Technology has permanently changed the way we order food. Nowadays people don’t need to go out to have a bite. The food is delivered to your doorstep in a click from your mobile app. The food delivery is a worldwide trend in recent years and more than 40% of orders from a restaurant is through the digital medium.
But have you ever thought of starting a food delivery business? If so then here are some of the key facts that you should know before jumping into a food delivery business.
Why You Should Start Food Delivery Business?
Everyone knows about the food delivery service but, there are points to consider why you should start a food delivery service.
- Highly profitable business.
- Lots of potential markets still not occupied.
- People prefer a food delivery service and it creates demand.
- Lots of improvement and development are still needed in delivery service and it creates opportunities.
Business Model of Food Delivery Service:
A food delivery service works with the simple workflow that the user orders food, the restaurant prepares food and drivers deliver the food. Here are the working models in the food delivery platforms.
Mediator: The food delivery apps act as a mediator and it will bring orders to the restaurant. The restaurant prepares food and delivers it to the customers. To know more about this model then check out Just Eat Clone.
Delivery Provider & Mediator: In this model, the food is delivered by food delivery apps itself acts delivery provider and mediator. The perfect example of this model is UberEats Clone.
No Mediator: The Restaurant itself owns a delivery app and provide delivery service to its customers. The perfect example of this model is Pizza Hut.
Revenue Model:
Lots of money is spinning around the food delivery industry. This because of the various factors and business models in the industry. Here are some earning methods that you should know in the food delivery industry.
Commission Fee: The commission fee is the commission charged by food delivery apps for every order processed in their platform. This average commission charge ranges 30% of order value.
Entry Fee: The entry fee is nothing but joining fee that is charged by food delivery apps for listing restaurants in their website.
Advertisement Fee: The advertisement fee is charged to restaurants for listing them in promoted placements or in suggested restaurant list.
Surcharge: The surcharge is an extra delivery fee charged to customers during a high traffic period or on rainy days.
Thus, there is more demand for food delivery service than ever before. It creates opportunities for entrepreneurs, startups and food delivery companies to run a successful business.
If you want to start a food delivery business then, here are some clone scripts that help launch your business.
I hope that I have motivated you to start the food delivery business.
Thank you.
