Rewinding our life by a little over a decade, if we were to think about restaurant food, the only option we would think about was going to the restaurant and dining in there. There was a marginal possibility of us packing the restaurant food, bringing it home, and having it in the comforts of our homes.
Fast forward a decade, and today, we cannot help thinking about ordering food online through an application as one of the ways in which we consume restaurant food using UberEats clone app. Food delivery on demand has been intertwined so much into our lives that we often take it for granted, and we forget the transformation of the technology that has gone behind this change in our lifestyle!
There are some interesting statistics to prove this paradigm shift. About 60% of the users in the United States order home delivery or take out at least once every week. 63% of the users have agreed that they find food delivery considerably convenient compared to dining out with family. About 60% of all restaurant orders for takeout or delivery are from millennials. More than 30% of users spend at least $50 per order when ordering online. There have been a three times increase in digital ordering and delivery traffic compared to 2014. The total value of mobile app-based food orders is expected to breach the $40 billion mark by 2020. More than that, the food delivery industry is expected to grow at a staggering CAGR of about 9.5% between 2020 and 2024.
Let us all admit it! Food was an ultimate source of comfort for a lot of people… and so is their home! If both these advantages can be brought together, there is no possibility of the business feeling!! This is probably the biggest factor that contributes to the unprecedented success of food delivery applications on demand. This growth has also resulted in the spawning of apps that offer the same service.
There are a lot of brands like Swiggy, Zomato, UberEats, Postmates, and Deliveroo that have made a big name and proportionally big revenues for themselves by playing this field. This does not, however, mean that the market is saturated. There is quite a lot of room wide and open for new players not only to enter the market but also to make big profits out of it.
If you are one of those aspiring entrepreneurs, it is important for you to understand the various aspects of the business of food delivery on demand through applications like UberEats clone.
The Different Business Models
The business of delivery on demand through applications is far from monotonous. There are different classifications, but most of them would probably fall into one of the two categories below.
The aggregator app takes responsibility only to facilitate orders. As the name implies, the app acts as a platform connecting users and restaurants. The users can order using the app, and the other is passed to the restaurant. The app does not take responsibility for delivering the food to the users. The owners of reaching the packed food to the user rest upon the restaurant.
Platform with Logistics Support
This is the business model that most of the big names when it comes to online food delivery applications or after! In this business model, the app not only takes care to aggregate information about the restaurant, the menu, and the order, but also takes the responsibility of delivering the food to the user. The app employs independent delivery executives to take care of the food delivery. The mapping-GPS-navigation combination assists delivery executives in reaching the precise location of the users, and it also gives real-time updates to the users on the status of their food orders.
There are two big reasons why this business model is more successful than its predecessor.
The first reason is that it leaves the best to the experts! Restaurants are supposed to prepare food and pack them, and delivery is not their cup of tea. Therefore, restaurants feel comfortable in handling just what they are meant to.
The second reason is that it has opened up a new stream of employment and a new method of engagement. The delivery executives are not technically employed with the UberEats clone app company but are mere freelancers who get paid on a per-delivery basis. This method has contributed to the gig economy and has opened up a new avenue of revenue for students and a lot of part-timers.
The Revenue Models
No business canvas would be complete without a proper revenue model, and the food delivery application business also falls into the same category. There are different channels through which food delivery applications generate revenue, making them one of the most lucrative business options of the time!
The first source of revenue for these food delivery applications is the delivery charge that they levy from users. People are willing to pay a small price for the convenience of getting the food from their favorite restaurant delivered to their homes. Different apps have different delivery pricing models. Uber charges a flat rate of $4.99 per delivery, and it varies based on distance. DoorDash, on the other hand, in addition to a delivery fee ranging between $0.99 and $7.99, also charges a service fee of 7 to 15% per order. Swiggy charges about 30 to 35% of the order price.
Another interesting channel of revenue for these food delivery apps is the commission they charge from restaurants. All food delivery on-demand apps have partnered with certain restaurants. These food delivery platforms are, in essence, lead engines for these restaurants. It is quite similar to someone dining in but without the hassle and expenses of space and resources. Therefore, restaurants share a part of the revenue per order with these food delivery applications.
