This is a case study on Takeout Taxi Deliverers. In the Business Structure Management subject.

1. Takeout Taxi Delivers
Submitted by:
Charadva Mira 05
Joshi Ashwini 28
Dave Vishva 11
Kevadiya Nirali 32
Submitted to:
Asst. Prof. Ashish Patil

2. Summary…
• 1987 Stephen Abt was a new product development executive with US Sprint.
• Success of Domino’s in pioneering prepared food delivery reflected the real need that
home deliverers served. People were desperate for the convenience of prepared meals for
home delivery. But many people wanted more than pizza.
• Abt left his $100,000 a year management position at Sprint and started Takeout Taxi, a
third party food deliverer.
• Unlike Domino’s Takeout Taxi is not in any way involved in food preparation; rather it
contracts with local restaurants to field orders for meals.
• They can build computer databases of dine-in customers including names, addresses,
birthdays, and anniversaries, and use these to drive direct mail programs with trackable
forms like coupons and registrations.
10/13/2018S. R. Luthra Institute of Management 2

3. Contd.
• Through delivery orders and in store promotions, takeout Taxi captured names and
personal information in a database that included more than 200,000 restaurant customers
by the end of 1993.
• Helped have incredibly effective targeted marketing programs to help increase restaurant
sales, and response rates.
• Some restaurant owners learned that entering the delivery market could jeopardize the
perceived quality of their food. Protective of their core dine-in business, many restaurant
owners have been reluctant to relinquish control over their meals.
• But their biggest fear was customers not getting a meal of the same quality.
• Takeout Taxi not only delivers the food in thermal containers, but it also strategically limits
the service area for each restaurant it represents.
10/13/2018S. R. Luthra Institute of Management 3

4. Contd.
• Takeout taxi shares in the success it has brought to the restaurants it assists.
• Since 1991, when company began franchising, annual deliveries increased from 83,000 to
9,58,000, with sales multiplying from $2 million nationwide to more than $23 million.
• By the end of 1993, Takeout Taxi delivered meals for approximately 750 restaurants in the
66 markets where it was conducting business.
• Market being comprised of busy, two-income families, he has come to realize that it’s
much broader. “Everyone gets lazy at least one time a month”
• In a survey conducted, 41% of respondents said they would order foo dto be delivered
from a table-service restaurant if it were available.
10/13/2018S. R. Luthra Institute of Management 4

5. What sorts of opportunities does Takeout
Taxi take advantage of?

6. The success of Domino’s in pioneering prepared food delivery reflected, the real need that home
deliverers served.
People were desperate for the convenience of prepared meals for home delivery.
Focuses its energy on areas often neglected by restaurants not a food delivery service we are a
marketing company that delivers.
Most restaurant owners are busy running the business. They don’t have the time or the skills to do
targeted marketing, Their primary form of marketing is through location. They don’t do much else.
It built computer databases that enabled Takeout Taxi to design incredibly effective targeted
marketing programs to help increase restaurant sales.
The fact is that, that the only costs for restaurants are food and packaging, even including some
staffing costs it is still more profitable than their own dining rooms.
Biggest fear of restaurants is customers not getting a meal of the same quality while, Takeout Taxi
not only delivers the food in thermal containers, so it can get a positive response from people.
Real secret to this is they have set up in certain zones where the maximum drive time to the farthest
house is 15 minutes.

7. How has Takeout Taxi changed the
marketplace?

8. The success of Domino’s in pioneering prepared food delivery reflected the
real need that home deliverers served.
People were desperate for the convenience of prepared meals for home
delivery.
Focuses its energy on areas often neglected by restaurants not a food
delivery service we are a marketing company that delivers
Primary form of marketing was through location., but Takeout Taxi
overcame its cons
It built computer databases which helped Takeout Taxi to design incredibly
effective targeted marketing programs to help increase restaurant sale
Delivers the food in thermal containers, but it also strategically limits the
service area for each restaurant it represents.

9. What reinvention opportunities does
Takeout Taxi have?

10. Historically, consumers had very few meal choices in terms of what could be
delivered to them. Pizza and Asian foods were about. Restaurant delivery –
beyond traditional pizza delivery – is a growing business
Delivery traffic outside of pizza is growing strongly, up by double-digit rates
since 2012. Availability of online ordering, particularly through mobile apps.
Restaurant operators have new options available to them when it comes to
entering the delivery market. Restaurants no longer need drivers, vehicles, and
insurance in order to offer their customers a delivery option.
Uber, – it’s entering the food-delivery market with the guarantee of lunch and
dinner meals delivered in 10 minutes.
If delivery fits a restaurant operator’s business model and is operationally
feasible, now’s the time to consider adding it as an option for customers. It’s
one way to stay competitive in a changing foodservice market.