We live in a digital world today where on-demand delivery apps rule. With a few clicks, we can order food, alcohol, medicine, books, etc., and get them delivered to our doorsteps in no time.
Such facilities have made our lives easier. They allow us to focus and devote time to other important tasks without worrying about basic stuff. Besides helping the working class, Food Delivery apps have gained immense popularity among millennials. The younger generation prefers eating out and buying prepared food.
Food delivery apps are an exciting venture for many entrepreneurs. But to survive the competition, things need to be planned very carefully. Studying revenue models of competitors comes in handy as they warn you about your potential mistakes and teach many other nuances.
In this article, we present to you the Seamless Revenue Model. Seamless is a popular and successful food delivery app. The revenue model of seamless is unique as well as worthy of studying in detail before starting one’s venture.
What is Seamless?
Seamless was previously known as SeamlessWeb. It is an online food ordering service allowing people to order food for home delivery and takeouts from restaurants through their website or suite of mobile apps. Ason Finger, Paul Appelbaum, Todd Arky, and Andy Appelbaum founded Seamless in 1999. In 2013, Seamless signed an agreement to merge with GrubHub, its parent today. They have come to be known as GrubHub, Inc, previously operating with the name 'GrubHub Seamless.'
Overview of Seamless
HQ: United States, New York, New York City
Revenue: $50.0M - $75.0M
Category: Restaurants and Delivery
What is a Revenue Model?
Besides coming up with what you will sell, you need to chalk out a plan for revenue generation. Revenue is required to keep your business alive. Things like production costs, staff salaries, and the price consumers are willing to pay are required to be calculated in advance to keep your business going. You can easily take care of these things with the help of a revenue model. A revenue model is a framework that aims to generate financial income by identifying which revenue sources to be pursued, what value to offer, and how to price the value. In short, a revenue model answers the question, How will the revenue be generated?; and How will the company be successful?
The Seamless Revenue Model is a perfect benchmark for your venture.
Why is it necessary to have a revenue model?
A revenue model is like oxygen to your business venture as it is necessary for your company's long-term business projections. The revenue model gives you an overview of your company's current and future potential to earn profits. It also helps you align your marketing efforts with consumer behavior and characteristics. The Seamless Revenue Model achieved smooth business working as it took care of certain things. Thus, it is important to go through the Seamless Revenue Model before making one yourself.
How does Seamless business work?
Seamless launched when people were used to offline food ordering. At that time, Seamless showed people that they could order food online with a few clicks, which attracted the masses to it. Users just had to choose from the menu, place an order and get it delivered to their doorsteps, all through their website or mobile app. It still works like this.
Let us see the working of Seamless before studying the Seamless Revenue Model.
Seamless for users
To find the nearest top restaurants and food chains, users first download the app and fill in their particulars like email id, password, and phone number. Your customers can download it from the Google Play Store or Apple App store. Once downloaded, it automatically selects your location; you can do the same manually. Users can now place an order and make payments online or cash-on-delivery. Seamless provides its users with real-time tracking, contacts of valets and restaurants, hygiene information to ensure reliability.
Seamless for drivers
Whenever an order gets placed, drivers get notified of the same. Depending on their availability, they accept or reject the call. After accepting the call, they reach the restaurant with the relevant order id. The id is verified, the status is updated on the client and restaurant side. Once the driver receives the order, he contacts the customer for his location.
Seamless for business
Whenever an order gets placed, restaurants receive a notification that they have to accept or reject within a short period. Once an order is accepted, they have to prepare it quickly. As the food gets packed, customers receive a push notification.
Now is the time to read the Seamless Revenue Model.
Seamless Revenue Model
Revenue is necessary for small businesses to well-established ones. A constant flow of money is needed to keep your business in operation. Many food delivery companies can learn a thing or two from Seamless Revenue Model and use them to flourish their business.
Commissions from Food Chains
Seamless works with over 12,000 well-liked restaurants and cafes which, in return, gives revenue on their listings, called commission, and is received on a fixed percentage basis. Clients pay a higher percentage of commissions to obtain the top listing. Despite spending more, Seamless clients still earn huge revenues as Seamless gets over 2,00,000 lac orders per day.
