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Food On Demand : Business Models for Meal Delivery Startups

By Guest User 16th October 2015

Food startups in the on demand economy have a simple psychological appeal – they promise to buy us time and save us effort. They more than deliver convenience as a simple service attribute, they deliver convenience across every customer touch-point. Convenience research has identified five specific opportunities for convenience tech to buy people time and save them effort, namely:

  1. Decision Convenience – Making it fast and easy to choose. For eg. on Zomato and Food Panda, you can view ratings and reviews of restaurants, and decide where to order from accordingly.
  2. Access Convenience – Making it fast and easy to acquire. For eg. Hot Meals are delivered to you at your location within 15 minutes using SpoonRocket, making it easy to eat well wherever and whenever you are hungry.
  3. Transaction Convenience – Making it fast and easy to pay. For eg. All apps let you pay with cards, PayPal accounts or wallets like Apple Pay.
  4. Benefit Convenience – Making it fast and easy to enjoy/use. For eg. On Postmates, you can ask for delivery from more than one restaurant, and get it straight to your home.
  5. Post-Benefit Convenience – Making it fast and easy to re-purchase. For eg. You can save your address and payment details, bookmark your favorites to re-order in seconds.

You can read more about the psychology of convenience in the article ‘Uberification of Everything’ by Dr. Paul Marsden. For an overview of the on demand economy, we suggest you check out an infographic we created about the on demand economy.

The on demand food industry has disrupted traditional markets by adopting a full cycle approach to the three basic components of a meal experience at a restaurant: Ordering, Cooking and Delivering.

Ordering – Orders are customer requests to prepare and deliver food. All food on demand businesses receive orders via an app, a website or phone. The orders could be for their own kitchen or another meal provider they have partnered with.

Cooking – Cooking is the process of preparing meals for customers. Meals could be pre-cooked or cooked after an order is received.

Delivering – Delivery i.e the transportation of goods is the backbone of any on demand business. Businesses can have different delivery models depending on various factors. 

The table below gives examples of various food on demand companies and the business model they are built on, depending on which component out of the three is owned by them.

GloriaFood partners with Tookan

Based on the above table, there are 3 dominant business models prevalent today:

I. The Order Only Model

This model was used by first generation of restaurant delivery services like JustEat, Grubhub, Delivery Hero etc. and focused on the first step: they act as a pure software layer that aggregates a fragmented offering of independent restaurants (mainly takeaways), which manage their own fleet of couriers.

These software-only marketplaces’ main selling point to restaurants is to bring a lot of new orders and replace their antiquated phone-ordering system with an optimised Web and mobile platform, that integrates with their kitchen workflow.

Order Allocation:

The technology used by such companies for receiving and communicating the order to the restaurant tends to work like this:

  • Consumer places order on the website
  • Restaurant receives order by fax (preferred by many) or email.
  • Restaurant notifies that order was received. There are several ways to do this. They can login to the website, call an automated telephone system, respond to a call from an automated telephone system and so on.
  • Companies might start sending orders into a web app or a native smartphone app.
  • In some cases, these companies integrate into the restaurant’s POS system and print the order directly into the kitchen. This is rare.

Delivery:

It varies but most often it’s one of two scenarios.

  1. A delivery driver employed by the restaurant
  2. A delivery driver employed by a restaurant delivery service like Straight 2 your Door.

grubhub app

Limitations: Their reliance on the restaurants’ own couriers mean that they are somewhat limited in their offering of cuisines and price points: they have become mainly associated in consumers’ mind with relatively low-end takeaway food (pizza, burgers, Chinese, sushi etc.). It also means that they cannot control and optimize the speed and quality of the delivery.

Advantages: As they don’t touch the food itself (neither cooking, nor delivering it), these platforms tend to charge a lowish fee of 10-15%. As any pure software business, they’re highly scalable and have all experienced remarkable growth.

II. The Order and Delivery Model

The up and coming restaurant marketplaces (Doordash, Deliveroo, Caviar), which developed in the previous two years, concentrate on step 1 and 3 of the procedure: they bring additional orders and requests to the eateries, manage the delivery for them, through their fleet of independent couriers connected by an Uber-like mobile app.

Order Allocation :

Ordering occurs at the app or website interface where the menu of a restaurant is uploaded. Sometimes, to help them pay the commission fee to the delivery service provider, the prices of items on the menu is marked up by the restaurants. The customers are also charged a flat fee for every restaurant where you place an order. When an order comes in, it is sent to the couriers closest to the pick-up location.

Delivery: When a courier is on duty, they are logged into their courier phone app which tracks their location. On receiving an order, couriers decide whether they can or cannot do the job. The first person to claim the job, takes the job. If no one takes the job, it will be sent out to even more couriers who may be further out or be denied. Each delivery helps them gather data that allows them to keep optimizing routes and pick-up/drop-off patterns, giving them an enormous technological advantage.

Limitations : These are software and logistics companies and have a very significant amount of operational work to do (couriers’ hiring and training, equipment maintenance, shift planning, etc.). These on-demand marketplaces are therefore not as easy to scale as the pure-software one.

Advantages : They benefit from stronger barriers to entry and scale advantage: it will be very hard for a new entrant to compete against these optimized networks of restaurants and couriers, once they will have reached maturity in a city. They also charge higher commission, 25-30% on average. Their prime feature is that they can offer a range of restaurants and price points that software-only marketplaces cannot.

Some startups crowdsource the cooking process wherein vetted home chefs provide home cooked meals. Businesses built on this model employ people to deliver food from the chef’s homes to drop-off locations.

III. The Fully Integrated Model

The third category of meal delivery startups, which includes Sprig, Maple and SpoonRocket have opted for a full integration of the process: they developed their own app through which consumers can order a limited range of meals, reheated in their own fleet of cars as orders come in (or delivered chilled in a refrigerated truck as is the case with Munchery), and delivered as fast as possible or within a time window stipulated by the customer (as they save on the kitchen preparation time). They trade choice for convenience and a highly curated experience.

These on demand businesses have hubs i.e kitchens that cater to the food orders of a particular area. There is usually a different menu everyday. There are two ways in which hubs are servicing right now:

Scheduled Delivery

The kitchen opens to receive orders for a particular duration, primarily for delivery scheduled later in the day. People can start ordering after they get a message that the kitchen is open. They can then specify a delivery window in which they’d like to receive the food. Munchery works on this model. It places its meals directly from its kitchen onto delivery trucks that get them to customers. However, it needs to plan very carefully for demand in order to avoid the waste that occurs if a meal is placed on a delivery truck but there isn’t enough demand, or more demand comes in than what a delivery truck serving a specific area has available. By allowing its customers to place pre-orders, it can predict demand accurately, manage supply accordingly, optimize delivery schedules, and reduce waste. They even have an order-on-the-go option for dinner. You can read more about How Munchery Works. 

Instant Delivery

The kitchen opens to receive orders after preparing meals. As orders are received for ready meals, delivery can be done almost instantly within a specified time. SpoonRocket works on this model. Packed meals are delivered within 15 minutes and are actually kept in heaters that are driven around in SpoonRocket-owned vehicles, making sure they’re delivered hot and fast to people who order them. You can read our interview with Spoon Rocket’s co-founders, Anson Tsui and Steven Hsiao. 

Allocation: The decision to allocate a particular order to a driver can happen in two ways:

Automatically – zero admin involvement  (assuming drivers have all meals available with them at all times)

  1. The order is automatically allocated to the nearest driver
  2. The order is automatically allocated to the driver in whose zone the customer lies

Manual – some admin involvement

  1. The order is routed through the admin to the driver closest to the customer
  2. The order is routed through the admin to the driver who has the packed meals requested for by the customer. This happens in case a driver rejects a request due to non availability of a meal.

Delivery: Delivery is through drivers employed by the company. Each driver is given a set number of packed meals and order requests are routed to each driver automatically/manually by the admin. Based on the following factors, a driver chooses where to deliver first :

  1. First Come, First Serve : Preference will go to the customers who ordered first.
  1. Location Based : Customer nearest to the driver will be serviced first.

If you wish to know more about which business model is preferable and more scalable, we recommend TechCrunch’s brilliant article called ‘The Billion Dollar Food Delivery Wars’ that you can read. If you’re aiming to build the next disruptive on demand food startup, get in touch with us! We can help you with our formidable technology expertise in the area.

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As the COVID-19 pandemic continues, smart organizations are getting creative and realigning marketing strategies to better suit the changing climate of business and grow their business post-pandemic. 

