Food Delivery Business Model: Food On Demand

Food Delivery Business Model: Food On Demand

Jeevanjot Kaur
April 8, 2021
Food Delivery Business

Food is a necessity for all human beings. Seeing its demand, delivering food has become a successful business for many. On-demand delivery companies appeal to users as they promise to provide comfort and save time. How do they provide convenience?

There are 4 ways through which on-demand delivery solution provides convenience:

Decision Convenience: Users can take the decision fast by browsing through different categories on the app. They can check reviews and ratings to make the final decision. 

Delivery Convenience: Users can get their products or services delivered at their doorsteps. Some delivery companies deliver within 30 minutes.

Transaction Convenience: Users can choose the payment method they want. They can pay with cards, PayPal, e-wallets, Cash on delivery, etc.

Benefits Convenience: Users get discounts and coupons when they become loyal members. 

The full circle approach to the components of the meal experience helps  on-demand app solutions to stand out from the rest.

These three components are:

Ordering: Customers request to prepare and deliver their food; on-demand companies receive orders via apps and work towards fulfilling the order.

Cooking: The estimated time of food delivery is given when the customer places his order. The food can be pre-cooked, or restaurants cook after the order is received.

Delivering: Another important step in the delivery of food. The on-demand business strives for the quick delivery to provide customer satisfaction. 

In the food industry, there are two prevalent business models: 

Order and Delivery Model

The order and delivery model is the one that handles logistics for the food joints. They handle everything, including home delivery services. This model is beneficial for food joints as they don’t have to handle courier services and don’t have to find customers. 

Fully Integrated Model

Fully integrated models take care of the whole food delivery process, but they are expensive. They take care of orders, prepare, and deliver food. Every minute detail, such as ingredients and preparation, is taken care of. They cater to the needs of corporate clients as well as individuals. This model is highly expensive.  

The Popularity of On-Demand Food Apps

On demand food apps are highly popular. Millions of people order food online every day because customers get variety as well as convenience. Revenue from the food industry is expected to reach US$164,000m by 2024. The on-demand food industry is steadily growing and has huge demand worldwide. If you have a food business, having an app like Zomato and Swiggy is a necessity to increase orders and ROI. 

Need for Businesses to Adopt Technology

Today, smartphone apps take care of our day-to-day operations like booking a cab, home services, and ordering food. The internet is a great place to promote your services and reach a large audience in less time compared to TV and newspapers. Social media campaigns and SEO strategies help businesses to gain popularity. If your business hasn’t invested in the technology yet, it is time to do so now. The app that delivers anything you want is hugely popular and helps businesses attract users. 

Benefits of Adopting Technology 


The first and foremost benefit of on-demand food delivery apps is the increased reach. Businesses go above and beyond to reach their target audience. Many people don’t go to a particular restaurant because it is far from their place. On-demand food delivery apps provide the perfect opportunity for food joints to reach potential customers. By having a food delivery app for your restaurant, customers won’t remove you from their list just because your restaurant is far. Food delivery apps allow users to search for their favorite restaurants and order whatever they want. Not only that, customers can check reviews and ratings before placing an order. It is all possible because of technology. By leveraging the technology, restaurants can increase their reach and ROI in less time.  

Core Competence 

A restaurant’s core competence is making food; they might lack in delivery. It’s not a good idea for restaurants to sit idle and wait for customers. They have to make efforts, and Online Ordering System is one such solution. Restaurants can focus on making delicious food while on-demand food delivery apps take care of picking and delivering the order.  


As said above, convenience is important for customers, and on-demand delivery apps provide customers with the same. Delivery platforms offer world-class service to customers as well as restaurants. A fuss-free food ordering experience is appreciated by users. 

Benefits to All Users

On demand apps remove the hurdles that are often seen in the interaction of customers and restaurants. Platforms are striving hard to enhance their services; that’s why people are hooked to them.

  • Technology helps restaurants in accepting and processing orders fast
  • It is due to technology that restaurants receive payments instantly.
  • Technology helps customers order what they want from the comfort of their homes
  • Technology helps customers to get food quickly
  • It is because of technology that users get discounts while ordering online

How can Cerebrum Infotech help you in this regard?

Cerebrum Infotech helps businesses get the best on-demand delivery app. CereKart caters to the needs of diverse businesses such as food, grocery, medicine, flower, marijuana, etc. CereKart is an app that is crafted with passion and utilizes the latest technology to provide the best experience to global clients. Features like hassle-free ordering, real-time notifications, order tracking, analytics, etc., make it a must-have app for delivery businesses.


Food delivery is the integrated model. In the integrated model, delivery can be managed by both restaurants and the admin.

In the food delivery business, users place orders either on the dedicated business app or the marketplace app. The restaurant gets the order, prepares it, and then delivers it to the customer’s preferred location. Some restaurants have their own delivery personnel while others rely on the platform to provide them with delivery agents.

If you are looking to be an entrepreneur with a food delivery business from home, it’s a great idea! First, you need to identify your niche and your target audience. You have to plan for delivery as well because people don’t want to wait hours to get their food delivered to them. Register your business and start your journey.

Jeevanjot Kaur

Jeevanjot firmly believes in the power of putting together words and the impact it creates on a reader’s mind. She loves writing about technology and trends that shape the industry. In her free time, you will find her admiring nature and its creator.

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