Business Spotlight: Dash to the Door

The race by restaurant delivery services is nothing new. But the prize money is growing.

Over $3.5 billion was raised globally by food technology startups through three quarters last year, according to CB Insights, shattering the pace of venture capital that only legitimately came on the scene with $2 billion financed in 2014. The year before was around $315 million.

On the receiving end of the deals around the world are Grubhub, Delivery Hero, Swiggy and Deliveroo.

In Springfield, it’s a two-horse race for independent restaurant delivery: QuikDine and Lightning Delivery.

Jason Green started Lightning Delivery in January 2010, and he’s made his own recent investment for a second mobile app version.

“The customers have new high-tech features,” Green says. “They get notifications of where the food is and when the driver pulls into their driveway.”

The drivers use the technology, too. So do the restaurants. The three-pronged platform was built through BigTree Systems, a Tampa, Fla.-based RDS software developer that works with entrepreneurs like Green.

“They all work together in communication,” he says.

Green’s efforts are focused on building the backend, while contract managers hire and work with the drivers.

“We were trying to figure a lot of things out the first couple years,” he says, noting a new website and the Android and iOS apps launched last year. “We were learning really.”

Lightning Delivery works with three contractors, each responsible for six delivery drivers. The four-employee company also handles incoming call orders and dispatching.

Nearly 20 restaurants are signed on, including Dickey’s Barbecue Pit, Avanzare Italian Dining, Gem of India and Kobe Hibachi & Sushi Express.

Green estimates last year Lightning Delivery processed some $1.4 million in food orders and grossed $250,000 in company revenue.

“Business has been break even up to this point,” Green says. “I need to feed the machine now. I need to duplicate it and feed it.”

Three months ago, Lightning Delivery added Nixa to its delivery area, beginning with three restaurants: Dickey’s Barbecue, Hana Grill and Canton Buffet.

Green’s now pursuing restaurants in Ozark, and he’s adding document delivery services on the side.

“We’re on the launching pad,” he says. “Just a like a board of Risk. I’d like to take over as much area as I can.”

Green says the bulk of food delivery orders come through Happy China at 820 E. Battlefield Road.

Restaurant owner Mei Ru Dong says 10-20 orders a day are processed through Lightning Delivery.

“He sends me the orders on my phone and by fax machine,” she says, noting the service has spread through word-of-mouth and online promotions.

While Lightning Delivery tacks on $2-$6 for delivery fees, Dong says Happy China doesn’t add any charges to the orders. The restaurant does pay an undisclosed negotiated commission for the service.

“We pay a little bit for Lightning Delivery,” she says, adding her staff is hands-off in the process, except for food prep.

Lightning Delivery’s commission varies, but Green targets 25 percent in his business model.

“Anything below 10 percent we’re losing money on,” he says. “We bring these enterprise level features to their business. We handle all the risk.”

So far, Lightning Delivery receives about 100 orders a day, Green says. The majority of deliveries are to houses, and about 20 percent are to offices.

“We’d like to do more,” he says, noting the drivers are equipped to take payment through Square for customer convenience. “I cashed out 30 people at Wyndham and it took me 3 minutes. It’s great because it gets people back to work and on the phone.”

Others in the food delivery industry have targeted groceries or prepared take-and-bake meals. With Instacart, Blue Apron or Sprig, it’s the Amazon delivery way.

Green says he’d consider branching out from the restaurant niche, especially considering MaMa Jean’s Natural Foods Market’s new concept with an emphasis on freshly prepared deli foods for dine-in and takeout.

Dong says Happy China wouldn’t offer delivery without Green reaching out to her a few years ago.

“He found me,” she says. “He’s good.”