Have you ever wondered how these established food delivery companies made to the peak they are at today?
Food Delivery startups have a simple psychological appeal: they promise to save us time and effort. In addition to providing convenience as a simple attribute of service, they provide convenience at every customer want and need. Convenience research identified five opportunities specific to convenience technology to save time and effort, namely:
Decision Convenience: This makes selecting easier and faster. Customers are allowed to rate and review the restaurants and dishes. They can order from any restaurant they wish to easily.
For example, Zomato and Swiggy.
Access Convenience: This make apps easy and fast to acquire. Companies like Hot Meals deliver food to the customers within 15 minutes of ordering. You can get food at any location whenever you’rehungry.
Transaction Convenience: Apps need to perform transactions efficiently. All food delivery apps have a variety of payment modes available for their diverse customer base.
Benefit Convenience: Apps are advanced and beneficial to users. Users now enjoy apps because of multiple features. For example, apps like Postmates allow users to order food from different restaurants at the same time.
Post- Benefit Convenience: This is what makes customers stick to the apps and make them easy and reasonable to re-purchase from. Not only good quality experience but delivery apps also give you the benefit of saving your address and payment credentials, add bookmarks of your favourite restaurants and dishes to re-order easily.
On-demand Food Delivery Apps have cracked the code to success adopting and implementing the three basic components of a meal experience at restaurants. These components are:
• Ordering: Customers place an order as a request for food and delivery. In today’s digital world, on-demand Food Delivery Companies build, develop or invest in an app that they use for taking orders. Orders can also be placed vis company’s website or phone. These orders can be for their in-house kitchen or other partnered restaurants.
• Cooking: Restuarants can pre-cook the meal or cook after receiving orders. The time needed for preparing the food is usually estimated for time needed for delivery on the app.
• Delivering: Every business has their own set of delivery models for transport. This is definitely the game changer for food delivery companies and affects the delivery experience.
Food Delivery Businesses also follow a specific Business Model to run the business. Today, the most dominant business models in the On-Demand Food Delivery Industry are:
1. The Order Only Model
When restaurant delivery service companies came into existence, most of the food startups like JustEat and Grubhub followed this model. This model implies that the company will truly act as a software based system that offers restaurants and to manage their orders. Companies following this model deliver food from independent restaurants and mainly takeaways.
These delivery companies specifically aim at getting more orders for partnered restaurants and replace the traditional phone-ordering system with an efficient web and mobile platform, that acts as a delivery management system.
Food Delivery Businesses that use this technology have an ordering model that works like this:
• Users place order on the website or the app.
• Restaurants receive the order by email or fax.
• Restaurants update the delivery provider about receiving the order.
• Businesses start sending orders to the delivery drivers via the app.
• Sometimes, delivery companies and restaurants have an integrated POS system and the order is printed directly in the kitchen.
• Delivery drivers are employed by the restaurants.
• They can also be employed by the restaurant delivery companies and are assigned with orders.
They can’t control and optimise the speed and quality of the delivery. Their dependency on the restaurant’s own delivery service imply that they’re restricted from providing a large variety of cuisines and prices. Only low-cost takeaways like pizza, burgers etc. are ordered the most.
These platforms are not responsible for cooking food or delivering it. So, they charge a very low fee of 10-15%. These are pure software businesses that are scalable.
2. The Order and Delivery Model
Restaurant marketplaces like Doordash and Deliveroo that help restaurants get additional orders and requests, manage delivery for them, through their team of independent providers connected in a system like Uber-like mobile app.
Restaurant’s menu is uploaded on the website or the app. Restaurants decide the price to displayed on the menu as they need to pay a commission to delivery companies. Customers also have to pay charger for every restaurant after placing an order. Once the order is placed, it is sent to the courier’s closest to the pick-up location.
On duty, couriers are logged into their driver app which tracks their location. Delivery drivers get to decide whether or not to accept the order depending on factors like distance and time. The first driver to claim the order gets it. If nobody in the nearby location is ready to take the job, it is sent to furthermore drivers. Technology improved the quality of delivery service by guiding them with routes and pick-up and drop-off points.
On-Demand food delivery companies are complex to run, unlike pure-software one. These software and logistics enterprises have a major operational tasks like hiring and training drivers, maintaining technical equipments etc.
Companies gain from more potent obstacle to cess and scale advantage. Once a company reaches a certain stage of public popularity, it will be very difficult for a new party to compete with highly optimized networks of eateries and delivery drivers. Usually they can charge a higher commission around 25-30%. These companies offer a high variety of restaurants, cuisines and costs, unlike software-only marketplaces.
Food delivery businesses that adopt this model can employ drivers to deliver from the kitchen to drop-off locations.
3. The Completely Integrated Model
Companies like Maple, SpoonRocket and Sprig have adopted this model. These enterprises developed their own on-demand food delivery app to get a significant customer base. Customers can order a limited range of dishes through this app. These companies reheated their own fleet of drivers and motorcycles as they got orders. Munchery delivered chilled items in a refrigerated truck. These apps delivered food at a high speed. They can offer comfort as well as fantastically curated experience.
These enterprises have kitchens that prepare food and cater food orders in a specific location. The menu usually changes daily. These hubs offer service in two different ways, they are:
The kitchen opens to obtain orders for a specific duration, on the whole for shipping scheduled later withinside the day. People can begin ordering when they get a message that the kitchen is open. They can then specify a shipping window wherein they’d want to obtain the food. Swiggy works in this model. It locations its food without delay from its kitchen onto shipping vehicles that get them to clients. However, it wishes to plot very cautiously for call for so as to keep away from the waste that takes place if a meal is located on a shipping truck however there isn’t sufficient call for, or extra call for is available in than what a shipping truck serving a particular location has available. By permitting its clients to region pre-orders, it may expect call for accurately, manipulate deliver accordingly, optimize shipping schedules, and decrease waste. They actually have an order-on-the-move choice for dinner.
The kitchen opens to get hold of orders after making ready food. As orders are acquired for prepared food, shipping may be carried out nearly right away inside a particular time. SpoonRocket works in this model. Packed food are introduced inside 15 mins and are certainly stored in warmers which are pushed round in SpoonRocket-owned vehicles, ensuring they’re introduced warm and rapid to those who order them.
The choice to allocate a selected order to a motive force can show up in ways:
Orders can be assigned to the drivers in two ways:
1. Automatically – Includes no admin involvement (assuming drivers have all food to be had with them in any respect times).
• The order is routinely allotted to the closest motive force
• The order is routinely allotted to the motive force in whose region the patron lies
2. Manually – This requires some admin involvement.
• The request is steered through the administrator to the driver nearest to the client
• The request is steered through the administrator to the driver who has the pressed dinners mentioned for by the client. This occurs on the off chance that a driver dismisses a solicitation because of the non-accessibility of a meal.
Delivery is done through drivers hired by the company. Each motorist is given a set number of packed refections and order requests are routed to each motorist automatically/ manually by the admin. Grounded on the following factors, a delivery driver chooses where to deliver first
• First Come, First Serve Preference will go to the guests who ordered first.
• Location – Grounded Client nearest to the motorist will be serviced first.
Food Delivery startups need an Open Source Delivery Software to build and design delivery apps.
Hope this article helped you understand the models of Food Delivery System. If you wish to learn more about On-demand Food Delivery Apps or you’re a business looking for one, click here.