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Tag: food delivery business model

  • Top 12 Profitable Delivery Business Ideas In India You can Start Now

    With the fast-moving lifestyle of today’s generation, everything is available to us with just a click on the internet. As people now believe in the concept of ‘Time is Money, they want everything to be done automatically within their reach without any fuss. Thus, taking advantage of this, many organizations have come up with some profitable delivery business ideas for the smooth delivery of things that are ordered by their customers daily.
    Nowadays, it has become a feasible option for everyone to get everything to their doorsteps. Be it groceries, medicines, food items, etc. you can order almost everything at your comfort. Interestingly, you can also think of starting your own profitable delivery business. Not only this will generate extra income, but also you can think of extending your venture into a larger one. A delivery service business can be a profitable venture, offering fast and reliable transportation of goods to customers’ doorsteps.

    What is a Delivery Busieness?
    Benefits of Delivery Business

    1. Courier Services
    2. Grocery Delivery Business
    3. Food Delivery Services
    4. Medicine Delivery
    5. Packers and Movers Service
    6. Laundry And Dry Cleaning Services
    7. Gift-basket Delivery
    8. Furniture Delivery
    9. Lunchbox Delivery
    10. Newspaper Delivery Services
    11. Flower Delivery
    12. Bread & Milk Delivery Business

    What is a Delivery Service?

    A delivery business involves transporting goods or services to customers at their location. This can include delivering food, groceries, packages, or other products. The business model often focuses on providing quick and reliable services, either locally or over longer distances, to meet customer needs efficiently.

    Benefits of Delivery Business

    The benefits of a delivery business include:

    1. High Demand: With the growth of eCommerce and online shopping, there is a constant need for delivery services.
    2. Low Startup Costs: Many delivery businesses can be started with minimal investment, especially if using personal vehicles.
    3. Flexible Hours: Delivery businesses often offer flexible working hours, which is appealing to both business owners and delivery drivers.
    4. Scalability: As demand grows, a delivery business can be scaled by adding more vehicles or expanding service areas.
    5. Wide Market: It can serve various industries like food, groceries, and packages, opening up multiple revenue streams.
    6. Recurring Revenue: With subscriptions or frequent deliveries, it can generate steady, recurring income.
    7. Ease of Entry: It’s relatively easy to enter the market, especially with the rise of app-based delivery models.

    Here is a list of some of the best profitable delivery business ideas, which can be useful if you are planning to step up in this niche.

    1. Courier Services

    Today couriers are a necessity for businesses and individuals. Both need personal service that ensures their deliveries will arrive at their destinations in a timely manner. There are many courier business ideas to explore, offering opportunities in local and express delivery services. Sending and receiving parcels from e-commerce websites are very common and this trend is continuously growing. It is highly increased due to the global pandemic. Consequently, many retailers have changed their sales platforms to websites or mobile applications and established a logistics system to distribute their products. The impact of this new form of e-commerce has discovered new opportunities for Logistics Service Providers (LSP), especially courier service companies. Delivery startups in India earn profits by offering efficient, fast, and reliable services that cater to the growing demand for online shopping, food delivery, and essential goods transportation.

    So, if you dream of owning a courier service, you can start as a delivery driver, and rely on self-employed delivery drivers to get the goods to customers. As the business grows, you can invest in delivery vans to handle bulky deliveries. To run a profitable courier service, ensure you have a reliable delivery car and proper time management skills. The global E-commerce market is projected to grow by 8.02% (2025-2029) resulting in a market volume of $5887 billion in 2029.

    2. Grocery Delivery Business

    During the pandemic, when all the businesses/factories were closed, all the people had to stay at home, then the food industry saw a lot of growth. Many new grocery shopping marts opened in metro cities and new grocery stores in 2/3 tier cities. So if you have a small grocery store, you can tie it up with a grocery mart, convert the retail show into a wholesale business, and make it a profitable business. Small business owners can choose to have a grocery delivery startup from their homes and increase their customers and profits by bringing your shop to the digital platform. Doorstep business ideas are great for providing convenient services like home cleaning, beauty treatments, or grocery delivery, making life easier for customers.

    A lot of big brands have joined this service department whose working model is different, like Walmart, JioMart, and Blinkit but the basic moto is that the grocery ordered with one click reaches your doorstep in a limited time. The Indian grocery market size is likely to increase to 852 billion U.S. dollars in 2025. India is the world’s fastest-growing grocery market.

    3. Food Delivery Services

    Delivery Business Ideas - Food Delivery Business
    Delivery Business Ideas – Food Delivery Business

    One of the most profitable delivery ideas on this list is food delivery service. Restaurants kept themselves alive by delivering food online when restaurants were closed during the pandemic, and food delivery companies like Zomato, Swiggy, and Uber Eats did the work of delivering the orders of restaurants to the doorsteps of the customers. To start your food delivery service, you can connect with the local restaurants, cafes, and famous food stalls of the city and provide them with a delivery person who will deliver the order to the customer on time. In this service, it is necessary to have experienced delivery boys, transportation, and the most important thing is the identification and insurance of the delivery boy.

    The food Industry is growing day by day, as per an industry report by Business Wire, the food delivery market in India is currently set to generate approximately $710 million from 2022 to 2026 while exhibiting a CAGR of 28.13%. Similarly, a separate report by IMARC Group claims that the online segment is projected to grow by 28.9% from 2022 to 2027.

