Online food ordering is the process of ordering from an on-demand mobile app or website. The same is either getting ready to eat food or food preparation, not for direct consumption.
Online food ordering services include food prepared by restaurants or independent people. These services have made life easier for people. Consumers no longer have to wait in long queues or book in advance. Their food is now just a click away from them.
Importance of on-demand food delivery apps
The advantages of the online food ordering system are many. To list a few :
Diners convenience: The customers no longer wait in queues to place their orders now they have to make any booking in advance. They open the app and place orders of their favourite cuisine to enjoy them at their comfort in their busy schedule.
Automation: Automation is the most significant advantage for online food ordering businesses. Your system keeps records of all your orders and the deliveries to be made; this helps get more accurate.
Better market opportunity: It provides a better market strategy as it keeps track of the service providers and customers.
No commissions to pay: There is no middle man involved in online food ordering businesses. There is a direct link between the provider and the customer.
High sales: with the online food ordering systems, the sales have increased for the restaurants as they no longer have to come.
Best on-demand food delivery apps in the US
With much on-demand food delivery, uber eats like apps came up after its success. Let’s take a glance at some of them.
They were founded in 2014 by Travis Kalanick, Garrett camp in San Francisco, California. It is an America based on-demand food delivery app operating in 6000+ cities and covering over 45 countries. It has generated a revenue of 251 crores in 2019 alone. And it has been seen that the revenue increased by 25.5% at one go.
It helps the partner restaurants deliver food at the click of a button using an application on the iOS and Android platforms or through web browsers. Users can log in to their app, order their favourite food, and deliver it to their doorstep. Uber added a feather in the cap by declaring using drones to provide food in 2019.
Revenue generation: The company charges a fee for every delivery. Early it was a fixed amount of $4.99, which later changed to fee accounting for the distance. It can range from $2 minimum to $8 maximum.
Doordash is an America based on-demand food delivery app founded in 2013 by Tony Xu( CEO), Andy Fang( CTO), Stanley Tang, and Evan Moore. It has its headquarters in San Francisco, California, USA. It had generated $900 million in revenue at the end of 2019 and is currently worth $16 billion. It has expanded in more than 4000 cities and offers services through 340,000 restaurants across the US, Canada, and Australia.
Revenue generation: The company charges a delivery fee of $5 and $8 per order. They also charge 20% to the partner stores and restaurants. Doordash also generates revenue through the advertisement of member stores.
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How DoorDash Works: Business Model and Revenue Model
Postmates is an American On-demand food app that offers the customers’ favourite food at their doorstep. Founded on May 1, 2011, in San Francisco, California, USA, it operates in approximately 2940 US cities. The founder members of this company are Bastin Lehmann(CEO), Sam street, and Sean plaice. Bastin Lehmann has termed his company as ‘ anti-amazon.’ As of records, it has generated a revenue of $1.0 billion. The company gives competition to the revival companies by providing better mobile applications and GPS capabilities and keeping in mind the customer demand. The company guarantees to deliver the other within an hour and is available 24 hours and 365 days a year.
Revenue generation: The minimum fee charged by them is $5, but offers are available in some areas with even lower delivery charges. A 9% convenience fee is set to the customers for every order. It also charges a ‘ merchant revenue’ to the partner restaurants where a certain percentage of the total bill is paid to the company.
They were founded in 1999 by Jason Finger, Paul, Appelbaum, Todd Arky, and Andy Appelbaum, operating in the US and London. The company is an on-demand food delivery app that allows users to order food online through iOS or Android-based apps. The headquarters of the company is located in New York City. The revenue generated by the company is around $62 million. On August 9, 2013, Seamless and Grubhub merged their services to provide better customer benefits.
Delivery.com is an on-demand good delivery app founded by Jed Kleckner. Its headquarters are located in New York City. The company operates in more than 100+ cities across the US. It had more than 12000+ restaurants associated with it.
There is no doubt that these on-demand food delivery apps have a very bright and glorious future ahead. All these apps are generally based on the same business model, i.e., to provide food delivery at the customer’s desired location. The companies have almost the same revenue structure but with different implementation policies. They earn either by charging a commission on the convenience they provide to the customers or some subscription fee. These apps have provided the best convenience to the customers and the service providers. In the long run, these apps will not bring profits to the companies but better services to the customers.
Keeping in mind these on-demand food delivery apps, you can also build a food delivery app for your business. We at appsrhino.com can help you with this. Our team of experts will guide you at every step. We provide solutions to every problem of yours and help you maintain the app after its launch.