On a smaller scale, micro and small business owners continue to adopt new marketing practices in a bid to stand out in the tough economy. 

The pandemic forced consumer behavior to take a completely different turn. 

Similarly, It also had an impact on the way people treated their office work. Not to say, it has changed society and the way it went about its business. One of the most significant changes that we have experienced is the shift in consumers’ buying habits and how they would prefer the deliveries of their products. Gone are the days when the first preference of the consumers was to go out and have a lavish buffet. 

Today, people prefer sitting in the comfort of their sofas and having their food delivered on their doors with no contact whatsoever. The situation may change in the future, but it won’t unless the pandemic subsides. 

But it has also showcased the brands’ ability, including fierce competitors, to come together when the situation demands. For example, McDonald’s requested people to visit Burger King (its biggest competition) to ensure that they do a decent business

Delivery brands such as Zomato and Swiggy won hearts during the pandemic by adding groceries and other household items to their deliverables list. When people were unable to go out, these companies ensured that they had their needs fulfilled. 

Challenges Posed By Covid-19 Pandemic

Challenges Posed By Covid-19 Pandemic| Tookan

1. Money management 

By far, the most significant challenge for any business is money management. At any point in your company’s growth and development, you are likely to be faced with the question of where the next dollar is coming from. 

Challenges Posed By Covid-19 Pandemic | money management | Tookan

Whether you’re just starting out, scaling up, or running in the red, it’s important that your business can pay the bills and provide for its future. During this pandemic, the demand has decreased and operational costs have increased. Therefore, a cautionary word to business owners is that they must learn how to budget.

2. Adopting Digital Medium 

Before the pandemic, not every business had an online presence. However, COVID-19 has forced companies to adopt digital mediums to communicate with both their employees and customers. 

adopt digital medium post pandemic | Tookan

In order to grow your business post pandemic, you have to connect and engage with your target audience. You have to look at digital marketing tools such as a brand website, social media handles, chatbot, customer care support, 24/ 7 online availability, email marketing, newsletters, and lastly efficient online delivery of your products and services. 

Through digital marketing, brands can send timely updates to their customers and promote new products or features to keep customers interested. 

3. Maintaining work-life balance

maintain work-life balance | Tookan

The COVID-19 pandemic has brought in the “Work from Home” concept and forced companies to embrace this new method of working. The constant challenge for employees is to balance work and personal obligations. 

When a person is stressed or overburdened, their work performance and ability to make decisions can be affected. This results in them being less effective on the job and creates a burden that they are unable to manage. As people’s needs increase, it becomes more difficult to balance both work and personal responsibilities. 

Strategies To Grow Your Business

There are indefinite challenges being faced by almost every business in this world due to the ongoing pandemic. However, with changing times, companies need to change their strategies in order to stay ahead of the competition. 

It is important that businesses recognize and identify these challenges early in order to strategize and reevaluate other options. Let’s take a look at some strategies that can help you to grow your business.

1. Bringing A Full-fledged Digital Model

Your business has a portal or has tied up with the top delivery partners for its services. That’s great, but not enough. It i s imperative for companies to figure out all the feasible digital channels viable for their business. Utilizing advanced analytics and other available techs, such as satellite imaging, to develop a plethora of insights would be crucial for businesses in moving forward. 

2. Bringing A Rapid Growth Mindset

growth mindset to grow business | Tookan

Growth has taken a backseat for many businesses since last year. It has become about surviving challenging times to grow business post pandemic, but you can do better. Inculcate an agile mindset and augment accountability throughout the workforce. If feasible, undertake a weekly review model to ensure that everything is in sync. 

3. Utilize The Newer Delivery Models

new delivery models | Tookan

The pandemic has affected a lot of the existing supply chain models. It means that it is imperative for businesses to adapt and undertake collaborations that were previously not considered feasible. It also means that management will have to be innovative and gauge what can work for their business and not depend merely on the pre-COVID resources. 

The pandemic period has seen businesses work with utmost urgency and the output they could deliver was beyond their expectations. We saw many companies undertake social listening to understand the need of the hour and make changes to their business accordingly. It has enabled them to streamline their delivery department and several other processes across departments. 

Also, the sales team adopted a host of agile models that enabled them to solve problems faster. It paved the way for a clear growth plan and strategies to cater to different clients with improved clarity. 

If you want to survive the pandemic, you will have to adopt these models too. It includes the need to find innovative ways to incorporate urgent delivery tasks into existing workflows and finding alternate ways to utilize the available resources. 

new delivery model | Tookan

For example, Amazon undertook drone deliveries in several parts of the world. Swiggy started Swiggy Genie, a service that enabled its workforce to deliver documents, laundry, and other items from one location to another. Several other brands across the world have been innovative and used the newer delivery models to keep themselves relevant.

4. Bringing In Operational Transparency

Cloud computing has made available a lot of infrastructures “as-a-service” for the brands. But entities weren’t making the most of it until the pandemic arrived. It pushed them to convert their capital expenses into variable ones. But when they did so, it brought about improvements throughout their value chain, such as cutting down costs and improved management. 

Adopting digital technologies such as capital- spend diagnostics gave them insights into their cost model that was never available before. It encouraged them to undertake greater transparency in their operations and have a newer outlook towards spending. 

5. DEVELOPING OPERATIONAL RESILIENCE

Grow Your Business Post Pandemic| Tookan

Brands looking to survive the pandemic need to understand that operational resilience is one of the critical factors that would enable them to do so. It includes outsourcing tasks other than core competency, undertaking cross-training, and utilizing multiple sources. Also, the inculcation of newer technologies has improved insights into the regional advantages. It has allowed developing greater resilience towards potential future disruptions. 

6. AUGMENTING SUSTAINABILITY 

The pandemic saw massive shifts in customer behavior and the way they demand. For businesses to counter the platonic changes with ease, they will have to be sustainable and offer better value to the customer. It includes building a more interconnected but flexible workflow that would enable the workforce to adapt to the evolving customer behavior with utmost ease. An IBM report mentions that COVID-19 supercharged digital transformation by a stupendous 59%. It also led to businesses completing 66% of initiatives that previously suffered resistance. 

7. REIMAGINING DELIVERIES

Grow Your Business Post Pandemic | Tookan

Brands looking to survive the pandemic need to understand that operational resilience is one of the critical factors that would enable them to do so. It includes outsourcing tasks other than core competency, undertaking cross-training, and utilizing multiple sources. Also, the inculcation of newer technologies has improved insights into the regional advantages. It has allowed developing greater resilience towards potential future disruptions.

CONCLUSION

These are strategies for ensuring success for businesses during and post the COVID-19 pandemic. You could be the market leader if you learn from your mistakes and your competitors’ mistakes. 

Just use the right tools and technology for your business. So when you start a business and plan to expand it, just follow the steps and use the mentioned strategies and get ready to disrupt the industry. 

Apart from these, Tookan’s delivery management platform provides applications to make online delivery of your products and services more efficient, keep a real-time track of every task, broadcast messages to delivery agents and employees, advanced analytics reports to visualize the business performance, and many more. Providing the best services and a great experience is the only key to customer retention. 

So, have an edge in technology to deliver services in the promised time using Delivery Management Platforms.

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Buying stuff online is a passionate habit being developed by consumers considerably. Consumers nowadays prefer and spend most of their time browsing products online and making purchases for almost all basic and luxurious commodities from groceries to pieces of jewelry, etc.

While this fad of placing orders for products using smartphones and other means of technology is picking up pace, research shows that consumers find it useful to skip their trips down the liquor stores and rather order the exact preferred drink online.

alcohol delivery business

Infographic facts to boost your thoughts to move online

According to statistics released by the U.S. Department of Commerce, consumers spend around $54.1 billion on the purchase of alcoholic drinks.

Statistics of the alcohol industry in 2021:
  • There are nearly 10,000 wineries in the U.S. alone.
  • Total alcoholic beverages sales in the U.S. is $253 billion.
  • If we talk specifically about wine, the total retail value of wine sales in the U.S. is $68.1 billion.
  • Wine production in the U.S. amounts to 24.3 million hectoliters.
  • The average Year-over-Year (YoY) growth from 2014-2019 for the online alcohol delivery industry was 11.6%.
  • Total alcohol sales in COVID-19 lockdown has gone up by 58%.
  • Breaking down the stats: Wine was up by 39%; Beer 62.4%; and Liquor 59.5%.
  • If we see week-over-week growth in online alcohol sales, it’s approximately 234% since COVID-19 struck, compared to last year’s sales.
Direct-to-Consumer information:
  • Rabobank’s research shows that direct-to-consumer online alcohol sales reached $410 million in 2017, due in large part to wineries. As stated in BeverageDaily, “The winery tasting room remains the leading direct-to-consumer experience, and major wineries are upping their online retail game. The top 20 percent of wineries selling through their websites are responsible for 90 percent of revenue flowing through the channel, with an average order value of $363.”
  • Blurring the direct to consumer model are companies like Naked Wines and Winc, which operate as licensed wineries and fulfill deliveries across the United States.
alcohol delivery business

What delivery mode options are available for your on-demand delivery platform?