Peak prices are the food delivery counterparts of surge pricing in cabs. Some food delivery apps like UberEats charge an extra for delivery at times when the demand is incredibly high. This might result in attenuation in the number of orders, but the revenue per order is considerably high.
Another amazing channel that food delivery apps can capitalize on is converting their app platforms into advertising platforms. Advertising is all about marking your presence in the most relevant places. That is no better place for a restaurant to mark its presence than a food delivery application. Some apps can also choose to run third-party advertisements like Google ads on their platforms.
The Architecture of the Business/Technology
Building an app like UberEats requires three different apps exclusively designed for each entity involved – one for the customers, one for the restaurant, one for the delivery executives, and an administrator to oversee the smooth functioning of all of this.
To understand the utility offered by each app, we will need to understand the mechanism of an order placed on these food delivery apps.
The customer opens the app, and as soon as the app is open, the customer is asked either to grant access to the location or to manually input the exact address. Based on the address, the restaurants that can deliver to that particular location as shown on the interface. The customer can choose the food items that they want from a single restaurant and place the order. The order placement is completed by making a payment using digital payment methods.
Once the order is placed, there are two entities that are notified – the restaurant and the delivery executive. The restaurant staff prepare the food, and also take care to package it. The delivery executive accepts the request for delivery, and once they accept, they are directed to the restaurant.
The delivery executive picks the food up from the restaurant, and assisted by the GPS-based navigation, they reach the location of the user and deliver the food.
Once the food is delivered, the customer can rate their experience with the restaurant and delivery executive with UberEats clone.
The Customer App
As seen from the perspective of the order mechanism, the customer needs to have certain features in place, so they can execute the orders without any problems and hassles.
They should be able to easily sign up for the services but using simple login mechanisms like email addresses and phone numbers. They should also be able to quickly create an account using Google and Facebook credentials. The profile should contain information about the history of all the orders ever placed using the app. This will help in resolving issues on previous orders.
The app should be integrated with a versatile payment gateway that accepts multiple payment methods, including but not limited to credit cards, debit cards, Internet banking, and wallets.
The customer should be able to track the progress of their orders on a real-time basis. They should also be provided with an ETA, so they can plan their day accordingly.
The customer should be provided with a proper review and rating system. This will help make the entire food delivery ecosystem democratic.
The Restaurant App
The restaurant should be provided with an app that makes it easy and simple for them to manage their menu and their prices. They should be able to quickly upload photos of the menu items, so it will make the menu attractive.
The restaurant should also have an easy order management system that notifies not only the user but also the delivery executive about the status of the food being prepared. This order management system should be integrated with a push notification mechanism that alerts users and delivery executives on the progress of their orders.
The app should quickly process the payments made using the app to the bank account of the restaurant. The swiftness with which these payments are processed plays a major role in encouraging that restaurants recommend other restaurants to participate in your UberEats clone app.
The Delivery Executive App
The delivery executives should be treated like freelance workers and should be given a considerable degree of flexibility. This is the price the food delivery companies are willing to pay because the executives do not have a fixed salary that they can draw at the end of the month.
The delivery executive should have the power to accept or reject orders based on their will and wish.
The sign-up process for the delivery executives should be simple, but at the same time, should not compromise on verifying the authenticity and identity of the users.
Just like how it is for restaurants, delivery executives should also be paid promptly. It is to be remembered that a lapse in payments either for the restaurant or the delivery executive will render the entire food delivery ecosystem to collapse.
It is quite obvious that the food delivery app that looks like a simple download on our mobile devices is a grand culmination of a lot of entities in modules working together… all to bring you home some delicious food from your favorite restaurant!
There’s no question that food delivery on demand is one of the most promising businesses of the future. This is the reason there is a continuous growth in demand for UberEats clone apps. These clone apps present a lucrative option compared to building the entire app from scratch. Building the entire app would mean that you will need to hire expensive developers and also spend quite a lot of time crafting the app to perfection. There are also possibilities that you might find bugs that interfere with the basic functioning of the app.
Using white label clones, however, eliminates the possibilities of such glitches. In addition, it is bound to save you quite a lot of time and money. If you would like to start your food delivery business, all you need to do is get in touch with the company that specializes in customizing white label UberEats clones. They will take care of not only to create the app but also to customize and deliver it to you, so you could start delivering delight to your customers.