How does the Amazon & Clover partnership change online ordering?

We have all seen them, the four to five tablets sitting on each restaurant counter. All waiting for online orders from customers too busy to call in their order. A few years ago, there was a separate tablet for GrubHub, Seamless, Yelp’s Eat 24 and Groupon’s OrderUp among a few other smaller companies. As of a few months ago, all the companies mentioned above are owned by GrubHub and restaurants are slowly transitioning to using just one tablet. But is that even necessary?

Not if Amazon and Clover point of sale have their way. The new partnership announced a few weeks back lets customers order takeout from their favorite restaurants using the Amazon app, sending the orders directly to the restaurant’s Clover POS system. Why do we think this will be a successful partnership? Let’s look at the way things work now…

Here’s what happens with most restaurants accepting online orders:

  • A customer orders food from the GrubHub app.
  • The order shows up on the GrubHub tablet.
  • A server enters the order into the POS system or handwrites it and gives it to the kitchen
  • GrubHub takes a 12-17% cut
  • Business owner has to wait for GrubHub to deposit money on a weekly or monthly basis

The Amazon and Clover partnership makes it easy for customers to order food and just as easy for business owners to accept orders. Customers open the Amazon app, scroll to the ‘Amazon Restaurants’ section and place the order. Easy!

Once restaurant owners link their Amazon and Clover accounts, they don’t have to do much besides prepare the food. The orders are sent to their Clover point of sale and the chef gets a printout of the order. Once the customer comes to pick up the order, the host can verify that it has been for paid using Amazon Pay by looking at the Clover Station. The money is deposited faster and Amazon only takes a 10% cut.

Besides not having to purchase any additional equipment or having to train their staff on new procedures, what makes this really interesting to restaurant owners is the tens of millions of customers using Amazon Prime. Analysts estimate Amazon has over 80 million Prime subscribers in the U.S. Restaurant owners instantly get access to a vast new market without having to do much work.

Amazon benefits by growing their total payments volume (TPV) for Amazon Pay and bringing Amazon Prime customers back to the app even more frequently.

Amazon is incentivizing customers by giving them $10 off their first order. Promotions are being displayed in the app and being emailed to customers.

What’s next? An Amazon delivery guy delivering and plating your food while you get ready for dinner.


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