There are two delivery modes supporting your online alcohol delivery business through which you can provide ease to your customers:

  • Takeaway/Click and Collect: The customer can select and order the product from your store online but can collect it from your offline outlet. This model helps the customers to order & collect their drinks without waiting for the product to be picked and packed.
  • Home Delivery: This is where the customers can order liquor online and get the  delivery at home. There can be two segments in this model, one is same day delivery and the other is scheduled delivery, where the customers can select a preferred date and time to get their drinks delivered.

How to earn with an online alcohol delivery platform?

Here are some of the most lucrative sources of revenue for your alcohol delivery business:

  • Advertisements: Advertising is a major medium of earning revenue for any online platform. Businesses partner with other platforms or add discount and promotional banners within their marketplace to enjoy high traffic and escalate sales. This is a great way of generating revenue and improving product visibility.
  • Premium memberships: To earn a balanced revenue, businesses should emphasize on building repeat-customers so they continuously place orders. For that, offering premium memberships to customers as well as vendors is a good option for increasing revenue. Premium memberships can entail numerous benefits such as zero transaction fees, free delivery, some percentage off on all orders, etc.
  • Commission on every transaction: The most important source of revenue is by charging a commission on every transaction. The admin provides a platform for the liquor and wine via which the transactions can be completed. The business then can earn a commission for every transaction that is processed.

8 prime advantages of moving your alcohol delivery business online

  • Contactless orders: The COVID-19 pandemic has forced everyone to maintain social distancing and personal hygiene. From working from home, education and schooling on online apps to restriction in purchasing groceries and other items from malls or shops, it has made everyone’s lifestyle completely different. Let us accept the fact that the majority of the audience having fine access to technology and internet today, rely only on the on-demand delivery services to avail contactless orders.
  • Global Access: You can provide their products and services globally without having any kind of restrictions to serve only locally. The deliveries can be carried out 24 hours a day and 7 days a week as per the customizable schedule set by the businesses. Moreover, the alcohol sector is hot the whole year, thus seeking more demands.
  • Convenient Payments: You can make your customers pay the way they want to. Online payments or COD, allow your customers to pay as per their convenience. Online platforms would also allow you to facilitate cashless transactions and track daily transactions too.
  • Saving Consumer Time: Customers no need to stand in the queue and wait for their turn, thus saving a lot of their time. Now no more returning customers from your store due to a big line. Take in all customers orders without any loss and take your sales to an exponential number. 
  • Better ROI and Analysis: Online platforms come with a convenient piece of analytics section wherein you can easily access and analyse your customers, vendors, sales, orders, and many more. With graphs and tables, it makes it easy for businesses to compare the statistics and work on the gaps for improvements as and when required.
  • Stock & Inventory Management: You can efficiently manage your stock and inventory of the liquor you cater, thus reducing the manual work. The online system self-updates the inventory when an order is placed by the customer. You need not allocate humans to the systems to update each inch of information, let your online platform do that for you.
  • Effortless promotions: Businesses can earn maximum profits with potential & repeating customer base through multiple mediums like discounts, promo codes, liquor occasional sales, etc. This drives the customers more towards your online store, thus increasing profits in business.
  • Improved customer support: While giving the best liquor products to your customers, you surely want to have their feedback and even complaints entertained. The online platform makes it easier for you to check the customer queries and respond to them in very less time.

Know how Yelo can add value to your Business

A channel to fulfil your on-demand alcohol delivery demands: Yelo

As tech evolves, you’ll find more opportunities to add value to your audiences, like community building and community support. This isn’t an impossible feat, but it requires a conscious effort. And that is why Yelo is here for you. Yelo is a pre-managed hyperlocal marketplace development platform that gives you access to ready-to-use elements for creating your marketplace.

You may also like to read:

How to build an alcohol delivery app?

In technical terms, we will call Yelo a Software-as-a-Service (SaaS) system that allows users to create a new product using the SaaS’s abilities and features without writing even a single line of code, designing, and testing.

Yelo comes along with a variety of features that your online alcohol delivery business can incorporate. Some of them are:

  • Customized Web apps and Mobile apps for your customers: Customizable & fully responsive mobile-friendly website and apps for both iOS and android to facilitate customer ordering on the go. Option for beautiful themes for your platform helps you enhance the user experience even more.
  • Ratings and reviews: Build a reputation for your online marketplace using the rate and review system. Let your customers be the judge for your pest control service quality.
  • Advanced Search & Filters: Search by keywords, dates and categories. Filtering and sorting by price, name, and rating are also enabled.
  • Real-time tracking: Track real-time on map, Optimize routes and schedules and resource allocation in one centralized view.
  • 100+ payment gateways: From Paypal to Razorpay to Paytm, Yelo has integrated with over 100+ external payment gateways from around the world. Enable one or multiple payment gateways on your platform for your customer, as per the requirement.
  • Google Analytics: Google Analytics works with your online marketplace, so you can track bookings, visits, and referrals.

Discover top-notch features for launching your Direct to Consumer (D2C) brand for alcohol delivery business and selling products directly to your customers online. Book your 14 days free trial now!

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The Beginner's Guide to Start Your Online Marketplace Pick any business type. We cover them all. Manage online ordering, delivery and more from a ready-to-use platform – Yelo Download Free E-book
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Mental health is the use of mobile technology in the healthcare sector. This technology is implemented to improve communication between doctors and patients. It provides easy access to patient records, and monitor chronic disease without location being a constraint. An increasingly digital landscape and the COVID-19 pandemic have put the spotlight squarely on mental health. Most people are looking for cheaper and faster diagnosis and treatment and that’s exactly what mental brings to the table. But like any other emerging technology-based service, there are some challenges associated with mental health app development as well. Let’s look at the trends and challenges of mental health software development and how you can face them head-on.

Mental Health App Development

Mental Health App/Software Development Trends 2021

Here’s a deep dive into the technological trends in Mental health:

Artificial Intelligence:

In 2021, it’s safe to assume that AI will have a part to play in any new technology. In fact, according to a report by Accenture, healthcare ranks higher than other industries in terms of the use of artificial intelligence. Mental health apps and tracking devices gather patient data. But apart from that, it’s AI can process the data and analyze it to create actionable next steps. At present, artificial intelligence is aiding medical professionals in better managing huge blocks of medical data. In the future, AI is expected to help mental health apps diagnose patients based on their past medical records and present symptoms.

IOMT:

The Internet of Medical Things (IOMT) helps medical devices connect and share health data that is gathered from numerous tracking devices. With IOMT, doctors can monitor the health of patients remotely. And it is a life-saving option for patients who live in remote parts without access to proper healthcare. IOMT enabled medical devices can measure heart rate, glucose level, blood pressure, and much more. And it helps to give doctors a clear picture of the patient’s vitals. The number of IOMT devices is expected to witness a sharp jump to almost 30 million by 2021 as opposed to 4.5 billion in 2015.

Blockchain:

Blockchain is a way of recording information that makes it almost impossible to hack or alter. This technology has already been adopted by various industries, and healthcare is in on it too. According to a report, by 2026 the applications of the blockchain in the healthcare market are expected to be worth more than $5.5 million. Blockchain is of great advantage for the healthcare industry since it can help keep medical data secure and make sharing it safe. Since patient data is super confidential and the rising menace of cybersecurity, blockchain provides some sort of protection against data breaches. Blockchain is still being incorporated into the healthcare industry and the process won’t be quick. However, unlocking the blockchain’s potential for healthcare won’t be a quick process.

The Challenges of Mental Health Software Development

Like any other app or service that majorly utilizes technology, mental health apps also face their fair share of challenges. Here’s a look at some of the challenges of mental health software development:

Mental Health App Development

Outdated healthcare infrastructure:

One of the biggest potential challenges for mental health app development is the complex nature of healthcare infrastructure. nowadays, almost everyone from doctors and nurses to patients and caregivers owns a mobile phone. But mobile app adoption in the healthcare industry hasn’t been great due to implementation challenges. Since the healthcare IT infrastructure is already pretty complex with multiple systems, bringing in the additional complexity of mobility might make things more complicated. The only way to deal with this challenge is for the mental health app developer to examine the IT infrastructure of the implementation environment and then plan the switch accordingly.

