Subscription-Based Food Delivery App Solution the Profitable Model for Startups

For entrepreneurs, especially in this pandemic time, “Failing to Prepare Means, You’re Indeed Preparing to Fail.” A faithful saying that’s ultimately accepted and believed in the restaurant or food industry. Starting an online food delivery business is quite a profitable option, but one doesn’t make a fortune overnight without an ideal business model in place. 

Time after 2020 has completely changed, and now the focus of companies is being more human to customers rather than inviting them to “Buy Two, Get One Free.” And this is the reason subscription-based food delivery solutions are in demand. Enterprises are now switching to the idea of selling products to receive recurring subscription revenue either monthly or yearly.

Such innovation is a boon for startups in terms of stability. There is no need to spend an ample amount for a start. Having a subscription-based restaurant app in place, both business owners and food lovers can benefit them. In simple words, customers don’t need to worry about ordering items, again and again, they need for regular use, and business owners can earn fixed revenue every month.

Before you go through the technical terms behind the subscription-based app development, have a glimpse at some of its basics:

Get Readymade on-Demand Food Delivery App Solution like Uber Eats

Monthly Subscription Based Food Delivery Application – The Best Business Model

The selection of a specific model plays a keen role in the success of the business. A model is the complete layout of services and products one is offering in the marketplace. The model you choose should be tailored to the company’s needs and requirements. As smartphone users are everywhere, the use of food ordering and delivery apps will expand rapidly. 

Nowadays, the monthly-based food delivery business model is in demand. And before that, two models gained a lot of popularity. For differentiating the subscription-based food delivery business model, we have to define the other models. The below definition will better explain the differentiation between the models.

The Aggregator model 

The aggregator is a type of food ordering & delivery business model in which the platform serves as a halfway between consumers and several restaurants nearby. Doordash, Grubhub, and Uber Eats are the most famous examples that work on this model. On behalf of the restaurants, aggregators provide support to the customers if one doesn’t get the delivery on time. 

Aggregators own a website or app which they promote further among customers and businesses to join. The only drawback of such a model is that business owners can’t earn all profits and have to give some percentage of their revenue to the aggregator. 

The business owner model

The owner model entirely differs from the Aggregator model. In this model type, one as a restaurant owner can build their food delivery app with the help of a reputed developer. The best thing about this model is that one doesn’t need to go through the hassle of getting things done through an aggregator. Plus, one doesn’t need to pay a fixed amount as all profits go to the owner. One can become an aggregator on his own. 

Also Read: Top Profitable Hyperlocal Business App Ideas for On-Demand Delivery Services

Monthly Subscription-Based Restaurant Solution for Business Benefits

Focus On Customer Convenience, Not Just Selling!”

The concept completely differs from the traditional business model. Such a model allows the customers and business owners to subscribe to a plan with a one-time payment that fits the requirement and pocket. There is no need to pay for a single item every time, and one can have to earn repetitive value in return. All that means startups can have their app, either iOS or Android, for customers and business owners.

How Does This Model Benefit Customers?

There is no denying to say that subscriptions work as an added convenience for customers. The model with this option in place allows customers to get whatever they want at the most affordable price. A consumer doesn’t need to worry about placing the order repeatedly after a few days, and items will be delivered successfully to one’s doorstep.

It’s magic for some – order it once, your products keep coming up till the subscription plan expires. With discounts on subscription plans, customers can manage things without going out of budget.

How Does This Model Benefit Business Owners?

Businesses running on a Subscription-based food delivery business model have higher chances of retaining customers and making them ordering again. On the other hand, if you allow customers to make the same order and repeat the same process every time, they might get irritated or leave your store. 

This model fits here well, especially for newcomers or startups. It provides extra value to businesses for converting customers into long-term loyal subscribers. 

Let’s discuss the reasons in more detail why the subscription-based food delivery business model will remain in trend in coming years.

Also Read: Explore Different Ways of Building a Food Delivery App Like Ubereats!

Few reasons why Subscription Based Delivery Application as Business Model

Less Burden or Pressure to Bear

Some challenges or concerns come across when entrepreneurs consider developing their food delivery app on a large scale. One misstep can lead to extra pressure on the company, and the entire business turns into a failure. To minimize the extra hassle, they can consider building a subscription-based food delivery app that helps reduce the stress that comes with developing an app on a large-scale business model.

Low Capital to Kick-start

When it comes to kick-starting a business, there is a need to make some considerable investment. But not all startups have enough capital to invest in the industry, and due to the lack of resources, many fail to make an online presence. In such a situation, subscription-based food delivery apps prove to be a boon. 

Startups having this model in place do not require huge capital to develop their food delivery app. A complete app can be customized and extended by the company without a requirement of a nominal fee every month.

Extra-level Support

Almost every startup requires some support in the beginning when starting a company. If there is no support behind it, it is somehow tricky to accomplish food delivery app development, especially after the launch of the app. But the scenario of a subscription-based delivery app is entirely different as there is no need to hire a professional to customize and update the app regularly. 

Advance Prediction of Revenue

Transforming your business on a subscription-based food delivery model brings countless benefits. Such a model in place allows the business owners to have an advanced prediction of revenue. Once when knows what to expect in the coming future, it’s easier to make better and wiser plans. 

Business owners out there can handle their inventory efficiently and need not worry about the shortage of ingredients. Such a model allows you to avoid making wastage by having neither more nor less.

Build Strong Customer Relationships

It’s not difficult to maintain good relationships with customers if your business runs on a subscription-based food delivery model. This model is the best example for acquiring more and more customers without worrying about gap holes. The better the customer retention rate you have, the better you can build your foundation. 

