How to start online food delivery business

   1. What is the online food delivery model

Ordering food online nowadays is an essential part of our lives. There is a huge increase in online food deliveries in recent years. People prefer to order online at least twice per week as it is very convenient for them. The online delivery platforms such as Uber eats, Zomato is the biggest competition. Starting an online food delivery business can be a profitable business idea. If you want to start an online food delivery business, you must know your competitors as well as need to engage your customers with a wide variety of food options.

a.) Individual Business Model

Online food delivery works on a platform Individual Business Model. In the Individual business model, the restaurant owners handle all the services such as prepare the meal, online food delivery, and managing customers’ online orders. There is no need for any outside food delivery platform to contact, as the restaurant manages to do all the things.

 

2. What is a business model of online delivery

An Online food delivery business comes with an integrated model that helps them to keep things in one place. Every business needs a platform to connect with their customers. Nowadays people use mobile apps to order online which is convenient and easy. Through this Platform restaurants and customers get connected and people can make an order through a mobile or desktop app. Here is how the business model of online food delivery works:

a.) Customer Order on Platform

Firstly customer needs to sign up and then they can make add the food items in their shopping list. And then the customer can place the order and pay for the food items.

b.) Platform Receives the Order

After that, the restaurant receives the order and provides you the confirmation that you have made the order and provide you the details over text message or email.

c.) Platform check order Originated from which Vendor

The restaurant then checks from where the order came and make the confirmation about the details. All the details are saved in one place for easy execution.

d.) The platform confirms the order from the Vendor

The restaurant gives the confirmation for the order to be received by the executive to proceed further and provides a message notification for the same.

e.) Platform assigns the delivery executive

The restaurant assigns the order to the delivery executive and confirms the food delivery. Make sure to deliver the get order on time and at the right place.

f.) Delivery Executive picks up

The delivery executive then confirms the pick-up and comes to take the delivery. Then make sure to drop the delivery at the location of the customer.

g.) Delivery Executive delivers the order

The delivery executive delivers the order and after delivery, the customers will get the message notification for the confirmation of the order received.

 

3. Revenue Model

The revenue model for your business is very important to track the profit and earnings for the year. It is very much similar to a business model, in which you keep track of how to generate more profit for the business,  when to manage the things, and from where the resources will come. A revenue model focuses on increasing your business earnings by getting more sales. All the things work together to form a revenue model for the business. There are different types of revenue model:

a.) Delivery Charges to Customer

Once your order is confirmed it needs to deliver quickly to the customer, so the food delivery agent picks the food and drops it to the user’s place. The restaurant pays the amount they receive from the customer orders.

b.) Commission/Subscription from Vendor

The subscription plans for the customer to get a lot of sales for the business through which you can earn more profit. You need to provide some offers to engage them and discount on annual subscription plans.

 

4. Why online deliver?

Online food delivery is the fastest growing and many food business owners including this to grow their business and gain more profit. As you know in the past 10 years people don’t use online food delivery as much. Now people want a convenient way to get their favorite food online which saves their time and effort. Here are the benefits of online food delivery:

More Convenience

Getting your favorite food at your doorstep anytime is very convenient. You only need to order online through the apps, while it provides customer satisfaction. There are various options and discount coupons to grab customers’ attention.

Easy of Shopping

Customer satisfaction is the only thing that boosts the sale if you provide easy navigation that makes their shopping experience better. There is a 24×7 availability that makes your customer happy and increases the conversion rate.

Safe due to Less Contact

Online delivery is much safe as people take deliveries without getting in contact. As the delivery agent needs to maintain the hygiene and proper precaution, it will be delivered at your place.

 

5. Things you will need to start your online deliver

Before you start your online food delivery you must need to know about certain apps that are useful for your business to further grow. There are different types of applications that make the online process very much easy for you and your customers. The application needed by the customer, restaurant, and admins to manage the orders and for a smooth payment procedure.

 a.) Customer App 

For your customer, it becomes very easy to order and also so they can easily search and place orders, track the order details, and can contact the restaurant. So it makes the order placement process quick and provides a great user experience to your customer. Also, you can include the e-wallets for fast and effective payment.

 b.) Restaurant App 

In the restaurant app, you can ask people to sign up and get all the details about your restraint, timings, menu, contact, and online deliveries. It helps increase the sale and make your customer engagement. The app is necessary for the restaurant so that they can accept the orders, check the order details, and promote the upcoming dish. 

c.) Admin App 

Admin apps are very beneficial for your business ad it helps you to manage all the back end processes such as show the real-time order, receive the payment, and track the delivery boy. Maintaining the monthly report to compare the previous results and can be only operated by the admin of the app. 

 

So, there is a huge opportunity in the online food delivery business, you just need to take care of these things you must have or include while start with the business. Take your online business to the next level while having a proper business model in mind.