RSG119: Chris Baggott on Why ClusterTruck is the Food Delivery Model of the Future

I love companies like Postmates, DoorDash and Instacart because time is important to me now! If there’s an opportunity to save 20-30 minutes, sign me up! However, a lot of the news out there describes delivery services as a nightmare: low pay, problems with orders, etc. Is food delivery an illusive proposition? Not according to this episode’s guest!

If you’d like to read a transcript of this podcast, please click here.

Intro

  • Today I’m talking with Chris Baggott, co-founder and CEO of ClusterTruck
  • Full-stack delivery company
  • Don’t forget to check out one of my favorite podcasts, the Smarter Cars podcast!
  • Favorite episode recently was an episode about the transportation landscape + micromobility solutions (check it out below)

Intro to Chris Baggott

  • Chris Baggott has been a leader in data-driven software for a long time now
  • In 2015, he brought his tech background to ClusterTruck
  • Delivery-only kitchens
  • Goal is to make delivery efficient!

ClusterTruck

  • Software-forward delivery-only kitchen
  • Control driver fleet (1099 drivers), software, everything (vertically integrated)
  • Operating in two locations in Indianapolis, and one in Denver, Columbus and Kansas City
  • Launched in 2016

What Makes ClusterTruck Unique?

  • Vertically-integrated, don’t work with brands
  • Single location that is central to where the food is made, distributed
  • Models like GrubHub don’t, can’t work
  • Drivers are more important in ClusterTruck model

ClusterTruck + Business Impact

  • Actually spend less on driver costs
  • Free delivery for customer – but customers have skin in the game, too (have to meet the car and get their food)
  • Single point system (less time spent driving around, wasting time)
  • Not a cloud kitchen!
  • Kroger partnership

Biggest Challenges for Current Delivery System

  • The driver piece!
  • Take the worst job in the gig economy and make it the best
  • Customer loyalty
  • Training-aspect for customers, but it’s worked for ClusterTruck

Future of Delivery Service

  • Who is making money in the current delivery system we have now?
  • Not drivers, not companies
  • Inefficient system
  • ClusterTruck is the only profitable model in delivery right now

Outro

  • Big thanks to Chris for coming on the episode! If you’re in one of the cities where ClusterTruck is available, give it a shot as either a customer or courier!
  • Would love to hear about your experience – reach out to me!

Show Notes