In its quest to not only facilitate third-party restaurant sales but also direct orders, DoorDash is embracing voice artificial intelligence (AI) to enhance its white-label solutions for restaurants.
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GLOIn its quest to not only facilitate third-party restaurant sales but also direct orders, DoorDash is embracing voice artificial intelligence (AI) to enhance its white-label solutions for restaurants.
The leading aggregator in the United States revealed on August 28th that it is actively developing AI-powered voice ordering capabilities. This advancement aims to help restaurants manage phone orders more efficiently.
Rajat Shroff, DoorDash’s Head of Product and Design, stated, “Customers expect more from restaurateurs, and in return, restaurateurs expect even more technology-forward solutions from us — including support for phone channels to meet customers where they’re ordering. Supporting operators by capturing customer demand through investments in our voice product is one way we’re delivering more and enabling our partners to grow their business.”
For aggregators, the significance of capturing more first-party restaurant sales is evident, with PYMNTS research indicating that direct orders surpass those placed through aggregator marketplaces by a 2-to-1 ratio.
Despite the restaurant industry’s digital transition in early 2020, phone orders remain substantial. According to a PYMNTS survey from 2021 involving over 2,200 U.S. adults, 42% revealed they had placed orders via phone calls in the previous three months, a notably larger portion than the 17% who had utilized aggregator marketplaces for orders.
Further evidence from a PYMNTS study in the previous year, titled “Digital Divide: The Key Factors That Drive Restaurant Choice,” uncovered that 32% of consumers (and 36% of frequent restaurant diners) had increased their usage of phone calls for pickup orders since March 2020.
Automation is a priority for restaurants, as highlighted in the PYMNTS report “Inflation Puts Technology on the Menu for Restaurants.” This report, a part of the “B2B and Digital Payments Tracker®” series in collaboration with American Express, revealed that 75% of restaurants have already implemented automation in at least three operational areas.
DoorDash’s introduction of this technology aligns with advancements in voice AI technology. Krishna Gupta, then interim CEO of Presto, noted that the quality of human-like voices has seen rapid improvements. He stated earlier this year, “As somebody who also runs a venture capital firm, I’m aware of all the new companies coming out that are trying to clone the humanness of the voice.”
These improvements hold significance as many restaurant customers express frustration over what they perceive as the depersonalization of the dining experience. Research from the same “Digital Divide” study found that roughly 4 out of 10 consumers somewhat agreed that restaurants were becoming less personal. Furthermore, 77% agreed that staff friendliness played a crucial role in the restaurant experience.
DoorDash is effectively expanding its share of digital orders in comparison to its competitors. The “Connected Dining” series by PYMNTS highlighted this growth, indicating that a larger percentage of aggregator users are turning to DoorDash’s platform.
In June, 77% of aggregator users identified themselves as DoorDash customers, a rise from 71% at the end of the previous year and 58% at the close of 2021. On the other hand, 49% of aggregator users reported ordering from Uber Eats in June, down from 54% at the end of the previous year. Similarly, 35% stated they used Grubhub, a decrease from 38%.
Source: PYMNTS
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