Innovative Business Ideas for On-demand Food Delivery
The statistics from over a decade-long still underway journey of on-demand industry reveal that food delivery businesses are more likely to turn up into startup unicorns. Grubhub, DoorDash, Postmates, Uber Eats, and Instacart among others are some of the unicorns in the US alone. On-demand food delivery is one of the models which are making significant progress in developing countries too.
However, the number of entrepreneurs trying their skills in food delivery services business is way too high. Thus, the industry presents intense competition with multiple players vying for market share. The study of various successful food delivery startups highlights the fact that innovation and breadth in business model increases the success probability.
Entrepreneurs should ensure incorporation of following business models.
Halal and Kosher Food Delivery
A huge proportion of immigrants as well as local communities of Muslims and Jews in the US and Western Europe makes a considerably large niche. These communities have to travel miles to find meal which corresponds to their religious beliefs. Entrepreneurs aiming to introduce food delivery startup and those already having one should exclusive consider this group of consumers.
Some food outlets have tested Halal and Kosher food delivery business model and the results are incredible. The top food delivery giants including DoorDash, Seamless, and Grubhub have exclusive sections for such foods. They also list the restaurants and fast foods which offer Halal and Kosher food.
Many dine-in restaurants offering such food report significant increase in their revenues since they acquired services of on-demand food delivery providers. In fact, food delivery ensures excessive revenues regardless of the type of meal. Firehouse is one such instance which reduced its dine-in options and invested in on-demand food. The result was remarkable for them as they attained massive profit margins and business growth.
Organic Food Delivery
Figures from Statista indicate that 44% of US residents actively consume organic food. This percentage is consistently growing as compared to the previous years. The statistics from rest of the world are also highly encouraging. Switzerland has the highest per capita consumption of organic food. Asia also demonstrates promise with India leading the market of producers.
Like Halal and Kosher, organic food also has a special place in delivery strategy of food delivery giants. Uber Eats, Grubhub, and Seamless collaborate with food brands to ensure mutual growth. For instance, City Greens, Raw Republic Juice, Fresh Bar, and SWEGS Kitchen among others feature on the page dedicated to healthy affordable meals of Uber Eats app.
Pet Food Delivery
Although it is unnecessary to write about pet food delivery in an entirely separate category, yet the success of some successful startups suggest that it is a wholesome business model. New York based Spot & Tango delivers fresh food for dogs while the marketing foundation of The Farmer’s Dog stands on organic food for dogs.
Smalls is a cat food provider which promises to deliver meal that is most suitable for varying cat breeds. PupJoy is a subscription based company that delivers toys and treats for pets besides food on monthly basis. These businesses are making strides in one dimension instead of offering food for every consumer – human or not. Every food on-demand business model business model is effective regardless of whether it is universal or specific. The aspect that makes the difference is the strategy to implement the model.
Innovations in Food Delivery Business
Many of the food delivery startups remained successful over the years in achieving sustainability. However, most of them struggled and eventually failed. The top reason for failure is the lack of innovation in businesses. A business may manage to make substantial gains in a market temporarily. However, acquisition and incorporation of innovative technologies are essential in order to sustain growth.
Following innovations are all set to make strides in food delivery industry. These ideas provide entrepreneurs with incredible opportunities to develop and consolidate businesses.
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Smart Devices for Ordering Food
The advent of smart devices of varying sizes enables consumers to order food from anywhere in a matter of seconds. The CGA report for 2018 reveals that 28% more consumers in UK ordered food via smart devices as compared to the previous year. The NPD Group in its report for restaurants reveal that only 20% of people eat food at home – a percentage five percent lesser than the year before.
The innovations in on-demand food delivery market justify these incredible numbers. May it be smartphones or smart watches, ordering food from apps requires only few taps. Most companies deliver food in at most 30 minutes because the apps are capable of guiding delivery agents in the most efficient way.
Utilizing AR and VR for Food Marketing
The integration of VR technology in food delivery apps is one of the most appropriate instances where technology drives sales. Just Eats – a UK based food delivery startup – introduced a VR feature in 2017 which would create real-time filters on top of camera. The technology resembles Snapchat but the animation filters are specifically related to food.
Many restaurants use AR to train remotely located staff. The chefs and baking experts watch presentations on mobile phones while wearing AR headsets. This setting provide them the same view as one would have while observing the training in-person. This technology is not confined to training. Many restaurants and fast foods including McDonald’s offer virtual tour to their kitchen via AR apps. This approach has been proved to increase trust among consumers.
Social Media for Food Delivery Logistics
The marketing today requires reaching customers while they are at sitting in the comforts of their homes. The marketers need to ensure that they convince customers in deciding to purchase a product in a matter of seconds. This phenomenon usually referred to as instant gratification is the primary reason for sales of marketplaces and on-demand companies.
Social media with a user base amounting to as much as multibillions is the most effective channel for successful instant gratification campaigns. Although scores of food delivery companies offer food ordering through Twitter, yet Pizza Hut was the pioneer. This innovative marketing strategy earned the fast food giant a significant rise in their sales.
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