KPIs for Online Food Delivery: Evaluating Your Delivery Partner

For brands looking to tap into the booming online food delivery market, the big question is: how do you extend your brand’s promise and deliver a great experience when you’re relying on a partner to handle such a crucial task—actually getting the food to your customers?

As more customers choose the ease of online food ordering, understanding the key performance indicators (KPIs) to evaluate delivery partners is essential for restaurant success.

Let’s look at the main KPIs for online food delivery that you should consider when choosing a third-party delivery partner.

Our 2024 Third-Party Delivery Report offers valuable insights into the performance of top delivery platforms, making it an essential tool for businesses looking to stay competitive in the fast-evolving world of online food delivery.

5 KPIs for Online Food Delivery Success

These KPIs provide insights into operational efficiency and their direct impact on customer satisfaction, making them essential for evaluating your third-party delivery partners.

1. Average Delivery Time

Formula: Total time for all deliveries / Total number of deliveries

This KPI tracks how long it takes from when an order is placed until it reaches the customer. A quick and efficient delivery time not only boosts customer satisfaction but also improves operational performance.

However, even when deliveries are made within the promised timeframe, some customers may still feel dissatisfied. This raises the question: Are there processes that could be optimized to better align with customer expectations and speed up the delivery process?

It’s also important to evaluate how closely third-party delivery partners adhere to their advertised time commitments. This involves comparing the time promoted to customers (before placing the order) with the actual estimated delivery time (once the order is confirmed). 

In our 2024 Third-Party Delivery Report, we found that most orders were delivered earlier than both the promoted and estimated times, arriving an average of over eight minutes ahead of schedule.

In our study, customers also evaluated the food temperatures when it arrived. The food delivered at the correct temperature arrived an average of 9 minutes and 52 seconds faster, indicating that delivery time is also crucial for food quality.

Additionally, we analyzed the effects of order batching—a standard industry practice where multiple orders are combined into a single delivery route. 

While this may increase overall delivery volume, our data revealed that orders delivered directly to customers (without additional stops) arrived 13 minutes and 34 seconds faster than those with extra stops. 

When customers received their orders faster and without delays, their satisfaction with delivery speed significantly improved.

2. On-Time Delivery Rate

Formula: (Number of deliveries made on the promised delivery time / Total number of deliveries) × 100

Like the previous KPI, this one also tracks delivery time, but it specifically measures the percentage of orders delivered within the promised timeframe, making it a crucial indicator of customer satisfaction.

Delivering orders on time—or even early—creates a positive customer experience and plays a vital role in retaining customers. When customers consistently receive their orders when expected, they’re more likely to view the service as dependable and continue ordering.

3. Order Accuracy Rate

Formula: (Number of correct orders / Total number of orders) × 100

This KPI measures the percentage of orders delivered without errors, such as missing items or incorrect food. High order accuracy is closely linked to customer satisfaction, as receiving the correct order is fundamental to a positive experience.

When ordering food through a third-party delivery service, some factors impacting order accuracy are in the hands of the delivery partner, while others are the responsibility of the establishment that prepares the order. So all parties involved need to examine their role to play in improving accuracy.

In our study, shoppers also measured the food’s temperature upon arrival. The results showed that temperature accuracy significantly decreases when drivers handle multiple deliveries at once. In fact, temperature accuracy drops to 77% with batch deliveries, compared to 95% for single deliveries, highlighting the challenge of balancing efficiency with quality.

4. Average Delivery & Service Fees

Average delivery and service fees measure the average amount customers pay for delivery services and play a significant role in shaping the overall customer experience. If fees are too high, it might discourage customers from ordering again. 

When comparing to a similar third-party delivery study we conducted in 2022 focused solely on restaurants, we observed a decrease in fees since that time. The average fees charged in 2022 totaled $6.87, while this year, they have dropped to $5.96.

5. Overall Satisfaction

Formula: (Number of satisfied customers / Total number of customers surveyed) × 100

This KPI measures overall customer satisfaction based on feedback about delivery time, order accuracy, fees, and service quality. For restaurants considering a partnership with a third-party delivery service, understanding this metric is essential for several reasons:

1. Customer Retention: High satisfaction levels indicate a positive delivery experience, leading to repeat business and customer loyalty.
2. Brand Reputation: A reliable delivery partner helps maintain a strong brand image.
3. Operational Insight: Monitoring satisfaction reveals areas for improvement in your delivery operations and partnership strategy.
   
   

Make the Most of Your Online Food Delivery Partnership

Choosing the right third-party delivery partner is crucial for maintaining your brand’s reputation and ensuring a seamless customer experience. 

By closely monitoring online food delivery KPIs such as on-time delivery rates, order accuracy, and delivery speed, you can make informed decisions about your delivery strategy, enhancing operational performance and customer satisfaction.

As highlighted in the 2024 Third-Party Delivery Report, understanding how top platforms like Uber Eats, DoorDash, and GrubHub perform across these metrics gives you a competitive edge in the evolving online food delivery landscape, strengthens customer loyalty, and drives business growth.

At Intouch Insight, we empower multi-location brands to deliver exceptional experiences - whether online, in-store, or through third-party delivery partners. Let's chat about how we can support your business growth.