BlogBlog JungleworksYelo

How Instacart Works: Comprehensive Business & Revenue Model

By jwork 22nd June 2015
How-instacart-works-business-model

What is Instacart?

Instacart is an on-demand grocery delivery platform facilitating doorstep deliveries of groceries and other home essentials in major cities of the USA.

The technology-driven business model of Instacart boosts delivering groceries to customers in as little as 1 hour, making it one of the most promising and futuristic companies in the USA which is based on sharing economy model.

This grocery delivery startup has become so famous in the on-demand sector that a lot of budding entrepreneurs are interested to learn more about the Instacart business model and understand its overall work to develop the next big thing in the sharing economy.

This post from Juggernaut will show you how Instacart works and makes money along with some interesting facts and figures about this $2 billion valuation company.

Founders, Funding received, Facts and Timeline

It was founded in the year 2012 and is one of the most recent technology developments which has shaken the world with its business model. Being considered a leader in the on-demand economy, Instacart has received massive funding to expand its grocery delivery app operations all across the USA.

Here are few facts about Instacart:

  • Founded by: Apoorva Mehta (CEO / Founder) and Max Mullen (Co-Founder)
  • Funding received: $275 million (Till the mid of year 2015)
  • Company Valuation: $2 Billion. (As per Jan 2015)
  • Revenue: $100 million (As of Jan 2015).
  • Headquarters: San Francisco, California, USA.

The following graphic will help you understand the quick growth of Instacart.

instacart-funding

The amount of funding received by Instacart clearly shows the trust of investors in this start-up and its projected future. Furthermore, to understand what makes Instacart a promising company, let me quickly take you through the salient features and the value propositions of Instacart. Thereafter, we’ll move on to understand its core working and its customer segments.

Salient Features of Instacart:

  • Available in major areas of the USA including SF Bay Area, San Jose, NYC, Brooklyn, Washington DC, Philadelphia, Boston, Chicago, Austin, Seattle and Los Angeles.
  • A collection of over 300,000 items from several stores such as Whole Foods, Safeway or Costco enabling customers to place orders from their favourite store or to mix items from different stores into one order.
  • Crowdsourced Marketplace model with users being connected to personal shoppers who shop for ordered items and deliver them to the customers.

Value Proposition:

  • Tie-ups with existing supermarkets
  • Willing part time workers and their cars
  • Vast inventory
  • Extremely quick delivery
  • No warehouses
  • No shiny delivery trucks

Instacart’s 3 Customer Segments Explained:

Users:

  • They have an app from where they can order groceries by choosing one or more stores.
  • They can even order from a desktop or laptop using a web based interface.
  • Users pay online for their order and can tip their shopper in advance during check out.
  • Option to shop from any of the available stores in their area.One can place order by combining items from different stores
  • Users can schedule orders for a specific day and time.

Shoppers:

  • Purchaser receive orders on their smartphones.
  • Shoppers are stationed near the stores in order to save time.
  • They pick up the ordered items manually and deliver it to the customer.
  • Apart from the per hour pay, shoppers often get a tip from customers.

Stores:

  • It has tie-ups with major superstores in various cities.
  • These stores have been able to increase their revenue through online sales via Instacart.

Instacart Business Model Canvas

The 4 step model about How Instacart Works:

  1. A customer places his order for groceries and pays online to Instacart.
  2. A personal shopper receives the order and starts collecting items as mentioned in the order.
  3. Shopper pays the bill through Instacart’s prepaid debit card which is accepted at the store.
  4. The shopper then goes to deliver the groceries to the customer as per the address mentioned in the order.

Any tip paid in cash at the real time of delivery directly goes to the shopper and the perks given to the shopper during checkout get accumulated in his Instacart account and are offered at the end of the week along with the salary.

Instacart revenue model – How it makes money?

  • Delivery Fee

Moreover, every order processed by Instacart which is above the value of $35 attracts a standard delivery fee of $3.99 for a scheduled or 2-hour delivery and $5.99 for a 1-hour delivery.

