The on-demand food delivery app business is flourishing without much investment needed. However, the only question that any business owner would ask is whether it is really lucrative and if it is, then what are the business models that make it this beneficial. If you are one among them, then I’m sure you would have thought the same. But here in this blog, without beating around the bush, I’m going to reveal the successful business models. Let’s look at them in detail.
Order and delivery business model
The working is quite familiar. The user will place the order on the food delivery app or on the website by looking at the online menu that is provided by the restaurants. Out of the menu, they will pick out the dishes they wish to have and order them.
Now coming to the delivery section, the delivery executive logs into the app through the phones provided to them. The phone will contain the delivery app installed into it, which they can use for tracking the destination and navigating easily. The delivery agent who is nearer to the location will take the order and deliver it within a short time.
Fully integrated business model
Most of the delivery startups follow this model, where they handle deliveries also without relying on any third-party services. It consists of all the aspects like order only model, order and delivery model, cloud management model, and meal kit delivery model. These businesses only cater to specific locations by delivering different menus every day. The kitchen only functions for particular hours of the day.
People will be given a message when it opens, and they can order anything from the provided menu. Customers can also pre-place orders and get their orders received on time.
Order only business model
This is followed by many food delivery businesses as it opens doors to gain more user traction. With this model, the restaurants can be able to concentrate on attaining new customers, as it will be partnered with a food delivery app and will also contain a website.
On the website, the customer will place the order, the restaurant receives it and confirms with the customer about the order. After the order is prepared, the delivery agents will take up the orders and deliver them to the particular location at the given time.
There are two main methods through which the deliveries are carried out. Either the restaurants have their own delivery services, or they hire delivery agents from a third-party service.
These are three crucial business models that are being followed by the food ordering and delivery business.
No matter which model you follow, there are four critical things that you should consider while developing an app. Let’s look at them one by one.
Access – Customers don’t have the patience anymore for anything. Make sure that your service is both quick and perfect. A delayed service may result in the delayed success. Hence, if your competitor delivers the food in 20 minutes, make sure that you provide the food in a lesser time than that. This is how the customers will shift to your business.
Payment – One crucial aspect of the on-demand service is payment. With the emergence of many digital payment methods, if you still rely on currencies and coins, the decline is inevitable. It can obviously be a choice, but it should not be the only payment method. Make sure to integrate the payment gateways like PayPal, Stripe, Gray, Apple Pay, etc. You can also offer them options to pay via debit or credit cards.
Technology – The competition in the food delivery industry is high when compared to other on-demand services, as they are being loved by many because of the comfort and convenience. To stay in this market, you must have some unique features in your app that your competitors don’t have. For that, you should do thorough market research and frame a plan for what advancement you could bring to your business.
Reorder – Your website or app should have this option to let users reorder an item from their past orders. Customers are bound to order the same thing most of the time when they like it. Instead of allowing them to order the same item every time by logging in, then searching it and checking out to get it delivered, they can go through their past order and choose anyone to order it easily.
Adding up the final touch
On-demand food delivery/order business, as mentioned earlier, is bringing in too much revenue and users by becoming the most flourishing business out of other on-demand services. To have a business and to gain success, you need to have a competitive edge. Developing the app right from scratch or hiring a development team cannot work well. So, grab the readymade ubereats clone script, and launch the app in a jiffy with exciting features.