There are two types of competitors currently on market: Food delivery companies and restaurants that run their own delivery service.
There are already some players in the food delivery market. For example, Bite Squad, a new company founded in August 2012, is currently offering a similar service in the Minneapolis area. However, in our market segment, which is a college campus, we have advantages over them. First, existing companies like Bite Squad focus more on workers and residents in Downtown Minneapolis and Uptown Minneapolis. They do deliver to the U of M campus, however, the variety of restaurant choices offered around campus and their service fee for campus delivery is not attractive enough for college students. On the contrary, we particularly take aim at college students as our target customer. All of our participating restaurants are carefully chosen to meet the needs of college students. Since we use bikes instead of cars to deliver and we employ part-time students, we can have our delivery service cover the campus at a much lower cost. Therefore, our price is much more affordable than that of our competitors. This is a very important factor since college students are tend to be more cost-sensitive.
Second, our service provides more convenience than our competitors’ service. Most of our competitors only have a web online order system, which expects users to order from a computer. In addition to web online order system, we also provide iPhone apps and Android apps, allowing our customers to make an order on the go. Another unique key technology of ours, the Recommender system, will assist our customer by suggesting dishes based on an intelligent database. This system not only improves our customer satisfaction, but also raises our average customer expenditure. Unlike our competitors, who can only deliver to the front of the building due to parking issues, we can directly deliver the food to dorm rooms, apartment rooms or even...
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