Decades ago, we would have never imagined receiving food at our doorsteps. The food industry has undergone a massive transformation in recent years. Technology is one of the reasons for this major disruption. The online food delivery solutions give a sense of relief to both the customers and hotels amidst this pandemic. Through these food delivery apps, customers get benefitted by receiving their food through contactless deliveries. On the other hand, with restrictions for in-house dining hotels are surviving through food delivery options.
These convincing reasons are the driving force that can lead you to foray into the food delivery silo swiftly. If you are still in a dilemma, UberEats will be your perfect influencer. The app provides a wonderful delivery experience for the users and also as an aggregator for restaurants.
This blog deals with eye-opening ideas for starting a successful food delivery business with an UberEats clone app. Go with reading the blog to gain even more insight about on-demand app development.
The business model of UberEats
Their business model decides the success of a business. When it comes to the success of UberEats, their business model is one of the reasons that helped them achieve their business goals. Let us see what is so special about their business model,
- The restaurants that wish to boost their business revenue will team up with third parties ( an app like UberEats). UberEats is a perfect aggregator app that partners with restaurants and food outlets. The food orders made by the users will be sent to restaurants for order fulfillment. However, the restaurants will process the orders of the customers.
- Along with this, UberEats also provides logistics support for the restaurants. Once the orders are ready, the delivery assistants will deliver them to the users’ destinations. In some cases, the restaurants will have their own fleet that can deliver the food orders to the customers.
The three-sided business model of UberEats app
Customer – The former customer base of Uber is refrained and sold as various other services that are offered by UberEats.
Restaurant partners – The restaurants will receive their share from each of their orders.
Delivery assistants – The delivery fleet of UberEats will deliver the orders to the users.
Revenue generation stream of UberEats app
When it comes to revenue generation, there are four types of revenue streams. Let’s see what those are.
Delivery fee from customers
Under delivery fees for customers, there are three types of revenue.
A Delivery fee is levied on the users for delivering their orders. This is decided based on the location and demand for deliveries.
The app will charge a service fee for 15 percent of the orders’ subtotal
The order fees are charged when the total cost of the orders is below $10. The app charges $2 as their order fee.
The optional subscription fee for the customers
The app also provides an optional subscription fee for the users by paying a monthly subscription fee of $9.99. Through subscriptions, the users will get offers ranging from 5 to 15 percent. In addition, they are free from paying delivery fees.
Commission fees from restaurants
UberEats will deduct 15 to 40 percent of the total value on each order delivery from their partnered restaurants. This commission is decided based on the maturity and presence of the restaurants in the market.
Advertising fees from restaurants
To appear on the top searches, restaurants will pay them an advertising fee. The restaurants will pay the advertising fee and get featured at the top of the app.
How to get started with developing an app like UberEats?
To get started with developing a food delivery app, you have to undergo several steps. The major steps are listed below for your understanding,
Conduct market research
Research is the basic foundation to develop a business plan. Conduct periodic market research to understand the market demands and trends. Understanding the market will help you find out your target market and the current trends in the sector. In simple words, through market research, all your unanswered questions will be answered.
Moreover, you can also identify the key competitors in your market. Your competitors’ strategy and business plans will give you new dimensions and ideas for your app. The on-demand market is filled with several app models promoting different on-demand services.
Among them, on-demand taxi booking services gained a top position in the chart. This is also emerging as another popular business option among entrepreneurs.
Finalize your food delivery business model
Post-market research, start finalizing your food delivery model. When it comes to food delivery apps, there are types in it.
- Order-only model
In this model, the users will place their food orders with the restaurants that are listed in the app. The restaurants will prepare the orders. The users can visit the restaurants personally and collect their orders. Upon placing the orders, the restaurants will receive them and start processing.
- Order and delivery model
This is an aggregator platform where users can place their orders from restaurants. The orders will be delivered to their doorsteps through delivery agents associated with the app. UberEats is one such example of this business model.
Select your app development company
This is the last step associated with developing an app. But at the same time, this is something very crucial to handle. Choose the best app development firm that can handle various technologies wisely to develop your app.
On the other hand, there are also ready-made UberEats clone apps that can be utilized to launch your food delivery business. Hence, it is suggestible for you to consider starting your food delivery business with an UberEats clone app.
What is the cost of developing an UberEats clone app?
App development costs are decided based on considering various factors. These factors pave the way for calculating the overall cost of app development. These factors impact the pricing and cannot be neglected. Have a look at various factors that impacts the costing of your app,
- App platform
- The advanced features of the app
- UX/UI design of the app
- Customization opted in the app development
- Various technology and softwares used in the development
- Total hours spent by the developers
- The geographical location of the app development company
- Additional technical supports
Discussing the on-demand market in general, we could understand the potential scope of the industry. On-demand services like food delivery, taxi booking, grocery delivery, etc., are claiming to be great business opportunities for entrepreneurs. If you wish to expand your business to several folds, starting an on-demand Super app will be the icing on the cake.
With an extensive Gojek clone, you can bring together various on-demand services like taxi booking, food delivery, grocery solution, courier services, home services, etc under a single umbrella. This will be another great idea that you should consider for your venture.
Food delivery apps have been conquering the market in recent years. However, we could witness their outreach globally. These platforms are giving a forum for people to buy their eatables without stepping out of their comfort. Restaurants are also utilizing this trend to uplift their business.
This is the right time for entrepreneurs like you to step into this aggregator business. So, start finding your perfect app developers’ team to build your UberEats clone app.