On-demand delivery tears down store walls and builds a new kind of customer base.
Listening to customers and paying attention to trends can lead to some exciting new ideas – like on-demand delivery. For a new generation of digital shoppers, it’s an idea that’s hitting the spot, and for Franchisees, it’s also impacting profits – in a good way.
On-demand delivery was launched in 2015 with the San Francisco-based technology company Postmates. For shoppers at select stores in San Francisco and Austin, an assortment of 7‑Eleven hot foods, snacks, cold beverages and other convenience items were just an app tap away.
As Postmates expanded its delivery areas, new partnerships were established, including a strategic relationship with tech start-up DoorDash. In addition to delivery, the DoorDash deal includes in-store marketing, local promos and special Convenience Packs, which are basically common product groupings that make shopping at 7‑Eleven even more convenient.
A deal was also made with Tapingo, a mobile commerce app for college campuses. Now 7‑Eleven on-demand is available to the generation that redefines convenience. These digital natives are accustomed to ordering what they want with their smartphones, and the Tapingo partnership makes it easier than ever to reach this influential demographic.
For Franchisees, digital options mean new transactions and new customers – especially those who are comfortable using technology to shop. It’s also increasing the number of transactions. We’re learning that on-demand customers, on average, have been ordering more than the typical customer would buy in the store.
7‑Eleven will continue adding participating stores in new markets as delivery-service areas expand with current partners. We’re also exploring opportunities for new partnerships in order to increase our on-demand delivery reach.
And yes, we will continue to watch the trends and listen to customers as they give us ideas for new ways to make the world a little more convenient. That’s innovation.