Food has remained a constant need for humans and it will continue to be consumed in some way or the other. Restaurants form an important element in the landscape of food consumption. Restaurants have been changing their avatar, and the metamorphosis has been aided by technology and by the pattern of human behavior.
At one point in time, restaurants were supposed to be pure utility, providing food to people who traveled outside their homes. Slowly, restaurants became a hangout and an excuse for a celebration. Today, people have started to eat restaurant food even when they stay in the confines of their homes.
The food delivery market
The food delivery market reached a market value of about $107.4 billion in 2019, and it is expected to be quite close to the $200 billion mark in 2024. While on one hand, the increase in the need for people to consume restaurant food in the confines of their homes has been a contributing factor, the COVID-19 pandemic has also changed the perception of restaurants and the concept of dining out.
In addition, there are a lot of cloud kitchens that have sprung up left, right, and center. These cloud kitchens render obsolete the value of investing in real estate and spending exorbitant amounts of money for decoration and interiors.
Since we are witnessing a time when restaurants are growing at unprecedented rates and the consumption of restaurant food has moved beyond the necessity of being there at a restaurant, now would be a perfect time for any aspiring entrepreneur to invest in launching a Food delivery app.
The different possibilities
Food delivery is not monotonous. There are multiple Business models that you can consider. It is to be remembered that thorough market research is mandatory before you start your Food Delivery App business. There are pros and cons associated with every business model.
The simplest one is the aggregator model where you present your customers with the restaurants and the available menu options. The responsibility of the app is confined to just delivering the details of the order to the restaurant. The order will be delivered by the restaurant using its own delivery fleet.
The most prominent business model in food delivery is the aggregator model with logistic solutions. This would mean that the responsibility of delivering food from the restaurant to the location of the user does not fall on the restaurant but on the app business. This model finds its success from the fact that it takes away the responsibility of delivery from the restaurants and also opens up opportunities for the gig economy with delivery partners.
The third model is the hybrid solution which, in essence, is a delivery service but does not confine itself to just restaurant food delivery but also extends to other courier and parcel delivery services. Since it is the same delivery fleet for all businesses, it is considered to be a better business model, especially with the increase in the number of home bakers and craft creators.
The key features
Whatever be the business model you look at, the features are bound to be almost congruent furious letters, for the sake of the majority, focus on the food delivery aggregator with logistics business model. This business model has three distinct platforms/applications in addition to an administrator. There are dedicated apps/interfaces for the customer, the restaurant, and the delivery partner. The app interface should be designed in such a way that it makes it easy and convenient for the entity using them to get their process done fast and efficiently.
Before we jump into the features of each app, it is important to know how restaurant applications precisely work. The customer downloads the app and registers themselves, and they are shown a list of all the restaurants that can deliver to their address. Upon choosing the menu items and placing an order, the restaurant is notified of the order, and they accept the order. Parallel to this, notifications are sent to the delivery partners in the vicinity, and one of them can accept the delivery request. Guided by the GPS, the delivery executive reaches the restaurant and picks their order. Again, using the same GPS and navigation assistance, the delivery executive delivers the food parcel to the location of the customer.
The customer app
1.The customer should be able to easily register for the services. They should be able to sign up using either that email address or phone number or legacy credentials like Google and Facebook.
2.The location of the customer should be pinpointed with textual details and also the GPS. The precision of location will assist easier navigation for the delivery executive. It will also help list the restaurants that can deliver to that location.
3.The customer should be provided with filters that will help them zero down on their choice of food based on the cuisine and delivery time.
4.The app should be integrated with a versatile payment gateway that can accept payments from multiple payment methods including but not limited to credit cards, debit cards, internet banking, and wallets. Having a wallet in place ensures that you can get refunds processed easily and payments are done faster.
5.There should be a review and rating system in place that will help users rate the experience of delivery and the food from the restaurant.
The restaurant app
1.As much as it is for the user, the restaurant should also be able to easily onboard themselves into the app. The onboarding process, however, should include collecting details such as the exact location of the restaurant, their registration and taxation details, the bank details, and the agreements detailing their pricing policy.
2.The restaurant should be able to upload their menu with the prices, and if possible, also Upload the pictures for the menu items.
3.They should be able to toggle their availability and even specific availability of food items.
4.The restaurant should have the payments process due to their bank accounts in the shortest possible time. It is the swiftness in this process that determines the loyalty of a restaurant to a specific brand of food delivery app business.
The delivery executive app
The delivery executives are gig workers who are not confined by any contract of employment. Having a food delivery app with logistic services opens up employment opportunities for people who look forward to earning extra income and for students.
1.The food delivery executive should be able to onboard the app without any difficulty. They should also be able to sign up easily while at the same time, committing themselves to an identity verification process.
2.They should be able to toggle their availability and should be able to fix their own working hours.
3.They should have the liberty to accept or reject requests based on their comfort.
4.The commission rates for every delivery should be fixed, and incentives should be provided if they complete a certain threshold number of deliveries.
5.The earnings of the delivery executives should be credited to their bank accounts without any delay. They should also be provided with referral bonuses for completing the threshold number of deliveries.
The administrator panel
The administrator is responsible for overseeing all the aspects of the app. They function as an all-seeing eye. They are responsible for keeping up the integrity of the app and for ensuring that the quality of service is complied with.
1.They have the power to add, remove, delete, or suspend users, restaurants, and delivery. executives.
2.They should be provided with an intuitive dashboard that gives them a complete picture, and especially the revenues of the day or the month or any specific stretch of time.
3.They should be able to create offers and promotions for customers as and when needed.
4.They are responsible for customer support and they can delegate customer support to a team if necessary.
5.They are responsible for the smooth, flawless, and efficient functioning of every aspect of the application.
The avenues for revenue
No business model is complete without revenue generation channels. In the food delivery app domain, there are multiple methods to generate your revenue.
1.Usually, the biggest chunk of revenue for the app comes from taking the commission from the restaurant for every order facilitated through the app. In essence, the app functions like an affiliate program bringing more orders for the restaurant.
2.Of late, subscription programs have been introduced which helps in additional revenue from customers.
3.There are premium offerings from the app at an additional cost which enables priority deliveries, discounts, and access to certain special features of the app and some offers And dishes of restaurants.
4.The app can also engage in advertising programs for restaurants. There is no better place for a new restaurant to mark its presence than a food delivery app.
The relevance and the profitability of a food ordering app have already been established. It is quite obvious that any aspiring entrepreneur would want to explore the space of a food ordering app that facilitates restaurant delivery. It would be worthy to invest in an on-demand food delivery app development process to get your food ordering app to life.
The process of food delivery app development, however, can be quite demanding and cumbersome. You can choose to partner with a Food ordering app development company. However, it would consume a lot of time and effort from your end. Alternatively, you can choose to partner with a Food Delivery App Development company that specializes in white label solutions. The food delivery app developers have the product ready to be deployed just with a few minor elements of customization. The delivery app developer will also ensure that the product contains your branding elements in every sphere.
A white label solution will help you launch the product and your service in the shortest possible time, and there is no better way to make a grand entry into the market, especially in a situation when time is of crucial importance!