Food delivery services are one of the most popular on-demand app services in the market. The evolution of food delivery began when people switched from ordering through phone calls to smartphone applications. In just a few taps, they get their favorite food delivered to their doorsteps. Nowadays, there is a multitude of food delivery apps offering services to users.

Any entrepreneur may be wondering how are these food delivery services profitable. It is a well-established fact that most business owners invest in a business that is doing well in the market. The global online food delivery market is currently valued at $122 billion. Moreover, it is expected to grow at a CAGR of 31.76% between 2019 and 2024. With such an exponentially growing market, entrepreneurs will be looking to capitalize on this flourishing situation. In this blog, let us discuss the different ways of revenue generation through an UberEats clone,

  • Revenue through paid commissions: Online food delivery platforms connect multiple restaurants with the users of the app. As a result, for every payment made by users for an order, business owners receive a part of the payment as paid commissions. Restaurants receive the payment after the particular amount is deducted as commissions. This way, the entire cycle is profitable. Initially, users get doorstep services. The restaurants can enhance their business by offering multiple services. By acting as a bridge between users and restaurants, business owners receive revenue, as well.
  • Revenue through surge pricing: There may be an increase in demand in specific locations where the app is operating. During such conditions, users need to pay an extra amount to get on-time deliveries. This additional amount is known as surge pricing. Surge pricing is placed in addition to delivery charges. This adds to revenue generation, as well.
  • Revenue from delivery charges: Usually, these delivery platforms hire delivery professionals on a monthly basis. Hence, for every order made through the app, charges levied as delivery charges go directly into the business owners’ pockets. Even during surge pricing, the entire delivery charges are added to the revenue through the app. This way, if the number of orders increases, the revenue generated through these delivery charges also increases.
  • Revenue from third-party advertising: Popular apps in the market reaps revenue through this type. Business owners join hands with third-party vendors for advertising. By advertising their banners in your app, you get revenue. This is a win-win situation for both business owners and vendors. By advertising, third-party vendors are reaching out to a wider audience. Moreover, business owners gain revenue by advertising.

Wrapping up,

Easier accessibility of these food delivery apps has made them an instant hit in the market. The entire supply chain is benefited and profited with an online platform. The multiple ways of revenue generation provide entrepreneurs with an assurance that they can boost their ROI substantially. As a result, more and more entrepreneurs are venturing into the market to gain increased revenue in the market!