Data safety concerns:

Data security, especially when it comes to patient records and data, is not just a regulatory requirement. It is also an ethical one. Healthcare organizations cannot take data security lightly. Especially when bringing in mental health app solutions increases the risk of data breaches. It’s a known fact that mobile healthcare solutions are more likely to experience data theft since the data is exchanged over wireless networks. For instance, if a doctor uses his mobile device to access or share confidential patient health data, a lack of proper security measures can cause the data to be leaked. To ensure the risk of data breaches is minimal, healthcare providers need to tie up with the best mental health app developer.

Multiple devices:

The healthcare space has recently been flooded with a wide range of new devices. It includes voice-enabled devices, smartphones, smart TVs, and more. Finding the right devices, and more importantly, ensuring the patients use the right device is of absolute importance. Then there’s also the issue of compatibility. For instance, a device that works in an android phone might not work on iOS devices. Mental health app developers need to ensure that there’s some semblance of uniformity when setting up an app for a healthcare provider.

Compliance issues:

One of the biggest challenges faced during mental health app development is complying with health care regulations. Each country has a unique set of compliances that need to be factored in when developing a Mental health app. For instance, if you’re launching an app for the US, you will need to comply with the PHI and HIPAA regulations. There are also CCPA, NIST, and GDPR rules that need to be factored in. For any healthcare organization looking to launch their Mental health software globally, following all these different rules and regulations becomes quite a challenge. This is where a healthcare software development platform like Panther can step in and help.

How to develop the best Software/App

Mental Health App Development

Developing an app from scratch is a big task, especially when it’s a mental health app. Panther can help you successfully launch a the same without investing a fortune and years of hard work. Panther is a health app development platform. Using which you can create a mental health app to take your health care services online. Some features that make Panther the go-to solution for mental health software development include:

  • With Panther’s mental health app development services, you can allow patients and doctors to book an appointment using the app. Once an appointment is booked, patients will get automated reminders to ensure they don’t miss the appointment. The app also enables doctors to manage appointments through a powerful scheduler.
  • Personalize your mental health software and make it your own with Panther. From the layout to the color scheme and text, you can choose every element of your app.
  • The biggest draw of using a mental health software is the voice and video calling feature that allows patients to connect with doctors irrespective of their location. Using the built-in call feature doctors can provide expert consultation on the app itself.
  • Panther’s mental health app makes tracking patient medical history through patient history much easier. You can also keep other team members in the loop regarding a patient’s condition via private notes.
  • With Panther’s mental health app, patients can ask questions and get recommendations from doctors at any time. The real-time chat feature is of great help to patients who tend to get anxious easily.

Partner with Panther and build your own mental health software. Get in touch with our team of experts and learn more about how we can help you create a mental health app that meets all your criteria and requirements.

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The companies are gradually shifting their focus from traditional business models to the D2C hyperlocal model. The rise in the popularity of direct sales is attributed to the increasing demand for low-cost goods. 

The market size for direct sales is projected to reach $1 trillion by 2022. The growth of e-commerce and social media is driving the D2C industry. Companies are increasingly adopting this model due to its low-cost benefits. Direct sales allow companies to reach out directly to customers.

Direct-to-consumer companies have been on the rise as of late, and many of the top brands in the world have shifted to this model. Some of the most popular companies in the world are direct-to-consumer businesses. 

Companies like Wayfair, Warby Parker, Dollar Shave Club, Domino’s, and Subway have been thriving since their launch, dealing directly with consumers to interact with customers more easily than before. 

Advantages of moving to Direct-to-consumer (D2C)

Besides the obvious benefit of earning higher margins, there are other notable benefits of selling D2C –

  • To gain a deeper knowledge of the customers 
  • Expanded Market Reach
  • Increased control over brand, product, and reputation
  • Omnichannel commerce
To gain a deeper knowledge of the customers 

Manufacturers rarely connected with the people who bought their products before D2C came around. Through this model, brands can interact with the customers at every stage of their sales funnel. In addition to this, brands can communicate effectively even after the sale of the product. Hence, allowing the companies to have a better understanding of their target market.

Expanded Market Reach

With D2C, brands can mitigate the risks by allowing them to launch a new innovative product on a smaller scale. DTC brands can develop a specific product, test it within a very tight demographic, and then get their feedback. This enables large manufacturing firms to understand what their customers love and hate about the product so they can make the required adjustments where appropriate.

Increased control over brand, product, and reputation

DTC brands can have transparency with the customers but can even hold on to the reputation, brand image, and product. Companies maintain complete control over their brand from the moment a customer makes their initial engagement right up until the product has been purchased.

Omnichannel commerce

Another benefit of selling direct-to-consumer is the potential of omnichannel delivery. A headless commerce platform can be used by brands to set up their online store. Customers will be able to browse and purchase across multiple channels and choose from a variety of delivery options as a result of this.

Importance of launching a hyperlocal marketplace

The hyperlocal marketplace is a marketplace that caters to the demands of a small geographic area. Going hyperlocal is the last thing you’ll say no to in 2020-21. The near-me hyperlocal business appears to be both cost-effective and convenient. The geo-location facility, on-time delivery, safety, and convenience are all crucial components in the hyperlocal marketplace’s success. 

We are aware of the situation and are experiencing difficulties as a result of the COVID-19 outbreak. Life is finally getting back on track, and the demand for home delivery is increasing. In a matter of minutes, hyperlocal marketplace enterprises provide home delivery services in the nearby region or zones.

It is widely popular since it connects customers with sellers who are located near them. It interprets the customer’s desire to be well served. Within a few hours, they have their product or service ordered.

Know how Yelo can add value to your Business

Satisfaction comes with minimal work and expense. On the other hand, merchants find it quite simple to cater to and deliver a consumer who lives close by. Merchants are aware of their customers’ aesthetic preferences and can tailor their business models accordingly. At the end of the day, both the aggregator and the merchant save money, making this a win-win strategy for both.

Hence, Hyperlocal marketplaces are an excellent way to broaden your reach inside a small geographic area. You can work with local shop owners and small e-commerce companies to make things more accessible to your target market.

Recent trends in the hyperlocal space

As we all are aware of some major industries dominating the hyperlocal space like food and grocery delivery, hospitality services, logistics, healthcare services, and more. Brands in this space have introduced some innovative ways to market their products and services. 

Tagging up with innovation has become ideal as the young entrepreneurs entering the market are always bringing something new to the table. For instance, in grocery delivery, there’s been an introduction of the 15-minute grocery delivery service.

A company offering 15-minute delivery rather than two-hour or next-day service could attract significant attention from shoppers looking to make fill-in trips online. Companies like Weezy, Fridge No More, Joker have been advertising themselves as the 15-minute grocery delivery business.

The micro fulfillment centers have made it possible for these companies to come closer to the consumers and delivery faster and more efficiently.

How to build your Dierct-to-consumer stack or a hyperlocal marketplace

The demand for streamlining your digital with a powerful platform that facilitates direct-to-consumer sales has been increased lately. So why fall behind, have your hyperlocal marketplace today and step in the game with your innovative ideas and drive the shift in the industry.

With Yelo, allow your brand to reach out to the customer with a more personalized touch. The platform offers detailed features like managing multiple branches, geo-fencing & location tracking, and improved brand visibility. Go D2C with Yelo and add a new distribution channel for your brand.

Direct-to-consumer

Not just that, Yelo can even assist in leveraging a business with a hyperlocal marketplace platform with a focus on the right target audience and ensuring on-time delivery. 

Hyperlocal Marketplace

Now, since traditional commerce is going out of business because of its limitations to develop and customize, headless commerce has emerged as the need for young businesses today. 

Yelo Headless Commerce

With Yelo, you can now scale your business with a focus on an event-driven platform, where you can build your front-end with limitless customization.

Benefits offered by Yelo

Enhanced Customer Experience

Yelo provides a mobile-friendly website as well as specific Android and iOS apps for your marketplace to improve the client experience.

Bots and live chat are available to assist your suppliers 24 hours a day, seven days a week.

You can track the end user’s position and present their products depending on it thanks to geofencing.

In the marketplace, end users can search by keywords, dates, and categories. They have the option of sorting by price, name, and rating.

You’ll also get access to a thorough rating and review system for keeping track of what customers have to say about the product.

