Every on-demand service app in the market is reporting a massive spike in its usage. People are using these apps on a daily basis because of the convenience it offers. They can get quality services/products without burning a hole in their pocket at any time of the day. Among the array of on-demand service apps, food delivery apps are in high demand. These apps are proven to be a blessing in disguise as they can get their favorite food even if they work late or migrate to a new city. Technology has made it easier for consumers to get their necessities delivered to their doorstep.
Currently, every business in the market, irrespective of the sector, is migrating to the digital industry. Customers expect them to have a website or some internet presence. Restaurants aren’t an exception as millennials have started to enjoy their couch’s comfort rather than spending their leisure time in a fancy restaurant. There are two primary business models in the on-demand food delivery system. They are:
- Order focussed model
- Restaurant specific model
Restaurant specific model:
Restaurant specific model businesses have been in the market even before the birth of the digital age. In traditional methods, people call restaurants to place an order, and a delivery executive will collect it from the specific restaurant. Customers will hear out the menu from the manager on the other end or have printed menus with them and place orders based on it. Although people faced several issues like misconception, audibility, and other human errors, this strategy was successful, and people used it for several years. With the introduction of on-demand food delivery service apps, telephones got replaced with mobile applications. There is no room for a middleman in these apps as the customers’ orders will be directly sent to the restaurant.
Currently, restaurant-specific business models are adopted by some major restaurant chains in the world, such as KFC, dominos, etc. They have their standalone application, and customers can place orders only from their restaurant chain. They hire delivery executives and appoint them to work exclusively for a particular restaurant. If you already have a popular restaurant and looking for opportunities to expand your business, you can invest in this business model.
Order focussed model:
The rise of the order focussed model was after the advent of on-demand food delivery apps. You can partner with restaurants and offer them logistics support. The advanced in-built tools will make it easier for you to manage restaurants, home delivery services, and other business operations. Most on-demand food delivery apps in the market follow this business model. It offers a plethora of advantages and unlimited customization options to suit the business needs of every entrepreneur. Restaurants will only have to worry about preparing food and packing them. Order focussed models also offer opportunities for freelance delivery executives to get on-board effortlessly. If you have ideas about creating an app like Swiggy, this is the ideal business model for you.
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Things that require your attention:
Here are the things you need to focus on to emerge as a successful on-demand food delivery service provider.
- Keep in track of your capital investment.
- Ensure that your app gets built with the latest technologies in the market.
- Focus on fulfilling the customer’s needs.
- Listen to the feedback from your users.
- Analyze the market and find your target audience.
- Focus on optimizing your marketing strategies.
- Ensure that your app has a minimalistic user interface.
- Customize your app to meet the requirements of your target audience
Monetization strategies in the on-demand food delivery business:
Advertisements are one of the most popular sources of revenue for on-demand service apps. You can regularly charge for displaying ads of other brands on your platform. Ensure that your development team optimizes the user interface to place ads effectively. This strategy will make sure the users do not feel that the app is overflowing with ads.
Delivery charges can be collected based on the distance of the delivery location from the restaurant. Customers will be willing to pay delivery charges for their favorite food, and this strategy is proven to boost your revenue significantly.
You can add surge charges to every order placed by the customer in case of rain or late at night. During certain situations, you can reduce the menu options and limit it to the most ordered products. Surge charges can help to quickly boost your application’s revenue as customers will place their orders at any time of the day.
You can deduct the commission fee for every order placed on the restaurant via the application. It should be a fixed commission fee and take steps to ensure that it benefits both parties. This strategy will contribute to a deeply rooted relationship with the restaurants for the long term.
Cost of developing an app like swiggy:
Every entrepreneur should keep track of their capital investment and make wise decisions on spending it. The cost of developing your swiggy clone app depends on the following factors. These factors significantly increase the time taken to create the application and thereby increases the overall cost.
- The mobile platforms you chose to develop.
- The location of your development team.
- The scale of your application.
- The number of payment gateways integrated.
- Size of your development team.
- The complexity of your app.
In a nutshell:
On-food delivery apps will be the ideal choice for you to boost your customer reach and convert off customers into loyal customers for your restaurant. You can explore a plethora of opportunities in the on-demand service market. The usage of food ordering applications is on the rise like never before. You can quickly expand your service area and customer base with an online presence. To help you understand the swiggy clone app and its functionalities, I have tried to cover every aspect of its development process. If you still find yourself lost, I recommend you to get in touch with an expert development team.