    4. Medicine Delivery

    Indian E Pharmacy Market Growth Forecast
    Indian E Pharmacy Market Growth Forecast

    With the growing number of diseases and disorders, people are in dire need to get medical support constantly. Especially, senior citizens living alone cannot afford to come up to chemists or pharmacies every time to buy their medicines. So this can be one of the most profitable delivery businesses in India that you can take up. India’s E pharmacy market stood at $3 billion in 2024 and is expected to witness a rapid growth of approx 21.28% during the forecast period. People’s trust in online purchases has increased the work of online medicine delivery even more. Starting an online delivery business can be a profitable venture with the growing demand for quick and convenient services.

    You can also think of delivering medical test reports. This is also an essential thing that people need nowadays.

    5. Packers and Movers Services

    Packers and movers are a group of trained people who have a particular organization of their own with the main objective of helping clients during their relocation needs. The growth of the packers and movers market can be primarily attributed to the surge in urbanization and the growing trend of education and employment-related migration in India, which has given rise to nuclear families and flat cultures, thus creating a high demand for packing and moving services.

    The market size of packers & Movers Services in India is expected to reach $1.56 billion by 2025 at a CAGR of 15.5% during the forecast period (2018-2025). So this can also be a profitable delivery business idea, for which initially truck service can be taken by tying up with a logistics company, and gradually can buy your own pickup and truck.

    6. Laundry And Dry Cleaning Services

    Today’s fast-paced world and multiple tasks that pile up daily have created an increasing demand for laundry delivery services. Therefore, if you are looking for the most profitable laundry business ideas, you could consider the laundry pickup and delivery service. People are getting more concerned about cleaning services, especially during the pandemic situation. So, this can be a good idea to start a profitable delivery business with laundry and dry cleaning services. You can operate the business from home and invest more resources as you expand. With time, you can grow the company to a full-on-demand laundry service with your washers, a delivery van, and a physical location. It is one of the most profitable small delivery business ideas.

    The laundry market in India is growing at a rapid pace. The estimated size of the laundry market is INR 2,20,000 crore, with the unorganized market (which includes dhobis, maidservants, and mom-and-pop stores) valued at INR 5,000 crores.

    7. Gift Delivery

    A number of festivals and occasions are celebrated in our country. Gifts, cakes, and flowers are in demand throughout the year, these things are the most adaptable and endearing gifts people choose for their loved ones to express their feelings and gratitude. Be it for birthdays, anniversaries, weddings, or even formal corporate occasions. Some of the major players operating in the Indian gifting market are Archies, Ferns & Petals, and MINISO. Therefore, starting a gift delivery business can be very profitable.

    To start a gift delivery business, firstly choose a niche and learn what your target customers expect, you can create combos of different products to offer your target customer. Conduct competitor analysis and choose an appealing brand name. Creating an easy-to-navigate website that allows customers to customize their bouquets/cakes to their tastes and preferences will help you stand out. At last, a well-coordinated delivery system can take your business to the top of the gift delivery game. You can get in contact with any gift store, who are willing to get their items delivered. India’s gifting market is projected to grow to $159 million by 2025. Factors like creative packaging, personalized notes, initial engraved boxes, etc., together give a seamless buying experience to customers.

    8. Furniture Delivery

    Delivery Business Ideas - Furniture Delivery
    Delivery Business Ideas – Furniture Delivery

    Furniture has been an essential part of an Indian household for centuries. The Indian furniture industry is popular internationally because of its rich handicrafts and attractive traditional art and design. These days customers also have the convenience to order furniture both online and offline. Companies like Pepperfry, Urban Ladder, and others are generating significant revenue through online platforms. At the same time, surging trends of online shopping are pushing traditional furniture manufacturers, says Godrej, and Nilkamal to introduce and sell their products through online mediums.

    The furniture market in India is expected to grow at a rate of 6.05% from 2025 to 2029, reaching a market volume of US$7.83 billion by 2029. So looking at the changing graph of this industry, it also seems a profitable delivery service option. To start things at first you can connect with local furniture artists, their furniture can be sold online by bringing them on the e-commerce platform. Furniture can be delivered from a safe transportation medium to the customer.

    9. Lunch Box Delivery Services

    Today’s youth stay alone to pursue studies and jobs. They have to go to the office early in the morning, and after working all day it is not possible to cook food for themselves, so in this case, the lunchbox delivery option is the best. Looking at today’s working lifestyle, lunchbox delivery can also be made a profitable business option. Mumbai Dabbawala is a great example of this delivery business.

    10. Newspaper Delivery Services

    The only delivery business that assures you delivery every day. You need to get subscriptions from the houses that are willing to take the service. However, you will get leave only a day after the national holidays. This is because printing works come to a halt these days.

    11. Flower Delivery

    Shipping Business Ideas - Flower Delivery
    Delivery Business Ideas – Flower Delivery

    Flower arrangements and delivery businesses have become very popular recently. When people couldn’t meet their loved ones in person, they started sending flowers for different occasions. This kind of business doesn’t need to be like a regular flower shop in town. You can start an online flower delivery service with just a small space and a few delivery drivers. It’s a great option for local flower sellers who can’t go out but still want to make sales.

    12. Bread & Milk Delivery Business

    The bread and milk delivery business will always have demand, as customers can be found everywhere. Selling essential grocery items ensures a steady income and profit.

    You can serve both individuals and restaurants as clients. The key is to offer fresh products and maintain reliable sources.

    Conclusion

    With these fabulous profitable delivery business ideas in India, you can have a good business to start with. It is a growing business that can assure your growth over the years. You need to be very consistent and stay true to your customers.

    FAQ

    What is a delivery business?

    Be it groceries, medicines, food items etc., you can order almost everything at your own comfort. Such services provided by companies are referred to as delivery businesses.

    How to start delivery business in India?

