Online Food Ordering Marketplace: What Makes It a Good Business Idea in 2022

Online Food Ordering Marketplace: What Makes It a Good Business Idea in 2022

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Last Updated: 14th September, 2022

Takeout and online ordering have become new norms after the arrival of the COVID-19 pandemic. It is evident from the success of Uber Eats, GrubHub, Eat24, and Postmates that starting an online food ordering marketplace is a promising idea in today’s era. However, entrepreneurs looking to invest in the online food delivery market must have detailed knowledge of the business model, revenue model, and benefits of an online food ordering marketplace. This blog unveils various aspects that entrepreneurs must understand before launching an online food delivery platform.  

US food delivery app users


Table of Contents 

How does an Online Food Ordering Marketplace Work? 

There are 4 types of entities involved in the working process of an online food ordering marketplace: Marketplace Owner/Admin, Merchant, Customer, and Delivery Staff. Here is the breakdown of how things work in an online food ordering marketplace: 

  1. The admin ties up with merchants from varied locations and enlists multiple restaurants on the marketplace.
  2. Merchants add restaurant details like name, menu items, operational hours, working days, packaging details, among other things.
  3. Customers register on the marketplace via their email address or social login options. 
  4. After completing the registration process, customers search for their favourite restaurants through an advanced search option available on the marketplace and select food items of their choice. 
  5. Customers confirm the order by making payment through their preferred payment gateway.
  6. Merchants accept the order request and start preparing the food as suggested by  customers.        
  7. Delivery boys after receiving order requests reach the merchants’ location to collect the order. Customers can track the order status and the real-time location of the delivery staff. Once the food has been prepared, the delivery staff pickup the order and deliver it to customers. The order delivery is handled either by the marketplace owner or the merchant itself.  
  8. The marketplace owner earns his share of commission on every order placed through the marketplace and the rest of the amount is transferred to the merchant’s account. 


Launch Your Online Food Ordering Marketplace with Yo!Yumm

How to Earn Money Through an Online Food Ordering Marketplace? 

Entrepreneurs can generate revenue from an online food ordering marketplace by monetization methods like commission fee, on-site restaurant promotions, Delivery fee, subscription charges, and display advertising. 

Revenue Model online food ordering marketplace

Why Do People Prefer to Order Food Online?  

1. Diverse Food Options 

Many people prefer to order online due to the wide variety of food options available on food ordering platforms. Finding your favourite food items in the menu card of a single restaurant could be challenging. An online food ordering & delivery marketplace enables people to search for restaurants and order food items of their choice. Moreover, multiple food choices are also helpful in case of organizing house parties and family get-togethers.  

2. Convenience

People find it convenient to order food through an online marketplace or an app due to following reasons: 

  • Saves Time 

Customers can place an order anytime, anywhere within just a few clicks using an online food ordering platform. Though it’s easy to order food from the comfort of their home, customers don’t need to travel to the restaurant to pick up a meal that will save their valuable time and resources.  

  • Accurate Deliveries 

Misunderstandings can happen while ordering food over the phone call due to background noise, miscommunications, or low cell phone connectivity. On the other hand, customers can customize a dish as per their preference through an online platform. As menus are simple and  easy to understand, customers will get exactly the food items they selected while placing an order.

  • Digital Payment Options 

Online food ordering platforms help customers to pay an order amount using a payment gateway of their choice such as net banking, digital wallets, cash on delivery, debit or credit cards, and more. To encourage digital transactions, many food ordering platforms also provide offers and discounts to their customers for making online payments.

  • Restaurant Selection 

While planning a visit to a new restaurant, it’s hard for customers to get detailed information about the restaurant’s prices, taste, food quality, service, among other things. On the contrary, the online food ordering platforms provide details like restaurant’s ratings, customer reviews, prices, menu items, and more so that customers can make an informed decision before selecting a restaurant.   

  • Reduce In-Person Interaction Amid The  COVID-19

Limiting in-person interactions is one of the crucial factors to deter the spread of the COVID-19. The fear of getting affected by the Coronavirus is another factor that is pushing many people to order food from online platforms over the last year. 

Develop an user centric Online Food Ordering Marketplace

Why Starting an Online Food Ordering Marketplace a Good Business Idea?

1. Increasing Demand of Online Food Delivery Services 

Over the last year, SMB’s and conglomerates in the online food delivery market have witnessed a huge surge in the demand of their food delivery services due to the Coronavirus pandemic. DoorDash, Grubhub, Uber Eats, and Postmates saw revenue rise of 3 billion US dollars collectively during the second and third quarter of 2020. 

COVID-19 delivery boom

As per a recent report by Statista, the total number of worldwide users are expected to rise to 1589.3m in the food delivery segment by 2024. Moreover, the global online food delivery market is estimated to reach upto $192.16 billion in 2025, according to Business Wire. Factors like the increasing demand and future predictions make it a very sound case for entrepreneurs to start an online food ordering marketplace for their business growth.                

