Could Mobile Apps Replace Drive-Thrus?

Younger city dwellers and less driving could spell the demise of the drive-thru in urban areas.

November 10, 2014

NEW YORK – As more younger Americans move to cities, and ditch their cars in the process, could mobile payments make drive-thrus obsolete? That’s the question posed by the Huffington Post.

“The mobile payment will become the urban version of the drive-thru,” Maeve Webster, a senior director at Datassential, told the news source, adding, “The big thing that’s going to drive that is the population shift into urban areas.”

The article cites the number of restaurants and quick-serve locations that have expanded mobile ordering and payment options in recent months. These types of apps are appealing to “younger city dwellers looking to order quickly and on the go,” a demographic cities are seeing more of.

Between 2000 and 2010, the U.S. urban population increased by 12.1%, compared to an overall population growth rate of 9.7%, according to 2012 Census Bureau data. The news source notes that nearly 1 in 7 Americans lives in the New York, Chicago or Los Angeles metropolitan areas and nearly 1 in 3 lives in one of the 10 most populous regions, according to Census data.

As more young people move to urban areas, they’re also more likely to drive less. A U.S. PIRG study found that between 2001 and 2009, the number of miles driven by people ages 16 to 34 dropped 23%.

“If these patterns hold, it may not be long before the trappings of car culture — including drive-thrus — become increasingly outdated,” notes the news source.

Meanwhile, chains such as Starbucks are already looking at ways to adjust. Beginning sometime next year, the company will add delivery to its mobile app and added a feature this year that allows users to contact Uber through the Starbucks app. The news source adds that Starbucks CEO Howard Shultz described efforts to grow mobile transactions as "taking a page out of the drive-thru business,” which is known for convenience.

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