FOOD_Delivery_App

A Detailed Note on the Business Model of Popular Food Delivery Apps

Ordering the food we want at the press of a button is the trend these days. Food delivery apps are a great hit among customers and because of the comfortable service it offers, people love ordering food online. According to Statista, the on-demand food delivery industry is valued at $20 billion in revenue with 105 million users in 2019.

The on-demand food delivery business model is lucrative enough to drive customers and revenue. Food delivery apps are earning massive revenue in a short span. Some of the popular food delivery apps are Postmates, UberEats, Zomato, Swiggy, Doordash and so on. 

Let’s have a detailed look at the business model of some popular food delivery applications,

Postmates

Started as an American logistics company, Postmates is now functioning in more than 2940 cities. Launched in 2011, it pioneered the on-demand food delivery movement in the US by providing delivery services from restaurants that didn’t deliver food previously.  It’s delivery model is as follows,

  • Delivery fee: It charges its users an average delivery charge of $5. 
  • Convenience fee: It’s for the sake of privileged users. The company charges a 9% convenience fee which allows the users to receive the order as per their customization.
  • Fee by merchants: It charges a nominal charge for the local restaurants they have collaborated with. 

 

UberEats

Founded by Garrett Camp and Travis Kalanick in 2009, UberEats made its foray into food delivery in August 2014 with the launch of the Uber-fresh service in Santa Monica, California. The platform was renamed to UberEATS in 2015 and the ordering software was released as its own application which is a separate entity from its ride-hailing service. 

The company targets to cover 70% of the US population surpassing its previous 50% coverage. The company’s approximate value is $20 billion. It’s business model is three-faced which connects restaurant owner, customer, and driver. UberEats earns a commission from its partner restaurants for every order. It charges delivery fees for the customers and cancellation fees at times. 

  • Doordash 

It provides service to both restaurants and ordinary customers.  The company makes most of its money from the following revenue streams:

  • Delivery Fees

DoorDash charges delivery fees for the order as per the distance travelled. It makes deliveries through its own team of hired drivers known as dashers.

  • Commission

It usually charges a commission of 20% for every order from every restaurant. The fee is actually high when compared with its competitors. 

Interested to Enter the Profitable Arena of Food Delivery?

The on-demand food delivery is showing positive signs of growth in the years to come. Entrepreneurs can easily earn revenue from the profitable platform. All they need to have is an advanced application that helps them attract customers to their business.

A food delivery app can be built in two ways, one is developing it from scratch and the other is to get clone applications. The latter is advisable as it helps the business owners save their time and money. 

UberEats clone, Swiggy clone, Zomato clone, Doordash clone are readily available in the market which lets the entrepreneurs’ journey of starting a new business as a cakewalk. For instance, if you’ve decided to follow the business model of UberEats and interested to build an app like UberEats, a clone of it is the best option for you. But before starting a food delivery business, make sure to include advanced features to make your app a great hit in the market, 

Voice calls

In-built voice calls allow customers and service providers to contact each other without sharing their actual numbers. 

Schedule bookings

Customers can place their orders for the future by mentioning the date and time of the order. 

Promotion codes

It allows customers to share a promo code to their friends so that they can avail better discounts and it brings vitality to the app. 

Wallet system

With the in-app wallet, customers can have a wallet account inside their app and they can recharge the application as per their wish. 

Multiple languages

The website, backend, and frontend will be translated into a language of the users’ choice.  

AppDupe, one of the pioneers in the field offers a plethora of clone apps that help you develop an application for your business in no time. Visit their official website for more information.

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