However, the orders under $35 value are charged at $7.99 for a scheduled or 2-hour delivery and $9.99 for 1-hour delivery.

  • Membership Fee (Instacart Express)

In addition, it also offers an annual membership by the name ‘Instacart Express’ priced at $99. Users with this membership can get free groceries for a full 1 year with a few terms and conditions.

  • Mark up prices (15%+ more)

Some stores selling their products on it offer the same prices as their in-store prices but few of them listed on Instacart have a mark-up of 15%+more from it. Therefore revenue from these increased prices goes to Instacart which helps them pay the shoppers.

How Instacart finds customers?

  • Word of Mouth Advertising
  • Internet Marketing
  • Free first delivery
  • Various offers

The process of Recruiting Shoppers:

  • Application are invited from individuals who want to earn money by shopping in their free time.
  • The applications are processed by the recruitment team and a face to face, one on one  interview is scheduled.
  • Proper training is provided to selected individuals before they are ready to shop and deliver groceries.

Key Problems and Solutions:

  • Shopper Retention As all shoppers work part time, it is difficult to retain them for a long time. Therefore to enhance the earnings of shoppers, Instacart added an option to pay tip to a shopper in the check-out section of the website.
  • Reduce Delivery time Delivering groceries within 2 hours was a challenge for Instacart. In addition to reduce the delivery time, it  places its shoppers outside the stores where it has tie-ups. Whenever a shopper receives an order, he is already at the store saving him 50% of the time.
  • Shopper Shortage As Instacart shoppers work as freelancers with flexible schedules, it is difficult to manage the freelancers fleet and assign instant tasks to them. To deal with this problem, Instacart introduced a “busy pricing” policy by which it adds few dollars as delivery charges to a customer’s bill depending on how busy its shoppers are. A part of this additional price is also paid to the shoppers so that they can work as quick as they can.
  • Customer Trust Customers lost their trust in Instacart when they came to know that the company is putting up its own pricing for products. These prices are marked up from the in-store prices. Instacart soon admitted to the marked up prices. However, few uses might have stopped using Instacart due to this, but majority are ready to pay the mark-up prices in order to get groceries at their door step.
  • Wrong item Delivery possibilities Moreover in case if a shopper picks up the wrong item and deliveries, it handle all such issues.  Instacart has a dedicated support team which can be reached over the phone or through email. It also refund is processed if the personal shopper misses an item in the order list.
  • Out of stock items Sometimes, items in the shopping list go out of stock. In such cases, shoppers replace the non-available items with similar things that are available, which might not be wanted by the customer. So therefore to deal with such  a problem, Instacart allowed customers to add notes and also they added a “often out of stock” button on such items for the reference of customers. 
  • Read more:  Consolidation Start in E-Commerce Platforms.

Latest Updations:

Ultimately grocery delivery business has a great future as more people want the easiest and convenient way to buy grocery items. Promising delivery within 2 hours, Instacart has become a powerful solution in the US. It is also ready to take on other cities in the USA and expand outside the country. Forbes has ranked Instacart at the Number 1 spot in the list of America’s most promising companies.

Instacart profit:

YearProfit
2019($300 million)
2020$50 million
  • Instacart generated approximately $1.5 billion in revenue in 2020 with $35 billion in sales.
  • Instacart was valued at $39 billion in March 2021.
  • During the coronavirus outbreak, Instacart struck its first productive month, bringing in $10 million.
  • Instacart has an estimated 9.6 million active users and over 500,000 shoppers who pick up the items.
  • Instacart has almost 500 million products listed.
  • During this turmoil, Instacart has grown at a breakneck pace.

In March, the firm said that it would hire 300,000 more full-service shoppers, in addition to the 200,000 it now has. Instacart raised $200 million in funding, valuing the start-up at $17.7 billion.

