How to Build a Food Delivery App. Business and Monetization Models

In 2020, 6.1 billion people will use smartphones, according to a new study by Ericsson Mobility Report. Think these numbers over. This year it is expected 7,8 billion of the whole population. It’s no wonder that we speak about the global coverage of the mobile Internet and an increase in the number of purchases through it. People value their time a lot and prefer to save it doing shopping online, ordering goods, food and dishes. It’s no surprise that such services as food delivery are flourishing, especially today, when people are concerned about maintaining social distance and self-isolation. Food delivery is not a new phenomenon, but of a constantly growing demand, that’s why new players permanently appear on the market. Now, this market segment is experiencing intensive growth, and for startups, it’s the ideal time to create an on-demand food delivery app.

Typically, business models of food delivery startups fall into 2 big categories:

  • a service that works as an aggregator and connects customers and local restaurants

Any of them can use these monetization models:

  • a fee is taken from the food delivery app users, it may be fixed or depend on the delivery districts, distance, price of the order, etc.

Pros and Cons of the Food Delivery Apps by the Business Model

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