Last Updated: 2nd June 2020
Online food delivery marketplace provides customers with the choice and convenience of getting food with a few taps on their mobile phones. Earlier the restaurants used to deliver food themselves but the process has undergone rapid change in the past few years.
Food ordering and delivery platforms allow restaurants to make the most of both digital and traditional marketing mediums. The online food ordering app allows customers to browse their favorite restaurant’s food with relative ease. According to Statista, the revenue of the online food delivery industry is expected to reach an annual growth rate of 9.9% from 2019 to 2023 with a market volume of US $53,786m in dollars.
Grubhub, Deliveroo, and Uber eats are a few examples of these online food delivery services that promise to deliver healthy & delicious meals right at your doorsteps. It’s no surprise that this business model has quickly become popular.
FATbit technologies has done an in-depth analysis of various mobile apps and websites that are popular in the online food delivery business. Entrepreneurs looking to launch a successful business can choose already existing platform like Yo!Yumm or can hire developers to build a custom website. These options would help entrepreneurs launch a successful online food ordering website. Let’s take a look at the business and revenue model of these online food delivery platforms, to understand the market dynamics.
Any online food booking marketplace should offer the necessary features for the convenience of restaurants and customers. The business model of an online food delivery system is three tiers, admin, restaurants and customers. Here’s how a typical food delivery model works:
The revenue model of online food delivery platforms is similar to any marketplace model. The user i.e. the customer makes payment online or through cash on delivery. The total amount of delivery is received by the admin. After a request from the restaurant, the owner transfers the total amount after deducting his/her share of commission. In addition, the admin can generate revenue through:
There’s no shortage of online food ordering platforms so in order to gain a competitive edge you need to focus a lot on the UI(User Interface) of the platform. It proves useful in garnering a rich user base. Let us start with the key features necessary to create an advanced and user-friendly online food delivery platform:
Web platforms have started to focus immensely on website UI/UX to enhance user engagement. The same needs to be present on your homepage. Some of the key features of your homepage are as follows:
One of the major goals of any new platform catering to a niche market is to make its novice users aware of how platform works. This is why your food ordering and delivery portal ought to have a dedicated section, which clearly shows how that platform works. This section could cover areas such as:
It’s vital to lay major emphasis on the design of this page. Our analysis of several online food delivery platforms has shown that UI of a website is of utmost importance.
More and more businesses are beginning to realize the importance of customer reviews and testimonials to enhance their brand-identity. Many studies have found that reviews highly influence the decision-making process of new users.
Working on the same principle, your platform ought to have a section, preferably on the homepage, telling users what other customers think about your service. FATbit analysts recommend this feature while looking for an online food delivery platform.
When it comes to login/signup process on online food delivery platform, it needs to be as simple, intuitive and should take the least amount of time possible to complete. This is due to the fact that these platforms have come into existence to streamline the food ordering process. Rather than using a dedicated login page, your website can use a popup. Users can either use one-click login via Facebook/Google/Twitter or go for traditional way of log-in with username and password.
In order to eliminate spam accounts and build a strong user base, you can also have a pre-activation verification system in place, where you require users to confirm their email to activate their accounts. Alternatively, you can also add OTP service in place to verify via mobile number.
This section displays all the details related to the account when users log into their account. This includes:
No food ordering and delivery platform can afford to be lax with this section. So, pay attention while planning and executing it.
This section incorporates all the details related to payment history and available balance in the wallet. Users can easily add money to their wallet before placing an order. This makes it easy for them to avoid making payments for every small order. Users can also view complete payment history in this section, along with details of the payment, total amount, and remaining balance in the wallet after making a payment.
For online food ordering and delivery platforms, the delivery address is crucial. Users generally tend to use this service to order food from their homes as well as offices on a regular basis. This is why an option where users can add default addresses surely comes in handy. This makes it easier for users to order food quickly, eliminating the hassle of inputting addresses from frequently used location.
