Food delivery startups – The pandemic age is proven as a game-changer for an on-demand economy. People, while staying at home due to movement restrictions and nationwide lockdowns, tend to order all the essential items through on-demand delivery apps. This situation makes established restaurant owners, supermarkets, and grocery chain owners the biggest beneficiaries thanks to an on-demand app. But the story is completely different for local grocers and restaurant startups because they are not equipped with a feature-rich app.
It is fair to mention that the trend of on-demand delivery is here to stay because it offers convenience to consumers and brings automation in delivery processes. Even startups can make the most of a thriving on-demand economy by having a feature-rich mobile app. Let’s take an example of food delivery startups to understand the importance of on-demand delivery apps in their business.
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UberEats, Just Eat, GrubHub, and Postmates are some of the renowned companies that have set milestones in the food delivery domain by having robust and user-friendly apps. Though the restaurant sector is thriving at a rapid pace, fierce competition and ever-changing challenges can be big roadblocks for food delivery startups. There, on-demand food delivery app development lends a helping hand.
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Food delivery startups can offer excellent customer services and on-time delivery through an app. The app also enables them to expand their business by targeting a huge audience anywhere in the world. Usually, the restaurants follow any of these three popular business models.
Prevalent Business Models for Restaurants
- Order-only Model
JustEat and Grubhub have used this model. This model is suitable for the first generation restaurant delivery service providers. Here the company provides an online platform to restaurants through dedicated software. The USP of the order-only model is restaurants can get many online orders while replacing the traditional phone-based ordering system.
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This is a highly scalable model and capable of providing many growth opportunities to startups.
- Order and Delivery Model
Doordash and Postmates take care of ordering and delivery phases. They take orders and request eateries to prepare food. Once the food is ready, they manage its delivery through their fleet of independent couriers. The on-demand food delivery app remains handy in managing the entire process. This model is not much suitable for startups as it needs a robust delivery network with the extensive support of infrastructure.
- Fully Integrated Model
Food delivery startups like Sprig and Maple have started with a fully integrated model. They have brought a fully-functional app through which costumes can order meals and get deliveries as fast as possible. They have their fleet for delivery and offer more convenience with the highly curated experience. The fully-integrated model of restaurants have hubs or kitchens to cater to the food orders, however, the choice of food can be limited. Scheduled and instant deliveries are available under this option.
Top Business Benefits of Mobile Apps for Restaurant Startups
An on-demand delivery app can offer many benefits to startups and established restaurants alike. Here we mention a few of them-
- Enhanced Customer Satisfaction
The app-based ordering can help customers get rid of standing in a long queue. It is better to enable customers to give orders online in this troubled time. The app not only facilitates customers to place an order but also provides their favorite food at their doorsteps. Apart from time and effort, the app also saves the customer’s money by reducing any unnecessary charges and taxes. It results in enhanced experience and an increased level of customer satisfaction, which are necessary for startups to strive and thrive amid increasing competition.
- Simplified Processes
Another biggest benefit of the food delivery app is it helps restaurant owners bring automation in various processes and simplify complexities. A traditional phone-based ordering system is cumbersome and needs one attendant all the time at the counter. Also, there is a possibility of a human error. Contrary to this, an app-based ordering system is safe and accurate. Startup owners have to manage the delivery network as the app takes care of the ordering process.
- More Convenience
A customized food delivery app can enable startup owners to focus on core activities. It offers more comfort to customers and assists startups to promote the business. The food delivery app takes place in the customer’s smartphones and gives startups an opportunity to get a loyal customer base.
- 24/7 Services
Be it a startup or an established business, being available for a 24/7 basis is the need of the hour. Customers can raise queries or submit suggestions anytime. Food delivery startups that want to build a reputation online must remain available 24/7. The app can fulfill this requirement. The Review and Rating section in the food delivery app can enable customers to post feedback and give ratings to services. Restaurants can take prompt action on the feedback.
- Improved Interactions
A food delivery app enables startups to improve interactions with customers. Though app-based interactions are free from human intervention, they can engage customers effectively. What’s more, the app connects restaurant owners with all the employees and customers at once. Customers can raise queries through an app and chatbots can answer or resolve their queries in real-time. In a way, efficiency and speed are increased significantly in every process. What’s more, startups can include videos of food preparation in the app to tantalize taste buds of app users.
- Reduced Order Errors
Telephonic orders or orders taken by humans have some chances of error. At times, the traditional method of giving orders on the counter can also create confusion and as a result, the restaurant ends up giving wrong food items. No food delivery service provider afford such mistakes. Thankfully, the food delivery app can reduce such errors significantly and enable startups to prevent their reputation. Online orders are customizable and accurate. Customers can check and change them with ease. In a way, there are fewer chances of errors from the customer’s side also.
- Location-based Deals
Most startups initiate their services in the local market. Now, location-based deals feature in the on-demand food delivery app can help startups attract customers or app users who stay in the nearby area. This feature can promote the food delivery business and assist startups to increase sales in the local market.
Advancing technology offers many other advantages as well to startups and established restaurants. In a nutshell, a food delivery app with all the necessary features and flawless functionality can enable the startup owner to grow their business swiftly while offering an enhanced experience.
