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<\/p>\nFood delivery apps allow you to eat well wherever you are<\/p>\n
They make it fast and easy to order and pay, saving you time and money .<\/p>\n
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With more and more people preferring this convenience , app usage has continued to increase.As the demand for these services continues to rise, there is plenty of opportunity to take advantage of.<\/p>\n
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However expect to face fierce competition and high operating expenses.<\/p>\n
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In order to give yourself the best chance of succeeding , the first step is understanding how these food delivery services work and the business models they\u2019re built on<\/p>\n
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The only objective in this business model is to get new customers and restaurants to sign up<\/p>\n
Food delivery platforms using this model :\u00a0 Grubhub,JustEat<\/p>\n
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The app lists restaurants through a website or a mobile app,and acts as the medium through which users place orders<\/p>\n
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Cooking and delivery of the meal is handled by the restaurant.<\/p>\n
For customers , the ordering experience is much smoother.They can easily search and place orders<\/p>\n
And the restaurants get access to a larger customer base<\/p>\n
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Here\u2019s how this model works:<\/p>\n
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The Customer places an order through the website\/app and pays.<\/p>\n
The Food delivery platform takes its cut.<\/p>\n
And the restaurant receives the message by email or the app.<\/p>\n
Customer is then notified that order was received through mail or an automated phone call<\/p>\n
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Delivery is handled by either the restaurant\u2019s staff or by a 3rd party delivery service hired by them<\/p>\n
The food is delivered to the specified address<\/p>\n
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1.Commissions:<\/p>\n
The majority of the revenue is made through commissions.You can\u00a0 charge 10-15% on every order<\/p>\n
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2. Featured Restaurant Listings<\/p>\n
Allowing restaurants to pay to be listed in a top search position in the app.<\/p>\n
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In this model , the objective is to get orders and transport the food<\/p>\n
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Food delivery platforms using this model : Doordash Ubereats , Zomato etc<\/p>\n
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The platform acts as the medium through which customers place orders .<\/p>\n
And also delivers the food<\/p>\n
Restaurants are more than willing to sign up since they get more orders and save on delivery costs.<\/p>\n
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Here\u2019s how this model works:<\/p>\n
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Customer searches for a restaurant or the food , then place their order through the app or website<\/p>\n
They schedule when they\u2019d like to receive it\u00a0 (Instantly , at a specific time or even a couple days later)<\/p>\n
And complete the payment<\/p>\n
The delivery platform takes its commission and then sends the finalised order to the restaurant<\/p>\n
Restaurant notifies the customer that their order is being prepared.<\/p>\n
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Delivery is usually handled by your own delivery drivers or 3rd party independent contractors<\/p>\n
They stay logged into the app , to receive and accept delivery requests.<\/p>\n
Delivery requests are sent to drivers closest to the restaurant .If no one takes the job, it is sent to more drivers further out.<\/p>\n
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Once the driver arrives at the restaurant , they get the customer\u2019s details .The food is dropped at the specified location.<\/p>\n
If they cannot find the customer, they usually call or message them in the app<\/p>\n
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