said.
Instead, sellers pay a flat fee of CA$1.50 per order to Square and a flat delivery fee to DoorDash, without the marketplace commissions.
Sellers can then pass the delivery fee entirely to the buyer, or offer custom delivery promotions. When applied across hundreds of delivery orders each month, sellers can end up saving a significant amount on per-order costs.
Improving customer relationships
As well as saving money on commissions, the On-Demand Delivery service strengthens sellers’ relationships with their customers.
With third-party delivery services, the businesses don’t always get the contact information for customers which can limit the ability to remarket to customers in the future. However, with Square’s delivery service, the seller actually owns the customer relationship and can focus on strengthening it.
On-Demand Delivery also integrates with other Square features such as the Square loyalty program and Square Marketplace.
“You can set up your own loyalty program with Square Loyalty and set up rewards for future purchases. You can use Square Marketing to market to those customers later or offer them discounts. Owning that customer relationship is really a huge reason why sellers love on-demand delivery,” Scott said.
Restaurants that have participated in Square’s beta program for On-Demand Delivery include Nozomi in Toronto and Ratio Coffee and Pastry, located in Vernon, BC.