Food is an indispensable part of our day-to-day life. An average human being has a good meal three or four times a day. Though it is a part of our routine, we still crave food from different cuisines. Previously, people used to dine out at restaurants or food outlets and satisfy their hunger pangs. But now, they want food to be delivered at their doorstep. They do not want to go out and spend much time to order and eat. This was the main reason for the emergence of food delivery services in the on-demand market.
A few statistics on how the food delivery market has undergone a drastic changeover after digitization is given below:
Almost all smartphone users have a food delivery app installed on their phones.
The annual revenue of the industry in the year 2019 is around $107.43 billion.
By the end of 2023, the food delivery market will grow by 9.9%.
The market volume will be $156 billion by 2023 for the platform to consumer delivery model.
China is the country that generates the highest revenue that amounts to $40.23 billion.
It is also known through a survey that close to 40 US-based food delivery companies have raised $5 million via funding.
To date, many food delivery services such as UberEats, Swiggy, Zomato, etc. have entered the market and managed to sustain themselves in the market as top players. The main element for their success is the online app that they have launched on multiple platforms. Apps helped them acquire more customers, and thereby their revenue increased by a greater ratio. But, building an app from scratch seems to take up a lot of money and effort. So, entrepreneurs prefer to go with the UberEats Clone app available in the market. Clone apps are more advanced and cost lesser than an app developed from the initial stage.
What are the models or platforms used in developing apps for your food delivery business?
There are three models based on which the food delivery app can be developed and launched. A detailed outlook on how these platforms work is given here.
The aggregator model:
This model is more of an intermediator model. There exist three main roles in this type of model: the user, the restaurant, and the mediator. The user has to sign in to the food delivery app and place an order after choosing items from a restaurant or food outlet of their choice. The mediator plays his/her role here. They confirm the order and pass it on to the concerned restaurant. The restaurant starts preparing the food, and they will have in-house delivery agents to deliver the order to the customer. The mediator earns a commission from the hotel for obtaining the order and transferring it to the restaurant through their food ordering apps. The customer does not have to pay any extra charges for the delivery process. A few food delivery apps such as FoodPanda, GrubHub, and Delivery Hero employed this model in their apps and have attained greater heights.
The new Delivery Model:
Many food delivery apps like UberEats, Swiggy, Deliveroo, etc. use this new delivery model to deliver food to their customers. In this model, the delivery executives are the third parties. The customers place an order in the online app, and the restaurant accepts the order. The order details are sent to the nearest delivery executives, and they accept the order. They reach the restaurant and collect the food order from the restaurant. The delivery agents have access to the location and contact details of the customers and vice versa. The food order is then delivered to the customer within the estimated time. The source of revenue for the third-party service is the commission paid by the restaurants and the customers. The restaurants have to pay a fixed percentage of commission to the delivery partners. The customers pay the commission via delivery charges. This model can be useful for small-scale restaurants that want to develop their business.
The all-rounder model:
This model is known as the all-rounder model, as the restaurants are responsible for the entire process. The customer places an order with the online app, and the restaurant accepts the order. The food is then prepared and delivered by the restaurant itself. They have in-house chefs and delivery executives to prepare tasty food and deliver it. This model is also highly beneficial for startups and other developing restaurants.
If you own an on-demand food delivery business, then you have to develop and launch an online app to reach the customers in a jiffy, generating revenue at a higher rate. So, choose the best app development company. We are one such company that has been in this sector for a few years now and have a list of happy clients.
Contact our team of experts to develop an on-demand food delivery app and become successful in the food delivery market.
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