    • Start With a Solid Plan.
    • Get Your Wheels.
    • Take Care of the Startup Essentials.
    • Decide on Your Location.
    • Choose Your Name and Structure.
    • Find the Best Financing.
    • Getting the Word Out to Customers.

    Is delivery business profitable?

    Yes, Deliveries of groceries, medicines, food items, are much in demand and they provide a much-needed service for any community. With a little hard work, your delivery business can be profitable in no time.

    How do I start a food delivery business from home?

    Collaborate with small and large restaurants to grow your business. Choose good PR channels to market your idea. You can use social media channels and inbound marketing options. Reach out to local food delivery services personally and get ahead with your plan.

    How to start a home delivery business in India?

    Grocery, food, medicine, tiffin, and flower delivery are great home delivery business ideas with high demand. To start a home delivery business in India:

    1. Choose a Niche
    2. Register Your Business
    3. Set Up a Supply Chain
    4. Build a Website/App
    5. Hire Delivery Staff
    6. Market Your Business
    7. Optimize Operations

    Which is the best delivery business to start?

    Grocery, food, medicine, and parcel delivery are the best delivery businesses to start for steady demand and profits.

    Which are the top 10 delivery companies in India?

    Delhivery, Blue Dart, Ecom Express, DTDC, Gati are a few top delivery companies in India.

  • How Much Commission Do Food Delivery Apps Like Zomato and Swiggy Charge?

    Recently Zomato, the food delivery app, came under the direct line of fire, when one of its users took to social media to highlight the higher rates of restaurant food on its app.

    Rahul Kabra, a LinkedIn user, posted an image of a Zomato order bill and an offline bill of the same order from the same restaurant, The Momo Factory, in Mumbai. The difference in the amount of the two bills was glaringly obvious. His caption read – “I am doing an apple to apple comparison to online vs offline order.

    Here is what I noticed – Cost for offline order – INR 512. Cost for Zomato order – INR 690 (after applied discount of INR 75). Cost escalation 34.76% per order at INR 178 = (690-512)/512.”  

    Furthering his grievance, Kabra added, “Assuming Zomato brings visibility and more orders to the food service provider, should it charge such a high price? I think there is a need to cap this cost escalation which should be implemented by the government so as to make this a win-win for all stakeholders.”

    Rahul’s LinkedIn feed became viral in a short span of time, drawing various reactions from people. Some have come out in support of his observation, stating that food delivery apps take undue advantage of the time constraints of their customers. Others have categorically asked Rahul Kabra to compare the notional cost of time and money were he to go and pick up these orders himself.

    The attention that his feed drew also prompted Zomato to respond. “Hi Rahul, Zomato being an intermediary platform between a customer and a restaurant, does not have any control over the prices implemented by the restaurant partners on our platform. That said, we have conveyed your feedback to the restaurant partner and have requested them to look into this.”

    It remains true that food ordered through delivery apps costs higher than the same food ordered through restaurants directly. Let’s look at how much food delivery apps like Zomato and Swiggy charge and their impact on restaurants.

    A Short Brief About Food Delivery Apps
    How Much Do the Food Delivery Apps Charge?
    Impact of Food Delivery App Charges on Restaurants
    Future of Food Delivery Apps

    A Short Brief About Food Delivery Apps

    Food delivery apps came into existence a little over a decade ago. Their aim? To bridge the gap between the restaurants and customers who wished to order instead of physically visiting the restaurant.

    Most restaurants, a decade ago, did not have their own delivery options available. Food delivery apps not only filled this gap but also increased the restaurant’s area of service and added a level of sophistication, professional vibe and expediency to a delivery service.

    Their main advantages were –

    • Increased convenience to customers and merchants.
    • Ease of use for customers as no waiting time for ordering.
    • Wide variety of choices for restaurants and food.
    • Digital Payment options.
    • Increased level of sanitization – e.g., delivery executive wearing gloves and masks.
    • Easy exposure to new customers.
    • Better customer data.
    • Greater reach for restaurants.
    • Contactless delivery – especially in the post pandemic world.

    Over time, as the food business has evolved, so have the delivery apps. Now various delivery apps have a special category offering healthy meal options.

    How Much Do the Food Delivery Apps Charge?

    The menu pricing of any restaurant covers its own cost plus a certain percentage of profits. What it does not cover are the costs incurred when partnering with delivery apps.

    Currently, Indian Laws do not have any provision which puts a cap on what the food delivery app can charge its partner restaurant. What this essentially means, is that Food delivery apps can charge whatever commission they want under the guise of business costs.

    At present, according to various available data and verbal confirmations from restaurateurs, food delivery apps in India are charging anywhere between 25%-30% commission for every order that a restaurant receives. It also charges a certain percentage to the end customer as a delivery fee.

    Of course, the food delivery apps are essentially a business model with a bottom line need for turning profitable.  There is a cost involved in running such a business.

    • Running and maintaining an office.
    • Salaries of all employees
    • Time and labour cost of ground delivery staff.
    • Fuel costs
    • Cost incurred maintaining a round the clock customer support staff.
    • Recurring costs of maintaining the apps and many more.

    The food delivery app model works by charging a partnership fee from the restaurant as well as charging a delivery fee from the customer. In addition, its revenue model also includes paid listings and sponsored advertisements.

    Impact of Food Delivery App Charges on Restaurants

    With the level of commission that these apps charge, restaurants are left with little choice but to increase the food cost on their app menu to cover costs.

    Additionally, food apps also, sometimes, coerce their partner restaurants to offer large discounts which put pressure on their bottom line. Currently, most of this heat is felt by small restaurant operators.

