How to Start a Food Delivery Service Business – A Complete Guide!
Ordering food online is in trend nowadays due to the hectic schedule of individuals and increased usage of mobile phones. It becomes easier for people to browse various restaurants and various kinds of dishes under one platform only. Moreover, food is delivered to a particular address within a specified time, which makes it easier for people who have a tight schedule. This idea of business is helpful for students, working professionals or for those people who don’t want to cook after working the whole day.
Online food delivery business has already gained huge profits and will continue to grow in future as well because this business is in the development stage and people are becoming aware of ordering food online. This business is not only profitable for people, but also for the service providers as it needs fewer investments and higher ROI. Let’s have a look at the benefits of online food delivery business to individuals:
- Choice of dishes: When a person wants to order something online, he/she has various dishes and choice of restaurants in front of them. One can also choose their favourite restaurants and customize food according to their preferences.
- Fast delivery: When a person orders food, estimated time is mentioned in that order in which it will be delivered to the address given.
- Easy and Convenient: Online food delivery is very easy and convenient as one has to open an application and order food easily.
- 24 hours service: Some restaurants provide 24 hours service to the customers which give a huge benefit to the individuals who want to eat late at night.
Why should you start a food or grocery delivery business?
As we all know that the food and grocery delivery business is gaining huge profits, if a person wants to start this particular business, this is the best time to start as it gives an ample of benefits to the consumers as well as to the service providers. Many entrepreneurs are starting this business after seeing the huge profits earned by already established organisations. If you are wondering how to start a business like uber eats, you are not required to possess complete professional knowledge about a business.There are many good reasons to start a grocery or food delivery business. Some of them are listed below:
- Low investments with higher profits: Food and grocery delivery business needs less investment and in return, will give you higher profits. So, if you are thinking to start such a business, it is a great choice.
- Flexible working hours: This kind of business doesn’t need a 9 or 10 hours shift, you can work and manage sitting at home as well. it has flexible timings as sometimes, due to work pressure, you have to work 12-13 hours or sometimes, just 3-4 hours.
- Target a small area: In the beginning, you will be having small capital and resources, so, it is advisable to target a small market area. Once you made a strong customer base, you can then, think of expanding your business and target a bigger market.
- Competition: There are so many competitors like Grofers and Deliveroo already operating in the market and earning great profits. You can study the market thoroughly and analyse what you can add to promote your business idea.
- Digital presence: For every business, an online and digital presence is important to reach more and more customers in a small period. You can analyse your competitor’s applications before building your own.
Important Features of an Application:
An application should include all the features which are easy to understand and use. Before going further, you should have an understanding of how to create a food ordering app and what all features should be added in that application. There are some basic and advanced features which you can choose for building a fully customized application. Let us have a quick look at what you can add to make your application more convenient:
- Easy registration and social media login
- Browse and select
- Payment modes
- Schedule delivery
- Product history
- Offers and discounts
- Review and feedback
For restaurants/ store manager:
- Restaurant/store locator
- Easy login and sign up
- Manage profile and add necessary details
- Accept and reject incoming orders
- Real-time tracking
- Manage reviews
- Add or remove new products
- Manage restaurants/stores
- Manage inventory
- Add or remove any store/restaurant
- Complete overview
- Manage offers and discounts
- Reports and analytics
- Manage customers
- Manage feedbacks
Food/grocery delivery and current situation (Coronavirus):
The overall situation of the economy is worsening day by day due to a virus originated in Wuhan, a city of china. Many countries are being infected due to this virus. People are locked down in their houses, there is a shortage of various things in the market. In this situation, starting a food or a grocery delivery business will prove to be a great help to people because of the shortage of such things.
Starting a grocery delivery business at this crucial time, will help many people and allow you to earn by sitting at home. You just need to find a good application development team who can build a fully customized application and a great marketing strategy.
Cost of Developing an Application:
An application can cost you somewhere around $2k – $25k depending upon the features you want to add in your application. There are many factors which are responsible to decide the overall cost of building an application. They are listed below:
- The cost depends upon the location of the developers. In some parts of the world, the developers are affordable and in some parts, they are very expensive depending upon the respective markets.
- Cost also depends upon the features you want to add in an application. If you want only some basic features, the cost will be lower and if you want advanced features like in-app messaging and calling, push notifications etc., the cost will go up.
- Your application will work on various platforms like iOS, Android, Web etc. cost also depends upon the number of platforms, your application will work on.
- The overall cost of building an application is according to the time taken to build it and the number of developers working on your project.
So, you should choose a well-established application development company which can build a fully customized application with all the basic and advanced features at an affordable cost.
You must have great marketing strategies if you are starting a food/grocery delivery business. You should start with a small market area with a dense population. Once a strong customer base is created, and your company has started earning profits, you can then think of expanding your business on a larger scale. Many people start a business but they usually are not able to continue because of the lack of profits. Every business needs patience and with time, it will grow and start earning higher revenues.
In such a crucial time of crises, it is beneficial to start a grocery/food delivery business because many people are not able to receive an adequate amount of food and grocery. You can be the one who can help several people by delivering food to their places.