Millennial and Middle age people have settled into the reality that only food delivery apps connecting an extensive range of restaurants, hundreds of cuisines and the flexibility of secured online payment system can delightfully make the way to their stomach.
On the same fervor for Food Delivery App Development, the industry is blooming digitally and made it almost mandatory for every restaurant to get registered in the app those lacking online presence. Apps like Swiggy, UberEats, JustEat and Grubhub seems to have captured the market and set themselves as a statement of a quintessential food delivery app.
If you are a business scrambling to find how food delivery app like Swiggy is created and operated here is your go-to guide.
Types of Food Delivery Business Model
1. Aggregator Business Model
In this type of model the Middlemen or third party handle the customers and restaurants, make the restaurants their partners, and sell their services under their own brand. The app in this model allows user to log in into the app, view menu items, pricing restaurant details, reviews and feedback. The user can order the item and the delivery is handled by the delivery boy of restaurant.
2. Food Delivery System With Logistics Delivery Service
This model provides complete logistics support to restaurant partners thus, helping small startup restaurants, food joints and store fronts to manage their operations seamlessly. Also, it becomes a great help to restaurants who can’t initially afford the expenses of logistics operations.
Apps like Swiggy and Ubereats runs on the same food delivery model.
Swiggy Business Model
The Swiggy operates its business on hyperlocal business model. That means the food delivery company aggregates restaurants as well as delivery fleet which collects the food from restaurants and deliver it in less than 30 minutes.
The business model works in four steps:
- The app allows users to search nearby restaurants or cuisines.
- Place an order by opting mode of payment (online or COD).
- Restaurants receive the order from Swiggy and they make the order ready to deliver.
- Swiggy’s Delivery boy collects the order from the restaurant and deliver it to the customer.
Swiggy generates revenue from the following sources:
- Commission from Restaurants : Swiggy earns its major part of revenue from Restaurant Commission for serving as their delivery partner and featuring them on their app that helps them in gaining popularity, get more orders, and make new customers.
- Delivery Charges : Swiggy also earns from customers by charging them delivery fees on orders below a certain threshold and certain other conditions such as distance, high order demand, and extreme weather condition.
- In-App Advertisements : Other secondary but major sources of income of Swiggy comes from Advertisements. The company earns from promotional banner ads and priority listing on Swiggy app featured by restaurants to earn greater visibility and more orders.
- Affiliate Income : Nowadays, apps like UberEats and Swiggy also earn from affiliates like banks and financial institutions by luring customers to use their credit cards in exchange of offers. This way banks can easily sell their credit cards to customers.
Swiggy is in direct competition with major on-demand food aggregators like Zomato and UberEats. Whereas, other small food-delivery startups like FreshMenu, Foodpanda, and Licious also make in the list.
On-demand Food Delivery AppFeatures
A. Customer App:
- Easy Registration : Customers should be able to easily register in the app through email id, or mobile no. verification and password.
- Customer Profile Management : Customers should be able to manage their profile by entering important details like name, address, phone no, email id, etc.
- Search By Area And Current Location : This user-friendly feature will allow customers to search restaurants located nearby their current location and saved addresses.
- Choose Your Cuisine : Customers can discover nearby restaurants as per their favorite cuisine.
- List Of Restaurant Based On The Area Search : In this feature, based on the areas entered by the customer a list of restaurant is displayed. Clicking upon it, customers will be redirected to restaurants website or individual page.
- Place Order : Customers can easily place order by adding the selected cuisines or dishes into the cart.
- Apply Coupon : Customers can check the offers, coupon codes, discounts given by the restaurants and redeem them at the time of making payment.
- Review : Customers can check the reviews and ratings given by the customers to the restaurants for their services, quality of food, and hospitality.
- Select Delivery Choice : Customers should be able to select takeaway or delivery option based on their choices while ordering food.
- Secured Payment Integration : Customers should be able make their payments using secured payment gateways like credit/debit card, UPI, mWallet or COD.
- Push Notifications : Keep customers informed by sending them the status of delivery like when the order is prepared, packed, out for delivery, and on the door.
- Track Delivery Boy : Geolocation integration to track the real-time location of Delivery boy from the restaurant to delivery address.
Read also: Unveil the Most Crucial Features of Online Food Delivery App
B. Restaurant Owner App
- Instant order notification : As soon as the customer places order restaurants will receive instant notifications so that they can process the orders quickly.
- Assign order to driver : Restaurant owners can assign single or multiple delivery orders to drivers.
- Check Order list : Restaurant owners should get order reports to analyze the sales including total customers, total orders and total revenue generated.
- New Order list: An overview of new customers placing orders can be fetched.
- Accepted Order list: Orders accepted by the restaurants can be extracted.
- Delivered Order list: All the orders delivered to the customers are displayed.
- Set Order Status : Restaurants can accept/cancel order received by the customer.
- Order History : Restaurant owners can track and analyze their business performance by checking the order history and reports of daily sales.
- Restaurant Profile Management : Restaurants can create profile, manage addresses, change password, and logout.
C. Delivery Boy App
- Registration : Delivery boy can register by entering the email id, personal details and password.
- Accept Bookings : Delivery boy has the controls to accept/reject new booking requests.
- Route Optimization : While assigning delivery, the app picks the nearest delivery boy and assigns the shortest & fastest routes for on-time delivery.
- Manage Status : Delivery boy can update the status of an order placed like order picked up, on the way and order delivered.
- Booking History : Delivery boy can easily check the completed bookings.
D. Admin Panel
- Admin Dashboard : Through dashboard admin can view total orders, commission earned, total sales and daily turnover.
- Category Management : Category management allows admin to search based on the categories like keywords, status (active/inactive), item description etc. Admin can also update them by adding and editing new categories.
- Manage Restaurants, Customers and Drivers : Admin can manage and add new restaurants, menu, offers, and reviews. Likewise, Admin can also manage customers’ information with an option to activate/inactivate customers.The admin can add, manage and reassign Drivers.
- Manage Location : Admin can manage countries, state, city, area/zip code.
- Reports Management : Report on sales per month/per week and orders per month/per week can be extracted by Admin.
Swiggy Marketing Strategies
Majorly, Swiggy uses online marketing campaigns for its promotion on various social media platforms like Facebook, Twitter, Youtube, Instagram and Pinterest.
Some of its campaigns include:
Swiggy’s regular update on Facebook is another marketing effort that opens the gate to customer engagements through promotional offers, giveaways, and for handling customer grievances.
Swiggy and Zomato Marketing Efforts During COVID-19
In the wake of increasing demands for daily essentials being unmet by disrupted supply chains, food delivery apps like Swiggy, Zomato, Grofers, Dunzo are capitalizing by moving from multinational to hyperlocal. These market players are scheduling pickups from local stores, running same day delivery model, offering contactless and cashless delivery. Thus, providing convenience and safety to consumers.
Some of the ways that are helping these unicorns gain tighter grip on consumers are:
- Doorstep delivery of Alcohol or Liquor
- Partnering with FMCG firms for delivery of Grocery and other essentials
- Tie-up with wholesale establishments that don’t often supply walk-in customers
- Leveraging the under-utilized labor for smoother product deliveries
- Enters the cloud-kitchen concept or plug-and-play kitchen space
Having said that, these unicorns are competing fiercely even in these challenging times and hitting all the right notes by foraying into the hyperlocal market.
If you are into restaurant business or any food delivery business, or just an aggregator thinking of on-demand food delivery app development, Codiant can be of your great help for value-added technological solutions and cutting-edge marketing strategies.