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The world is different now as it was at the end of the 90s, the traditional way of promoting and making businesses grow are gone now! The society is welcoming the favorable changes that technology is offering. Thinking where it is heading towards? So, if yes, it’s about the revolution that has come in the food delivery process. Earlier, the food was delivered only after making a phone call to the restaurants or making by verbal agreements  but technology had more to offer.

Soon, food delivery apps were launched by the supreme mobile app development companies. Since the launch of world wide waiter in 1999, there is no looking back. Now, we all may run behind the  best food delivery apps as a process to get food delivered to our home and other places but, in the real sense, they deliver us the convenience. 

Talking about convenience, it simply means in the form of ease of adding the favorite food to your cart, finding the best available food and the ease of making decisions, smooth and safe payment options ,and more to the users/foodies.

Are you thinking to Start Online Food Delivery Business in 2020? 

Well if yes, don’t think its as easy as water. Along with the cost of building the application, You will need to require a completely business-driving team that is very much organized, talented and expert in their field; additionally, you need to have an overall idea about the locality you are targeting to deliver food; also you will need to know what the customer trends are; what are their favorite places, where do they like to eat often and more.

So, when you build a complete estimate, you can move a step ahead with your business plan however, whatever be the business is in question, the first and the major question that comes to the mind of an individual is…. 

How do Food Delivery Apps make Money?

So basically, they want to collect information about the monetization procedure. Well, here you will get the answer to all your question about food delivery apps. As of now, you need to know, things are very much similar for online food delivery apps like any other business app. 

As it is already under the knowledge of many that how a huge population of people love the convenience of getting food delivered at their doorstep without moving an inch from their couch, the demand for online food delivery app development has increased rapidly over the last several years. If seen from the perspective of restaurant owners. 

Again from the perspective of the restaurant owners, they can use such service to reach a larger audience while paying only a few or minimal charges for the delivery. This is how they are very delighted to be part of the arrangement. The business of online food delivery app is becoming more popular and huge as it offers food to the users easily when it is about the delivery of food.

This is how food delivery apps make a lot of money!

Regular offers/deals

The business dynamics keep changing and new up and downs are a part of it. The Food delivery apps have now come to a step forward and now to increase the flow of money, they started tying up with restaurants by offering various deals/offers/discounts on the dishes and cuisines. It works systematically and a full team of experts decides the strategies,  the best cuisine of the restaurant/hotel/buffet is offered through food delivery apps at reasonable or discounted prices. 

To catch the attention of the users, the deals of such restaurants are showcased on the home page or deal page of the food delivery app. When the orders are received for such dishes, it gets passed on to the restaurant person here, the restaurants, on the other hand, make the best possible use of such deals and offers to up-sell the side dishes along with the discounted ones. This attracts the user and eventually, the sales get boosted.

In the end, this works as a valuable deal for the restaurant owners as well as the customers. Here, the food delivery apps owner earns a huge portion too. As the amount of the order and the commission for the food delivery are directly proportional to each other. The more the food gets ordered, the more commission for the food delivery app. 

Advertising

One of the beneficial ways for the food delivery app monetization can be through advertising. This is how it works, at additional charges, advertising can be offered to the restaurant’s on the app to promote their restaurants dishes and cuisines, and when it’s about food delivery apps, the advertisement can happen in the form of best rated or listed for the ones which paid more for a fixed or decided time.

There are many apps in the marketplace that offers such a way of advertising on its app. One of those famous ones is Swiggy. And, when the restaurant pays the decided charges for the advertising, it is shown on the topmost section of the search bar result to the app users. This is done as the users will check them first as it will appear the first on their list. 

This is why most restaurants owner pays the cost to bring the best profit possible! Plus, a food delivery app like UberEats charges a particular amount as a marketing fee to feature an ad in the app. You can also add this to the monetization of your food delivery app. 

Delivery charges

Well, the app can charge for delivery fees in case the restaurant does not have a fixed or decided delivery team to perform the task. The delivery expenses can be based on the distance or can be a percentage of the order amount. According to the information on the internet, one of the food delivery apps which make money through this way is Deliveroo. In a report, it was stated that just by delivering delicious food to the customers from their favorite restaurants, Deliveroo has made a significant amount of money that can be calculated in millions. For per order they charge a fixed ration of money to the customers. This is how,  throughout the day, they make themselves successful in building decent revenue amounts just by charging for the delivery service to the customers. 

Peak/best Hours

Well, this is not all, above are just a few ways by which the food delivery apps make money, there are still many other ways for food delivery apps to make money. So, by the peak hours method, the apps can decrease the delivery costs on the orders during peak and most selling hours. According to a report, apps like UberEats follow such a method by increasing the rates of food during breakfast, lunch ,and dinner. These apps plan out a fixed menu and location during the most selling hours and the customers who are willing to order them or make them available are charged with an extra fee/cost!

Conclusion

If you are thinking these are all the ways, let me tell, no, it is not! Other than advertising, regular offers, peak hours ,and delivery charges, there is more to it. The food delivery apps earn decent money from Data-driven strategies, email marketing ,and white labeling. If you mark it on the current scenario, developing online food delivery apps can be declared as one of the successful businesses running currently in the market. Honestly, it is one of the best methods to build a business and start making money out of it with subtle handwork and adequate time. 

On the internet, you must have read about the popularity of similar apps over time as it brings a lot of ease to both customers and restaurants. Talking about the perception of restaurants owners, it helps them boost their brand image and easily connect with a larger group of audience with fewer efforts while on the edge of customers, they can find a great number of restaurants, dishes, cuisines, desserts and more that is available to be ordered and get delivered at their home doors or any place as per the comfort and needs. So, calculatingly it is profitable and beneficial to customers and restaurant owners!