Top 5 Food Delivery Companies and Money Tips You Can Learn From Them
The food delivery market is an $11 billion market today and projected to reach $210 billion in the long run. Since 2011, Americans spend more than $70 billion on takeout ordered over the phone every year. It is no wonder food delivery companies, and apps are cropping up every morning to meet this demand.
The main sales point of food delivery companies is to make work easier for customers and restaurants alike. You no longer have to call or go to a restaurant and deal with rude customer service. Today, you can visit a food delivery app on your phone, pick from a wide range of restaurants, and compare prices before you order a meal and have it delivered to your doorstep.
With such enormous success, there have to be a few money lessons we can learn from these major players in the food delivery industry.
1. GrubHub. Make it easy for customers
GrubHub database has over 50,000 restaurants in more than 1000 cities, making it the largest food delivery company in the USA. When you visit this app, all you have to do is type in the food you want to eat, and it will bring you restaurants that offer that and their rates. You can also see customer’s reviews of the restaurants and save your order for future purposes. GrubHub has the most accessible platform to navigate, which makes it very user-friendly. Customers are always in a hurry, and they need you to offer something easy to use and fast.
2. Deliveroo. You can take advantage of other businesses
The London based company now has branches in over 200 cities across Europe and beyond. This food delivery app gained popularity because it enables restaurants that don’t have their own delivery service to deliver to customers. According to Business Insider, Deliveroo made over $129 million in a year just from delivering food from various restaurants to customers. Their primary source of income is a $2.50 delivery fee from customers and a 10% commission charged to the restaurant. Deliveroo and its competitors may not have restaurants, but they take advantage of other people’s business to make an income.
3. UberEats. Scale-up your business
Like its ride-hailing counterpart Uber, UberEats has become a global giant in the food delivery industry. It is now in operation in at least 25 countries, including Africa, and boasts 130,000 restaurants on the website. Besides getting millions of dollars from a delivery fee of $4.99, UberEats came up with a delivery surcharge for peak hours like lunchtime and dinner. Customers are charged more to get their food in record time during the busy peak hours, and UberEats makes more money. This approach shows that you can always scale up your business by offering better services at a fee, and people will be willing to pay.
4. Domino’s Pizza. It’s okay to specialize
Domino’s Pizza is the biggest fast-food delivery app in the world, and they are known for their yummy and affordable pizza. Their greatest sales point is that you can get your pizza delivered in 30 minutes. Unlike other food delivery apps that feature thousands of restaurants and menus, Domino’s pizza specializes in one thing. If a customer wants a pizza with a side of fries or a soda, they know exactly which app to go to. Specializing gives you an edge because people don’t want to start searching for different places and also sets you up as experts.
5. Swiggy. Have more than one source of income
Swiggy is India’s most prominent food delivery service, and it’s available in every city in the country. As a dominating player in such a big country, Swiggy makes a lot of money from the delivery fee and commission from every restaurant. However, they have also opened up the platform to do more than just deliver food. Swiggy allows restaurants to advertise on the app and be featured on the first page for a fee. For example, a restaurant can pay to feature for a month, and it will be on the customer’s face every day for that month. Third-party companies can also advertise their services on the platform that has a considerable following.
Food delivery companies and mobile apps was an excellent business idea. You can learn amazing money lessons from them if you observe their business model of taking advantage of other businesses. Today, many companies have expanded to deliver not only ready food but also groceries and laundry.