    The food delivery app business had already been growing quickly before the COVID-19 Pandemic. The post-pandemic world has seen it growing in demand every day as more and more people prefer to order online rather than visiting the restaurant of choice.  

    This has caused a level of disruption to small food business operators, who do not have their own delivery service. With the high fees charged by these delivery apps, the basic question that arises for these businesses is that of profitability.

    Future of Food Delivery Apps

    The food industry is the same as all the others – ease, quality, speed, efficiency and price rule customer decisions. Even before the pandemic, restaurants realized the need and benefits of a food delivery app.

    Since its inception, the food delivery business has grown by leaps and bounds and the post-pandemic world has contributed to its exponential growth.

    The food delivery business in India is set to double by 2025, estimated to an approximate valuation of USD 13 billion. The chief reason for this is the largely underpenetrated Indian market compared to other countries like the USA.

    Conclusion

    As always, there are two sides to any story.  And this particular dilemma is not immune to it.  As much as restaurateurs realize the importance and need of food delivery business models, if the current pressure and constraint of fees and commissions continue, they might be forced to look at other options.  Concurrently, the bigger brand restaurants are capable of setting up their own delivery options, which might put further pressure on the existing food delivery businesses and their profitability.

    It might be time to amend laws and introduce a ceiling to the commissions and fees that the food delivery businesses can charge their partners.  This will not only bring stability to the business itself but will also allow restaurateurs room to reduce their online menu costs while upholding profitability.

    FAQs

    How much do Zomato and Swiggy charge to restaurants?

    Zomato and Swiggy usually charge around 18 to 25% commission to restaurants on every order.

    How is the delivery charge calculated by food delivery apps?

    The labour costs, total distance and vehicle costs are some of the costs that are calculated by food delivery apps.

  • How Do Delivery Services Like Zomato Will Deliver Food in 10 Minutes?

    With the threat of the Covid-19 pandemic always looming, the demand for delivery services-be for food or groceries – is at its peak. This is especially true in metropolises like New Delhi, Mumbai, Bengaluru, Chennai, etc, which have a significant middle-class population in addition to their bourgeois.

    Thus, there is a need for delivery services to ramp up and make their services faster than before, to cope with the ever-rising competition and meet the demands of the customer. Thus, various grocery apps such as Zepto, Blinkit (earlier known as Grofers), BigBasket, and Swiggy InstaMart have already started delivering basic grocery essentials such as dairy items, fruits, vegetables, cereals, etc within the next 10 minutes (yes, you read it right, just 10 minutes) to deliver the respective items.

    On the 21st of March, 2022, another revolutionary announcement was made when the CEO of the popular food delivery Service Zomato, Mr Deepinder Goyal, launched Zomato Instant, in which some specific food items would be served to the customer within 10 minutes. The food items that would be sold within 10 minutes would be the ones that are “popular, standardised, and can therefore be dispatched within 2 minutes” in Mr Goyal’s own words.

    So now we would discuss in this article how, first, the plans of Zomato briefly as to how they want to deliver food products within the next 10 minutes. We would also discuss how are grocery items are dispatched to their customer in the first place, within 10 minutes? We would then discuss the concerns shown by various organisations that whether delivering in such a short span of time is safe or not and then end this with the various memes we saw on Twitter when Zomato Instant was launched.

    The Upcoming Zomato Adventure
    Delivery of Grocery Essentials Within 10 Minutes- “The Dark Store”
    Concerns About Delivering in 10 Minutes
    Social Media Reaction to Zomato Instant

    The Upcoming Zomato Adventure

    On the 21st of March 2022, the CEO and founder of Zomato, Mr Deepinder Goyal shocked the business world, when he said in his blog that Zomato is planning to launch Zomato Instant, in which they would deliver hot meals to their customer within just 10 minutes.


    This created a furore as while groceries being delivered within that time limit wasn’t something unusual but hot cooked food was something no one thought would ever come considering the time it takes to cook the food properly, then packaging it and other stuff that is involved in it.

    Zomato is planning to launch a pilot program with four stations in Gurugram, Haryana, and, depending on its success, it would expand to other major cities.

    Replying to a query on Twitter, Mr Goyal said they can expect food that can be cooked and served quickly like Bread Omelette, Poha, Momos, Maggi, etc. If a customer is expecting a thing that takes time to cook, like say a Dal Makhani or a Rajma Masala for example, then there would not be any changes in the time taken to deliver those items.

    Here, Zomato would set up ‘finishing stations’ at multiple high-demand locations across a particular city. These stations will house roughly around 20-30 bestseller dishes (which can be made quickly) from various restaurants based on demand, predictability, and hyperlocal preferences, which they can find out from the data they have in the first place.

    With the help of Machine Learning algorithms, they would gradually get much better at determining what kind of meals should come under the ambit of Zomato Instant.

    Delivery of Grocery Essentials Within 10 Minutes- “The Dark Store”

    Grocery services have their own equivalent of finishing stations, as discussed in the case of Zomato by the name of “Dark Stores“. “Dark stores” refer to a small retail distribution centre or warehouse, located in the suburb of a metropolis. Rather than conventional fulfilment centres or warehouses, these “dark stores” are located within the suburbs of the cities, to fulfil their aim of serving essentials quickly to their customers. The employees of the “dark stores” generally work in 2 shifts 24×7. They are called “dark stores” as they are closed to the public and are for only fulfilling online orders.

    Warehouse
    Warehouse

    So what happens, in these brightly lit and ventilated “dark stores” have stocked grocery essentials in the store, then, they get information about a customer’s order through the handheld device they have in their hands, then they move around the dark store to locate an item, scan the barcode present and then check whether it matches with the item the customer ordered, if it is correct then they move on the next product. Thus, digitization and automation are the key pillars of a “dark store”. It is just a scaled-down version of what we see in large fulfilment centres.

