Food panda, Swiggy, FreshMenu, Brekkie, and the list go on. There were more than 200 food startups at the end of 2016 and over $220 million invested in food startups. Along with this numbers, there are many startups that are acquired by big players and some of them also shut down because the on-demand delivery market is being saturated with this type of startups coming up with nothing to offer on the table when they are compared to Food panda or Swiggy.
Now if you also planning to launch a food startup, you need to consider some points which can let you set up a proper food delivery system.
Find your target audience
People need food and know how to use the internet to pay the amount is not sufficient to make them your targeted audience segment. Food delivery market is not limited to doorstep delivery of tasty food; it also includes Grocery delivery, restaurant food delivery, customized food delivery and each of these verticals holds a unique set of audience. Now you need to identify your potential audience and target them by customizing your services according to their needs.
Partnering with local stores and restaurants as per the target market
As per your area of coverage, you need to establish partnering with local vendors and restaurants or grocery shops to get a constant supply. You need to figure how to manage and build a relationship with grocery stores and restaurants to get a better back-end support on a regular basis.
Every food startup has its own way to deal with resources and you need to find your own. Some get a commission on each delivery and some startups tied to pay on each order prepared.
Sufficient delivery guys team and payment
Next step is how are you going to deliver. Maybe you will need a delivery boys team that can cover your targeted area or you need to add to that channel. Another thing is how are you going to pay them. You can set a monthly payment or per hour basis or commission per delivery basis. It depends on your business structure and highly affects the operations. You need to set a proper contract to fuel a long lasting relationship so your business does not run out of human resources at pick time.
Tracking system and mobile apps
Most of the food delivery firms have separate apps for end-user, delivery boy, and restaurants.
You will need to build the mobile apps from where users can place an order, restaurant can receive and delivery boy can trace and deliver the parcel.
You can set up a web portal on the restaurant side and admin side to keep track of each transaction and data collection.
The flow of the whole process will be like this:
- User places an order.
- The restaurant gets notified about the order on their side app or portal, they will confirm the order and prepare the ordered food.
- Restaurant sends a broadcast to all the nearest courier boys available in that area.
- All the delivery boys will get a notification and anyone can accept the request.
- The end user gets confirmation of order and delivery boy’s location with estimated arrival time.
This is the major part of the business where you analyze the collected data from all the received orders. You need to identify the weak points and a strong one that helps you increase the profit margin with a more efficient system that delivers customer satisfaction.
Above listed points are some essential points to succeed wireframing the on-demand food delivery start-ups.