Delivery firms are becoming increasingly profitable as the amount of orders increases at double-digit or even triple-digit rates as a result of the pandemic last year, according to industry analysts. According to industry statistics, the meal delivery business is one of the most profitable industries in the world. Over the past few years, there has been an increase in demand for on-demand delivery services. Entrepreneurs have been motivated to invest in this market by the success of companies such as UberEats and Deliveroo.
In line with Statista’s forecasts, the income of the online food sector is likely to expand at a compound annual growth rate (CAGR) of 7.5 percent from 2020 to 2024, resulting in a projected market volume of $182,327 million by then.
Food delivery from the restaurant of a customer’s choice is the most convenient and dependable method of obtaining food.
A meal delivery firm can generate revenue through a variety of sources.
In this section, we’ll discuss some of the most prevalent techniques of revenue for food delivery platforms.
Client Fee
Clients are required to pay a minor delivery fee, which varies depending on the area and the availability of delivery services couriers. Depending on the market in which the organization operates, the total charge could range from 1$ to 5$ per transaction.
Commission from the restaurant:
Uber Eats takes a commission of 15 to 40% of the total value of each order fulfilled from its restaurant partners, depending on the establishment. In determining the cutoff percentage, factors such as the restaurant’s maturity and position in the market are considered.
Advertising cost from the restaurant:
The restaurant pays a fee to the company in order to be at the top of search results on the app and to gain more traction and sales in the process. The company makes money by placing eateries in the app’s featured section, where they can be found by users.
Given your in-depth knowledge of Uber Eats’ statistics, business model, and how the food delivery company earns revenue, it’s time to put your knowledge into action. Let’s take a look at how you may create a food delivery service that can compete with or perhaps outperform Uber Eats.
Fee for subscription
In order to make money, the company offers an optional subscription model. Customers can choose to pay a $9.99 monthly subscription charge in order to take advantage of the “Eats Pass” service. It entitles members to a 5 percent discount on orders totaling more than 15 percent, with no delivery fee.
Google Adsense
You may use Google Adsense to monetize your app by displaying advertisements.
In the event that you are considering starting a business in the food industry, I would suggest focusing your efforts on the food delivery market first. Aside from being extremely affordable, the initial cost of building food delivery applications is also fairly reasonable. Once your firm is back on track, you will be able to make a substantial profit in this industry.
Conclusion
As a matter of fact, the mobile food ordering business is a rapidly expanding trend that is simply too lucrative for any restaurant or café to ignore. UberEats’ strategic value is expected to rise even further as the technology that underpins it continues to develop (both online and on mobile devices), according to the company. That being said, every aspect of designing such an app must be carefully considered, and the demands of all parties involved must be effectively addressed.
If you’re not sure how to go about doing the latter, here is a guide on How to start a food delivery business
