Starting today, New Yorkers can now get anything from restaurants, grocery stores, and liquor stores delivered to them for free.
Delivery-service app WunWun announced it is cutting its fees for all deliveries are accompanied by a purchase — you’ll still have to pay a $US10 fee if you just want someone to deliver a document from your office to your house.
Like Postmates and Instacart, WunWun lets you get anything delivered straight to your door. But unlike its competitors, WunWun will no longer charge you any additional fee beyond what your order actually costs. So if you ordered a pizza pie for $US14, WunWun will bring you that pie for no additional cost.
Postmates, on the other hand, charges a delivery fee based on the distance of the delivery. Instacart charges a fee based on distance and total cost of an order. WunWun is definitely unique in cancelling delivery fees.
And while this may seem like an insane business model, WunWun cofounder and CEO Lee Hnetinka is confident in the pricing plan. The idea is that WunWun partners with enough restaurants and stores to give them some sort of kick back. Then that money makes up for the money lost from orders at non-partner restaurants and stores.
“Our business model is sort of like magic and not a secret,” Hnetinka told Business Insider. “It’s very much like Google. When you type into Google ‘Yankee hat’ it brings up organic results and people can bid on it to show their result.”
The announcement of WunWun’s new business model also coincides with some great numbers for the service. According to WunWun, its orders are growing 40% month-over-month, and its revenue is growing at 90% month-over-month.
As of now, the startup is only operating in Manhattan, Williamsburg, Dumbo, and the Hamptons, but according to Hnetinka, they are ready to scale out to other cities.
And if WunWun can keep up the zero-fee delivery model, chances are demand will stay high. Afterall, why get up from your couch when someone can bring you dinner straight to your door?
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