For better user experience, top food ordering platforms also offer a detailed history of each past order which includes:
We found this approach to be highly user-friendly and recommend it as a must-have feature for your online food delivery platform.
The search is by far one of the most critical components of any e-commerce platform. As we discussed earlier, a food delivery startup must have a search bar on its homepage, where users can select a particular location for delivery of food. After selecting the location of delivery, users are given three choices, which include lunch, snacks, and dinner. These three options are based on the time of delivery i.e. :
Users can select either of the options to place the order.
Restaurants should be able to easily list their food items on the website. Alternatively, the restaurant owners can also have a different menu on different days which will give your platform a competitive edge. When it comes to food listing page, there are a few things to keep in mind:
The process of placing an order needs to be seamless and quick. Users should only have to provide their contact details to verify their purchase. After that, they need to add the delivery address or select the default address. The next step obviously involves confirming the order and choosing payment mode, by either credit/debit card or cash on delivery.
Food ordering apps have been a godsend for many people amid the COVID-19 crisis. Lockdown restrictions imposed by the governments are keeping the people away from retail stores and food courts to reduce the virus spread. Millions of people are moving to online food delivery apps to satisfy their hunger pangs. That’s why food delivery companies are witnessing a massive surge in the number of daily downloads of their food ordering apps. If you’re planning to build an online food ordering app in these unprecedented times, here are some essential features you must include in your food ordering platform to reduce the spread of Coronavirus:
Features like Geofencing could play a crucial role in providing superior customer experiences and increase your restaurant’s sales. Restaurant owners can set proximate delivery zones and send alerts to the users who enter or exit the pre-defined location or geographic area. This location-based service can ensure safer deliveries during the pandemic.
This feature will safeguard your customer and delivery agents from getting affected by this lethal virus. Contactless delivery option in your food ordering app will limit customer’s interaction with delivery boys. The customer can opt for a contactless delivery option while placing orders and instruct the delivery boy about the drop-off location.
Providing a self pick up option to your customers is the best method to limit their exposure to the outside world. This feature will facilitate customers with contactless pickups and reduce their interaction with the restaurants’ staff. Customers will grab the food without entering the restaurant by selecting the take-out option from the app.
Exchange of cash could be one of the reasons for the COVID-19 transmission. That’s why many food delivery applications are providing cashless deliveries for customers’ safety. Encouraging customers to make online payments through debit cards, credit cards, or e-wallets, etc. will help you mitigate the virus exposure.
Notifying your customers about the safety measures and educating them about the safer delivery options will help you maintain a consistent relationship with them. This feature will gain customer trust and improve customer engagement as they will receive constant notifications regarding the precautionary measures being taken by the restaurant to reduce the Coronavirus spread.
Businesses are changing their approach and becoming increasingly mobile oriented. Due to the increasing rate of mobile penetration and ease of use most companies have launched their mobile apps. A number of studies have shown significant increase in the food orders among the customers using mobile apps. These mobile apps allow customers to order from a wide array of restaurants on the go and track delivery. With easy access, fast ordering and secure online payments the online food ordering mobile apps offer many advantages and are definitely worth the investment.
In recent years, food ordering market has experienced a massive boom. Rather than going to an eatery, people prefer to order food online from home. This has resulted in huge demand for online food delivery and the outcome is the rise of platforms like Grubhub, Deliveroo, and Uber eats. Although there are many startups that have launched in different markets, most of them are making decent progress. That’s because this niche relies on locality, which makes it easy for a new startup to generate income from an untapped area.
If you want accelerated growth for your online food delivering business, you should have all the features in your website/app as stated by us for optimal results. This would surely help you in capturing the bulk of the market share. Want to add new features or customize your platform further? Talk to our team of UI experts and developers for solutions tailored to your needs.
Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date. We advise - the readers should not take decisions completely based on the information and views shared by FATbit on its blog, readers should do their own research to further assure themselves before taking any commercial decision. The 3rd party trademarks, logos and screenshots of the websites and mobile applications are property of their respective owners, we are not directly associated with most of them.