Zomato White Label:
Zomato also offers restaurants to create a custom food delivery application for services
such as Zomato Whitelabel. It also works for consultancy services with cloud kitchens and
restaurants. Zomato is working with selected restaurant operators to identify expansion
sites at minimum fixed costs, but with increased user options. It gives these restaurant
partners the necessary licences and operational allowance.
How to Build a Food Delivery App in 5 Easy Steps:
Step 1: Choosing the business model:
a) The Order Only Model : In this model, the service providers act as a pure software
layer that aggregates standalone restaurants’ offerings, assisting them in expanding
their market reach. These aggregators did not prove delivery services. This model’s
primary selling point was to bring new orders to the restaurants and replace their
antiquated phone-ordering system with an optimized mobile and web platform.
How it Works:
● Customer places an order on the app or through the website
● The restaurant receives the order
● The restaurant notifies that the request is received.
● Delivery is done either by a driver employed by the restaurant or through a driver
employed by a restaurant delivery service provider.
Advantages: As they are not involved in food preparation, these delivery providers require
limited resources and are highly scalable.
Limitations: The dependency on the restaurants to complete deliveries means they have
limited control over the overall process. They cannot control and optimize the delivery
service.
b) The Order and Delivery Model: In this model, the service providers bring additional
orders and requests to the eateries and provide their own logistics network to deliver
orders from restaurants through their fleet of independent couriers. Order and
delivery platforms handle logistics for restaurants, food joints, and home delivery
services. The order and delivery model is beneficial for the restaurants as they don’t
need to invest resources in delivering food and pay couriers or maintaining vehicles.
The drivers are paid based on the distance traveled to complete a delivery.
Order Allocation:
Ordering occurs at the app where the menu of a restaurant is uploaded. Customers select
the food items and make payments (some providers also offer cash on delivery). Once the
amount goes through, the restaurant is notified about the request, and they can confirm or
reject the order.
Delivery:
When a delivery person is on duty, they are logged into their courier app. When a request
comes in, the notification is sent to the couriers closest to the pick-up location. On receiving
an order, couriers decide whether to accept or reject the order. The first courier taking the
order will be assigned the order. If no courier is available nearby, it will be shared with
drivers who are farther away until it is accepted. Deliveries provide crucial data to the
service provider and help them in route optimization and pick-up/drop-off patterns.
Advantages: Since the service provider handles the delivery process, they charge a higher
commission 25-30% on average. They benefit from substantial barriers to entry and scale
advantage. Their prime feature is that they can offer a range of restaurants and price points
that software-only marketplaces cannot.
Limitation
Unlike order-only business models, a large number of resources, such as a team of drivers,
customer executives, technological support, and different apps for each stakeholder are
required to operate the food delivery business efficiently.
The software companies have to invest a significant investment in operation work such as
hiring and training drivers, equipment maintenance, shift planning, etc.; hence they are
difficult to scale in the initial stages without investment.
c) Cloud restaurant model: In this model, the restaurants do not provide in-house dining
services and only serve as delivery businesses. When a user orders food through
the app or website, the food is prepared by the cloud kitchen. It is delivered through
its own delivery services or delivery providers’ help, eliminating the need for a
substantial real-estate area
Limitation
Since the restaurant only caters to online subscribers without any physical presence in the
market, brand recall is difficult. They are also entirely dependent on the delivery providers
for efficient operations; otherwise, they have to invest significant resources in building the
last mile aspect of the food chain.
d) Meal kit delivery model: The meal kit delivery model is an unconventional market but
is gaining traction in the food delivery industry catering to customers who prefer to
cook based on the recommendations, but do not have time to source all ingredients.
In this business model, restaurants deliver hand curated ingredients along with their
recipes to the customers. Customers have the option to select vegetarian,
non-vegetarian, or family, and accordingly, they will be delivered recipes and
ingredients to prepare the dishes. In-house chefs prepare different recipes and a
team of delivery drivers provides the meal kit. This is a niche market where.
Advantage
Since the meal kit delivery model works on a subscription basis, the revenue per user is
very high as it generated recurring revenue instead of a one-time service. By using food
delivery apps, customers can order their favorite cuisine or from their preferred restaurant.
The restaurant is notified of the order and prepares the food and is delivered to the
customer’s stated address by the food delivery app.
Step 2: Choosing the revenue model
Monetization strategy of food delivery apps
Delivery Charges: Food delivery service providers generate revenue by delivering food
from the restaurants to the customer address. The delivery fees are calculated based on the
distance traveled or a fixed price.
Revenue Sharing: Most food delivery apps collaborate with restaurants on predefined
commission rates from each order. The commission rate varies from 15% to 40% on every
order, or it can be fixed based on the size of the order.
Advertisement and Promotional Services: The food delivery app also generates revenue by
highlighting the advertising restaurant profiles on the search listings’ top banner for a fixed
amount of time. By paying a fixed amount, restaurants can display their promotional banner
or advertisements on the app listings and increase their visibility. Since the restaurant
space is highly competitive, restaurants are eager to gain more visibility and attract more
customers. This concept helps both the app as well as the restaurant.
