Nowadays, we all know that online businesses are running across the world successfully on the rise of on-demand delivery services. The online food market is one such field that is improving at rapid speed, and many customers enjoying the conveniences of on-demand food delivery at their doorstep. Moreover, the impact of Covid-19 has converted the brick and mortar businesses into online, so that there is further growth in online businesses.
To use these opportunities, other than the major food delivery platforms that are already dominating the area, many start-up food businesses are entering and getting benefits from the market potential. There are two business models with which the players are experimenting. One is creating food delivery platforms that are working as the bridge between customers and multiple restaurant owners. The other one is business owner starts their restaurant and launch independent food delivery app.
If you are planning to start a food delivery app, it is a good time to make a decision. It is not easy to keep a business afloat and achieve success, since the competition in the market is increasing. Before going to start a food business, here are some important points to keep in mind.
Different Business Models:
There are two different business models.
In this model, the platform is the point of interaction between the customers and multiple restaurants. There are two aggregator platforms.
Aggregators without logistics works in the following way:
- The customer selects their favorite food and places the order.
- Make a payment online or choose offline.
- The platform sends the input to that specific restaurant.
- The restaurant delivers the food to the customer’s address with the help of their courier.
Aggregators with logistics works:
- The customer selects their favorite food and places an order.
- Customers choose the online /offline payment mode.
- The restaurant receives the order and requests the delivery services to pick up the order.
- The food is delivered to the customer by the courier service.
- Payment is settled in this step if it is offline mode.
In this model, the restaurant creates its app with the help of a mobile app development company and delivers the food on its own or appoints third-party delivery services to deliver the food. This model needs no large investment for the restaurant. This model is the best for small businesses.
Workflow of this model:
- Customers place the order with their favorite food.
- Choose the online/offline payment mode.
- The restaurant gets the order and prepares it.
- Deliver the order by their delivery services or send by the third-party delivery services.
Guide to starting your food delivery app:
Analyze the market and find your target customers:
You need to analyze the market, and key competitors, and identify the target customers if you want to launch a food delivery app. Market analysis will help you to build a multi-skilled food delivery app. Here are some steps that explain how to analyze the market.
Identify the market that can help your business idea to thrive.
Realize the viable project concept(business model, features, app type, etc.).
Find a market niche where there is scope for new applications.
Accept the suitable demographics by studying and testing your ideas among the people.
Study the gathered data and understand what type of food delivery app you need to build.
What is a Unique Selling Proposition?
A Unique Selling Proposition(USP) can be price structure, product characteristics, placement strategies, or promotional strategy for a business to initiate its presence in the market and differentiate itself from the competitors.
Before you build and launch your app, make sure you identify your USP. USP helps to draw a separate acknowledgment from your customers and differentiate your business in the market.
Pay attention to the business model canvas and its suggested aspects can help you to identify what type of business model and what USP you want to have.
Your key partners: Stakeholders and people who are helping in your project. For Example, Software developers and vehicle fleets, etc.
Key Resources: To develop your project, money, people, knowledge, etc needed. For example, Investment and professionals.
Key activities: To run your business, activities, and actions you take. For example, marketing, promotion, traffic generation, etc.
Value Proposition: Your Service Solutions.
For end users: Easy order placing, availability of food, online payment mode, prompt delivery.
Revenues: Your monetizing Strategy. For example, ads, commission, busy hour price surge, etc.
For couriers: Order management, delivery history, status update, etc.
Target Customers: Buyer persona. Customer relationship: prompt food delivery, Community bonding.
Channels: Marketing channels. Example: Promotions, ads, SEO partnerships, events, etc.
Cost structure: Cost components are based on resources and activities. Example: Technical maintenance of app, logistics, marketing campaigns, etc.
Hire a trustworthy and expert app development service provider:
You need to hire a capable mobile app development company for building and design your food delivery app.
That company will have rich experience, affordable development cost, top-notch resources, use the latest and advanced technology to build your app, and the best customer service.
The company which you select must know your app in and out and it can help you to build your app successfully.
Develop a food delivery app:
In this phase, you build your app. It consists of 3 phases.
- The first one is to analyze the business, UI/UX design research, and creation.
- The second one is dedicated to development tasks, in which the development team makes the front-end and back-end applications.
- In this phase, you need to test the app’s usability and quality assurance, so that the app operates flawlessly.
Build an app with the best design:
The design of the app must have a lot of influence on the user’s decisions. A well-designed app will be future-ready, user-friendly, and have the power to enhance the user experience more.
Build a flawless application:
The app you created must work flawlessly. Else, it may not be able to make any market value. Native app development helps to provide better UX compared to hybrid app development, and native app development can use the unique features offered by the operating system(Android and iOS).
Testing is a must:
After the app is ready, it must be tested by a QA specialist. Run your app on multiple devices and test your app and check for any flaws. Fix the issues, if any before launching it.
Choose potential Marketing channels to promote your app:
To make your app popular, building and launching an app is not only work. Instead, you need to choose suitable channels to market your app. Let’s see the channels you can utilize:
- Marketing campaigns: You can launch paid ads to advertise and promote your products, once you launch the app.
- Influencer marketing: you can contact influencers and bloggers who can specify your app benefits and unique idea to their audience.
- SMM: Using social media platforms, you can promote your app.This is one of the effective ways to promote your app.
You must be aware of everything that will help you to build an effective app, before building and launching your app. We hope that we have provided the entire process from building to the launching of an app. With the help of this blog, you need to hire the best mobile app development company like Smarther, to create your food delivery app successfully.