Comprehensive Guide to Food Delivery Business Model

After the pandemic, almost all online setups, particularly those catering to provide online meal deliveries saw their popularity growing manifold. The popularity rose so profoundly, that its overall profitable scope also grew. This is a major reason why those operating a traditional restaurant setup are getting their services digitized. In other words, they are giving an app base to the services they provide by investing in a food ordering app. Especially considering the presence of top food delivery apps in the market starting from Zomato, to Swiggy to UberEats, the drive to build an app has grown even more.

Hence if a business has until now been providing their food delivery services offline, they must get the app edge.

This is what we will be discussing in the article below. Let us get knowledge of numbers that give an estimate of the profitable and lucrative scope of the online food ordering & delivery app.

Statistics Depicting Lucrative Scope of Food Ordering App

• The current valuation of the food delivery segment is $32.30 billion.
• The number of users grew by 23.7% in 2022.
• The projected market volume is predicted to become $466.20 billion by 2027.

All these valuations are enough to give an estimate of the profitable scope of the industry and the app in particular.

So, do you want to understand the food delivery business model that is responsible for its popular nature? Read the lines below to gain insight into the area.

All about Food Delivery Business Model – What It Constitutes?

The food delivery business model constitutes the different techniques through which it delivers meals to consumers and earns considerable profits.

When we distinguish them – there are four categories into which they are divided – namely:

• Platform-to-Consumer
• Delivery Service Aggregators
• Full Stack Model
• Restaurant-to-Consumer Model

Let us understand each of these models in the lines below.

Platform-to-Consumer Model

The model encompasses third-party apps listing restaurants and making those close to them accessible to users so they can easily order meals from there. Thereafter, upon getting adaptability to track the order, they get notified of its arrival as well.

Delivery Service Aggregators

In this model, a platform acts as the intermediary between the customer and numerous local restaurants. This gives these setups the boost to get their services boosted visibility and earn revenues directly.

Full-Stack Model

This model involves restaurants performing tasks – from meal delivery to building an app to getting drivers on board. Used by cloud kitchens, the model has a good name for providing better quality meal delivery services to the end customer.

Restaurant-to-Consumer Model

This model used by brands like Mcdonald’s involves them partnering with apps in case they do not deliver meals in that region or having an app developed to list the meals they provide so they get their visibility boosted manifold.

Knowing about these four food ordering app business models, we are sure you must be wondering how to make the right choice for the model or how to know which model is right for me. To perform this like a pro, follow the steps below.

How to Choose an Appropriate Food Delivery Business Model?

• Study customer demands
•  Know the market metrics
• Check out the actions of your competitor

With all these steps followed and given adherence to, you will successfully make the right business model choice and give your food delivery business a competitive edge.

Knowing now about the different business models, and the techniques whose adoption will make the choice easier, let us discuss a little about online food ordering & delivery app.

All About Food Ordering App

The food ordering app focuses on streamlining the way meals get delivered to customers. With extremely simple operations, the app allows the end-user to simply enter location details, and get a list of restaurants nearby upon which they get the flexibility to select meal joints and meals, and order them. So in short it has very significant value for the customer.

Also, due to these solutions having the best set of features in them for the restaurant, and the delivery drivers, as well, they are significantly popular among these segments too.

Some of these features are as follows-

• Set Availability (for the driver)
• Order Management (for restaurant)
• Menu Management (for restaurant)
• In-App Call (for the driver)
• Inventory Management ( for restaurant)
• Earnings (for the driver)

How to Transform Operations with Food Ordering App?

• Analyze business models and select one that caters to the region where you will launch the solution and the users for whom you are building it.
• Assess features that will streamline services offered.
• Examine tech stacks whose addition will allow the app to function robustly.
• Connect with a dedicated food delivery app development company offshore upon research to get top-notch on demand food delivery app development services.

This will allow you to stand out successfully from your competitors.

Estimated Cost to Develop Food Delivery App

As a food delivery startup that is stepping into the competitive world of apps through online food ordering & delivery app, the cost factor must be focused upon.

Based on the business model, features, and design that you select, the approximate cost to develop food delivery app will be between $25,000 to $35,000.

It is thus important to keep some points in mind so finances remain within the check. Here are the same enlisted below-

• Keep design simple.
• Add relevant features only.
• Avoid doing projects in-house- get it outsourced from India, Ukraine, etc, to save on cost.

With these points followed carefully, you will successfully be able to give your food delivery startup the desired boost without spending too much on finances.

Wrapping Up

Living in an era where food ordering apps have become the order of the day, it comes as no surprise that knowledge of the business models is also a significant factor to focus upon. It is a long way in assisting startups to assess and choose a model. It is a struggle nonetheless. This is a major reason why those who are stepping into this competitive business. And it needs to connect with a partner overseas so the choice becomes easy to make for them. Alongside also making it easy for them to capitalize on returns and revenues. So, if you are still struggling with this, connect with a dedicated food delivery app development company overseas today.

Understanding your business requirements, your competitors, etc, will give you access to a business model that allows you to earn a maximum percentage of returns on investments.