A Successful Formula for Your Food Delivery Business

We found out that the online food delivery business is becoming a great venture. It seems that the aggregator model has added immense value to the business of food delivery all across the globe. In fact, we came across the fact that almost 90% of customers rely on using a food delivery service once every month. The reason behind such popularity of these applications is the ability to quickly order a mail from a particular restaurant with just a few taps. 

It is expected that by the year 2023, the worldwide market for online food delivery will hit a total valuation of $137 billion. Now if you are struggling with a Startup idea, you can always go for online food delivery business. In this article, we will be discussing how exactly you can implement the idea of online food delivery in your business model. We will also be discussing the pros and cons and how you are going to survive in this competitive market.

Various Types of Food Ordering Apps That You Can Build

Before we get right into the agenda of this article, we thought it would be right to first let you guys know various types of food ordering applications that are present these days. 

- Order focused food delivery app

This application works as an intermediate between customers and local restaurants. You can browse through the application to find different restaurants and if you like something you’d like to eat, you can place the order then and there. 

In this model, the chosen restaurant is responsible for delivering an order to the customer. Once you are done placing the order, the app will automatically pass the order to the restaurant after that it is the response responsibility to take care of the delivery. 

Order and logistics focus food delivery app

This is said to be the most profitable food delivery business. Building a marketplace for this type of food delivery will help you earn much more profit than any other model. The motive of these apps is to offer food delivery services from restaurants that don't have their own delivery system. 

As a user you can browse through the application, order a meal and get the food delivered to your doorstep. 

Restaurant app

If you have your own restaurant you can build an application. However, this option is only suitable for those restaurant owners who have their own delivery system in the market and want to expand their business through a mobile application.

In this application, a user look at the restaurant menu place an order and the restaurant will deliver the food at your doorstep.

Features Which Your Food Delivery Application Should Have

1. A Maximum number of restaurants should be listed

If you want to score big in the market you will have to provide a listing of a maximum number of restaurants and food chains. These days every single restaurant wants to partner up with multiple food delivery services to earn more profits because by doing so they receive more number of orders. 

Meaning, you don't have to put in a lot of effort to convince restaurants. But you will have to market your app properly in order to reach the maximum audience so that more people can sign up with your app. For instance, mobile apps like Wishbox offer introductory deals to those who sign up and order from the application for the very first time. 

2. Exceptional payment gateway

This is quite a crucial aspect you don't want to miss out on. As a business, it is your responsibility to make sure that every transaction should be made with utmost security with 0 breaches whatsoever. The safety of personal data should be safeguarded at all times. 

Other than that always make sure to include digital payment modes. Since, everybody nowadays prefers online payment options, including one within your application could be the best thing to do. You can integrate payment options like credit cards debit cards and popular mobile wallets for faster payments. 

3. A specific application for delivery agents

This app is required if you are planning on developing an order and logistics focused food delivery app. In such an application, you must add the pickup location of the restaurant and delivery location of the customer. The delivery agent should be able to track the order, customer’s address, restaurant’s address, route, and time tracking. The app should include the following features:

- Login

- Order status

- Earning history

How Should You Monetize Your Food Delivery Business?

Consider the fact that there is so much competition out there; we come up with some tips which you can implement in your food delivery solution in order to monitor the business. 

1. Commission

This model is quite promising and profitable for money-making. The commission model charges a small percentage of total order price from the restaurant, which, to be honest, is a good way to make money.

2. Advertisement

This is yet another great way to on money. This is also quite a favourite option for most of the food delivery apps out there. In this model, you can offer restaurants to be on top of a fixed amount of monthly fees. Wishbox which is a popular food delivery application in Qatar is using this model and earning millions through it. 

3. Surcharges during peak hours

This model includes an option that increases the delivery charge during peak hours. This model is only effective in cases of heavy traffic or rainy season. We found out that most of the food delivery applications use this model to generate more profit.

In the End

The bottom line is, food delivery business is a highly profitable venture but always make sure to priorities customer satisfaction and retention to be on top of the food chain.


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