Most importantly now you know how Instacart works. This amazing technology can be used to create a similar business model in the on-demand segment. If you are dreaming to make the next big thing in this world, then this is the time to take action.

Above all, if you want to get the business model of your On-Demand Idea right?

Download our free E-book:  How to be the next Instacart of the World?

and Get in touch with us and know how we can help you own the next technology masterpiece!

Blog Jungleworks
Download Free E-book How to be the next Instacart of the World? Download E-book Now
  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

You may be interested in these articles

The GST Council, which is headed by the Union Finance Minister and includes representatives from all states and Union territories, has approved a proposal to make food delivery platforms like Zomato and Swiggy responsible for collecting and depositing the 5% GST (Goods and Services Tax) applicable to food with the government, effective January 1, 2022. Finance Minister Nirmala Sitharaman made the announcement on Friday, 17 September, after the meeting of the GST Council in Lucknow. To make tax administration easier, the Council has taken this decision.

Finance Minister Nirmala Sitharaman

What happens once it comes into effect?

Currently, if a customer orders food, for example, from Restaurant ‘A’ using Swiggy or Zomato, the food delivery platform collects the 5% tax on food from the customer and passes it on to the restaurant. However, the government believes several restaurants have not deposited their taxes even though they experienced high turnover. Accordingly, beginning January 1, 2022, food delivery apps will collect the tax on behalf of restaurants and deposit it on their behalf. Consequently, restaurants will also need to register themselves, just as e-commerce sellers do.

In its 45th meeting, the GST council also pegged on the need to bring delivery services under taxation. But it determined that since the customer does not directly avail of the services of a delivery agent, nor do they have the choice of which delivery agent services or delivers them, the responsibility for paying the tax on delivery services will lie with the food delivery apps.

What does it mean for customers?

Revenue Secretary Tarun Bajaj has stated that customers will not be adversely affected by this change. According to him, no new taxes are being levied, but the GST collection point is being moved. The customers will continue to pay the 5% rate on the food they order online.

swiggy zomato

How does it have a huge impact on restaurants and food delivery apps?

It seems likely that the most significant impact will be on smaller restaurants and cloud kitchens, particularly those with an annual turnover of less than INR 20 lakhs, since they weren’t previously included in the GST net. Combined with the responsibility for collecting taxes resting with the aggregator, these smaller restaurants will also be required to pay taxes.

Restaurants, however, will have an added compliance burden as they will have to keep two separate books of account: one for the regular business they do, and a second for the part they do with Zomato or Swiggy. In addition, this will also increase the burdens on the aggregators for collecting and accounting for taxes on behalf of the restaurants. Moreover, the switch could create confusion over the application of input tax credits, for which food aggregators are likely to ask for clarifications.

In Tarun Bajaj’s view, the decision was made to prevent “revenue leakage” by unregistered restaurants. According to the analysis of tax returns filed by food delivery apps and a few Haryana restaurant services, there is a large gap in taxable turnover for suppliers, seemingly indicative of tax evasion among some restaurants. In the study, the TCS deducted by a delivery app was more than the turnover revealed by these suppliers.

How to overcome this influencing decision?

Are you a small restaurant? Do you own a cloud kitchen? Worried about the GST Council’s decision on tax application? We understand all your questions and we come along with the supporting answers too. 

If you’re a small food business, restaurant, cloud kitchen, or food store, you have the power to grow your business by yourself. Why be dependent and pay high commissions to the aggregators, and now these taxes as well? Trust us, you don’t have to bear so much to expand your food ventures. Wondering how?

