It is official, Chipotle customers are now able to have their favorite dish delivered to them, if they live in one of the 67 selected cities including Washington D.C., and major cities located in the following states, California, Florida, Arizona, Illinois, Massachusetts, Nevada, Oregon, New York, Colorado, Georgia, Pennsylvania, Washington, and Texas. In March, the company partnered with Postmates, a delivery service based in San Francisco, CA, which is a start-up that focuses on delivering healthy goods locally. Although it is great, Chipotle Mexican Grill’s delivery service is catchy because it is expensive.
According to Forbes, the average delivery cost is $4.99-$7.99, depending on the distance. However, Jason Del Rey at Re/code, told Business Insider, he tried ordering his $8 burrito, but the total came to $20, once the additional Postmates delivery fees and taxes were added.
Postmates delivery service usually has a variable cost, based off distance of the delivery. However, Chipotle Mexican Grill’s catchy delivery service partnership, has capped pricing on its delivery charges, which is a system that alleviates customer hesitation to continue with their purchases. Postmates has over 100,000 couriers that work for the company, to help deliver food, groceries, and other consumer products. Chipotle announced their new service with investors over the phone.
There are many other delivery services Chipotle could have chosen from, but the Chief Marketer and Development Officer, Mark Crumpacker told reporters, he saw 30 percent growth in the months of March and April with online services, since the Postmates deliveries began. Postmate delivered over $500,000 worth of product in the first quarter, before the deal between the two companies was finalized.
Crumpacker told New York Times in an article, Postmate has not been the first company to deliver their product, but it is the first delivery service to sign a partnership with the company. Over the years, Chipotle had to shut many delivery services down, as the company was unsure whether or not the services were trying to steal their approach, or ruin their reputations. Since Postmates became Chipotle’s official delivery service, their online sales improved, and the director began to see in-store sales boost as well. To help delivery of the product be more accessible, Chipotle is adding a payment feature to the Apple Watch app, which allows one to place in-store pickup and delivery orders, for consumers on the go. The company is also discussing the usage of Apple Pay and Google Wallet mobile pay services, for the transactions to run more smoothly.
Lots of change is happening with the Mexican grill that is improving the overall concept of the food chain. Earlier in the year, customers could remember a shortage of carnitas took place, which was due to the company’s pork supplier not meeting humane standards. It was not until recently, when they bought a new pork supplier, so carnitas lovers will be seeing the meat added back onto the menu, in a couple of months. Unfortunately, the cost of beef products are on the rise, so Chipotle has said the company will raise its beef and barbacoa prices later in the year, as well.
The Chipotle Mexican grill catchy delivery service, and prices on the rise, has the Mexican grill in for a lot of changes throughout the year. At the same time, the company’s investments are also needed improvements to make the company better for its customers.
By Krystle Mitchell
Photo By Ian Iott – Creativecommons Flickr License