La Nevera Roja

Name La Nevera Roja LLC, since 2011
Location Madrid
Contact person
Ana Sánchez
Main field of Business
Food ordering platform

La Nevera Roja is a food ordering platform that acts as a mediator between restaurants that offer food to deliver and their users. This company was founded in January 2011 in Madrid. It operates in more than 600 cities in Spain. Users (more than 600,000) type their address and the web or mobile app shows all the restaurants that provide food in the area. Results can be filtered by food type, price, delivery charges or distance. Users can choose a restaurant and then open its menu to order food online. They can also pay by credit card, restaurant tickets, cash or using PayPal. La Nevera Roja is leader in generation of orders and in number of restaurants in Spain.

With a huge base of restaurants (more than 4000), La Nevera Roja can provide a wide offer for its users generating also an important amount of orders for the restaurants that partner. Restaurants are charged a small fee per transaction. Restaurants can partially rely on La Nevera Roja to attract customers offering also important discounts for food. The marketing strategy of La Nevera Roja combines online marketing, offline marketing and trade marketing for their restaurants. Balance between different channels is critical to foster synergies. Offline media, particularly TV, presents a huge synergy with the mobile channel for them.

The mobile channel is integrated in the multi-channel strategy. It was a revolution for them accounting for a 40% in 2014 and with monthly growing rates between 10% and 30%. La Nevera Roja has both a mobile web shop and native apps for the main mobile platforms. Native apps have returned better results in terms of transactions per month. Users prefer the native app and they rate rating positively its ease of use and its performance to place orders when compared with the mobile web shop. User experience was a major concern in the development of the app. Customer service is also integrated in the App.

The key initial factors of success for their m-commerce strategy are: (1) A sustainable web platform able to have enough web traffic to generate orders, (2) a seamless integration of the platform with native apps that offers an optimal user experience, (3) a large base of restaurants, (4) charging a small fee per order. This requires an important volume of orders.

The main success metric in their m-commerce strategy is number of orders per each individual restaurant. Initial volume is critical to build trust in restaurants. In the m-commerce strategy of La Nevera Roja the balance between branding and performance plays a key role. Although initially efforts can be mostly employed to reduce the cost per transaction (e.g., SEO / SEM) and resulting in a fast increase in the number of transactions and customers, offline channels are important producing a longer term return of investment.

Future plans in terms of their m-commerce include technological challenges. The most important is integration with restaurants offering services to support and improve their operation. Also logistics will go mobile providing real time information about deliveries and status. Internationalization is also a concern for La Nevera Roja and they are preparing a plan of international partnership in Europe and expanding their business to other Spanish speaking countries.