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How do food delivery apps earn their revenue?

As mobile apps got introduced, the entire food delivery industry became much more customer-centric. Every mobile application development company offers food delivery application development. The food delivery apps offer desired choices as well as conveniences to the customers.

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Also, it even allows the users to book any particular dish from different restaurants from their nearby places. These desired dishes get readily delivered to the customers’ doorsteps with just a few taps on their smartphones’ screens. Hence, food delivery apps are becoming increasingly popular not only among customers but also among businesses.

If an entrepreneur or a business wishes to invest in this highly lucrative business, then the perfect way is to pursue food delivery app development. When it comes to the cost of food delivery app development like doordash, a simple and basic food delivery app can easily cost around $5,000 to $10,000. It can easily go up to $20,000, which depends on the number of features along with the scope of the mobile application development project.

Features of Food Delivery Application

  1. It has payment options like PayPal, cash cards, net banking, cash on delivery, Google Pay etc.

2. It is available all day long, each day of the week.

3. When it comes to re-ordering the food, it is quite easy as it can easily be scheduled at any later date.

4. Discount and coupon codes can easily be applied with ease, and easy cashback can also be earned.

5. Through appropriate filters, the user can easily find various delivery menu items. Utilizing some of these useful filters can easily simplify exploring food delivery options from different restaurants.

6. It also allows ordering food as well as dishes well in advance.

When it comes to the revenue stream, online payment streams are certainly a great way. At present, there are myriads of payment methods that can be utilized depending on the actual money involved in the entire online transaction. Automated telephonic payment service or payment through credit/debit card.

Various apps allow users to eat more than many food items at different restaurants in different cities. It allows the users to discover and find special dishes and also browse delicious food images before actually ordering them. Other apps essentially secure online payment methods.

The entire idea of food delivery app is essentially associated with speeding up the entire process of getting food and payment of bills. Hence, the more restaurants utilize the app, and the more likely the customers are to be actually attracted to the notion.

Various business models of food delivery apps have certainly given rise to a plethora of on-demand startups in this food delivery vertical. Most of these food delivery apps are also restaurant finders too. Essentially built on conventional food delivery models and offers access to different restaurants via its online food ordering apps, it even maintains its very own logistics network which includes distribution partners or drivers.

With personalized delivery details, personalized restaurant recommendations, advanced search filters along with the inherent ability to track the entire food orders in the food delivery app, these apps are featured with some of the most advanced features. It allows the customers to easily place the orders right on a real-time basis.

It allows the customers to even choose from quite an extensive list of different offerings in an actual context of different menus as well as restaurants, along with a vast fleet of different delivery partners which are available that can certainly help in delivering food much faster than actually expected. This is an essential component of restaurant app development.

So, when it comes down to knowing the revenue model for the food delivery app, it is essential to know that food delivery apps are simply a mediator between both customers as well as restaurants. It is just that the customers subscribe to a particular app, and search for the restaurants, choose a dish, place an order, and make a payment online. It is the working cycle of any food delivery app.

The different revenue streams are as follows:

1. Premium Advertisement and Promotional Services

It is one of the ways to earn revenue by offering premium services to different restaurants by simply highlighting their own profiles on the search listings’ top banner. The restaurants can display their promotional banner or advertisements on the app listings and pay for it.

2. Third-Party Advertisement Services

Any food delivery app owner can easily generate massive revenues by simply allowing different third-party advertisement services to simply post advertisements on the application like Google AdSense. It is among one of the most powerful as well as the most used and successful revenue models which the mobile apps prefer.

3. Commission-based Model

A food delivery app can earn revenues based on a commission-based model. Whenever a customer simply places an order, the restaurant has to pay a certain commission to the app owner.

4. User Subscription

Through the option of user subscription, the users can easily get special discounts from different restaurants along with free delivery as well as a different range of lucrative offers.

5. Dynamic Delivery Charges

In this mode, a customer can easily be charged with an additional delivery charge in few cases. For instance, if a customer is looking for faster delivery or he or she lives quite far from the restaurant. Hence, in these cases, the app owner can easily ask for certain delivery charges. Also, the charges can dynamically vary with distance.

Conclusion

With the advent of mobile applications, the food delivery industry gained massive momentum. Over the years, we have witnessed the rise of food delivery apps. It has allowed the customers to order the food right from the comfort of their home and get it delivered at their doorstep. They can order from different restaurants and make payments online.

This has certainly created a huge demand for food delivery app development. Companies hire an app developer for developing a food delivery app to fulfill this demand. However, the revenue model plays a crucial role in the success of these apps. Mentioned above are a plethora of revenue streams of how food delivery apps earn their revenue.

Written by

Tarun Nagar is the Founder & CEO of Dev Technosys, a global ranking Web and Mobile App Development Company

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