17th Jul 2020 19:41
(Alliance News) - BigDish PLC said Friday it still believes its shift to as a Software-as-a-Service business model will be "well received" by restaurants.
The firm also noted it has funding to see it through the rest of 2020.
In early July, BigDish unveiled plans to move beyond current focus of being a reservation platform and launch BigDish-to-GO delivery app. Also plans "Super App", which will serve as an umbrella app, with other platform within it.
On Friday, the company said it will give an update at the end of July on the progress of BigDish-to-GO. BigDish said the app could "disrupt" larger aggregators who charge commissions of up to 35%
"The advantages of a SaaS delivery model are very clear and there is definite incentive for restaurants to have more of a direct relationship with their customers who can place orders either via BigDish or from their own website (powered by BigDish)," the company added.
BigDish continued: "For every order that a restaurant receives via the SaaS model it will result in the restaurant saving up to 35% when compared to the same order being received via an aggregator delivery platform. It is not unusual for a restaurant to use several delivery platforms and the BigDish-to-GO platform is a cost effective solution for a restaurant either as a stand-alone product or alongside an aggregator platform."
The company noted that delivery platforms attract premium valuations and if successful this could be reflected in the future performance of the company's share price.
Shares in BigDish closed 6.9% higher in London on Friday at 1.55 pence each.
BigDish-to-GO will initially be available to restaurants that have their own delivery capability, BigDish said.
The company noted that, based on its own discussions, an "increasing number" of restaurants have developed their own delivery capability during the pandemic.
"With a view to progress beyond the beta phase, the company is already working with its first last mile partner, which will be integrated with the BigDish app," BigDish added.
The company already has agreements in place with the first select restaurants that will pilot the app with a view to a much wider rollout.
Turning to funding, BigDish said the pricing strategy of its new SaaS model has yet to be determined.
"Given that the technology development for building out the complete SaaS product is ongoing, the company considers that, alongside technology development, restaurant acquisition is the key focus. The company notes that similar SaaS platforms have prices typically in the range of several hundred dollars per month," BigDish said.
Given that the restaurant industry is expected to take some time to recover, the company will not be charging restaurants until the SaaS model is further developed.
BigDish added: "The company is having active discussions with experienced technology investors with regards to further funding. The company will update the market should these discussions prove successful."
By Paul McGowan; [email protected]
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