Food delivery platforms like Uber Eats, GrubHub, and DoorDash have revolutionized the food and beverage industry, offering customers the convenience of enjoying their favorite meals from the comfort of their own homes. The impact of online reviews on a restaurant's revenue is undeniable, with 94% of US diners stating that online reviews impact their dining decisions. Even a minor improvement in a restaurant’s changing can lead to a 5-9% increase in revenue. As such, maintaining a positive online presence is crucial for F&B businesses in today's digital age. However, concerns have arisen regarding the authenticity of these ratings and the potential influence of fake reviews. In this week's insight post, we aim to explore the issue of fake ratings on food delivery platforms and provide valuable insights for F&B companies to navigate this challenge.
Uber Eats, GrubHub, and DoorDash all have a rating system that allows customers to rate their experience with restaurants and delivery partners. On Uber Eats, customers are prompted to rate their restaurant experience on a scale of 1 to 5, with the option to provide specific feedback on what could be improved. Additionally, customers can give a thumbs up or down for specific menu items. Delivery partners are rated on factors such as food quality, delivery time, and communication. The ratings impact the restaurant's visibility on the platform, with higher-rated restaurants given priority placement in search results. However, individual item ratings are not publicly displayed, and the driver rating is separate from the restaurant rating.
Grubhub, similar to Uber Eats, begins its rating process with a general question about the restaurant experience, which customers can rate on a scale of 1 to 5. Afterward, customers can rate the taste, on-time delivery, and order accuracy, which are all displayed on the restaurant's page along with the overall rating. These ratings offer potential customers more detailed information, and Grubhub allows customers to filter search results based on individual ratings for taste, on-time delivery, and order accuracy, which helps them find restaurants that excel in the areas that matter most to them.
DoorDash has a review system that includes star ratings, thumbs up or down, and a "most-liked" feature that helps customers discover new restaurants and dishes. Customers can submit public reviews, which undergo moderation before appearing on the restaurant store page, while private feedback goes directly to the restaurant owner. Owners have seven days to respond to both public and private reviews. DoorDash's "most-liked" items are the top three menu items with at least six positive ratings and 75% positive feedback. These features are free for restaurant owners and can increase customer retention.
Based on our analysis of Uber Eats' rating data, we found that the majority (72.49%) of ratings were 5-star, while only a small percentage (0.02%) were 2-star. Interestingly, we found that there were no 1-star ratings, except for two restaurants. This could imply that overall users are generally satisfied with their experience on the platform. However, the fact that the majority of ratings were 4 or 5 stars, despite the lowest possible rating being 1, raises some concerns. In fact, over 99% of the ratings were in the highest two categories, indicating that few people are giving restaurants a lower rating. This could suggest a bias or inconsistency in the rating system that could skew the results towards higher ratings.
After analyzing Grubhub's rating data, we found that the majority of users (69.58%) gave a 4-star rating, with 18.19% of ratings being 3 stars. Surprisingly, only 12.15% of users rated their experience as 5-star, which suggests a possible reluctance to give top marks. There were also very few 1-star and 2-star ratings, with only 15 restaurants receiving a 1-star rating. While this may appear positive, it raises concerns about the simplicity of the rating system and its limitations in capturing the full range of user experiences. Additionally, the low occurrence of 1-star and 2-star ratings suggests potential biases in the system, such as users being hesitant to give low ratings or the system favoring higher ratings.
Our examination of Doordash's rating data uncovered some interesting trends. The majority of users (67.22%) gave a 5-star rating, followed by 29.89% of ratings being 4-stars. The next most common rating was 3-stars, which accounted for 1.98% of all ratings. Surprisingly, very few users gave a 1-star (0.51%) or 2-star (0.41%) rating, with only 2,201 and 1,792 ratings in these categories, respectively. While the high percentage of 5-star ratings could suggest that users are satisfied with the platform, the scarcity of lower ratings raises concerns about potential bias in the rating system. It's again possible that users may be hesitant to give a low rating or that the rating system itself may be biased towards higher ratings. These results emphasize the need for further investigation and improvement of Doordash's rating system to ensure accuracy and reliability.
Our analysis indicates a cause for concern about the accuracy and authenticity of restaurant ratings on food delivery platforms like Uber Eats, GrubHub, and DoorDash. The majority of ratings falling in the 4 and 5-star categories and the lack of negative ratings raises questions about the legitimacy of the rating systems, potentially distorting the perception of a restaurant's quality and impacting its revenue. As online reputation can make or break a business, it is crucial for F&B companies to understand the impact of customer experience on their online presence.
For F&B companies looking to gain a competitive edge in today's digital landscape, leveraging Dashmote's data-driven insights is essential. As the industry leader in big data and AI analytics, we encourage businesses to take an active approach to monitor their online reputation and using customer feedback to improve their operations and overall customer experience. With our experience, we empower F&B leaders and analysts to make strategic decisions for their brands and ensure long-term success.