Have an idea to start a food delivery business? If so, it’s the best time to go.
As per statistics, the food delivery business has reached a greater extent in recent days. The simple reason for the growth of the food delivery business is its convenience.
Here are the important insights regarding the food delivery industry like various business ideas, key players, revenue streams, and also we provide a bonus tip at the end of this post.
Highlights of this post
- Few statistics regarding the food delivery industry
- Why starting an on-demand food delivery business is the ideal choice?
- How does a food delivery business work?
- Food delivery business ideas and opportunities
- Key players in the food delivery industry
- Revenue streams
- Providing a solution to start your food delivery business
Few statistics regarding the food delivery industry
- As per on-demand statistics, Revenue in the food delivery business reached US$136,431m in 2020 and is expected to reach US$182,327m by 2024.
- In 2020, China generated more revenue than any other country. The revenue generated in this year reached 26.527 billion and is expected to reach 32.325 billion by 2024.
Reason for the growth of on-demand food delivery business,
- Provide more business opportunities
- Low operating costs
- Easy startup costs
How does a food delivery business work?
Users can sign up their app by providing the basic details like name, mobile number, email id and also passwords.
2. List of Restaurants
Users are presented with the list of restaurants near their locations and also there is an option for the users to browse their favorite restaurants.
3. Place your Order
Users place their orders from their favorite restaurants by providing their exact delivery location.
4. Processing of payments
Users can pay for their orders via multiple payment gateways available in the app.
5. Notifying Restaurants
The restaurant will be able to get the notifications about the incoming orders.
6. Order request
Drivers have the option to accept/reject the order request based on their choice of opinion. If the request has been accepted, then the driver will reach the restaurants to pick up the order.
7. Track your order
Users can track their order status until it gets delivered to their exact location.
8. Ratings & Reviews
After receiving the order, users can rate their food, restaurant, driver.
Food delivery business ideas and opportunities
1. Grocery delivery
As per Statistics, revenue in the on-demand food delivery business reached US$136,431 million in 2020 and is expected to reach US$182,327 million by 2024 with an annual growth rate (CAGR 2020-2024) of 7.5%.
Users create their account with some basic details and find their nearby store to order groceries. Users receive notification regarding their order status and also there is an option for the users to keep track of their orders as well as drivers. Then the driver will deliver the ordered groceries to the users within the estimated time of delivery.
2. Fruit delivery business ideas
According to the report, the on-demand fruit and vegetable food delivery market was valued at USD 104.7 billion in 2016 and is expected to reach 117.3 billion by 2025.
On-demand fruit delivery business ideas are nothing but ordering fruits from your favorite shops according to their needs. Users can pay for their orders via multiple gateways. Once payment is made, the notifications will be automatically sent to both drivers and also particular shops. After delivery, users can rate and review the ordered items, delivery person, and the particular shop.
3. Bottled water delivery business ideas
As per the stats, the bottled water industry was valued at USD 185 billion in 2015 and is expected to reach USD 334 billion by 2023, registering a CAGR of 8.5% during the period of 2018-2023.
It allows the users and service providers to create accounts on their platforms by using their credentials. After entering their exact location, users will be able to see the list of nearby service providers. Then users will place their orders and service providers will receive the order request. Once the order has been accepted, users will receive the notification. After the delivery of the order, users can rate as per their opinions.
4. Pet food delivery business ideas
On-demand pet food delivery business is growing at an enormous rate. The pet food delivery industry reached at USD 90.13 billion in 2019 and is expected to reach USD 127. 71 billion by 2027. Hence, this stats showcase the growth of the on-demand pet food delivery business.
On-demand pet food delivery business allows the users to order the food for their pets by just entering the exact pick up and drop location.
5. Raw meat delivery business ideas
The market value of raw meat reached the US $714 billion in 2016 and is expected to reach US $1.5 trillion by 2022. On-demand raw meat delivery business allows the users to search and order their necessary meat from the shop and also get it delivered at their given location.
6. Coffee delivery business ideas:
The on-demand coffee delivery industry is generating nearly $68 billion per year. The on-demand coffee delivery business allows the users to search for their nearby coffee shop and book their favorite coffee items. Users will be able to get their coffee delivered right at their doorstep within a few minutes.
7. Food truck business:
Food truck business has become one of the fastest growing businesses in recent times. As per statistics, the revenue of the Food Truck industry reached $1.2 billion in 2020 and is expected to reach a larger amount in the upcoming years.
On-demand food truck business allows the diners to order food and delivery will be done within a few minutes in your given location. With the online payment options available, the order will be processed quickly.
Popular revenue stream used in food delivery business
Commission based model
Most popular and profit gaining method used in the food delivery business is a commission based model. Whenever the user places an order, a certain percentage of commission will be charged for eaters, drivers and also restaurants. The charges will vary based on the distance.
Key players in the on-demand food delivery industry
It is an American based company for delivering groceries at doorsteps. It was founded by Apoorva Mehta, Max Mullen, and Brandon Leonardo in the year 2012.
Instacart delivers from 25,000 grocery stores in 5,500 cities including San Francisco, Los Angeles, Miami, New York, Chicago, Austin, Washington, D.C., Houston, Atlanta, and also many others across the U.S. and Canada.
Grubhub is the US-based leading online and mobile food-ordering and delivery platform that started its journey in 2004. It is founded by Matt Maloney and Mike Evans.
It features over 3,00,000 restaurants and it has been a partner with 2,45,000 of these restaurants in over 4,000 U.S. Cities. The total revenue reached US $1.31 billion in the year 2019 and is expected to reach a higher amount in the upcoming years.
Chewy is an American pet food delivery platform. It was founded by Ryan Cohen, Michael day in the year 2011. The total assets of chewy reached the US $ 932.32 billion in 2019.
It provides 24/7 support customer service, and also has a dedicated team of experts to provide a better customer experience.
Drizly was founded by Justin Robinson, Spencer Frazier, and Nick Rellas in the year 2012.
It partners with the best retail stores in over 100 cities across North America in order to provide the best buying experience. Order once placed in Drizly will be delivered to you within 60 minutes.
Interested to start your on-demand food delivery business?
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We hope this post will be more beneficial to start your own food delivery business. If you are looking for more guidance on how to start your own food delivery business, then we are here to guide you technically.
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