DoorDash Enters Restaurant Booking Battle

Reserve at the restaurant now through your preferred food delivery application. Fighting over diners does not involve the speed of delivery anymore and does not involve discount code anymore. Rather, platforms are competing to dominate the table booking locations. Reservation tech is the latest growth frontier as competition increases.

The reservation battles of the past decade that were still simmering in the past may run on a full blast this year. Nowadays, the changing tech environment of the industry stages pitting large delivery applications, old-fashioned booking systems and credit card companies against the competition. Each of them desires to have access to high-demand restaurants and regulars. Yet, the frequency of restaurant clients is low.

In June, delivery giant DoorDash announced that it acquired Seven Rooms, a reservation platform, to the tune of 1.2 billion in an attempt to make direct bookings using the websites of restaurants. Previously,

Uber Eats collaborated with OpenTable of Booking Holdings by integrating new reservations into its application. Meanwhile, American Express reinforced its food/dining ecosystem by purchasing Tock at 400m.

It consists of three companies of the same size, very ambitious, very well-equipped, and all competing over the same slice of real estate, Ben Leventhal, founder of Resy and Eater, noted. He observed that the actual reward is the ability to get high-demand restaurants. As a result, the competitive environment is becoming increasingly hot.

Since he is now doing business with Blackbird Labs, Leventhal still advises Resy. According to him, the next level of competition will be determined by the use of loyalty programs and direct relationship. Meanwhile platforms are effective doubling on partnerships. As such, restaurants are getting a wider choice of options – and strength.

The Evolution of the Reservation Wars

More than a decade ago, the reservation wars were first sparked off. Resy was launched in 2014 and came into the market with an easier monthly payment scheme. On the contrary, OpenTable charged subscription fees and cover charges per diner. Such a change in pricing would enable Resy to gain market share rapidly.

In spite of the good buzz and exclusive deals that Resy created, OpenTable remains the leader in magnitude. OpenTable contains approximately 60,000 restaurants in the world. Compared to this, Resy will handle approximately 25,000 venues once it incorporates the listings of Tock. However, brand perception still does count.

Resy has got a reputation of being trendy particularly in cities such as New York. Instead, OpenTable focuses on the world coverage and stock volume. Consequently, the two websites compete in their areas of strength. The competition is now characterized by scale and exclusivity.

The battle has been worsened by credit card alliances. Reservation and dining credits are offered to premium cardholders. As a result, the booking platforms have become lifestyle platforms. Eating is no longer merely a dining affair it is a curated affair.

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Credit Cards and Premium Perks Reshape Dining

American express is also giving Platinum card users priority priority and annual dining credits in Resy restaurants. This approach is a motivator to loyalty and increased expenditure. As a matter of fact, the dining expenditure of cardholders who have Resy credits was reported to be higher. Thus the consumer behavior is being transformed by the financial incentives.

Likewise Visa and Chase cardholders will have a unique access to certain OpenTable bookings. Such advantages contribute to platforms getting the best restaurants. Also, credit card support enables business organizations to provide financial incentives to restaurant partners. Such support enhances their competitiveness.

OpenTable has paid attention to recapturing Michelin-starred and award-winning establishments. According to the executives, experiential perks are more important than ever. Consumers are putting more value on the high-end experience after the pandemic. This has made reservation access a status symbol.

To card issuers, dining offers make high-end products stand out. In the case of platforms, they get good collaborations. Finally, restaurants are also exposed to rich buyers. It is an ecosystem that is now a mixture of fintech, hospitality and technology.

DoorDash Expands Beyond Delivery

At this point, DoorDash is venturing into reservations market by acquiring Seven Rooms. U.S. food delivery already is dominated by the company with an approximate market share of 67%. Uber Eats is at the back end with approximately 23%. When utilizing that scale, DoorDash places ahead of the distribution power.

DoorDash is a company that is known to combine the most traditional reservation systems with delivery, takeout and table booking into a single application. Such integrated system is convenient to users. In addition, it makes DoorDash a complete dining gateway. The company seeks to have control over all meal journeys.