Third-party vs In-house Delivery: What’s Right for Your On-demand Delivery Business?

Online ordering and delivery have become an essential channel for restaurants and retail in 2025. 

The explosion of apps and on‑demand consumer habits has created both opportunity and chaos for businesses. 

As a business, you might be constantly wondering: Should I partner with a 3rd-party delivery aggregator platform, or build my own delivery fleet in‑house?

Let’s explore each option, break down the pros and cons, and help you choose the best path for your business.

What is a delivery aggregator platform?

A delivery aggregator platform (like Uber Eats, DoorDash, Zomato, or Menulog) serves as a middleman between your business and your customer. You sign up, upload your menu, and your store gets listed in a marketplace app.

Customers can easily browse your menu. Also, place orders and pay instantly. The aggregator manages the deliveries with the help of its own fleet. You pay a commission for each order. In return, you get reach, convenience, and speed.

The key to smooth operations is delivery aggregator software integration, which helps orders flow from the app directly into your kitchen’s point‑of‑sale (POS) or printer, reducing manual entry and errors.

Pros & Cons: Third‑party aggregators

Pros:

1. Instant reach, no setup hassles: Aggregators offer access to millions of users in your region from day one, without the need for extra investment.
   
   

2. Built-in delivery fleet & tracking: You don’t need to buy vehicles or hire drivers. Everything is handled by the platform, often with in‑app tracking included.
   
   

3. Marketing & visibility: Promotions, featured listings, and reviews, aggregators do this for you, improving your discoverability.
   
   

4. Seamless order handling: With delivery platform integrations, orders sync with your POS or aggregator tablet, reducing mistakes and speeding up service.

Cons:

1. High commission fees: Fees of 15 to 30% per order (and delivery) can sink your profit margins fast.
   

2. Limited control over delivery quality: You trust someone outside your command to deliver your food. Customer experience may get hampered, and the blame lands on you.
   

3. Masked customer data: You don’t get access to customer contact info or buying behavior, limiting your ability to build loyalty.
   

4. Diluted brand experience: The app’s brand leads; your restaurant becomes just another option. You miss chances to engage directly with customers.

Pros & Cons: In‑house delivery

Pros:

1. Full control over experience: You hire drivers, manage training, and tailor delivery standards to your brand. Customers get a better, consistent experience.
   
   

2. Better margins in the long run: Once your fleet is running, you keep the full revenue of each order, no commissions, and improved profitability over time.
   
   

3. Unfiltered customer insights: You collect emails, addresses, and favorites. This powers repeat sales and loyalty programs.
   
   

4. Brand consistency: Your packaging, uniformed drivers, and delivery etiquette—all reflect your brand identity. No surprises.

Cons:

1. One-time high setup costs & complexity: You’ll need vehicles, drivers, insurance, and operations software, all of which take time and money.
   
   

2. Risk lies with you: Late, cold, or missing orders mean you own the error. You have no one to blame for. Strong processes become a necessity for success.

How delivery software integration bridges the gap

A hybrid model is emerging. You use a delivery aggregator platform to handle marketplace orders and build reach. But you also run your own in‑house fleet for loyal or premium customers.

This allows you to:

• Use aggregator platforms for exposure and volume

• Serve VIPs or local rentals directly, improving margins and loyalty

• Keep aggregated orders in sync with your POS via integration

• Automate dispatch and routing through on‑demand delivery software

This approach allows you to tap into the power of both worlds.

Choosing the right option for your business

Now that you know the options and how tech can bring them together, how do you decide what's best for your business?

Start by evaluating the business’s goal and the resources you have. For example:

• Are you just starting? Then, aggregators might help you reach customers faster with minimal setup. But don’t depend on them forever—start thinking about ownership early.
  

• Do you already have strong local demand? Then, building your delivery system can help you save money and control customer experience better.
  

• Do you want the best of both worlds? Consider an on-demand delivery solution that connects both in-house logistics and third-party platforms. This gives you reach and control.

Also, think about your team:

• Do you have the staff to manage deliveries in-house?
  

• Can you train your team on new tools?
  

• Are your drivers ready for a more advanced system?

And don’t forget the cost factor. Third-party platforms charge a commission for every single order that is placed by customers. That adds up. In-house delivery may need more investment upfront, but it saves money in the long run and increases profits per order.

Lastly, always ask: What kind of experience do I want my customers to have? 

If the answer is fast, reliable, and branded service, they won’t get that consistently from a third party.

The right path may not be a one-size-fits-all. For many, it’s about using technology to create a hybrid setup that’s smart, scalable, and flexible. 

One where third-party platforms support visibility while your in-house delivery software delivers consistency.

Conclusion 

No one-size-fits-all delivery solution exists. Instead, you can start a delivery aggregator platform to get volume and exposure in the initial phases of your business while simultaneously building out an in-house fleet to serve customers, once you have the capacity.

Use delivery aggregator software integration and on‑demand delivery solutions to unify both channels into a smooth workflow.

That means:

• Market reach + brand control

• Faster setup + long-term savings

• Data insights + full service control

The decision doesn’t have to be binary. With careful planning and the right tech, you can get the best of both worlds.