2. User Engagement 

Those who are running their restaurants must start an online food ordering marketplace to reach a wider audience base and to improve their business revenue. It would be easy to provide online food delivery services to users at distant locations. An online food delivery platform could also be used to send push notifications to customers to make them aware of discounts and festive deals available on food items.      

3. Better Logistics Management

Restaurateurs can manage logistics operations more efficiently by starting an online food ordering marketplace. They can track the real-time location of their delivery staff and measure their work progress on a timely basis. Restaurant owners can handle multiple order requests coming from a specific area and allocate the right number of vehicles to delivery points. An online food delivery platform integrated with features like BOPIS, geofencing, location tracker, and more could help restaurant owners run their logistics operations smoothly.                        

4. Support Local Restaurants

The restaurant industry has been hit hard due to the COVID-19 pandemic. The lockdown restrictions imposed by various governments on a timely basis during the last one year have made it difficult for local restaurants to survive in the food industry. Entrepreneurs must invest in the online food ordering marketplace to help small and mid-sized restaurant owners in these crucial times. Restaurateurs can list their restaurants on the marketplace to sell food items online and to improve their brand visibility.  

How a Ready-Made Solution like Yo!Yumm helps in Starting an Online Food Ordering Marketplace? 

In this highly competitive food industry, starting an online food ordering marketplace that drives business growth could be challenging for entrepreneurs. To help startups set up their online food ordering marketplace without any hassle, the team of experienced professionals at FATbit Technologies has developed an online food ordering and delivery solution named “Yo!Yumm” 

Yo!Yumm is a fully customizable multi-restaurant delivery software that enables startups and SMBs in the food industry to quickly launch their online food delivery platform. Yo!Yumm provides an admin panel to help business owners manage their marketplace activities conveniently. It also comes with ready-made mobile apps and web portals for buyers, sellers, & delivery staff so that entrepreneurs can set up their online food ordering marketplace conveniently. 

In order to reduce the COVID-19 transmission and keep people aware of the safety guidelines, Yo!Yumm is integrated with features like contactless deliveries, geo-fencing, digital payments, curbside pickup, COVID-19 awareness notifications, and many more. 


Q1. What are the benefits of building an online food ordering & delivery marketplace? 

There are several benefits of building an online food ordering and delivery marketplace some of them are:

  • Demand for online food ordering and delivery platforms is increasing worldwide making it a lucrative industry to enter for budding entrepreneurs.
  • Multiple revenue channels for marketplace owners in the form of commission fees, on-site promotions, subscriptions, third-party advertisements, delivery fees, etc.
  • Online platforms make it extremely easy and hassle-free for budding entrepreneurs to manage their businesses, as there is no need to maintain inventory and spend money on costly infrastructure to run a business.
  • Online marketplaces are integrated with automated tools and features that let business owners analyze their sales, profit, etc. effectively and help them make better strategic decisions.
  • Restaurant and marketplace owners can reach a wider customer base and can drive more revenue.

Q2. What is the cost to build online food ordering & delivery marketplaces?

Building an online food ordering and delivery marketplace from scratch is a cumbersome task and requires a lot of financial investment, time, and effort. However, a ready-made solution like Yo!Yumm can help you launch your own food ordering and delivery marketplace without much hassle. This affordable solution comes with all the essential features required to build an online food delivery marketplace in no time.

The GoQuick plan of the solution starts from $999. Yo!Yumm also has other packages as per the varying requirements. To learn more about the pricing and features of Yo!Yumm, reach out to our experts.

Q3. How can I grow my food ordering and delivery business? 

Customer satisfaction and customer retention play an important role in the growth of any business. For food ordering and delivery business, marketplace owners should take care of certain things to maximize their business growth, that is to:

  • Engage customers with an efficient online ordering system.
  • Provide multiple payment options to customers for better convenience.
  • Attract more users by popularizing the brand through various marketing channels.
  • Increase customer engagement by providing information to users about new promotions, loyalty rewards, etc.
  • Gather ratings and reviews to increase the credibility of the platform among users.

Q4. Which is the best Software to start your own food ordering & delivery marketplace

Yo!Yumm is one of the best ready-made solutions to build your own online food ordering and delivery marketplace. This solution is 100% white-label and comes with lifetime ownership. With Yo!Yumm you can build an efficient platform that can effectively cater to the needs of all stakeholders for an online food ordering and delivery platform- restaurant owners, admin, customers, and delivery staff.

The team of Yo!Yumm has already helped a huge number of entrepreneurs in starting their own online food ordering and delivery marketplaces and is looking forward to helping other budding entrepreneurs who want to enter this industry.

Start Your Food Delivery Marketplace

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