You can make your marketplace look premium and world-class with a variety of free themes.

Improved Operations

Your merchants will be able to quickly fulfill orders, manage inventory, and update their store using Yelo’s merchant apps.

To ensure that the product is delivered on time, Yelo offers real-time tracking and the ability to control routes and schedules all in one spot.

In a flash, you can manage your meta-tags, visible sitemap, and robots.txt files.

We will regularly check your websites to ensure that there are no outages in the hosting.

No limits will be placed on the number of users, traffic, listings, or images.

Better Security

Yelo provided you with a marketplace where you may choose your merchants solely by invitation to make your marketplace a safe environment for end-users.

We will also provide you with an SSL certificate to protect your information and client data.

Conclusion

It is the right time for you to step into the game and have your hyperlocal marketplace where you can go direct-to-consumer for a more personalized buying experience for the customers.

We understand the importance of money and want to provide consumers with a free taste of our great services. As a result, we’re providing a 14-day free trial pack to all of our clients. Click here to sign up for a 14-day trial pack.

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Introduction

Groceries are one of the most important aspects of a healthy lifestyle, and yet it’s still incredibly difficult to eat healthily. You can’t cook if you don’t have ingredients, so grocery shopping is an essential aspect of life. That doesn’t mean that it has to be a chore. Many grocery delivery services make life a lot easier. It’s time-consuming and expensive — both in terms of money and time. A 15-minute grocery delivery service could be the solution to your dinner dilemmas. 

Millions of shoppers have become used to the world of online grocery delivery since the coronavirus outbreak erupted in March.

According to data by Brick Meets Click and ShopperKit, around 40 million Americans, or 31% of all U.S. households, used online grocery delivery or pickup in March, with 26% of those using the services for the first time. The surge in demand for delivery services has created room for new entrants such as Weezy, Fridge No More, Gorillas, and Jokr.

15 minute grocery delivery

A company offering 15-minute grocery delivery rather than two-hour or next-day service could get a lot of attention from shoppers trying to make quick journeys to shop online.

According to data, for shoppers deciding whether to use an online delivery service, various product brands are less important than delivery speed.

Redefining grocery delivery with super fast service

In the grocery delivery game, fifteen minutes appears to be the new hour. 

The New York startup –  Fridge No More has recently closed a $15.4 million funding. 

JOKR launching in the USA and expanding its reach to seven countries, Weezy in the UK specializing in speedy grocery delivery, Gorillas in Germany, and many more brands are now stepping in the faster grocery delivery game.

Most of these brands operate small, hyperlocal delivery-only grocery stores within a limited region to serve. Thanks to the network of micro fulfillment centers that are nestled within the neighborhood. 

Each of the brand’s micro fulfillment centers—also known as “dark stores” because they aren’t open to in-person shoppers—has between 2,000 and 3,000 different SKUs and can deliver to any place within an eight-minute e-bike ride of the hub.

Within two minutes of receiving an order, “pickers” in the stores try to have products available for riders. Riders then pick them up and ride out on their e-bikes to deliver the order within 15 minutes of receiving it.

Each store’s delivery radius is about one mile, and it’s done by actual store personnel on a scooter or bike. Orders are placed through an iOS or Android app and are manually chosen, packed, and delivered to customers within fifteen minutes.

Advantages to the companies 

There is free delivery and no minimum orders in addition to the super-fast service. This helps companies to attract customers and gain more confidence in them. 

Working directly with wholesalers and producers, the company can avoid those fees by purchasing things for its fulfillment centers directly, bypassing the supermarket intermediary that is often responsible for those fees on other delivery apps.

Because dark stores (or micro fulfillment centers) do not serve in-person customers, they can be stashed away in less expensive places such as basements or other strange spaces. There is no checkout to set up, and no cashiers to pay.

Another advantage of smaller stores is that the inventory can be tailored to the specific needs of the area or that particular neighborhood. The business does not need to stock everything; instead, it can determine which items sell the most and carry them.

The Future

Investors have shown a lot of interest in the online grocery business this year. Around the world, online grocery companies are generating a lot of money. 

The pandemic, as we’ve already discussed, is a major reason for this, as it forced many people to switch from in-person shopping to more contactless online grocery shopping. With online grocery sales expected to exceed $250 billion by 2025

A Different Pitch

One aspect worth noting is that how these companies are pitching this new idea. Companies like Fridge No More, with a clear suggestion for people not to use their fridge as groceries, are now delivered within 15 minutes. 

The whole concept talks about how grocery delivery will be revolutionized and how people can ditch their fridges as day-to-day items are readily available. Additionally, these items are promised to be delivered within minutes.

What will happen to grocery shopping if these types of super-fast grocery services become popular? (at least in urban areas where a one-mile delivery radius contains a ton of business).

These brands are spreading out throughout the globe, people may start stocking up on less and just have speedy delivery on speed dial. This might also lead to people preferring to order multiple items if they forgot or suddenly need something.

No Fridge Concept

How you can have your own 15-minute grocery delivery service 

It’s no surprise that online grocery businesses are booming. Last year, the pandemic drove a record number of people to purchase groceries online. Moreover, companies stepping in with such convenient options for the consumers will hopefully build more loyalty as the whole sector grows.

This would be a good moment for you to start your grocery delivery service based on the circumstances. The emerging trend in the grocery delivery market is to see how a company can make its customers’ lives easier.

It’s your time to jump in the game and provide convenience to your community.

But how can you ace this opportunity?

Yelo is here to help you build your 15-minute grocery delivery service!

How Yelo helps in building your grocery delivery platform

Yelo is an online marketplace builder solution that enables users to create and manage their direct-to-consumer virtual market. It is built to support all types of marketplaces, such as rentals, professional services, and hyperlocal among others.

Yelo provides the best solutions to build your customizable delivery platform.

Some of the solutions offered by YELO to help you build a powerful grocery delivery platform –

Web and Native apps

Get an app that will be fully customizable and user-responsive including a native app for both ios and android for improved customer experience.

Customer App

Customer-friendly user app which allows them to access all the features including user profile, social signups, browse products, chatbot support, real-time tracking, easy payment options, and many more.

Merchant App

Merchants can manage their inventory, catalog, manage customers and more things in one go with the merchant app

Ordering Dashboard

Customizable dashboards include order management, inventory management, and overall access control to all the features.

Customizable UI/UX

You can design your pages according to your brand style with the thousands of theme options available and fully customizable.

Delivery Management

This feature ensures on-time delivery while navigating multiple destinations including route optimization, real-time tracking, & more.

Multiple Integrations

Increase your grocery business efficiency with 100+ integrations and seamless experience.

Multiple payment gateways

This feature provides a smooth payment experience to your customers offering integrated multiple payment gateways with your websites, as per your currency and facilitating speedy payments.

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Real-time notifications and alerts

It is a great feature to keep your customer updated about all discounts and offers, thus helps in increasing customer engagement and retention.


Advanced analytics

You can generate multi-customized reports of all the data as per your preferences with the advanced analytics feature of Yelo

Geotracking

For every grocery delivery app functionality is very important and it is a very useful feature for drivers to locate routes to ensure promised delivery time.

Inventory management

Efficiently and accurately manage your inventory. Never run out on products on demand – set up in a few clicks.

What value does Yelo add for the customers?

Your customers can start the journey with you in 3 easy steps:

Step1:- Browse the menu and choose the products

Step2:- Customers orders will be immediately collected while ensuring 15 minutes delivery

Step3:- Order ready at the comfort of the home

Doesn’t it seem like a hassle-free process for your customers?

Are you looking to acquire new customers and retain them by providing them with a seamless experience?

So If you are planning to start with a trusted name in the market, don’t forget to connect with our experts at YELO.

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online delivery business | tookan: jungleworks

Starting an online delivery business requires analytical thinking, determination, and detailed record-keeping. You have to have a keen awareness of your competition and look upon their improvement or changes in the successful tactics. 

Generating new business ideas and building customer trust is important for your business’ success. Providing good service to your customer is crucial to gaining their loyalty and retaining their business.

Prioritizing the growth of your business is one of the best ways to increase the chances that your company will not only last but also contribute to your economic well-being and a stable financial future. Business priorities can change as per the requirement, priorities can also be changeable daily depending on how fast-paced your industry is. 