    There are multiple advantages of having a “dark store”. It makes it easier to store perishable products and gives us more control regarding inventory management. It also helps corporations to store an extensive range of products.

    Concerns About Delivering in 10 Minutes

    There have been various concerns about companies managing to deliver their products within the stipulated amount of time, with the major one being road safety. This is a major problem in virtually all Indian cities, where roads are riddled with potholes, with cattle or other animals straying into traffic. This presents a frequent challenge for motorists, who often violate basic rules to deliver their product within the required time limit.

    Traffic in India
    Traffic in India

    So now various non-governmental organizations have doubted the feasibility of food or groceries being delivered within 10 minutes without compromising on the safety of the drivers. This has also led to debates within the political circles of India, when the home minister of Madhya Pradesh, Mr Narottam Mishra had accused Zomato of “jeopardizing the lives of delivery drivers” with the launch of Zomato Instant. A Member of Parliament from Tamil Nadu, Mr Karthi Chidambaram, has also spoken regarding this issue in the Lok Sabha.

    When 13 drivers of Blinkit and Zepto were interviewed by Reuters in 2021 in various cities of India, like Mumbai, New Delhi, and Gurugram, they said they had to face immense pressure to meet delivery deadlines or else face losing their job.

    Since then, companies have taken various measures to build more “dark stores” as near as possible so drivers don’t have to risk their lives and can do it within the stipulated time limit.

    Social Media Reaction to Zomato Instant

    With the launch of Zomato Instant, there have been a lot of memes on multiple social media platforms, especially on Twitter regarding the 10-minute delivery scheme. Let us take a small peek at those memes.

    Memes on Zomato 10 minute Delivery
    Memes on Zomato 10 minute Delivery
    Zomato 10 minute Delivery Memes
    Zomato 10 minute Delivery Memes

    How to Provide an Unforgettable Food Delivery Experience (8 Ways)
    If you are a food delivery startup and want to provide an unforgettable food delivery experience, Here are a few ways to give an unforgettable experience.
    StartupTalkyShubham Kumar

    Conclusion

    Thus, here we have discussed briefly how delivery services act on their promise of delivering their products within 10 minutes regarding groceries and the plan of Zomato on how they would potentially deliver meals to the customers within 10 minutes. We have also discussed the various concerns regarding the 10-minute delivery plan and the social media reaction due to Zomato’s new plan.

    In the end, these companies contribute a lot to the growth of the Indian economy as a whole, due to the various jobs they provide. These new 10 minute plans may sound risky but in the end, you have to take such bold initiatives to succeed in the current world. These bold initiatives are a huge reason for Zomato’s successful Initial Public Offering (IPO) in July 2021.

    FAQs

    How does 10-minute delivery work?

    There are dark stores set up in different locations across the city, as the customer orders something the food or grocery is picked up from the warehouse or dark store and delivered within 10 minutes.

    What are the apps that deliver in 10 minutes?

    Zomato, Zepto, and Blinkit are some of the apps that deliver groceries or food in 10 minutes.

  • How to Provide an Unforgettable Food Delivery Experience to Your Customers (8 Ways)

    The food delivery startups have seen a boom in popularity like Zomato, Swiggy by serving customer-preferred foods from their chosen restaurants. But not all the apps excel in the food customer journey with the same delightful customer experience. Any UI design service should give special attention to the relevance of delivery as per the user preferences to make the food delivery experience best for them. So, here are some food delivery customer experience aspects that any food delivery startup should adopt.

    Here are the few tips and techniques you can use to give your first customer a memorable experience to make the food delivery experience best for them:

    1. Personal Delivery by Founders/Team
    2. Deliver Good Quality Food
    3. Timely Delivery
    4. Treat Every Customer as a Unique Customer
    5. Personalized Food
    6. A Personal Thanking Note
    7. Surprise Discount on Food – Who Doesn’t Like It
    8. Take a Pic – Save It Forever
    FAQ

    1. Personal Delivery by Founders/Team

    This might sound a little unconventional but delivery by promoters or founders can make the delivery experience memorable for customers. Sometimes, this might not be possible for founders but if possible, delivering personally in the initial days and letting customers know that they are among the first customers of the business after delivery can make the customer feel special. One popular example of this is, In the U.S. the UberEats CEO, Dara Khosrowshahi delivered the food personally to the customers.

    UberEats CEO Tweet
    UberEats CEO Tweet


    2. Deliver Good Quality Food

    Maintaining a good quality of food is obviously the most important aspect of food delivery customer experience. In order to do so, the delivery guy must be instructed to maintain the food parcel with utmost care. Take feedback from customers & work on them to improve. You can also add sample packets of other food products so that customers can order next time if they want.

    3. Timely Delivery

    Tasty food on time is what the customer wants. Delivering food on time is another most important aspect of delivering food. For this, customers must be given an estimated delivery time beforehand. At the same time, the location tracking feature can be provided so that customer gets the real-time estimation of delivery.

    4. Treat Every Customer as a Unique Customer

    An AI model must be used to personalize the experience of customers which gives the feeling of being someone special. The startup must use intelligence into categorizing food on the basis of which it offers recommendations around dishes and restaurants that serve similar food.

    For enhancing the search experience, Swiggy has built a custom AI model Sumo Logic that ranks all the restaurants uniquely for every single customer. The list of restaurants is unique for each customer, matching his preference.

    Sumo Logic is a secure, cloud-native, machine data analytics service, delivering real-time, continuous intelligence from structured, semi-structured, and unstructured data across the entire application lifecycle and stack.

