There are a number of companies engaged in food delivery and not restricted in any specific region, but the same has developed into an international industry. The latest technology has made it practicable & convenient keeping in view the needs of people in the modern era. Ubereats, however, tops the list besides the following entrepreneurs like Ubereats, GurbHub,DoorDash, Amazon Prime, Postmates and others in queue.
However, you can assess progress & development of the Food Delivery Apps to know how often new apps keep entering into the business. Likewise other traditional businesses, food delivery startup has to face similar challenges in its initial days, however, some of them are being briefed precisely for your awareness & belief:
1. Choosing the right target audience:
Not only the food delivery, but you may also offer your customers other services like groceries & fruits etc as the people want certain stuff at their doorstep.
Who do the most successful food delivery apps target?
UberEATS is operating in the developed countries like USA & European countries and a number of other companies are seen following the UberEats. POatmates is also like Ubereats, but it has been targeting the audiences other than food items as well. You would be astonished to know that postmates is catering to the menial needs of its audiences in non food category as well.
2. Partnerships with Restaurants and grocery stores:
Mostly restaurants in the US have been serving under the traditional environment where they don’t take online orders. However, still there are 10% restaurants in US accepting online food delivery orders. Therefore, it is essential for the food delivery companies to fetch more business by contacting the maximum restaurants. Normally the partner restaurants give new app to get more business and to achieve the share of the market. You know how this system does work, well! The sound and renowned companies like Eat24 and GrubHub make partnership will local food setups which results the low cost on partner’s food delivery and enjoy the financial benefits mutually.
Postmates’ policy for gathering client based strategy was criticized and got negative reviews. Postmates was found delivering from restaurants without signing any contract/ agreement mutually. Postmates’ viewpoint was to run on trail or ad hoc basis, if proved profitable; they will continue after getting feedback from the customers on partnership basis with certain restaurants & other food industries.
3. Hiring of Drivers—– Like UberEats or otherwise:
The prevailing trend of running the transport fleet even in the traditional business is of two types which are also applicable in food delivery system:
- Hiring or buying own fleet of vehicles
- Engage some contractor like Uber does under an agreement
Food and grocery delivery services in most of the countries including the US is under the freelancing especially Uber has been doing this. In the U.S. it is called Uber partner wherein most of the people can earn their livelihood reasonably by plying their vehicles on contract carriage basis. Similarly, the companies like GrubHub and Seamless prefer to work with freelancers especially in busy areas. It is not necessary that every company like Uber may undertake rental fleet of vehicles, but there are certain renowned companies who have their own fleet of vehicles. DoorDash is also a food delivery service which engages anyone with a car or bicycle for becoming a business partner.
Postmates operates on the above mentioned pattern including getting insurance for their drivers. Postmates drivers are protected with Postmates insurance, which covers bodily injury and property damage to third parties as long as they are on the roll of postmates. Drivers can avail free membership to One Medical duly sponsored by postmate. The drivers can easily avail free medical facility of up keeping their primary health as well without any extended wait.
On-demand delivery apps:
Amazon has also been seen active in AmazonFresh program wherein they exert on business promotion by hiring delivery providers already working locally in the specific area(s) for delivering goods. In other words Amazon outsources the following by engaging the well established delivery businesses:
- Safety training
- Maintenance costs on account of contract with established delivery businesses
- Other important details
It is the modern trend based on the economy measures that most of the works are done through freelancing which is comparatively cheap for a food delivery startup. In this way the financial burden in shape of medical health insurance or other fringe benefits can be avoided.
In the early days of the business it is more feasible to hire contract carriage than to own the same. This will save you from a lot of hardships and you can easily run the business. However, it is advisable that once your business gets matured, you must have your own fleet of vehicles. Of course, when you own your own vehicles, you will have to recruit drivers for the purpose.
4. Choosing the right Scope of features for your mobile apps
Most of the food delivery services have developed their own apps for drivers, restaurants, and customers separately. It is important to say that courier version of the app is not complicated as it has only a few salient features. The version of the restaurants has the admin panel and other features necessary for placing an order besides managing notifications. It is the business principal that you cannot target the customers in a day or so, but it takes time to build business relations. Therefore, the most important features of your app shall include building strong partnership with restaurants and drivers besides focusing on the important features.
5. How to build your food delivery startup the right way:
In the first instant you may undertake defining your target audience which is the base; thereafter you may build your services keeping in view your audiences’ needs. It would be better if you customize your services in accordance with the needs of a particular community. The customized options so offered should be unique which are not being offered in other restaurants. For prompt promotion, your app’s menu should also include options for vegetarian, gluten-free and kosher foods etc.
It is the thumb rule for making good name of the business that building of strong relationship with restaurants and local farmers and grocery stores will guarantee success. Keep working honestly and consistently to climb on the top ladder of success. You may also get services of full-time employees & freelancers effectively and in such a way that your work may not suffer.
In nutshell, hiring drivers like UberEats is workable in the initial days of the food delivery program as it saves you from a lot of hitches, but on the other hand it is more effective for business point of view if you have your own paraphernalia like fleet of vehicles, drivers and related infrastructure. The vision of online food delivery like UberEats seems bright as people are converting their trends on this type of business. Entering more personnel day by day into the system is a lifelike proof of success of this big platform; let us try our fate.
eDeliveryApp is a complete turnkey solution that can be customized for building a food delivery app. Contact us today to start your food delivery business.