You need to adhere to it and always look for ways to improve your business, by optimizing your resources and time in the right direction. The online platform has enabled businesses to expand it. Online shops or marketplaces such as Google Shopping, Amazon, eBay are currently one of the leading sites in terms of online shopping with their great strategy and services.

online delivery business | tookan: jungleworks

Do A Thorough Research

online delivery business | thorough research | tookan: jungleworks

Research is the first step to growth. You need to have keen and proper research for your business. Your research must include all the factors related to your business. It helps in acquiring detailed information about the areas of business. With the use of such information, one can use it to maximize the sales and profit for the business. The clear and specific research allows one to be aware of the dimensions. The 3 main research before starting your business you need to have are: 

1. Research On Market

online delivery business | market research | tookan: jungleworks

Research into industry and market factors should consider information about any political, legal, economic, environmental, social, and cultural issues or trends that can affect your business. Before planning you need to identify the market structure. The basic points to be included while researching the market are about the demand and supply for the product you are dealing with. What is the prevailing price of it!

And how is the market affected during seasons or trends? Industry and market environment research might cover business regulations, market demographics, its size and trends, and marketing channels. 

2. Research On Competitors

online delivery business | competition research | tookan: jungleworks

After the market research here comes the research over your competitors. Knowing what your competitors are, and what they are offering, can help you to make your products, services, and marketing stand out.

It will help you to highlight your flaws, enable you to improve your better customer experience, and also help you to strengthen your USPs. Research on your competitors includes: identify the strategy and promotional tools used by them to promote or expand their business. What makes them different from other competitors? What sort of strategy are they using for their promotions or applying for successful business tactics?

3. Research On Consumers

online delivery business | customer research | tookan: jungleworks

It helps businesses or organizations to understand customer psychology and create detailed purchasing behavior profiles. An organization that has an in-depth understanding of the customer decision-making process is most likely to design a product, and tag a price related to it and promote a product based on consumer research insights.

To have research you need to do thorough research over what are their needs, what they expect from the business, who are the targeted or right customers?

Steps To Follow To Make Your Online Delivery Business Successful

online delivery business | tookan: jungleworks

1. Identify The New Opportunities 

Analyze new opportunities in your business by understanding your demographic better. Understand everything from distribution channels to your direct competitors and even an analysis of foreign markets and other potential industries. There are likely dozens of new opportunities you could pursue immediately with the proper amount of analysis. To understand those you need to have proper data analyzed.

First, you need to have a clear measurement over a list of your priorities. What you need to measure is short-term data or long-term data.

After this, you need to ensure what measure you need to use for your analysis, i.e. either it can be measured by the survey, questionnaire, or feedback. Every sort of measurement technique will help you to identify the need and demand currently in the market.

2. Promote Your Business Online 

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E-commerce has affected the business and led to their development. In contrast to that, promoting your business online will help in the expansion of your business, as many customers want to enquire about the product at just their fingertips. 

To promote your business online: 

  • Use local listing services. 
  • Embrace yourself on social media. 
  • Use blogs for promoting your products . 
  • Release press, or use multi-media for promoting. 

Also Read: A Guide To Integrate Tookan With Your Shopify for Smart Delivery Management

3. Design The App And Promote It 

design and promote the app | tookan: jungleworks

Build an app for your business. Make sure you capture your business scene with a unique and attractive theme. Try to portray your products and services in a manner in which everyone understands them easily. After the development of the app, you shall promote it using various promotional techniques (which are more effective these days).

For example, you can engage with your customers through both organic and paid mediums of marketing. Start interacting with your target audience through social media platforms such as Facebook, Instagram, and Twitter. You can also start sending newsletters & updates to your customers via email.

As for paid mediums of marketing, Facebook Ads and Google Ads can help you capture a larger customer base.

4. Add Extra And Unique Features 

Being innovative and creative can distinguish you from others. To engage your customers you can add some extra and engaging features on the app as well add some unique facilities to gain uniqueness in the market.

You can add chatbots in your app to feature it differently. Feature your delivery with attractive and safe packaging. Allow your consumers to know about the best product. Treat them with some pleasant small thanking gifts for using your products/services. Try to make your product pocket-friendly to the customers than other competitors.

5. Form Strategic Partnerships 

form strategic partnership | tookan: jungleworks

Strategic partnerships with the right companies can truly make a world of difference. It could allow you to reach a wide swath of customers quickly. Identifying those partnerships might be easier said than done. But, look out for companies that are complementary to your own. Contact them and propose opportunities for working together.

It will help you to strengthen and accomplish better fame in the market which is necessary for operating a long-term business. Overall, it will also help you to deal with and understand the customers with mutual partnership understanding.

6. Value Your Customers Transparency 

Customers are the actual money. To increase or operate in the business for the long term you need to value them more than your money. Try to be customer-oriented rather than money-oriented. Do value and respect their thoughts and ideology. Respect and welcome their reviews for your company.

Do try to come over your flaws and serve them with better facilities, and ask them to rate over facilities, it will help you maintain your fame. Also, be customer friendly, try to enlarge your bond with the customers by respecting their demands and thoughts. 

7. Promote Your Business Worldwide 

online delivery business | promote it worldwide | tookan: jungleworks

Promote your business worldwide means developing and trying to cross the boundaries and serve the customers. Promoting on global platforms will help you to grow your business. Strategizing your business across the boundaries will help you to capture fame as well as good turnover all over the business.

Well, talking about the worldwide promotion we cannot avoid Amazon, which is continuously becoming one of the online services worldwide. 

8. Customize Your Business With Diversification 

online delivery business | tookan: jungleworks

Look into diversifying your offers. What complementary products or services or information can you offer in your business? To grow, you need to think about expansion. Identify new opportunities within your niche. Try to optimize your old products with the introduction of new products.

Try to promote your products by referring as samples with your products and promoting it using various tools. You can simplify your strategy as large organizations such as Samsung, Apple, LG are working with diversification.

Conclusion 

These are the strategies for ensuring success for your online businesses. You could be the market leader if you learn to identify and attain the opportunities. Using the right tools and technology for your business can help you to work in an optimized way.

So when you start a business and plan to expand it, just follow the steps and use the mentioned strategies and get ready to disrupt the industry.

Apart from these, Tookan’s delivery management platform provides applications to make online delivery of your products and services more efficient, keep a real-time track of every task, broadcast messages to delivery agents and employees, advanced analytics reports to visualize the business performance, and many more.

With effective service and innovation, you can become a market leader. Tookan helps you with the advanced delivery facilities. 

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“Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.”

– Chip Bell

Direct-To-Consumer vector

Every business has a common goal: sustainability and growth.

To achieve this goal, brands must look back and reassess their strategies after a while.

A fundamental principle of business is that it must be dynamic. I.e., change their approach from time to time to adapt to the changing needs and wants of the customer. Customers genuinely decide if a business will succeed.

When talking about reaching out to customers and adapting to their needs, one thing has caused a frenzy in today’s market.

Selling Direct-To-Consumer through Hyperlocal.

Let’s break down the term and understand what the business model is all about.

What is a Direct-To-Consumer (D2C) Model?

Direct-to-consumer (DTC) marketing refers to selling products directly to customers without the use of third-party retailers, wholesalers, or other intermediaries.

D2C infoprahic

In a direct-to-consumer (D2C) model, any seller or producer who wants to sell their items directly to their customers can create an online platform. They can promote it on various social media platforms, bypassing the middleman.

What is a Hyperlocal business?

A hyperlocal business in its true meaning is going local in your industry. 

In straightforward terms, Hyperlocal business can be defined as an online business that caters to the on-demand needs of its customers by supplying them through local offline stores, mediated through an online platform.

Industries such as food, grocery, laundry are just some examples that fall under a large umbrella that can easily cater using this business model.

Availability of features such as geo-mapping added to the current conditions with the pandemic has created a pathway for this business model to expand rapidly. 

Understanding Direct-To-Customer through hyperlocal business model

From a customer perspective

During the pandemic, there has been a 360-degree shift in the customer’s buying persona. Customers who earlier relied on physical stores to get products quickly are now more inclined to go for e-commerce shopping. It offers them an opportunity to procure their required supplies from the safety of their homes.

Along with this, customers don’t want traditional e-commerce delivery times of a few days when they have an option to get something delivered in a few hours or even minutes.

A hyperlocal D2C business model is catering to precisely these needs by delivering goods to the consumer in a short period.

From a business perspective

Brands in today’s time need to go ahead and grasp as many opportunities as they can to generate revenue. The hyperlocal marketplace provides enormous scope to capture these. to the companies due to its advantages. 

Advantages of selling D2C

  • A greater understanding of consumer preference 

D2C has provided a way for manufacturers to understand what the preference of the customers is direct. When brands sell directly-to-consumer, they get a direct response. As a result, that information can be used to focus and improve on their existing services.