    5. Personalized Food

    Allowing menu-based browsing and restaurant listing based on user preferences, the listing should come with a clean listing of the food prices. In the initial days, after the customer placed the order, call them to confirm their taste preference. For example, whether they want it to be spicy or sugar-free. It will be the icing on the cake if you can personalize the food and if the chef could write a personal note as well.

    6. A Personal Thanking Note

    A nicely written personalized note from the founder thanking customers can delight their hearts. You can also give them free food for the next two orders or you can also give free Mouthfreshner/Chocolates/Sweets. It would signify that you want to share the happiness of starting your new business along with them. Also, it can be extended to all customers ordering from you on the first day, rather than just the first customer.

    7. Surprise Discount on Food – Who Doesn’t Like It

    One of the best tricks is to surprise customers with a discount on the delivery amount. Giving a discount as a surprise would make the customer remember the online food portal forever.

    8. Take a Pic – Save It Forever

    You could take a picture of the customer accepting the food delivery and frame it using a beautiful frame with your company logo and gift it to them with coupons/ discounts for further usage or if you want to do more you can make an entire video journey of how much love and care has gone into the process and have a full meal delivered with a full staff team and everything to pamper the client. Document it all, just to show that this is what your company does. It delivers customers great food at the comfort of dining at their home

    If you know of any other hack to delight the first customer please let us know in the comments.

    Conclusion

    The first delivery is always a memorable experience for a food delivery startup. However, for customers, a startup is not the first. Probably they have already tried different websites before coming to yours. The only thing which will make them come back to your website again is the experience that you provide. If you plan to launch a food delivery startup you always wanted your first customer to be very delighted by your service. Delivery experience is like the first impression for food delivery startups. If you excel in providing a great experience to your customers then you have already earned a potential customer.

    FAQ

    What makes a good food delivery experience?

    A great key is to create a great online food startup’s delivery experience for your customers is checking on their food quality. It’s your way of saying thank you to your customers. Also, make sure that the food is sealed well and all the needed condiments are also included in the packaging. Don’t compromise quality over speed.

    What aspects of the customer experience make a food delivery service stand out?

    Personal Delivery by Founders/Team, Deliver Good Quality Food, Treat Every Customer as a Unique Customer, and A Personal Thanking Note will make your customer experience make a food delivery service stand out.

    How can I promote my food delivery?

    Invest in paid advertising, send emails, partner up with local influencers, and do local SEO.

  • BroEat! – India’s first WhatsApp based eCommerce Platform!

    The food delivery segment will not be the same, even after the lockdowns lift — largely because of the startups which have innovated to adapt to physical distancing and hygiene upgrades. One of the startups front lining this change is BroEat!.

    It is India’s first Whatsapp based home-delivery platform to discover menus & order food directly from your favorite local restaurants & support the community! The idea is to make sure restaurants, home chefs, and small businesses earn the margins they deserve and help save jobs.

    Read this article to know everything about BroEat!, what it does, how was it started, services, founders, business model, pricing, plans, and achievements.

    BroEat! – Company Highlights

    Startup Name BroEat!
    Headquarter Mumbai, India
    Sector Hospitality
    Founders Karan Tanna & Pawan Shahri
    Founded 2020
    Website broeat.com
    Contact Email ready@broeat.com

    BroEat! – Vision and Mission
    BroEat! – Target Market Size
    How was BroEat! Started?
    BroEat! – Product/Services
    BroEat! – Founders and Team
    BroEat! – Name, Tagline, and Logo
    BroEat! – Business Model and Revenue Model
    BroEat! – Startup Launch
    BroEat! – Recognition and Achievements
    BroEat! – FAQs

    Mumbai Based Startups | Entrepreneurs & Startups in Mumbai
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    BroEat! – Vision and Mission

    The company’s vision is to build a platform that the Indian F&B industry can depend on with transparency, open business practices & sustainable methods.
    Its mission is to help this platform scale to a PAN India level where all the restaurants in India can benefit from this and grow their home-delivery business most sustainably.

    “Our core belief is that by providing sustainable tech solutions to the F&B industry will help them not only thrive and become profitable and more sustainable but also help them save jobs”, says BroEat co-founder Karan Tanna.

    BroEat! – Target Market Size

    As per a recent survey, the Indian online food delivery market size is USD 2.9 Billion. The entire business is largely shared between 2 major market players right now. BroEat! will be the only third platform with a countrywide presence and the first-ever WhatsApp based platform in India.

    In the next 5 years, the home delivery industry is going to gain major share and might become equal to the dining out industry as more and more people find great convenience in ordering in. This boom will encourage bigger brands in the home delivery segment and we might see more home-grown brands scaling up to 2000+ outlets which currently are only done by the likes of Domino’s & McDonalds.

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    How was BroEat! Started?

    Being in the restaurant business himself, BroEat co-founder Pawan Shahri, soon into the lockdown, figured out that the home-delivery business is going to be a major chunk of the revenues to be make. To ensure that the module is sustainable, they had to figure a way out to increase the margins there and avoid their dependability on aggregators who charge 25-28% commission per order.

    It was about time that the industry needed a platform that had reduced commissions, and was transparent with consumer data. Also, keeping the services unbundled is necessary for the restaurants to be able to take up more responsibility. Soon the co-founders got sketching on base structure and started seeking various stakeholders in the industry from different business categories. When Karan and Pawan realized that this was a unanimous pain point, they decided to jump into it and take it head on.

    “Our conversations with our colleagues from the industry and a deep understanding of the business had validated our idea. We also got in touch with many people to understand a consumer point of view”, says Pawan Shahri, co-founder of BroEat.

