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7 minute read

Food Delivery Business Model: Food On Demand


Food is a necessity for all human beings. Seeing its demand, delivering food has become a successful business for many. On-demand delivery companiesappeal 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 solutionprovides 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 solutionsto 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 three prevalent business models: 

The Order Only Model 

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.