The Seamless Revenue Model includes even ad campaigning to generate revenue. Seamless offers ad campaigning to new restaurants and promotes them on its top listings. Doing so gives Seamless more orders, which leads to direct revenue for Seamless. The ad campaigning also helps Seamless as ads posted on social media increase user base and revenues for Seamless.
Seamless offers subscriptions and memberships to its users, which leads to more revenue. Even though orders are at a discounted price, increasing the number of customers provides Seamless with more revenue. Users, who have subscriptions, are given access to top restaurants, great discounts, and bonuses. The subscription costs just $10 to $20, which is very low.
It is the Seamless Revenue Model which brought them benefits. Let us now take a look at its SWOT Analysis.
The SWOT Analysis
- Seamless has a proven business model which is adaptable to new market realities and opportunities.
- It is an established branding with over 3 million customers.
- Its mobile presence is trustworthy with a good user interface. Seamless maintains user confidentiality as well.
- It has numerous established competitors posing challenges to it.
- It is dependent on unpredictable consumer preferences.
- Its profitability also remains uncertain.
- Seamless successful in the USA and the UK, unlike in developing countries like Brazil, Europe, etc.
- New mobile platforms offer Seamless with branding integration and expansion opportunities.
Rivals' expansion and consumer spending are the threats. Consumer spending is tied to delivery demands, limiting market caps.
Features included in Seamless Food Delivery App
You won't reap benefits by just studying the Seamless Revenue Model. To be successful, you need to make your app user-friendly and easy to use. Some features of Seamless Food Delivery Apps are listed below:
Seamless makes sure that the search experience is easy for its users. To do so, Seamless provides them with all the food items that they could ask for. It also gives them search options that help them find the food items straight away.
Easy Payment Process
Seamless provides its users with payment modes like GPay, Paytm, Payzapp, Cash on Delivery (COD), Card on Delivery, etc. It ensures users have their preferred payment modes available at the delivery time.
Smooth Ordering Process
Developers of Seamless apps have ensured that users have easy searching, selecting menus, and adding a menu to the card processes.
Seamless has the feature where users can directly add their favourite food items to the cart. Besides this, users have menu options that directly add their favourite orders from their chosen place to the cart.
Coupons & Discounts
Discounts and add-on benefits attract people. An app dealing with recent coupons and discounts always attracts users; and benefits the business. Seamless provides timely coupons and sorted discounts, which boost the sales and business simultaneously.
Seamless survived the competition due to its revenue model and ability to adapt to changes. The seamless revenue model teaches much to entrepreneurs.
Many entrepreneurs dream of launching their food delivery business yet don't succeed due to poor planning. If you are interested in getting an app for your company based on the Seamless Revenue Model, start now since the market still has tremendous space for growth.
AppsRhino is a mobile app development company that powers on-demand business mobile apps for entrepreneurs and enterprises.
Frequently Asked Questions (FAQs)
What is the revenue model of Seamless?
The revenue model of Seamless primarily revolves around commissions from restaurants on each order placed through the platform. Additionally, Seamless also charges delivery fees to customers, and there may be advertisement or marketing partnerships that contribute to their revenue.
How does Seamless earn revenue from restaurants?
Seamless earns revenue from restaurants by charging them a commission on each order placed through the platform. This commission fee is typically a percentage of the total order value and can vary based on factors such as the restaurant's location and partnership with Seamless.
Do customers pay extra delivery fees on Seamless?
Yes, Seamless charges customers delivery fees for the convenience of having their food delivered to their doorstep. These fees vary depending on factors such as distance, time of day, and current promotions. Customers are made aware of the delivery fees during the ordering process before they finalize their order.
Does Seamless generate revenue from advertisements?
Yes, Seamless may generate revenue by partnering with restaurants or brands for advertisements or promotions. This could include featuring sponsored listings or promoted deals within the Seamless platform. These partnerships enable restaurants to gain visibility among users and contribute to Seamless's overall revenue.
Are there any additional revenue streams for Seamless?
Besides commissions and delivery fees, Seamless might explore other revenue streams such as subscription plans or partnering with third-party services for cross-promotion opportunities. However, the primary revenue sources are typically the commissions from restaurants and delivery fees.