April 10, 2020 to April 19, 2020
After a lot of reading, Steven and I decided that with the limited resources, we will create an Order-only model. While I did a ‘deep dive’ and I stated in Task 3 of the Blog: “I need to come up with something more than copying the UberEats feature list and monetization model.”
I want to take this opportunity to say that I understand that there are at least two main models currently presented in the food delivery market. At this point, order-only is the best option that will meet our goals.
The two models are:
- Order-Only Model (Delivery.com, Eat24, JustEat)
- Companies or restaurants are responsible only for ordering and managing orders.
- restaurants charge a percentage of the order
- order only businesses charge
- This business model has a low barrier for entry, and this niche is crowded with competitors.
- Order and Delivery Model (Deliveroo, Doordash, UberEats)
- Food start-ups are responsible for both managing orders and delivery.
- In some cases, such businesses cooperate with courier services, connected by an app.
- The monetization strategy includes a commission from restaurants and the delivery fee.
- You can set a flat-rate delivery fee, or charge a fee based on the distance between customer and restaurant, as UberEats does.
- You need to hire and train carriers, etc. which increase the amount of time management works and may impact business scaling.