Surge Pricing: This monetization approach involves charging delivery surcharge during
peak times, such as lunch or dinner. Various top food delivery start-ups like Uber Eats,
DoorDash, Grubhub, and Zomato charge higher delivery amount — surge price from the
customers when the demand is high such as lunch or dinner time, festivals.
Daily deals: Food delivery apps collaborate with restaurants by offering deals on their
dishes. A restaurant’s specific meal is being provided through food delivery apps at fixed
prices, often at a very low mark-up.
Restaurants make use of such deals to up sell-side dishes along with the discounted ones.
On the other hand, as the number of order increases, it also increases the commission and
delivery fee earning for the food delivery providers.
White Labelling: White labeling is a concept where food delivery providers source food from
restaurants and sell them as their offering. Through this method, food aggregators generate
revenue, while restaurants are not needed to make any hassle. This arrangement is
especially ideal if a restaurant is not well-known or is home-run.
Step 3: Watch out for Latest Trends
Online food delivery is a hyper-competitive space; to stay ahead, you need to be on top of
the latest market trends as well as technological advances.
Social Media Ordering: Domino’s Pizza was the first organization to provide a social
media-enabled ordering. Through this feature, Domino’s Pizza customers can use their
Twitter accounts to order pizzas. The user needs to tweet a pizza emoji to Domino’s official
Twitter account. Prior to ordering Pizza through Twitter, Domino’s customers need to create
a profile on Domino’s platform. They can select their default orders, also known as Easy
Orders. Users can then link the pizza profile with their Twitter account.
Chatbot: Virtual assistants are fast gaining prominence in many fields, and food delivery is
no exception. Through Chatbots, customers can order food just by stating the orders.
Domino’s pizza’s virtual assistant named Dom can take orders via Twitter and Facebook
messengers. The chatbot also informs customers about the latest deals and vouchers.
Another food delivery company, Grubhub, has integrated its system with Amazon’s virtual
assistant Alexa. Grubhub customers can reorder any of their last three purchases made
through their platform. Besides placing orders, Alexa also provides you the estimated
delivery time. Another delivery provider, Just Eat, has also integrated Alexa into their
ordering system. Through Alexa, Just Eat can place orders by voice and check the courier’s
location.
Step 4: Deciding the Features
Features to Include in the Food Delivery Application
If you are going for the order only model, you have to manage three parts, the customer
app, restaurant app, and the admin app. On the other hand, if you consider the order and
delivery model, then it will have an additional driver panel.
User Panel
Sign up & Profile Management- Sign-up page is the first interaction between the customer
and the app. Users need to register and create their profile on the app by entering relevant
details such as address phone numbers etc. The registration process should be seamless.
You can add an option for registering via social networks.
Geo-location- This essential feature allows users to track a delivery boy’s live location. This
feature also enables users to find the location of the restaurant on the Map.
Restaurant List- A list of restaurants and their reviews and rating can be displayed to the
user, who can order food from these restaurants as per their preference.
Delivery Address- This feature enables the app to identify the user’s current location if they
are away from their regular address. Users should be allowed to save multiple addresses
for delivery.
Food Cart- Customers may often not find all they want from one restaurant; hence this
option will allow them to order from different places. Users can also add or remove food
items before making payment.
Payment Mode– Integrate multiple payment modes such as online (eWallets, Debit/Credit
Cards, and Rewards Points) and cash on delivery to streamline the payment. Online
payment should be safe and secure.
Order Scheduling – This feature allows the customer to order food at a scheduled time to
receive the order without any unforeseen challenges such as unavailability of food, late
delivery, and higher charges.
Review & Rating: Users can rate or provide reviews on different restaurants and dishes that
they have ordered. Reviews add transparency to the process and become a guideline for
other users who are ordering food online.
Order History– This feature allows users to view the previously placed food orders from
order history. This feature helps customers who like to make repeated orders and saves
them from the hassle of searching for restaurants and dishes.
Push Notifications – This functionality allows you to transmit information about best offers,
seasonal discounts, coupons on the customer’s screen using push notifications.
Multiple filters- Multiple search options make the process of ordering easier for the
customer. They can filter restaurants based on location, price, review, and rating. Similarly,
users can search for various food items, by cuisine, type, category, quantity, price, etc.
Real-time tracking – This feature allows the user to track the order status in real-time.
Promos & Coupons: This feature enables you to offer promotional offers to users that
improve customer retention and increase in orders.
Help & Customer Support: Customers should be able to reach out to the support team if
they face any challenges with order delivery, such as delay in delivery, the wrong item
delivered, contacting the delivery person, unavailability at the delivery address.
Admin Panel
One-click Dashboard – The dashboard is a centralized system where the Admin handles
the entire back-end operation. Through the panel, the Admin can track orders received
from the customers, manage inventory updates, and other business activities.
Registration & Profile Management – The admin panel should also have a registration and
profile management feature where it can add details about customers, drivers, and
restaurants. The different restaurants can register to your service with their details like
restaurant name and address, their menus and prices, offers, etc. once they have
registered, they can start receiving orders from the customers.
