LAS VEGAS (KLAS) — Take out services like DoorDash and Postmates will have some new competition next month. Restaurant owners in Las Vegas are coming together to launch their own food service delivery platform.
They are challenging big app-based platforms because of growing frustrations over fees during the pandemic and they plan to have it ready in April.
“We’re nervous but I think the timing is right,” said Kristen Carrol.
“It’s a local issue that’s going to be solved locally,” added Carlos Carrol.
Roughly 100 places including “Tacotarian,” co-owned by Carlos Carrol, form a local cooperative called “Loco Las Vegas” — a franchise ready to compete with big tech app-based delivery services.
“It’s meant to be, created by restaurants, owned by restaurants,” Carlos said
A task spearheaded by his wife Kristen Carrol — also a co-owner of Tacotarian.
“We’ll start going live in chunks. So, we’ll start in the southwest with our Tacotarian store and like a few restaurants that are around that area and we’ll keep building, and building and building until we eventually cover the entire valley,” Kristen said.
Kristen said various reasons motivated this initiative, including third-party companies charging as much as 30% per food ordered.
Loco Las Vegas plans to cap commissions at 15%, with a goal of lowering it even more over time.
“Any restaurant in Las Vegas can use the co-op and just pay the flat 15% and that’s it,” Kristen said.
But some restaurant owners like Jim Rees of “Hash House a Go Go” remain hesitant to join. He questions the marketing plan and convincing people to use the new app.
“We just need to see whether they’ll be able to generate enough business to make it, you know, really make sense in a city the size of Las Vegas,” Rees said. “If it does I think we’ll be very interested.”
It is generating buzz, while introducing a new way for customers to order their favorite foods.
“The money is going to stay in Las Vegas not in Silicon Valley,” Carlos said.
Loco Las Vegas plans to have drivers. They will be required to carry a food delivery card and complete training.
Kristen tells 8 News Now they will be paid based on commission and tip, which may average about $15 an hour.
The goal is to have them deliver food immediately so orders are not waiting on restaurant counters.