Mark my words, the world is gradually going to be taken over by four tech companies: Apple, Google, Amazon, and Facebook. It seems like all four have been bleeding into industries that fall outside of their core competencies. The latest is Facebook’s foray into food delivery.
Starting this past week, Facebook now allows its users to order food for pick up or delivery directly from a restaurant’s Facebook page or from the Explore menu. It’s all part of the company’s strategy to keep people within the social media giant’s universe, which in turn can generate more ad revenue. Recently, Facebook has been ramping up its original video content channel with the hope of establishing a position in the media game, a space where the other big three have presences in.
For the new food delivery feature, Facebook partnered with EatStreet, Delivery.com, Grubhub/Seamless, DoorDash, ChowNow, and Olo in addition to restaurants with existing apps like Jack in the Box, Wingstop, and Chipotle. Once users decide which restaurants they crave, they select the delivery platform that they want to order from. Technically, Facebook isn’t actually delivering the food, more so being a customer aggregator and funneler.
It’s a good move for Facebook, as it doesn’t require the company to actually build logistics for a food delivery platform. It probably just collects a small referral fee for any business its passes to the food delivery apps/restaurants. With its massive user base, this could turn into a decent new revenue stream, as it opens a new customer channel for these entities. That’s the leverage that the big four have, an enormous user base. Once you have that you can peddle it various ways for money.
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