Learn how algorithms for delivery platforms work, version 2022

If you are on our blog, you are probably a restaurant manager. You have at heart to transmit your passion and to make your customers discover a cuisine full of flavors. You have a loyal clientele and you are happy about it, you now want to enlarge the circle of your regulars with an efficient delivery service.

In the past, it could be said that a good restaurant owner had to know and understand how to run his or her business. Today's imperatives add marketing skills to this essential knowledge, as well as the most detailed knowledge of how online delivery platforms work and their positive points.

With this new article, you will soon understand how to become a delivery pro. It is essential to first understand how the delivery process works, and more importantly, how the algorithm works. Have you noticed that you receive more orders during the first few weeks after you sign up on a platform? And then, a few months later, you may have noticed that your sales have decreased considerably even though you have not changed your prices or your menus. You should know that this happens to many restaurants and our article should help you overcome this phenomenon. At the end of your reading, you will know how to take advantage of the algorithm.

In this article, we will take the Uber Eats platform as an example.

We will review:

- How the Uber Eats algorithm works;

- Metrics to watch on Uber Eats;

- The different ways to get the most out of Uber Eats' algorithm.

How does the Uber Eats algorithm work?

Focus on the quality of the user experience

Like any company, Uber Eats wants to provide its customers with a quality experience. To fulfill this goal, the service highlights the most popular and top-rated restaurants on its feed. The designers understand that users of delivery platforms want to find a restaurant quickly and order menus they like without spending three hours scrolling through dozens of available options.

To understand this, compare the experience of Uber Eats users to the experience you may have with Netflix (or any other movie and series viewing platform). The idea is not to watch the entire catalog of series and movies offered to find something to watch. Most of the time, it's about finding a program quickly. Netflix's algorithm is there to suggest programs that have something similar to other videos you've already watched, actors you like, or successful series.

The Uber Eats algorithm follows the same principle. It draws the attention of new and returning customers to restaurants that users already know, or that are already successful. This explains why you'll find McDonald's at the top of the list.

The key to the algorithm is performance.

If you have a restaurant with good results and you provide value to your customers, the platform's algorithm will highlight your establishment to make the customer experience the best possible. The goal: to increase user engagement and retention. For example, establishments offering 15% promotions, such as with free shipping, will usually curry favor with the algorithm. Indeed, there is a good chance that the customer will be seduced.

The goal of Uber Eats is to make hungry customers want to order from their platform. The second underlying goal is to make them want to come back to the app to place more orders. This means that the customer experience needs to be as smooth and fast as possible.

The different metrics to watch on Uber Eats

So we saw that you have to perform well on Uber Eats to be among the restaurants that are featured. What metrics should be considered to measure this performance?

1 - The gross order rate

When we talk about gross orders, we are referring to the total number of validated and completed orders placed over a defined period of time, multiplied by the average cart size. This gives the following formula: completed orders x average basket size.

Both of these data are important. The first of these, the completed order rate, refers to the number of orders delivered to the end customer versus orders cancelled and orders not accepted by the facility.

The average basket size refers to the average value of items sold in a single purchase. Here, your objective is to encourage the customer to buy additional products.

By multiplying these two values, you get the gross order rate. This is the basis for the algorithm to determine the value of your facility.

Let's take the example of a pizzeria that would have delivered 100 orders in seven days with an average basket of 22.33 euros. Your gross order rate would be 100 x 22.33 = 2,233.

2 - The rate of missed orders

This notion refers to the number of orders not accepted by your restaurant, or cancelled by your customers.

It's a good idea to accept your customers' orders placed through Uber Eats quickly. This is what the algorithm wants. The more orders you have missed, the less visible you will be, and therefore the number of your orders will decrease. Uber Eats has a clear goal: to prevent a customer order from being missed by the establishment to which it was addressed.

3 - Order error rate

As a restaurant owner, missed orders and ordering errors are most certainly among the things you want to avoid at all costs. The role of your staff is to verify that each order prepared meets the demand, that all items ordered are present and that the person who placed the order will be delivered. Remember that the user experience is very important to the algorithm. So make it a point to minimize order errors as much as possible.

4 - The availability rate

Consider the hours of operation of your physical restaurant. Imagine closing your establishment when it is supposed to be open. The customers who came without having a reservation would most likely be lost to your business, right? Well, that's what happens if your delivery tablet has the misfortune to shut down or disconnect when you're supposed to be available at that time on Uber Eats.

The algorithm better refers restaurants that respect the opening hours they have defined. Be aware that while it may seem logical to be open when you say you will be, the majority of restaurants are actually only open 70-80% of the time of their advertised time slots. In plain English, this means that 20-30% of their orders are either placed with another establishment or not placed at all. In this case, Uber Eats' numbers are not as good as expected...

5 - The notes

The quality of a restaurant in the algorithm is also evaluated based on the ratings given by the consumers. Two aspects of the order can be qualified:

- The overall restaurant experience is rated using a star system. A scale of 1 to 5 stars and a brief commentary on the experience are used to capture the consumer's impression. The design of the packaging or the quality of the food for example can be rated. Needless to say, the more five-star reviews you have, the easier it will be to attract the attention and curiosity of new customers.

- The dining experience refers to what consumers think of the food they have been delivered. It consists of a thumbs up or thumbs down followed by a brief comment about the dish.

How do you "use" the Uber Eats algorithm to your advantage?

Now you know what Uber Eats' algorithm is based on when ranking restaurants. Now let's look at how you can take advantage of this algorithm and increase your deliveries.

The visibility that Uber Eats gives you is very important. It has been shown that consumers don't look at restaurant rankings beyond the 10th place. So you need to be in that top 10 to have any chance of a customer ordering from you. Here are a few ways to increase your restaurant's visibility and increase the number of orders.