  • Increased control over brand image

When selling D2C, brands have a greater degree of control over their products and their selling methods. Instead of selling through an aggregator, when a brand sells through their platform, they are free from any constraints that the aggregators might have put forward.

  • Strengthened brand loyalty

If a consumer buys from a D2C channel compared to an aggregator, it shows a strong brand loyalty from the customers. A purchase generated through a third-party platform can also be because the buyer is a customer of the selling platform rather than the actual brand itself. But when that purchase is made through a brand’s D2C platform, the buyer is undoubtedly loyal to the brand.

  • Greater profit margin

By selling D2C, brands eliminate intermediaries in the supply chain as they are directly selling to customers. This allows brands to enjoy a more significant profit margin as the cost of having a middleman is eliminated.

It is time to leverage the benefits of the D2C model with your business plan and mark the golden beginning of your success. 

Let’s understand this better with an example.

Direct-To-Consumer transaction vector

Dominos – An Example Of Selling Direct-To-Consumer through Hyperlocal

Dominos is a perfect example of selling Directly-To-Consumer through hyperlocal.

It has a delivery platform in place through which caters to its customers. Apart from this, Dominos also takes orders through third-party platforms. 

The critical difference between the two is that Dominos always provides more discounts on their platforms than the other platforms. The reason behind this is that they enjoy a more significant profit margin when selling Directly-To-Customers and, as a result, can afford to give more discounts.

They take orders through their platform and then further direct that order to their nearest outlet. By doing so, they are delivering on a hyperlocal platform, creating the ideal D2C through the hyperlocal business model.

Conclusion

To sum it up. 

The D2C business model has taken the market by storm and is here to stay. By focusing on Direct-To-Customer through hyperlocal, brands can take advantage of this new sector that has come up.

 The amplified ROI of the D2C Business model with an average of $100 million in the previous year is quite fascinating. Remember, last year was the year where the world witnessed the dark chapter of economic stepping down. The Direct-To-Consumer future looks strong and bright as significant giants are entering the game.

If you want to build a Direct-To-Consumer through hyperlocal business model, then check out Yelo!

The best timing is to strike when the iron is hot! If there are any questions or apprehensions, please jump on a virtual coffee meeting with us. Let our experts help you address your concerns swiftly to make the most out of this opportunity.

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The direct-to-consumer or D2C delivery allows businesses to operate and help the customers directly by eliminating the old retail chain. This model is beneficial to the manufacturers as well as customers as it reduces costs.

With a D2C model, industries can make more profits and identify opportunities to grow their business. Moreover, industries from every niche can help their customers with the latest collection and build direct relationships with them. 

Businesses working with the older retail chain as well as using 3PL providers for customer service need to diversify themselves to have a niche in the market.  

It has been witnessed that businesses that aim to grow with success need to have direct customer interaction. It not only paves the way to grow your business but also helps you to work towards success. 

Direct customer interaction starts with your self-delivery procedure. So, to build a good customer relationship firstly you need to invest in your delivery. 

Why do you need to invest in D2C delivery? 

D2C delivery | Tookan: Jungleworks

Self-delivery will help you to understand the demand of the market faster as well as being more beneficial for you. The list of benefits associated with it are mentally below: 

Good customer experience

D2C delivery | Tookan: Jungleworks

Companies working with 3PL providers or using a retail chain cannot have direct interaction with the customers. To build a great customer experience you need to facilitate your business with a self-delivery facility along with the 3PL companies.

Good customer experience allows you to build great bonds 

Fast delivery service allows you to not only have a good customer experience but also build a direct business-to-consumer relationship. It not only strengthens your fame in the market but also allows help to gather customers. 

Good control over your service

D2C strategy has allowed businesses to have solo control over their business. Businesses have been facilitated to serve their customers in their best way and exclude any extra cost. 

Allows to have independency

D2C delivery | Tookan: Jungleworks

You don’t have to depend on others to provide your service to customers with d2c delivery. You can easily serve your customers as you prefer and choose to. It allows you to have proper control over service as well in return for happy customers too. 

Remove extra cost

Using a 3PL strategy for your business can be costlier for you. In the beginning, it might be good for you but once you start scaling, the cost can be a major concern. Self-customer service can help you to remove the unwanted cost. 

Reach out to every customer

Not every location is covered by the 3PL service, self delivery could help you to reach the customer and also to build a great bond with them. 

Easily strategize and plan future needs

D2C delivery | Tookan: Jungleworks

Direct customer interaction helps you to understand the customer’s needs, wants, and what are their expectations, etc. Such information helps you to understand and strategize your business plan for the future accordingly. These strategies help you to grow in the market.

I hope now it’s clear for you that for the growth and success of your business you need to have a self-delivery service too along with the old working strategy. 

Moving forward, you can hire the service of Tookan for your self-delivery service. Tookan’s delivery management platform provides applications to make online delivery of your products and services more efficient, keep a real-time track of every task, broadcast messages to delivery agents and employees, advanced analytics reports to visualize the business performance, and many more. 

Conclusion

Providing the best services and a great experience is the only key to customer retention. So, have an edge in technology to deliver services in the promised time using Delivery Management Platforms and enhance your business efficiency. Summarising it here, do let me know if you have any queries. Pen it down in the comment section below.

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Imagine it’s late in the evening and you are relishing a great time with your friends and family when suddenly, you run out of your favorite bottle of whiskey, wine, or beer. So what do you do? Rush to your nearest or even farthest liquor store in between all those gatherings to purchase a new stock? Well, not necessarily, if you have an alcohol delivery app.

alcohol delivery app

In today’s technologically advanced era, we have an app for everything. Right from booking a cab to ordering your favorite food or even delivering your parcel from one location to another, everything can be done with just a few taps. So why not have a mobile app for liquor delivery as well? After all, the liquor industry is one of the greatest markets in the world, with a revenue of US$ 249,088m in 2021.

Understanding alcohol delivery business:

3 reasons to move online with your alcohol delivery business

  • The COVID-19 pandemic has forced everyone to maintain social distancing and personal hygiene. From working from home, education and schooling on online apps to restriction in purchasing groceries and other items from malls or shops, it has made our lifestyle completely different. Let us accept the fact that the majority of the audience having fine access to technology and internet today, rely only on the on-demand delivery services and that is the reason why there is a huge demand & customer base for such apps. This has also made the existence of on-demand alcohol delivery apps in trend. 
  • Clearly, our weekend seems incomplete without a bottle of beer or whisky or dinner seems undone without a perfect wine. But during the ongoing lockdowns, it seems a threatening activity to get a liquor bottle from a store. This is where the online alcohol delivery apps come to rescue.
  • The demand for online liquor stores has surged immensely for a few months as they meet the demand of the people instantly and deliver at the doorsteps.

Why Invest in Alcohol Delivery App Development?

The worldwide alcoholic beverages market was valued at $1,439 billion in 2017. And this is projected to reach $1,684 billion by 2025, documenting a CAGR of 2.0% from 2018 to 2025. This growth is primarily driven by the surge in the global young-adult demographic, and a hike in consumer demand for premium products.

The same reasons have contributed to a huge surge in the Indian alcohol market. The Indian Made Foreign Liquor (IMFL) segment is estimated to be valued at over INR 3,000 billion by the end of 2026, expanding at a CAGR of 5.2%.

The above-mentioned statistics show that India is an ideal market for generating high revenue growth for alcohol. This has made the on-demand alcohol delivery app model a highly profitable venture.

alcohol delivery app

Insights into a few alcohol delivery apps already into action

  • Drizly: Drizly is an alcohol e-commerce platform that facilitates the delivery of alcohol. Drizly lets users order a variety of beer, wine, and spirits directly from local retailers to their location through a mobile app or website.
  • Minibar Delivery: Minibar Delivery is an online alcohol service based in New York City, offering on-demand delivery in over 50 American cities and shipping to 40 states. It was founded in 2014 by Lara Crystal and Lindsey Andrews.
  • Swill: Swill is an online delivery platform that enables its users to find and buy from among a range of alcohol products.
  • Flaviar: Flaviar, a spirits tasting club, offers a subscription service that helps members discover new liquor products through sample tasting packs.
  • Caskers: Caskers helps its users discover craft spirits that aren’t available at local liquor stores.

