Taking food has become a mandatory task to keep ourselves healthy and it helps us to concentrate on work. In today’s work schedule, most of us aren’t able to take our food regularly and we have started to skip it. Taking a ride to a restaurant or cooking a meal consumes time and this might lead to delay.
To reduce this issue and make the food reach the consumers, the food industry has implemented the technology with their service to build on-demand food delivery app service. This food delivery service helps the consumers to place the order from anywhere at any time. Within a short span, the placed order will be delivered.
As the food ordering and delivery app like GrubHub has brought comfort. Most of the millennials started to place their order on a daily basis at their favorite restaurant. The market value of the food delivery service has grown and it is expected to show a growth of CAGR 7.5% by the end of 2024.
If you’re interested in starting your own food delivery service, then this blog will be the right solution for you.
Focused Business Models in On-demand Food Delivery Service
Restaurant-Specific Business Model
- The restaurant-specific business model helps the restaurant to take their service to an online platform without any third-party involvement. Therefore, the revenue gained will be directly gained from the consumers to the restaurant and cuts the commission charges. The restaurant owner can attain full fare and meet the restaurant goals.
- This business model is mostly applicable to multi-chained restaurants or highly branded restaurants. If your restaurant has gained high visibility in your region and the sales cross across 100 orders means, you can uplift the service with on-demand food ordering and delivery app solutions to boost up the sales even more.
Aggregator Business Model
- If you have launched your restaurant business recently in the market and want to gain the attention of the people in your region, then this business model is exactly for you. By adding a nearby restaurant, you will be gaining additional revenue commission-based regularly.
- Even if you don’t own a restaurant, it’s not at all a problem. You can easily launch your own food ordering and delivery platform and link the nearby restaurants according to the consumer’s demand. This helps you to earn a worthy profit on each order that takes place in your application platform.
There are various on-demand food delivery app services in the market namely UberEats, GrubHub, Foodpanda, Swiggy, etc. Though there are various food delivery services, GrubHub gained a trustable relationship with other food delivery services. This happens because of its unique value proportion.
GrubHub Unique Value Proposition
Every food delivery service gives more advantages to the consumers and makes their service consumer-centric. In GrubHub, they not only give value proportion to consumers and delivery agents, but they also give equal importance to the restaurant owners. Here, I have listed out the value proposition of GrubHub as follows.
For Consumers
- Given the flexibility to the consumers to choose their preferred restaurant that has been listed and place the order from anywhere.
- It helps consumers to save their time and money by scheduling or ordering food online shortly.
- Consumers are let to track their placed orders after confirming them for delivery.
- Provides a 24*7 user support system.
For Restaurants
- GrubHub provides its own delivery agent’s service to the restaurants that have linked on their platform.
- They let the restaurant owners extend their customer base easily with their app solution.
- They also provide restaurant owners with a software base to manage their restaurant and deliveries through an in-app efficient way.
4 Step Workflow of On-demand Food Delivery App like GrubHub
- Search Nearby Restaurants – Once after activating the service account, the consumers are able to browse various restaurants that are listed on the GrubHub interface. To make the service efficient, GrubHub has also included the online menus for each restaurant. Consumers can also make use of features like search and nearby restaurants to make the process simple.
- Instant Order Placement – After checking the online menu that has been listed in GrubHub, the consumers are able to place their favorite cushions. Consumers have the ability to schedule their orders and make the payment either online or as direct cash on delivery. Once the order has been placed the consumers can check the order activities.
- Alert Agents to Pick Up Immediately– The restaurant will receive the order information and forward it to the kitchen for preparing respective cushions. With the help of technology, consumers can check their order process in real-time. The delivery agent will automatically be assigned to take away the order.
- Doorstep Delivery – The delivery person will pick up the placed order from the respective restaurant and deliver it to the customer with the help of a navigation option. Once receiving the placed order, the consumer can rate and review the placed order. This helps the owner to know about the service quality and consumer’s expectations.
Possible income strategies in the on-demand food delivery business
GrubHub is a less ownership model, as it doesn’t own any restaurant. Still, it fulfills several consumer’s taste buds with their favorite restaurants on a daily basis. There 2 major revenue models in the GrubHub app service are listed as follows
- Commission for Each Order – GrubHub charges a 13.5% commission on each order from restaurants that take place on their platform.
- In-app Advertising – Apart from commission, GrubHub also earns money by advertising the restaurants that take place on their platform.
Summary
Food delivery startup professionals show their willingness to take their workflow into digital with the help of app-based business models. Since GrubHub has gained unique popularity in the food industry market, developing the GrubHub clone app is the trendy workflow in the market. Hope the points listed in this blog are very useful for the one who is involved in creating a food delivery app like GrubHub to make their food delivery in the frontline.