If you are a food lover who loves to order online, you must have come across UberEats which was found in the year 2014 and now people enjoy ordering from these platforms. As per the reports, UberEats have an overall profit of $251 crores. The success and popularity of UberEats have to lead the way for many new establishments in the market. 2020 is not only witnessing a surge in establishments of businesses but customers are also preferring online food and groceries than picking the items themselves. In addition, the convenience and comfort offered by the on-demand food delivery industry are also one of the prime reasons for the surge in orders.
Working model of food delivery app like UberEats:
UberEats like app have a three-way process that connects the customer with restaurants and delivery agents. Customer places their order through an application after finding the perfect restaurant and food. The notification of the order directly goes to the restaurant which is chosen by the customer. It is the responsibility of the restaurant to accept or reject orders according to the availability of items and time. Once accepted, two-way communication can be started between the restaurant and the customer after the confirmation received by the customer.
When the order is prepared, the delivery agent comes in, he will pick up the order and customers can track their order using the geolocation feature implemented in the application. The customer can also communicate with the delivery agent through the app if he wants to guide the location to drop the order. Customers can easily pay for their orders online through various payment options without even contacting anybody.
Let us have a look at some news so that you can believe why it is beneficial to make mobile application like ubereats and invest in this industry:
- 60% of restaurant owners agree that home delivery has led to a spike in sales during the pandemic and restaurants are earning like never before.
- 31% of customers say that they use an online food delivery platform at least twice a week.
- 57% of Millenials prefer food delivery solutions so that they can enjoy being at home and not standing in the long queue and wait for the order.
After looking at these facts, one can understand the need for new online ventures in the market. Before the pandemic, there was not much demand for groceries and food because some people used to follow the same routine of visiting the stores and pick-up the required items. Pandemic forced everybody to install online applications and order food and groceries online which paved a way for new customers in the online platform. Many applications and ventures have now entered the industry for business purposes after understanding the benefits.
The revenue model for UberEats:
Delivery fee from customers: Normally, every restaurant nowadays charge some fee for every order delivered to them. It is their choice to charge a flat fee or charge per order. Different percentages are being charged from different food delivery business models.
Subscription model: The companies have an optional subscription model to earn extra revenue from the customers. They have an option to pay a certain amount of money decided by the owner to be a prime customer in which they can avail some privileges like discounts, early delivery, and many other things. The customers in the subscription model have the ability to enjoy many benefits.
Advertising fees: The restaurant pays advertising fees to the company to come up at the top searches on the app and to get more traction and sales. The company earns money by giving space on their website.
Revenue from restaurants: The owner of the platform can also charge a certain amount of money from the entrepreneurs. This is yet another method of earning revenue from all the persons working individually.
After watching these revenue models, one should have a fair idea that it is very beneficial to enter the industry at this time because the pandemic is not gone yet and people are still preferring online groceries and food instead of going themselves.
How to enter the food delivery industry:
Watch the hot trends in the market: The very first thing to do before entering the market is to analyze the on-going trends and creating an application that can stand ahead of the competition. You can add basic and advanced features both to make it more interactive.
Develop a feature-enriched application or website: After analyzing the current situation of the market, the next step is to develop a complete customized application. You can develop it yourself if you have enough knowledge or you can hand over your project to an application development company.
Marketing strategies: The very important aspect of a business model is to think about marketing strategies like giving some early-bird discounts and loyalty programs. You can try and create a small customer base in the beginning and once it is done, you can then expand and create a larger customer base.
Launching and testing: The last step is to launch your application and test it on all the existing platforms. It is an important part of building an application because due to testing, many minor mistakes came up which needs to fix as soon as possible so that customers don’t face the issues at any point in time.
The whole market is full of competitive apps and new entrepreneur needs to be smart enough to stay in the market for a long time. There are a lot of ground realities that you need to encounter and details to be ironed out. There are employees to be recruited, restaurants to be contacted and the most critical part is to create a fully-customized app that can stand ahead of the competition. Even a technically perfect app may not give you what you are wishing as marketing strategies are equally important to engage with a larger number of customers.