The different sales and marketing campaign methods within the application

Discounts

Uber Eats' priority is to make the user experience as pleasant as possible and to do its utmost to ensure that a visit to the application is synonymous with an order. In this logic, all restaurants offering discounts are systematically highlighted. It can be free delivery or a certain percentage of reduction on orders. Offering a discount is therefore a very good way to get noticed on Uber Eats and therefore to be potentially discovered by new customers.

Advertising

Perhaps you know: many restaurants use the marketing feature of Uber Eats manager to create ads and become more visible within the app's listings.

Advertising is one of the best ways to be seen. The position of your restaurant on the feed and the time your ad is seen by consumers will vary depending on the relevance of your restaurant to the clientele you have defined. It also depends on the strength of your bid compared to other restaurants in the same category as yours. Understanding your target customer and your current customer's behavior is key to gaining an edge over your competitors. With the help of RusHour's Advanced Data and Analysis solution, you will be able to see the most important figures regarding delivery orders. This will help you make better choices and increase the number of sales.

Virtual brands

Virtual brands help you defy the algorithm and maximize your chances of being discovered. A virtual brand is a digital storefront, which has no physical location (hence the name "virtual").

Many restaurants make money by running multiple brands in one kitchen. If you offer salads and would like to try your hand at pizza, you can create two separate brands. This "multiplication" will make you more visible on Uber Eats.

We know that creating and managing several virtual brands is time consuming. That's why RusHour offers a virtual brand management solution. Your establishment can benefit from new revenues every week by cooking for brands that will eventually be managed more by RusHour.

Optimize your operations

The Uber Eats algorithm gives preference to restaurants that customers rate highly for quality or low prices. Here are some tips on how to take advantage of these two criteria.

Increase your uptime

As noted above, 70-80% availability is the most that restaurants seem to be able to guarantee. The reasons? Employees going on break and not reconnecting when they return, unloaded shelves or the inability to manage all delivery shelves at the same time and correctly.

As a business owner, it's good for you to make sure your virtual doors stay open. It is estimated that the optimal availability rate is between 95 and 100%.

RusHour offers you the Live Tracking feature. Thanks to it, you will receive a notification when one of your establishments is not as available as it should be. This way, you will miss less orders!

Improve your acceptance rate

The average restaurant accepts about 90% of daily orders. This can be explained by the lack of time, the impossibility to manage all the shelves, and the manual validation of orders. With the order management included in RusHour you will be able to keep only one tablet and concentrate on this one tool to develop your business. The RusHour tablet will automatically accept orders and send them to the kitchen. Know that with less than 1% of rejected orders, your establishment has a better chance to improve its online ranking and therefore, to receive more orders.

Do not exceed the indicated preparation time

The algorithm also looks at your restaurant's ability to receive, prepare and deliver orders in the shortest possible time. When you receive a lot of orders, and they are accepted automatically, how quickly do you think you can get them to the delivery person?

The algorithm compares the time advertised at the beginning with the actual time needed to prepare the order. If it takes you 15 minutes instead of the advertised 10, your ranking may take a hit. To avoid this, set achievable goals with preparation times that you know you can meet. What platforms are looking for are restaurants that deliver to customers in 24 minutes. 

Small breakdown of this time frame:

- 30 seconds to accept the order;

- Less than 10 minutes to prepare it;

- 10 minutes for the journey;

- 4 minutes to give the order to the customer.

If you manage to deliver the customer within 24 minutes, you will gain positions in the platform's SEO.

RusHour offers you the "Adjust preparation times" feature, which helps you manage your customers' waiting time and ensure that the right driver delivers the right order every time. Thanks to our solution, both customers and drivers know when the order is ready. RusHour sends a confirmation when the driver leaves with the order. This avoids the concentration of deliverymen in front of your kitchen to collect the orders.

Make sure all your items are available

If one of your items is not available and your customer realizes it too late because you didn't mention it, it may frustrate them. In addition, the delivery platform's algorithm analyzes how often your entire menu is available. It also looks at how often some of your ingredients are no longer available!

To avoid any problems, the algorithm gives preference to establishments with a maximum of 5% incorrect orders. In general, it is observed that the order errors are due to an ingredient being out of stock in your restaurant. And that the menu in question has not been updated. This problem often happens to restaurants registered on several delivery platforms. Some establishments take the initiative to cancel the order or send another menu to their customers. For the latter, the experience can be bad because of this decision. And there is a good chance that this will negatively impact the rating they will give the restaurant.

RusHour's menu management solution makes it easy for you to update your menus, add and delete items, change prices, and much more! Everything is done from a single tablet, even if you have several brands or outlets. You become more efficient, you become faster, you limit the risk of incorrect orders or orders not delivered to the right person. You also reduce the risk of running out of this or that ingredient even if you are in the middle of a rush!

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We are already coming to the end of our article, and also our last tip. If you are a brand new establishment, make sure you follow the processes to the letter during the first few weeks. Delivery platforms are very sensitive to this, and will list you much better when you start.

So take the time to define your operating processes. Don't worry, we won't leave you alone! If you would like to be accompanied in optimizing your operations, you can contact the RusHour team. We will explain to you in detail how RusHour's all-in-one solution and dashboard can help you succeed in your delivery service and achieve better positions on delivery platforms. All this without losing the pleasure of cooking and pleasing your customers!

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 About RusHour

RusHour s mission is to become a trusted partner for restaurants worldwide, offering several products and services that help restaurants adapt to the technology and trends of tomorrow. We provide our clients with a unique way to manage all online orders from multiple platforms from one place. At the same time, our team of experts is on hand day in and day out to support restaurant owners through this change.

Any questions? Write to us: hello@rushour.io

Need a demonstration? Make an appointment right here!