    During the pandemic, it is only in a human to understand the pain of local business and to do their bit to help and support them. The consumer sentiment helped them drive this further and that’s the motive to run the platform.

    BroEat! – Product/Services

    BroEat! is the first-ever WhatsApp based platform in the online home delivery space. Since WhatsApp is easier to use, it is a more approachable platform, and the consumer need not download any apps. BroEat! helps restaurants earn the margins they deserve as the startup charges a bare minimum platform fee starting INR 5/- per order. This brings down the overall expense a brand might have to as low as 5-6% per order.

    Karan and Pawan are trying to craft business for a new type of supply chain to make sure the consumers get the experience and service they need. Simultaneously not hitting the pockets of the merchant partners and restaurants. When anyone orders from BroEat!, they help restaurants make deserving margins, which helps them save jobs & sustain the business. That supply chain going forward supports a lot of local workers and vendors in the restaurant network.

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    BroEat! – Founders and Team

    Karan Tanna and Pawan Shahri are the Founders of BroEat!.

    Pawan and Karan - Founders of Bro Eat!
    Pawan(right) and Karan(left) – Founders of Bro Eat!

    Karan Tanna – Karan founded the nationwide Ghost Kitchens chain, a frontrunner in the dark kitchens segment, and his Yellow Tie Hospitality manages a host of F&B franchises, working with over 200 restaurants Karan featured on Forbes 30 Under 30, Entrepreneur 35 Under 35 & also was a part of the GQ’s most influential young Indian’s list.

    Pawan Shahri – Pawan’s portfolio includes some of Mumbai’s more intimate, popular casual dining restaurants like Butterfly High, London Taxi, The Bigg Small Cafe + Bar & Oi Lat-Am Kitchen & Bar. Currently, 26, his journey started at the age of 16 running one of the most successful experiential marketing firms in the F&B business,

    Both the co-founders were friends and industry colleagues who often shared their expertise in their various fields. The current company size varies between 8-10, but they have an expansion plan of 100+ employees. Karan looks more into operations & the tech front and Pawan look into marketing, brand positioning & building a strong consumer connect for the platform.

    BroEat! – Name, Tagline, and Logo

    BroEat! Logo
    BroEat! Logo

    The name BroEat! Was born out of a conversation between Karan & Pawan that stuck along. Rather than a story, it was a night of brainstorming and pushing one to the other to eat. It clicked and stuck on.

    BroEat! – Business Model and Revenue Model

    The BroEat business model is tier pricing model. The charges for order generation platform fee are:

    • INR 5/- upto an order value of INR 300/-
    • INR 10/- upto an order value of INR 1000/-
    • INR 20/- upto an order value of 2000/-
    • INR 30/- for an order value above INR 3000/-

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    StartupTalkyChayanika Goswami

    BroEat! – Startup Launch

    As social media has a stronghold in today’s world, the company is in a continuous process of building a strong social media presence. Also with the founders having 10+ years of experience in the hospitality sector, word-of-mouth publicity holds a major hand in getting the restaurants on-board. The platform goes live in a week and the founders are quite certain that their marketing activities will get them the desired results.

    BroEat! – Recognition and Achievements

    BroEat! has been featured with Forbes, The Hindu, The Economic Times, and many more as India’s first Whatsapp based e-commerce platform to discover menus & order food directly from your favorite local restaurants & support the community!

    BroEat! – FAQs

    What is BroEat?

    India’s first Whatsapp based home-delivery platform to discover menus & order food directly from your favorite local restaurants & support the community!

    How do you order from BroEat?

    The process is simple. You need to add the BroEat business account number as a contact, you reach out with a simple ‘hello’ via WhatsApp and you are sent a link to their platform. You can then proceed as with a normal food order and make your payment. Then you are redirected to WhatsApp where you receive confirmation messages, receipt, and delivery updates.

    When was BroEat founded?

    BroEat was founded in 2020 amidst the lockdown.

    Who are the Founders of BroEat?

    Karan Tanna and Pawan Shahri are the Co-Founders of BroEat.

  • Everything You Need to know about Hyperlocal Business Model

    Smartphones have become the game-changer for the on-demand delivery business models. Buying groceries to ordering food, purchasing medicine to renting furniture, the rise of on-demand apps have made our life easier than before. Consumers now prefer to get all their basic need services at their doorstep so that they can save that amount of time and can get relaxed till their order get delivered.

    These on-demand apps have given acceleration to one such business that is known as hyperlocal business. The hyperlocal delivery business model is a perfect example of how technological advancements can unite with the age-old favourite shopping methods.

    What is Hyperlocal Delivery Business Model?
    Hyperlocal Delivery Business Model
    Benefits of Hyperlocal Delivery Business Models
    Supply chain models of a hyperlocal business
    How to build a Hyperlocal Delivery Network?
    Role of a hyperlocal delivery model in Covid-19
    FAQ’s

    What is Hyperlocal Delivery Business Model?

    The term ‘Hyperlocal’ refers to ‘a small geographical area’. Hyperlocal delivery model is when delivery of products is done within a particular geographical area. The pick up location from where the order is packed and the customer’s address should lie within the same pincode.

    This kind of delivery model works mostly in cases of groceries, medicines, regular household items, food delivery and even services such as plumbers, electricians, carpenters etc. The USP of hyperlocal e-commerce businesses lies in their ability to deliver products and services at unbelievably fast speed.

    Hyperlocal Delivery Business Model

    Hyperlocal  delivery model is defined as a business model in which the service aggregator acquires requested product locally and delivers the same to the customer in the same geographical area.