Manage Customers: The Admin can add or remove users or change their active status. This
feature enables the Admin to view complete information linked to users such as their
contact details, address, etc.
Payment Management: This function enables the Admin to view and manage all the
transactions that have taken place in the app, including refunds. The Admin can also
manage tax and commission related information in the app. Admin can track all the
accepted online payments and set the commission rates with every partner.
Order Management: The option allows managers to assign orders once they receive a
request from the customer. The Admin can monitor the order status, total amount earned
per order, and make relevant business decisions.
Driver Management: This feature enables the Admin to observe all necessary information
related to drivers such as their contact information, trip details, the total commission earned,
availability, login time. The Admin can add or remove drivers, modify their details, and check
their current status.
Modify Elements of the App: The Admin should be able to manage the entire process – start
from the users and product information to changing the design of the application.
Reset Passwords: The app maintains the driver and customer database, and the Admin
should be able to reset the passwords on user request.
Campaign Management: To attract and sustain customers, the app should have a facility to
plan and run SMS, email, and Social Media marketing campaigns.
Plan Discounts & Promotions: This app feature allows Admin to add or run promotional
offers or discounts on the app.
Manage Restaurants – This feature enables the Admin to add or remove restaurants from
the app.
Feedback Management – This feature enables the Admin to view customers’ ratings and
reviews and check their feedback.
Push Notifications – Admin can get the notifications of the emails, order delivered, drivers
accepting the request.
Reporting and Analytics – By leveraging real-time Analytics, the Admin can obtain
actionable insights to manage the business effectively.
The data assists the Admin to plan strategies to boost sales and user experience. Admin
can monitor what discounts are gaining traction, what products are moving quickly and
optimize their offerings accordingly.
Restaurant Panel Features
Managing Orders: The order management feature allows restaurants to handle the orders
they receive and the delivery of those orders. They can manage and update the status of
the order and let the user know when their order will be delivered.
Accounts & Management: From the admin app, the restaurants registered should be able to
manage and edit the payment and financial accounts.
Dashboard- Dashboard of restaurant panel features the new order status, orders under
preparation, canceled orders, and completed order, the total amount collected on each
order, and take actions accordingly.
Restaurant Profile- Restaurant owners can add and update their food listings, prices, and
make them available for ordering based on availability.
Add Products – The store manager can push new items to the restaurant via this app and
see the changes reflected in the app in real-time.
Accept & reject order- Restaurant owners can accept or refuse orders.
Payment- Multiple payment options and gateways allow the restaurant to receive or transfer
money.
Brand Management – If a restaurant is operating from multiple locations on the app, they
should be able to manage these stores seamlessly.
Special Offers/ Coupon Code Management – Store owners can plan and add new deals,
discounts, coupons, and offers to drive sales and improve customer retention.
Order Alerts – Store owners get real-time notifications for new orders and can take further
action.
Track Payments – Store owners can add account details and view successful and pending
payment settlements.
Order Reports – Store owners should get real-time information about their business
performance so they can take action accordingly.
Customer Support – With the customer support feature, the Store manager can efficiently
address order or restaurant-related issues.
Reject Order – If a food item on the menu is out of stock or delivery is not possible for
specific reasons, the store manager can reject it.
Delivery Personnel Panel
Registration: The delivery person can register on the app. They need to be first verified by
the app to ensure safety and security to the overall process. Once the verification process is
completed, drivers can take orders and start delivering.
Order- In this, the delivery boy gets auto-assigned order requests from nearby restaurants.
Delivery History: With this feature, the delivery person can track their deliveries and
payment for each delivery.
Call/Chat option- This feature allows the delivery boy to contact the customer if they face
any issue in finding customers’ addresses.
Online support– Consider this feature in your app to allow the delivery agent to
communicate with the app support team.
Managing Orders: Through this feature, the delivery person can check if they receive order
requests, and accept or reject orders
Status Update: The delivery person can update the status of the delivery with this feature.
Step 5: Choosing Technological Stack
The technological stack would be dependent on the delivery business model. Some of the
essential tech stacks are mentioned below:
Payment Gateway – Braintree, Stripe, PayPal, Square API
User location – Google Places API, Google Maps, Core Location Framework
Direction Finding – MapKit, Google Maps, Routific
Registrations – Facebook SDK, Gmail SDK, Autho
Storage – AWS, Google Cloud Storage, Azure, Digital Ocean
Analytics – FireBase, Google Analytics
Push notifications: Amazon SNS, Urban Airship, Firebase Cloud Messaging
Application & Data: Python, NGINX, CloudFlare, Ruby, Amazon EC2, Redis, Amazon S3,
Go, Amazon RDS, Scala, Kotlin, Linux , Amazon SQS, Snowflake and Amazon Aurora
DevOps: GitHub, Webpack, Docker, Sentry, Kubernetes, Terraform, Amazon Cloudwatch,
CircleCi,Datadog, TrackerJS and PagerDuty