All in all, such a model ensures that once the customer places an order, the chances are also high that the same customer will repeatedly make orders. As of now, you are much clear with the basics of a subscription-based business model. Now let take the next move towards

What Types of Apps Succeed or What Not on this Model?

Nearly all apps can attempt to run, but certain apps are better suited to this model. A few examples are – A content type of app and a service app. These are best to perform on a subscription-based model. Simultaneously, a single-purpose app, gaming app, and shopping apps are less to act or perform on this model.

How To Build a Subscription-Based Food Delivery app?

The subscription-based food delivery model is gaining popularity these days as both customers and businesses benefited a lot. The companies now focus on attracting more and more subscribers, which further leads to accelerating business revenue. At the same time, customers are putting more interest in downloading subscription-based mobile apps to better meet their needs by subscribing to a plan for a year. 

The model has proven to be best in meeting customer expectations and retaining them for the long term. With a one-time purchase of the subscription plan, a consumer can make consistent access to a specific service. All these are the reasons for making the subscription-based food delivery business model a perfect choice.

As more and more customers are towards a subscription-based food delivery app, it’s the right time for companies to develop applications on such models and build brand loyalty. Their more attention should be towards building more value to customers and providing them with better customer relationships. 

The development of subscription-based models is easier to make, affordable, and convenient for customers. They need to come with subscription plans that provide customers with the ease of no traveling and getting everything at the doorstep.

At this point, you might have one confusion??? 

How to convince customers to become a subscriber? 

Or

How to turn customers into loyal subscribers?

Well! Customers always look for something encouraging, and they are entirely motivated towards financial incentives like discounts. And these can become powerful tools for you to convince customers to sign up for a subscription plan. You can also prefer interesting content through accessible trails so that customers love that and take a quick step towards subscription plans before the end of the trial.

Before you get on the road of developing a subscription-based mobile app, you need first to validate your app idea or concept. Although such a model is a hit for a business, it doesn’t mean you include anything into the delivery service app.

It would be best if you thought before acting. Unlike other app development, subscription-based apps are not product-oriented; they are value-oriented. The validation of an app idea will cover all unique features that you want to add, thus providing an end-to-end solution to users.

What Structure To Follow For Your Food Delivery System?

  • Go with a user-friendly, responsive, and eye-catching website
  • Have a fully functional, robust, and secure mobile app
  • Create a separate app for the delivery agent or person
  • Build software for service providers to quickly carry out certain functions

Step-by-Step Guide To Build A Powerful Monthly Subscription-based Delivery App

So, as an entrepreneur or startup, if you have finally decided to develop a subscription-based food delivery app, you make sure to consider some essentials to build such a business model.

Escape from the sea of sameness

Your decision to build a subscription-based mobile is wise during this challenging time. But you also understand that the competition is much higher; consider adding unique features and powerful content in-app that is worthful for your users. 

As your app users will pay you an annual fee just because of something valuable, they will expect more from you. You can meet the customer requirement by providing fresh content and unique features into an app, enabling users to access the app regularly.

Plus, you also make sure that the features you are going to add in-app should be easy to access to find things they are looking for quickly. 

All in all, a subscription-based app needs to be stable and regularly updated with impressive features to attract more and more customers. One more thing on the list, i.e., personalization, you can consider sending regular email or notifications to keep customers satisfied and happy.

Some essential features to add to the subscription-based delivery app

Since your valuable customers will pay you a recurring fee, you make sure not to disappoint them in any way. The latest features you can add to the app to impress customers are:

The free trial period must be on the list: Your app needs to perform differently. Keep the first month as a free trial so that customers understand the value of the app. You can consider specific features of the app for free use. This approach will surely convince the customers to turn into loyal subscribers.

Quick support is vital than ever: Subscribers will expect to get the money’s worth because they are the ones who pay you recurring revenue. To keep up with their trust, make sure the app has a quick support feature. Having immediate support from you means your users are likely to stick and never leave.

Keep on Delivering Consistent Value

A tough battle is going on in the landscape of mobile app development. And if we talk about subscription-based mobile applications, then the story is one step further. An app must be compelling enough for users so that they don’t just pay once. All that means subscription-based apps are designed in such a manner so that it delivers value to its customers regularly. With relevant features and services in place, you can more easily beat your competitors.

The Software or App Quality Needs To be 10/10

Delivering consistent value to customers is one side, whereas maintaining software quality across different platforms is crucial to retain customers. Subscription-based mobile apps you are going to build must be high-performing that offers customers pleasant user experiences. The appealing UX and UI provide customers a reason to download the app quickly without thinking twice and continue using it. So, make sure that your app is free of bug-free and ensures smooth running.

How Much Does A Subscription-based Food Delivery App Cost To Build?

Not all mobile apps are equal and require the same kind of functionality for execution. The cost of the subscription-based mobile app depends on some factors, including – the features you need to add to the app, the type of platform, and technologies and tools used in the development process, the experience and location of the development team. All these factors play a keen role in determining the cost of the app. The cost of the subscription-based mobile app starts from $12,000, and don’t forget the price may vary depending upon the factors mentioned above.

Note: The iOS app costs higher than the Android app.

Summing Up

An adoption of subscription-based food ordering and the delivery solution is an ideal choice for several reasons. The two foremost on the list are the tough competition and the second to survive in this pandemic situation. Such a model offers customers better convenience and business owners with fixed revenue every month. Make sure your restaurant app on this model includes all the advanced features that no one else.

Have an exciting app idea and in a hurry to make it a reality? Reach the best mobile app developers for end-to-end development solutions.