    Hyperlocal business model
    Hyperlocal Delivery Business Model

    For example, let us consider a hyperlocal on-demand business in food. When The customer places an order for the required food item through the dedicated mobile application, The aggregator receives the order and passes on the order details to a delivery partner. The delivery partner dispatches a delivery boy to procure the requested item from a local store and makes sure that it reaches the customer at a requested location. The aggregator drives the entire system and earns a commission for the role it plays.

    This model is applied to products as well as services like plumber, electrician, beautician, etc. The most popular example of a hyperlocal delivery model would be Zomato and Swiggy.

    Benefits of Hyperlocal Delivery Business Models

    Here are some of the benefits associated with hyperlocal delivery business model

    Supports traditional Stores

    The rise of e-commerce and online retail has been a threat to traditional stores. Hyperlocal delivery models provide them with an opportunity to optimize their sales.

    Minimal Efforts Required from Retailers

    Retailers can enlist their businesses on their respective platforms and grow their business. Everything from pickup to delivery is managed by the app aggregator. Hence retailers can grow their business with minimal effort.

    Helps build a sustainable ecosystem

    The hyperlocal delivery model is environment friendly as carbon footprints as long transportations are reduced.

    Single Device management

    A single mobile app can help you track, control and manage the entire hyperlocal marketplace.

    Supply chain models of a hyperlocal business

    Inventory-led model

    The inventory-led model is where you source your products directly from the brands and sellers and create an inventory of them. In this model, you are playing a direct role in the hyperlocal market. You have to track the demands of your customers and manage your inventory accordingly. You have to direct a team to manage inventory accordingly.

    Aggregator model

    Aggregator model can also be called as zero inventory model. In this delivery model you act as connecting link between the retailers and customers to ensure last-mile connectivity and delivery.

    How to build a Hyperlocal Delivery Network?

    Choose the product you you want to deliver or sell

    Firstly, you need to decide what products or services you would choose to deliver. Hyperlocal delivery models have tremendous utility and scope for success in a wide variety of sectors –restaurants, medicines, grocery, cabs, and hyperlocal logistics. You can target the local geographical locations and analyze the demand for a particular product or service.

    Identify your Target Audience

    Study the response of customers towards previous businesses. Your target audience may be busy professionals who have no time to head down to a restaurant for a meal, or you may target senior citizens who are unable to walk to their nearest grocery store.

    Market your product in your locality

    Your marketing strategy depends heavily on your target audience. You have to make your presence known by trying out different advertising methods that appeal to your audience.

    Build local partnerships with delivery agents

    Building  the network is an essential part of any business. in this you must create partnerships with two different parties – a delivery partner and the local merchants.

    You could receive the customer’s orders through your mobile app and ask the local merchants to send their delivery personnel to deliver the order. You can also opt for partnering with a delivery agency. Often delivery partners charge a fixed price per delivery and impose a minimum delivery cap.

    Decide on an Revenue model

    Your revenue model depends on two sources – commissions from the merchant-partners and delivery charges from the customers. Your local partners pay you an agreed percentage of the order amount as commission on every order placed from their store. Your partners will be happy to pay you more if you bring them more business. You can charge your customers a convivence fee if you wish, as most businesses are providing free delivery services.

    Launch a hyperlocal mobile app

    Now you need to start working on the platform. You need to build separate mobile apps for iOS and Android for each of the three parties – the merchants, the customers, and the delivery drivers. A feature-rich, user-friendly app plays a major role in creating a solid customer base.

    Role of a hyperlocal delivery model in Covid-19

    Due to lockdown restrictions many hotels and restaurants had to shut down, this was the the right time to get online, especially for offline merchants who were facing business ups and downs during this crisis. Many restaurant’s took their business online as they saw it as a fully wise decision to starting with an online business, so that even after the COVID19 crisis, they can get better growth.

    To survive and thrive in the industry, you need a robust admin panel, an efficient and effective customer tracking app, and a powerful delivery driver app. Furthermore, you should always concentrate on a consumer’s satisfaction. Measuring customer satisfaction should become your daily habit – not something you do from time to time. You can expect a massive growth of such businesses in the near future.

    FAQ’s

    1. What is a hyperlocal business?

    Ans- Hyperlocal businesses are referred to as businesses where one wants to build a local ecosystem that enables customers to buy anything from their neighborhood stores. Hyperlocal includes all businesses in your locality, the nearby stores, Restaurants, Market, Malls, Hotels, and other products and service providers.

    2. What is hyper local delivery model?

    Ans- The hyperlocal delivery model is a type of model when the product delivery is done within a particular geographical area. The pick-up location of the order and the customer’s address should be the same. This type of delivery model works mostly in businesses like groceries, medicines, household items, food delivery businesses, and even in jobs such as plumbers, electricians, carpenters, etc.

    3. How do I build a hyper local delivery company?

    Ans- In order to start a successful business with a hyperlocal model, you should choose a strategic approach. Below mentioned is a step-by-step approach that lists the processes which involve a hyperlocal on-demand delivery business.

    • Select the Industry
    • Choose a Niche
    • Identify your Target Audience
    • Seal the Deal (Create Partnerships)

    4. What are hyperlocal startups?

    Ans- A hyperlocal startup is a type of business that supports other businesses in delivering products such as Locus or Shadowfax or in delivery of products through a marketplace-like platform like Dunzo or Swiggy with Swiggy Go, or any other startups operating in this space in the Indian market.

    5. What is hyperlocal shipment?

    Ans- Hyperlocal delivery is the process of delivering goods directly from a seller to the customer. It’s the process that involves the operation of a courier agent picking up products from a seller and then delivering them directly to the customer’s address.