The on-demand food delivery platforms are experiencing a rise in demand as customers now prefer to order food online rather than frequently visiting their favorite restaurants. This method of ordering food online seems more convenient and less expensive than putting in efforts to visit your favorite restaurant to enjoy a meal.

Noticing the increase in demand and the change in customer preferences more towards the on-demand food delivery platforms, entrepreneurs have started planning to launch their own on-demand food delivery platform for their customers.

Before starting an on-demand food delivery platform, businesses must acquire a good understanding of the revenue model to incorporate various revenue streams in their business. Therefore, we will first put emphasis on “How The Admin of An On-Demand Food Delivery Platform/Apps Can Generate Revenue” and then discuss “How To Start An Online Food Delivery Platform.”

Subscription

1. The owner/admin of the on-demand food delivery platform can set up various subscription packages like individual & corporate for merchants to register their restaurants on the online food delivery platform.

2. The merchant has to create an account on the on-demand food delivery platform, further, the merchant can choose the subscription package as per the requirement.

3. If the merchant wants to register only one restaurant on the on-demand food delivery platform, he/she can choose the individual package. Whereas on the other hand if the merchant plans to register multiple restaurants on the platform then, in that case, the merchant can choose the corporate package.

The subscription fee is decided by the admin/owner of the on-demand food delivery platform.

Commissions

1. The owner/admin of the on-demand food delivery platform charges commission from the restaurants on every order that is placed through the on-demand food delivery platform.

2. The admin/owner of the on-demand food delivery platform sets a specified percentage of commission on every order place through his/her platform.

3. When the customer makes a payment for his/her order placed, the payment is received by the admin of the on-demand food delivery platform.

4. Further, the admin credits the amount to the merchants/restaurants’ wallet after deducting the commission.

Advertisements

1. The restaurant owners prefer to advertise their brand and run promotional ads on the on-demand food delivery platforms they are registered on.

2. The admin charges a certain amount for the banner ads depending on factors like the size of the ad, position of the ad on the platform/app, and the estimated running time of the ad.

Delivery Charges

1. At times the admin of the on-demand food delivery platform uses his logistics network to deliver the food, for example, UberEats.

2. For every order managed by the admin, he/she can earn money by charging the delivery fee to the customers.

How to Start an On-Demand Food Delivery Platform?

Basically to get started you first need to connect with a food delivery solution like Yo!Yumm offers essential features that will help you as an entrepreneur to launch your on-demand food delivery platform without any hassle. Here are some steps that will brief you about “How to Start Your On-Demand Food Delivery Business?”

- Choose a Convenient Food Delivery Solution

As mentioned before, you need to choose a convenient food delivery solution keeping in mind the factors like cost, features offered, and your business requirements. Some deciding factors can be: a) Does your solution offer Lifetime Ownership? b) Does the solution provide free or any technical support? c) What are the payment options offered? Are there any pre-integrated payment methods? d) Are there any recurring costs after delivery? If yes, it may not be a good option to choose.

Set-Up

The setting up of the on-demand food delivery platform should be a hassle-free process for the admin. Opt for a ready-made web panel and ready-made mobile apps for customers as well as for delivery staff that is cost-efficient and requires less time for development. This process should involve installing (free installation as offered by some solutions) with constant assistance to the admin while the process is ongoing.

Configure

Once the installation is done, the next step is to configure & finetune the on-demand food delivery platform to make the operation process smooth. Some important features that your solution must offer are: a) Effective CMS b) Digital Identity Management c) Seamless Customer Experience b) Secure Payment Options

Add Information

This step involves adding relevant information by the restaurant owner about their restaurants as per the policies and guidelines (if any) or settings made by the admin. Information like: a) Restaurant Data Management b) Package Selection ( individual or corporate) c) Restaurant Verification d) Catalogues Management

Launch

The next step here is to launch your on-demand food delivery platform and promote it with various marketing activities to attract your customers. Marketing activities may include: a) Social Media Promotion b) Affiliate Module c) Search Engine Ranking d) Rewards & Discounts

Manage Your On-demand Food Delivery Platform

There should be phenomenal features for various stakeholders i.e, the admin, merchant, customers, and the delivery staff to manage the operations on the on-demand food delivery platform. Flexible user management, order management, advanced delivery management, and efficacious report management are some features that fall under the must-have features for smooth management of such platforms.