Benefits of online alcohol delivery app

Customers:

  • Enables customers to refill their favorite brands & bottles easily.
  • No need to step outside the house. Choose the best store and order the favorite drink quickly.
  • Wide range of options to choose from.
  • Eases to avail extensive discounts and offers which can help them save a lot on their expenses.
  • Order drinks anytime and anywhere, which is not feasible in the offline mode.
  • No need to stand in the queue and wait for the turn, thus saving a lot of time.
  • Online payments or COD, pay as per convenience. 

Business:

  • Earn maximum profits with potential & repeating customer base. 
  • Maximize revenues with an excellent set of features that these apps offer.
  • Manage and attract more customers to increase sales.
  • Efficient stock management, thus reducing manual work.
  • Provides with better ROI.
  • Facilitates cashless transactions and track daily transactions too.

3 Challenges in building an alcohol delivery app

  • Heavy dependency of the government policies sometimes on liquor results in steady income.
  • Selling alcoholic beverages to minors. According to the Washington Post, Uber Eats and their drivers have been delivering cocktails and alcohol without ID’ing or even seeing the customer first, which is critical.
  • Convincing buyers to purchase alcoholic beverages without tasting them.
alcohol delivery app

How COVID-19 affected on-demand liquor delivery?

The internet and online revolution have never been more powerful than during the coronavirus pandemic. As the world went into lockdown, a majority of customers logged online generating a huge expansion in the e-commerce alcohol sector.

According to reports, the e-commerce liquor sales in the U.S. documented a steady increase of 291% for March last year and a further increase of 387% for April last year. Additionally, one of the leading alcohol delivery services in the U.S. Drizly accounted for a big leap in sales for March last year. By April last year, the company witnessed a 550% increase over baseline.

Major features of an online alcohol delivery app

Customer App:

  • Login: Find the top quality drinks and deals on them by simply registering to the app.
  • Liquor listing: After registration, customers can view all the listed drinks from the nearby shops. View the price and get details on the drinks.
  • Apply filters: Customers get filters option in the app making purchases easier. The filters offer different categories of liquor, price point, drink customer ratings, etc.
  • Place orders: When you’ve finished choosing your drink, you can place the order for them.
  • Track order: Once you’ve placed your order, the app will also show an estimated delivery time like any other delivery service app. With this feature, get the order status such as order accepted, on way, arrived, etc.
  • Cashless payment: The app supports different transaction models like credit/debit card, net banking, and many payment gateways.
  • Order history: Sometimes, you would like to have the same drink you had last night or last week. With the order history feature, you can view previous orders and repeat orders with one tap or click.
  • Product review & feedback: Customers can share their reviews for the alcohol stores or delivery agents.

Store App & Dashboard Panel:

  • Login: The alcohol store will register as a stakeholder on the platform.
  • Manage Drink Categories: The liquor store owner can list their drinks into categories such as wine, beer, whiskey, breezers, etc.
  • Manage Drinks & Snacks: Some stores also offer complimentary snacks and additional items with the drinks. With this feature, the owner can list such add-ons for the customers allowing them to order easily.
  • Manage Prices: A liquor shop owner will be the one who manages the price details for the products.
  • View Ratings & Reviews: The alcohol shop owner can see the ratings and reviews given by the user and bring in necessary changes according to their honest reviews.
  • Manage Earnings: The liquor shop owner analyzes the monthly or weekly earnings through the app and can manage the profits and costs within the platform.

Know how Yelo can add value to your Business

Admin Panel:

  • Admin Login: The main business owner can log in to their super admin panel. With this super dashboard, the admin can view the entire business and channel of the working.
  • Manage Payments: The main admin manages and monitors all the payments and transactions done by the customers and manages store commissions.
  • Order Management: The admin can monitor and control all the assigned orders along with their status and details.
  • Settings: Admin manages all the related apps settings such as updating the prices, allowing/blocking a store owner, product listing, etc. within the main admin panel.
  • Marketing Management: The admin can also manage the complete marketing process like advertisements, email templates, app banners, and promotional campaigns for the app and the vendors (alcohol store owners) from within the admin panel.
  • Real-Time Analytics: The panel allows the super admin to view real-time statistics of various factors. It also provides reports on the number of orders, maximum orders region wise, peak delivery hours, etc.

Delivery Agent:

  • Accept/Reject Orders: The delivery agent can receive an order request, he can accept/reject the order request.
  • Mark Active/Inactive: The delivery agent should have the liberty to mark himself available/unavailable by switching on the toggle between Active/Inactive.
  • Order History: Delivery agent can see the total orders delivered by him.
  • View Customer Location: Delivery agent can view the customer’s delivery location and navigate towards it, and other details like contact number.
  • In-App Chat: Delivery agents can chat to customers to confirm the delivery location or other details.
  • Check Earnings: Delivery agents can check total earnings made by online deliveries (day, week, and month-wise).
alcohol delivery app

How Yelo can help kick start your alcohol business?

If you are worried about hiring a developer to get your alcohol delivery platform developed and designed, then change your thoughts and be smarter today! With zero codings and in no time, set up your own SaaS alcohol delivery platform and be ready to outshine in the business.

Through Yelo, you can have the best app features that every on-demand alcohol delivery service should have. By your own alcohol delivery service, you may help society with social separation while also increasing your profits as you supply alcohol during the COVID-19 outbreak.
Contact us today if you’d like to address the needs of your community by starting your own alcohol delivery business with Yelo. Book a free demo now!

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An Indian startup, Licious, is changing the way people shop for meat and seafood. By owning the entire back-end supply chain and cold chain, they make sure that you get the freshest and highest quality products possible. Recently, Licious raised $192 million from a venture capital firm in Singapore.

  • Startup Vertical: Direct to consumer
  • Business Model: Farm-to-fork model
  • Founders: Abhay Hanjura; Vivek Gupta
  • Founded: September 2015
  • Products: Chicken, Mutton, Seafood (Fish, Prawns, Crabs), Marinades & Cold Cuts.
  • Industry: Meat packing
  • Parent: Delightful Gourmet Pvt. Ltd
  • Number of employees: 3500+
  • Headquarters: Bangalore
licious-founders-abhay-hanjura-and-vivek-gupta-image

Funding:


Bangalore -based startup Licious has raised $286 million since its inception. At this value, the company is now worth $650 million. To find out more, we interviewed founders Abhay Hanjura and Vivek Gupta. Here’s what they had to say about innovation and the idea behind Licious.

LICIOUS FUNDING

Q: How did you get the power to boost your idea?


The power to boost our idea came from a lunch with my partner Vivek. We were talking about our idea, and we started eating some chicken that was of really bad quality! My partner remarked that if we were to build Licious we would have to put life into this dead chicken. That was the moment when we realized what we wanted to achieve through Licious- to deliver a better meaty experience.

Q: Please tell us a bit about your journey so far?

To date, Licious has employed 3,500 people in 14 Indian locations. This number has grown exponentially over the years as more and more people become familiar with and love our brand. We’re only beginning our journey to become a world-class and iconic tech-driven D2C brand. “A USD 40 billion industry is waiting to be unlocked,” said Overall.


Q: Tell us about a memorable occurrence involving you or your company?


There is a boy who is one of our first hires. He was doing a job as a Kasai or butcher (A person who prepares meat in India, which is not a reputed work in India) One day he came to me and he said “I am so happy that my mom found a good girl for my marriage. Earlier the society was not even considering me as a human but, you have changed my mind. You bring positive energy and now my whole family is proud of me” and this is a very powerful story they are coming to the office every day. We are providing them crisp clean dresses, 3 meals per day, insurance, and most importantly we love and respect them. and that is the excitement of building Licious.

Q.Can you give us a rundown of how it works?


Licious is the first Direct to Consumer platform in India that sells meat and seafood. We operate in over a dozen Indian cities and have built a supply chain network for various types of meat and seafood. Licious also provides a simple ordering experience with our app and website.


Q: Are you planning to outsource any of your core business?

We have built on all capabilities, including an in-house customer service team,” says Hanjura. “All our delivery executives are on our payroll too. These measures ensure that they can deliver on the promises we make,” he says, adding, “Innovation is not a one-time thing. Constant and persistent innovation not only helps Licious stay ahead of the curve but elevates the entire meat ecosystem of the country

Q) Any advice for startups trying to make it big as a D2C model?


The opportunities in India are massive. It has the 2nd largest processed meat and poultry market in the world and is growing at 18% year on year. There are many business opportunities, especially for the Direct to Consumer (D2C) model. Only four forces are required to make a great offer for consumers –

  • Quality driven
  • Differentiated from competitors;
  • Customer-oriented; and
  • Personalized.

Check out the complete Business Model of Licious for more information, or
Want to create a D2C site like Licious? Contact us now for more information

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