Cedar Rapids-based DoorDash competitor to launch within next three months

CEDAR RAPIDS, Iowa (KCRG) - In an effort to bring money back to local restaurants, Cedar Rapids businesses are collaborating to start an area-based food delivery app.

The app is called Loco, it will serve as a locally-owned Doordash, with the goal of taking a smaller commission from restaurants and lowering delivery fees.

According to areport from RoadWarrior,food delivery apps charge restaurants a 30% commission on orders.

The commission rates for Loco orders is planned to be around 15% to 20%, with a $5 processing fee for deliveries.

Steve Shriver is one of the local entrepreneurs behind the project, he says Loco has the potential to help the Cedar Rapids economy. Shriver previously ran Loyal to Local, which was another Cedar Rapids-based initiative which he said raised $50,000 for local businesses.

“The fees are getting higher and higher on all these other third party apps,” Shriver said. “There are millions of dollars leaving our community.”

The Loco team is still reaching out to investors and restaurants to join the program, Shriver said there are 15 to 20 currently signed on.

“The profit pool ends up going back to the restaurants, which will ultimately just stay in the community and fuel our future economic success,” Shriver said.

For major apps, the rates for delivery services vary depending on the order, Loco drivers are set to be paid $15 an hour.

“It’s going to be fair pay for the drivers, it’s going to be fair revenue for the restaurants and great customer service for the customers,” Shriver said.

Even though the team is still raising funds, Loco could be in service in Cedar Rapids within the next two to three months. The program is exclusively for locally owned restaurants or local franchises, they won’t deliver for corporate chains.

Loco was inspired by the Iowa City program, Chomp.

There is currently awebsite with the latest informationon Loco as development continues.

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