7 Best Food Delivery Apps : Their Business / Revenue Models & Workflow

Updated -   February 19, 2021 at 3:47 pm   |  164 Views
Vimal J. Goyal

Vimal J. Goyal

Author
Best food delivery apps - header img

Here is the list of the popular food delivery apps, explaining the business models, revenue sources and workflow of each of these apps.

But before getting into details, you need to learn about some terms used here to understand this blog post.

Marketplace – A marketplace is a platform that connects sellers with buyers. Marketplace owners do not own the inventory/products sold on their platform. They only act as a mediator between the vendors and the customers.

 The online food delivery marketplace has two types of business models:-

  • The order-only model:- In this model, the marketplace owner adds the restaurant partners only. And the food delivery is done by a person employed by the restaurant.
  • The order and delivery model:- In this model, the marketplace owner adds the restaurant partners as well as the delivery partners. That means the food delivery is done by a delivery partner employed by the marketplace owner.

The list of best food delivery apps includes –

1. Swiggy

Areas Served

Over 300 cities across India

Business Model

Marketplace (Restaurant partners and delivery partners) –
The order and delivery Model

Revenue Model: How does Swiggy make money?

  • Charges a commission on each order
  • Takes delivery charges from customers
  • Through Priority Restaurant Listing

How does Swiggy work?

  1. A customer browses the menu of his/her favorite restaurant.
  2. Places the order for food
  3. The restaurant prepares the order.
  4. Swiggy delivery partners pick up and deliver the order.

Want to launch an app like Swiggy for your business?

2. Grubhub

Areas Served

United States

Business Model

Marketplace (Restaurants and delivery partners)

Grubhub started with the order-only model, but from 2014 it offers the order and delivery Model.

Revenue Model: How does Grubhub make money?

  • Charges a commission on each order
  • Through Restaurant advertising on the platform

How does Grubhub work?

  1. A customer browses the menu for his/her favourite restaurant.
  2. Places the order for food items
  3. The restaurant prepares and packs the order.
  4. Grubhub delivery person picks-up and delivers the order.

Want to build an app like Grubhub for your business?

3. Foodpanda

Areas Served

Romania, Bulgaria, Bangladesh, Myanmar, Lao, Thailand, Cambodia, Hongkong, Taiwan, Philippines, Malaysia, and Singapore

Business Model

Marketplace (Restaurant partners and delivery partners) –

The order and delivery Model

Revenue Model: How does Foodpanda make money?

  • Charges a commission on every order
  • Takes restaurant registration fee
  • Takes delivery charges from customers
  • Through Restaurant advertising

How does Foodpanda work?

  1. Customer selects the dishes from his/her favourite restaurant
  2. Places the order
  3. The restaurant then makes the order.
  4. Foodpanda delivery providers pick up and deliver the order.

Want to create an app like Foodpanda for your business?

4. Just Eat

Areas Served

UK, Canada, Mexico, Ireland, New Zealand, Australia, Norway, France, Denmark, Spain, Italy, Switzerland, Germany, and Brazil

Business Model

Marketplace

Just Eat has both- The order-only Model and The order and delivery model.

It gives the option to the restaurants to have their own delivery agents (and Just Eat company would charge less commission in that case)

Revenue Model: How does Just Eat make money?

  • Takes the fixed sign-up fee from Restaurants
  • Takes commission on every order
  • Charges a service fee for the option to rank high in the restaurant listings on the platform
  • Takes delivery charges from customers
  • Through Restaurant advertising

How does Just Eat work?

  1. A customer browses and selects the dishes from his/her favourite restaurant.
  2. Places the order
  3. The restaurant accepts and makes the order ready.
  4. If the restaurant has its own delivery men, the order would be delivered by them. Otherwise, Just Eat delivery suppliers pick up and deliver the order.

Want to start your business with an app like Just Eat?

5. Doordash

Areas Served

United States, Canada, and Australia

Business Model

Marketplace (Restaurant partners and driver-partners (Doordash calls them dashers)) –

The order and delivery Model

Revenue Model: How does Doordash make money?

  • Charges a commission from restaurants
  • Takes delivery fee from customers

How does Doordash work?

  1. Customer selects and places the order for the food from his favorite food business.
  2. Makes Payment
  3. The restaurant then prepares the order.
  4. Doordash dashers (driver or delivery partners) pickup & deliver the food.

Are you interested in getting an app like Doordash for your eating place?

6. UberEats

Areas Served

Australia, Belgium, Bolivia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, France, Guatemala, Hong Kong, Ireland, Italy, Japan, Kenya, Mexico, Netherlands, New Zealand, Panama, Poland, Portugal, Réunion, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan (ROC), United Kingdom, United States, Venezuela, and India

Business Model

Marketplace (Restaurant partners and driver providers) –

The order and delivery Model

Revenue Model: How does UberEats make money?

  • Charges a commission from restaurant partners on every order they get.
  • Delivery fee from customers.
  • Through restaurant advertising/marketing fee 
  • Through Surge charges from customers (ex. In busy hours)

How does Uber Eats work?

  1. A customer browses the menu of the listed restaurants.
  2. Places the order
  3. The restaurant accepts and prepares the order.
  4. Uber Eats delivery partner delivers the ordered food at the destination.

Are you interested in developing an app like UberEats for your business?

7. Talabat

Areas Served

Qatar, Egypt, UAE, Bahrain, Kuwait, Oman, Jordan, and Saudi Arabia

Business Model

Marketplace (Restaurant/food joint partners and delivery partners) –

The order and delivery Model

Revenue Model: How does Talabat make money?

  • Charges a commission on total restaurant’s order bill
  • Takes delivery charges from customers
  • Through advertising( Priority Restaurant Listing and banner ads)

How does Talabat work?

  1. A customer selects his/her favorite restaurant from a vast list of food businesses.
  2. Places the order for food
  3. The restaurant makes the order ready.
  4. Talabat delivery agents pickup & deliver the food at the customer’s doorstep.

Want to make an app like Talabat for your business?

Looking at the immense popularity of these online food apps, restaurants and eateries’ owners get inspired in having an app developed for their business. If you also want to launch your custom food delivery app, you can contact our team at info@goteso.com.

So, for what are you waiting? Talk to us now! And be ready to provide the best food delivery services to your customers!

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