How to conceptualize your on-demand food delivery business with an UberEats clone app:
As almost every business in the market is moving towards automation, the restaurant business is not an exception. The demand and dependability of fast-food restaurants have constituted the immense popularity of on-demand food delivery apps. The comfort of ordering from anywhere has reeled in the millennials to order food online. Customers are able to get hassle-free food deliveries to their location on time despite rush hours.
The evolution of food delivery service:
The concept of on-demand food delivery services is not new to the people as almost everyone has started using it in their daily lives. There is no doubt about the adulation of on-demand food delivery services, and a majority of restaurants have started implementing it to streamline its potential. But the concept of food delivery service dates back to ancient times when the Roman empire had its upper hand. They loved the concept of getting their favorite food delivered to their location conveniently as much as modern consumers do. They even had fast food restaurants like modern times and served meals at the counter in a clay pot. It was a commercial establishment, and people were able to purchase ready-to-eat food.
The concept of fast food delivery services was pumped up in the mid-’50s as people started to prefer takeaways. This period gave rise to numerous TV shows, and almost every household had a television set. Most families had working parents, and they preferred to get fast food meals on their way home to enjoy their favorite television show. Fast food restaurant chains took advantage of this trend and started advertising on televisions about their food delivery service. The immense monetary potential of food delivery services plays a vital role in the modern food and restaurant industry.
Market share of on-demand food delivery services apps:
- Experts have predicted that the market share of on-demand food delivery apps will reach $96.8 million by 2024.
- The on-demand food delivery service sector is expected to have an annual growth of 7.5% in the next four years.
- China emerges as the primary consumer of on-demand food delivery services with annual revenue of $51.5 million in 2020.
- With the increase in the number of platform-to-consumer services, the market revenue of on-demand food delivery services apps has increased by 205% in the last five years.
Types of food delivery apps in the market:
If you are an enthusiastic entrepreneur with plans to enter the lucrative market of on-demand food delivery apps, here is what you need to know. There are two significant types of food delivery apps in the market. You can pick the one that best suits your business plans and goals.
If you are new to the on-demand food delivery business, the order-only model can be the perfect place to start. It can be the ideal solution to invest in as the risk factor is minimal, and it offers excellent reach for restaurants. It is similar to that of an aggregator model, and customers can search for their nearby restaurants on the app. They can get an overlook on the menu, rates, reviews, ratings, location, etc., of the restaurant to make a decision. The restaurants will be entirely responsible for delivering food orders, and they can choose to provide offers and discounts for their customers. The UberEats clone script’s workflow is straightforward as the user can select the menu to place their orders. They can decide to make online payments from the array of payment options on the app or choose to pay directly. The only disadvantage of this model is that restaurants may find it hard to hire delivery executives, and sometimes it might be challenging to pay them regularly.
Order with delivery model:
Order with the delivery model will be the perfect way to kickstart your venture into this niche. This business model’s workflow will be similar to that of the order-only model and addresses the disadvantages that prevailed in it. Restaurants need not have to hire delivery executives as they get full logistic support from the app. These apps also offer freelance delivery executives excellent opportunities to boost their revenue by working at their convenience. Hence this model establishes a win-win situation for every stakeholder on the app.
Revenue streams in the on-demand food delivery services app like UberEats:
Entering a lucrative market with no knowledge of it is like driving a car on a pitch dark road. The UberEats clone app offers multiple revenue streams for entrepreneurs to boost their overall revenue. They are:
- Delivery fee
- Midnight/Peak hour charges
- Commission fee
The delivery fee is a standard revenue stream that can be seen on every on-demand food delivery app. The app will automatically calculate the delivery fee, and it depends on factors like the distance of the delivery location and traffic conditions. The pricing strategy of the delivery fee will vary depending on the service provider.
Midnight/Peak hour charges:
The service providers can charge extra from the customers based on factors such as weather, time of the day, traffic conditions, etc. These pricing strategies can be useful when the demand is high or the resources are limited. These extra charges should be mentioned precisely in the customers’ invoice.
Commission fees can be an effective strategy to boost your overall revenue. You can charge payment from the restaurants for every order placed via the app. Since the restaurants can increase their comprehensive income by getting more orders, they will not be hesitant to pay. You can choose to sign up for a long term partnership with the restaurants or opt for order based payments.
Advertisements take the relationship between restaurants and service providers to a whole new level. Restaurants that have tied up can boost their overall revenue by advertising on the platform. They can increase their visibility in search results to increase user engagement.
What is the cost of developing an UberEats clone app:
The cost of developing an UberEats clone app depends on various factors. No one can predict the cost of developing an on-demand food delivery app accurately as it differs based on the requirements from the entrepreneurs’ side. However, you can arrive at an estimated cost by considering factors such as the development team’s location, app’s complexity, the time required to develop, the developers’ hourly rates, team size, etc.
In a nutshell:
Now that the market share of on-demand food delivery apps is rising, it is now ideal for entrepreneurs to step into this sector. Before kickstarting your app development process, here are a few things that you need to know.
- Decide your business model.
- Get an estimate of the overall app development process.
- Find your unique selling proposition (USP)
- Make plans to allocate resources appropriately.
- Do in-depth market research.
- Set a realistic budget and plan accordingly.
- Choose your demography.
- Decide on the exclusive features to be integrated into the app.
Every business will have to face challenges to be successful in the market. For a majority of entrepreneurs, the primary challenge will be the immense competition in this sector. Since several apps in the market offer similar services, entrepreneurs will have the pressure to introduce something unique that caters to modern consumers’ expectations.