“We truly treat them like our front of house. “Our goal was, let’s take the worst job in the gig economy, which is delivering prepared food, and let’s make it the best,” Baggott added. “An Uber or a DoorDash driver is lucky to get 1.2 to 1.3 jobs per hour,” he said. “We keep their utilization really high, which is where they really start to make money,” Howenstein said.ĬEO Chris Baggott told Insider the company can provide its drivers with between four and six jobs per hour. Those higher salaries are dependent on the number of jobs couriers get assigned per hour. In many cases, however, they can make more than $80,000 per year, as a result of the on-demand business model. Insider has viewed documentation provided by ClusterTruck showing the payment of such salaries. Such a structure has allowed the company to pay drivers no less than $15 per hour. “We want to make sure each driver makes enough money to be happy and that it’s a good gig for them financially. “If we have 100 orders, we may only bring on 20 or so drivers to deliver those,” Howenstein said. The company works to never oversaturate its driver pool. “To make our system work, we have to make sure our drivers are happy and that they’re making enough money,” Howenstein said. The company tries to manage demand to make sure it never brings on too many drivers. “If a courier decides they want to start delivering for ClusterTruck, they can go into the app and hit ‘I’m available.’ “As soon as we have demand, we’ll send them a notification and they’ll start heading to our kitchen to start delivering,” Howenstein said. Their jobs are assigned on an on-demand basis.
According to Howenstein, all delivery drivers are gig drivers contracted to ClusterTruck, rather than through a third-party delivery service like Deliveroo or Uber Eats. The company’s use of its own delivery fleet is particularly notable. He said ClusterTruck is vertically integrated, meaning it manages the entire process - from cooking up orders made by in-house chefs to using its own delivery drivers. “Drivers are our core constituency at ClusterTruck,” its chief operating officer Brian Howenstein told Insider.
In the case of ClusterTruck, which is based in Indianapolis, Indiana, its delivery drivers’ happiness is integral to its success. Ghost kitchens’ delivery-focused model allows businesses to significantly cut down on rent and staffing costs by employing fewer people. One of the main drivers of growth in the industry is the changing cost structures of the foodservice market. Now, more than 18 months later, they’ve maintained their presence, despite the reopening of many dining rooms.Īccording to market research firm Euromonitor, the ghost kitchen industry could be worth $1 trillion by 2030. Ghost kitchens, which are used for delivery-only restaurant services, became hugely popular at the start of the pandemic.
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