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How to Start an Online Food Delivery Business

How to start an online food delivery business

The online food industry has observed a significant growth in the past few years with the rise of mobile delivery and e-commerce. It’s not because most of the restaurants have started providing online food deliveries, but also due to the new trend of ghost/cloud/virtual/dark kitchens. These virtual or dark kitchens have created a buzz in the industry by bringing in the new trend of delivery-only restaurants. Such kitchens don’t provide dine-in or takeaway facility; a customer can only order through food delivery mobile applications.

According to Statista, the global cloud kitchen market size is expected to reach USD 2.63 by 2026. This number was USD 0.65 billion in 2018.

Another report by the same organization reveals that the online food industry revenue is projected to have a market volume of USD 182,327 Million by 2024.

These figures clearly indicate the online food delivery is a billion-dollar industry, which is thriving at an unprecedented rate. And considering these large market opportunities, starting an online food delivery business for your startup is definitely a great idea. Here, in this article, we have covered everything you need to start this business:

Food Aggregator App

Not every restaurant has the budget to create a full-fledged mobile app for offering online delivery services. However, not providing this option to the customers might make them lag behind. For all such restaurants or small food joints, you can create a food aggregator app where they can list themselves to showcase the menu to their targeted audience and allow them to order food online.

Online Food Delivery App for Dark Kitchen

A dark kitchen is relatively a new concept that is being loved by customers all across the world. From the business perspective also, it is quite beneficial as there is no need to have a large space where customers can dine-in. You can start your online food delivery business by setting up a ghost kitchen or cloud kitchen that doesn’t require as much investment as required to establish a restaurant. Through a dedicated food delivery app, you can make customers reach you and place an order.

Online Food Delivery Business for Your Restaurant

If you already have a business, then you can start your online food delivery business by developing an app for it. Make sure you add all advanced features, such as sign up/sign in, ratings, reviews, food listing with images, order customization, search, filters, live order tracking, multiple payment options, referral bonuses, social media integration, discounts and deals, AI-based chatbot, and more.

Monetization Strategies for Your Online Food Delivery App

Deciding the monetization strategy or how your online food delivery app will generate revenue is important to get maximum ROI. You can choose from the following options:

  • Online Ads- You can choose Google Adsense as your monetization strategy for making money from your food delivery app.
  • Commission Percentage- If you are building a food delivery aggregator app, then you can earn money by charging some commission on every delivery.
  • Membership Plans- To allow customers to enjoy free food delivery on all orders or avoid surcharges during peak hours, you can offer membership plans.

Tips to Build an Online Food Delivery App

Keep the below-given tips in mind before you begin with the food delivery app development process:

  • Find a niche and set your targeted audience
  • Create your food delivery mobile app, preferably for multiple platforms
  • Connect to a strong delivery network
  • Get the required license
  • Promote your app

Top Online Food Delivery Businesses

Check out some of the popular online food delivery businesses to understand their business model and know what features you should add in your food delivery app to make it stand apart:

  1. Eat Club
  2. Chewse
  3. Foodee
  4. Maple
  5. Caviar

No matter what type of online food delivery app you want to develop for your startup, make sure you hand over your project to a reliable and experienced on demand app development company or food delivery app developer. To ensure the same, you can check out their previous projects or look into the ratings and reviews submitted by their previous clients.

Final Words

Do you want to start an online food delivery business? Give this article a read to know the different types of online food delivery businesses you can choose for your startup. Apart from this, you can also check out the monetization strategies that you can integrate into your app to earn from it. To build an online food delivery app, reach out to a trusted food delivery app development company like Quytech. Do thorough market research to find out the one that offers you quality services at a cost-effective price. Even if you hire a mobile app developer for your application development, it is advised to ask as many questions as you can to understand if the developer would be able to deliver your project on-time without compromising on the quality.

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