Food On-Demand: Business Models of Meal Delivery Startups

Online food delivery apps have emerged as the movers & shakers of the food industry with limitless possibilities & will continue to prosper.

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on-demand food delivery business you need to know to triumph in the industry with on-demand food delivery apps.

Online food delivery platforms will continue to prosper and become more popular as their presence is growing beyond the hyper-smart metropolitan cities into small cities and towns over the globe.




Nowadays, Food delivery has become a one-of-a-kind and succulent bit for many entrepreneurs out there. Many food delivery startups benefit from these platforms, as most of their clients frequently order their meals online. 

Thousands of business-minded people are pursuing meal delivery as one of the best and most rewarding startups today. Online food delivery is projected to be a large part of the global revenue, and annual growth revenue of 7.5% will result from the market. 

Major deliveries on demand include cooked dishes, groceries, as well as catering and wholesale services. Many entrepreneurs are taking marketing leadership and utilizing this opportunity to deliver quality services to their clients and make money. 

The demand for home food delivery has surged significantly with many food business owners opting to run their startups online. Substantially, the number of people using smartphones and the internet has surged tremendously. 

A food delivery business is a start-up whereby one utilizes a courier service to deliver meals to consumers on demand. This is a business platform growing thanks to the ease of executing requests and deliveries via mobile apps, mobile phone calls, or a genuine website. 

In essence, the overall demand for meal delivery is increasing on a daily basis, and there is a lot for businesses to utilize with the right business models. 

Food Startups In The On-Demand Economy

More than delivery convenience, they also save us our time and effort.


Five specific opportunities for people by saving time:


Transaction Convenience – Making it fast and easy to pay. For example, All apps let you pay with cards, bank accounts, or wallets like Google Pay.

Decision Convenience – Making it fast and easy to choose. For example,  in Zomato you can view ratings and reviews of restaurants, and decide to order.

Benefit Convenience – Making it fast and easy to enjoy. For example, you can order from more than one restaurant, and get it straight to your home.

Access Convenience – Making it fast and easy to get. For example, Hot Meals get delivered to your location within 30 minutes of your order.

Post-Benefit Convenience – Making it fast and easy to re-purchase. For example, You can save your address and payment details, bookmark your favorites restaurants to re-order in seconds.

The on-demand food industry has disrupted traditional markets by adopting a full-cycle approach to the three basic components of a meal experience at a restaurant: Ordering, Cooking, and Delivering.

Ordering – Orders are customer requests to prepare and deliver food. All food on-demand businesses receive orders via an app, a website, or phone. The orders could be for their own kitchen or another meal provider they have partnered with.

Cooking – Cooking is the process of preparing meals for customers. Meals could be pre-cooked or cooked after an order is received.

Delivering – Delivery i.e the transportation of goods is the backbone of any on-demand business. Businesses can have different delivery models depending on various factors.

Types of Food Delivery Business Model




Basically, there are three types of food delivery models present in the market. Let us go through all of them one by one. But remember most online food delivery businesses follow the marketplace business model.


1. The Order Only Model


Grubhub, JustEast, and more follow this type of food delivery business plan. In this type of food delivery business idea, you will act as a bridge between the users and the local restaurants through your online platform. 

You will facilitate the users and restaurants to connect with each other to place and deliver orders. The main aim of such a food delivery business model is to let the restaurants reach out to the larger audience base. On the other hand, let customers easily order food from their favorite restaurant.

The two-phase of this food app business model works like,


For Order Allocations:



For Delivery:


Advantage of Order Only Food Delivery Model




In such a type of business model, you being the owner, do not have to face any issues regarding anything related to the food delivery. You can charge flat commission fees from the restaurants on every order placed.


Challenges of Order Only Model



2. The Order & Delivery Model


This food delivery business model handles restaurants, customers, and delivery. It is one of the most common marketplace solutions used by businesses. 

Most of the eateries would register themselves with this type of food delivery platform as they don’t need to deal with the delivery thing. Some of the most popular food delivery apps for this model are UberEats, DoorDash, Zomato, etc. 

To operate this type of food delivery business, you need more resources than the first one. The working of order and delivery business model goes like this,


For Order Allocations:



For Delivery:


Advantage of Order and Delivery Model



Challenges of Order & Delivery Model



3. The Fully Integrated Model


The third food delivery model revolves around meal delivery startups, which is quite different from the above two. This model is a complete meal delivery business plan to start your own venture. 

A few examples of such types of meal delivery startup are Rocket Food, Extra Plate, Eat Purely, and more. Here everything starting from cooking to delivery should be taken care of by you being the owner. 

Either you can cook the meal at your place or can hire a chef for the same. This type of prepared meal service usually partners with the chefs. The working of a fully integrated model goes like this,


For Order Allocations:


The order allocation is this type of meal delivery business plan that usually occurs in two ways mentioned below.


For Delivery:


Advantage of Fully Integrated Model



Challenges of Fully Integrated Model


Grab the Right Meal Delivery Solutions


With the various benefits of meal delivery apps, don’t have any reservations about investing in such a business start-up. 

You will get an opportunity to stay head and shoulders above competitors and also competently deal with a large clientele base that will translate to good returns and reputation. If you don’t know how to embrace such advanced technologies in the business world, don’t fret. 

Feel free to let a reputed on-demand meal delivery app development company help. The professionals you will come across will aid you to choose the best business model and help you implement it into your start-up. 

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