Good food makes everyone happy, and everyone wants to quench their taste buds. Earlier, this satiation was carried out in eateries, but now it is done from the comfort of their homes and particularly by ordering food online through mobile applications. And, This has paved the way for food delivery platforms to leverage very well from the business perspective.
How Digitization has impacted the entire Food Delivery Domain
Traditionally, the user base made an order through a call with an eatery, and the restaurant delivery boy would then deliver the food to their doorsteps. However, now, at present, the user base makes orders through websites and mobile apps that effectively with human interaction at the minimum.
Present statistics reveal that there are nearly 39 private US-based food companies having funding that is possibly more than $5 million. They follow a business model for delivering a cooked dish or in some cases, fresh items for home cooking.
They have been welcomed warmly by the user base and have invoked the curiosity of the investors as well.
However, the future of the food delivery industry is still unclear, and that’s what this blog will assess in detail. So let’s categorize these startups into three categories.
Also, working as a mediator, this platform provides access to several cuisines via mobile apps or web pages.
After logging in to a website or app, the customers can go through the reviews, ratings, and such to place orders. Once everything about the order is confirmed re, the aggregator then passes the order to the eatery.
The delivery is taken care of by the eatery. The Aggregators get a fixed fee for orders placed through their service. The concerned eateries pay this fee with no extra price for the consumer base.
Several renowned US-based players like FoodPanda and GrubHub have tasted immense success on a global level and thus provide services globally.
2. New Delivery
Here in this innovative model, users can compare several different restaurant’s menus and make orders via mobile apps.
When comparing with aggregators, these platforms give logistics to the associated eateries. With these services, the platform opens new opportunities for the newly opened eateries, which are a novice to the food delivery sector.
With this type of partnership, the eateries can reap unique benefits because they can effectively deliver orders with no problem of paying the drivers. T Thereby the eateries are free to think about how to optimize service to clients.
These new food delivery platforms then charge a fixed rate from the clients and restaurants as compensation. Two exemplars that offer this service include Deliveroo and UberEATS. This market is estimated to be valued by more than €20 billion in 2025.
3. Full-Service On-Demand Delivery
The main objective of these particular startup companies is to instantly provide healthy food items to people without any third party involvement. In-house chefs cook the food, and in-staff courier personnel deliver the food as quick as possible.
Comparing Aggregators, New Delivery, and Full-Service Delivery together
By providing full-service delivery through delivery management systems, you can surely control the client experience. You can ascertain to cook fresh food and deliver them instantly as the in-house chefs and delivery team will take care of everything.
Aggregating this control level with reviews means you can optimize your services even further. But some matters need to be dealt with regarding the full-service delivery model.
Problems in establishing a full-service platform
For a start, beginners need some funds to establish a full-service delivery business. Staff members must g salaries, and there is also the problem of device maintenance. Also, there is a need for certifications and insurances to abide by health policies.
Challenges with an aggregator platform are that there are substantial market competitions. When introducing a food delivery service, there is another problem in the form of the limited scope of market growth. When speaking about the partnered eateries that have logistics workforce, collaborating with an aggregator platform is the best scope to optimize your presence. Further, you don’t have to spend way too much cash on the online gateway.
Market trends and scopes
New Delivery services guarantee maximized delivery services for a bran/d new group of restaurants and gourmets*.
When partnering with eateries that have not provided delivery service earlier, these new delivery services enhances the entire food delivery access on the market.
With outsourcing logistics being very much affordable, its possible that eateries will depend on the new delivery platform soon enough.
New Delivery services also provide the top and best advantages for everyone involved ranging from partnering eateries, the delivery service company, and the customer base.
This new delivery model may pave the way for more revenue and business growth.
Further, the newer platforms offer free logistics for all the eateries who were previously unable to deliver on their own.
This new delivery platform offers selection, promptness, and scalability for the user base.
Collaboration with an already established eatery allows a better opportunity for delivery services to fulfill a bigger order size than what aggregators are capable of doing.
Further, you can very well leverage this opportunity to optimize the client experience. Thereby you can make the user base happy in the best and instantaneous delivery.