Yelo is a solution to all your problems. Since today is a generation of D2C, your small food business can rise to heights through this no-code platform, that helps you connect your customers directly to your brand. Clearly, no commissions and no taxes to be paid to anyone. Moreover, you need not wait for months to get started. Just a couple of hours and days are all it will take. The platform provides businesses with customer and delivery agent apps along with an intelligent admin dashboard. Not just D2C, if you wish to create your own hyperlocal food delivery platform just like Zomato or Swiggy, we support those requirements too, end-to-end. Even the customizations you might need for your own food ordering system are supported.

swiggy zomato yelo

Build your own brand and become known for it, instead of growing under other aggregators like Zomato or Swiggy. Don’t hesitate and decay time thinking. Just hop on a free 14-day trial for Yelo and get started with the business model of your choice.

Blog Jungleworks
A Beginner's Guide to Building an Online Food Ordering & Delivery Marketplace Learn the benefits of an online food ordering and delivery marketplace and how you can launch your own food business. Download Free E-book
  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks
what is headless commerce

A new kind of technology known as headless commerce is becoming mainstream to enable brands/enterprises to sell products to millennial consumers. There are many benefits of headless commerce, some of which we will discuss in the blog.

The world is changing. Consumers are spending more time online. Thus, consuming more content online, giving birth to newer shopping touchpoints. Technologies such as voice search, IoT, Kiosks, etc, are becoming new touchpoints for online shopping.

What is headless commerce and benefits of headless commerce?

Every platform is made up of two parts front end and the back end. The front-end part makes up for the  UI, UX, and everything else a customer interacts with. Whereas the back end manages, stores data along with features of the platform. 

So In simple terms, Headless commerce is a solution. The front-end and back-end are separated and work independently so that changes done on one end do not affect the other end, and everything works seamlessly.

To know more about headless commerce: Click Here.

headless commerce structure

Though decoupled, both parts work with each other and interact via APIs. This enables headless commerce solutions to be more interactive, user-centric, and flexible. Developers can fully utilize any front-end technology to supply personalized content to the customers on any channel while using APIs to communicate with a backend solution and maintain all the necessary features and functionalities. 

Key benefits of headless commerce:

  1. Complete ownership of site architecture
  2. Improved conversion rates and lower cost of customer acquisition
  3. Personalization
  4. Speed to market
  5. Omni-channel presence
  6. Improved performance
  7. Remain competitive
  8. Agile Marketing
  9. Seamless Integration

Here, we explain the benefits of headless commerce in detail:

Complete ownership of site architecture

With headless, the front end, .i.e. content management layer, and the back end, .i.e.  content delivery layer, are decoupled for greater control over content delivery.

The main reason businesses go headless is they’ve outgrown their platform’s content delivery. While their backend provides support to their business, they need more out of their front-end system. The benefit of headless commerce is that it enables them to have an independent front-end which allows the brand to deliver their content to any platform.

Improved conversion rates and lower cost of customer acquisition

With rising paid advertising costs, customer acquisition costs are increasing every day. The only way to remain competitive in business is to reduce your customer acquisition cost. 

Headless commerce is an effective way to reduce your customer acquisition cost. It enables the brand to publish content on multiple platforms to gain more organic reach with its target audience. Thereby decreasing the paid advertisement budget of the brand. Thus, reducing their cost of customer acquisition and increasing conversion rate by empowering brands with more reach.

Personalization

Headless commerce solution helps your brand to provide a personalized experience to your customers, helping your brand provide a better customer experience and increase customer loyalty. 

The back end of your headless commerce solution already knows about the order history of the customer. It can then leverage the same to recommend new and relevant products to your customers. Thereby increasing customer loyalty and cart size.

shorcode

Know how Yelo can add value to your Business

shorcode

Speed to market

Headless commerce solution architecture allows the brand to adopt new channels faster. Since the content is managed and stored by the back end, you can modify the front end to deliver the content in the appropriate format without altering the back end. This decoupling ability enables the brand to test different concepts faster.

Omni-Channel Presence

Headless commerce solutions enable the brand to promote its content anywhere on any platform. When the majority of the customers are buying and living online, it is of the utmost importance that they can consume your content on the platform they are visiting. 

Thus, having an Omni-channel presence allows the brand to increase its sales and conversion rate.

Improved performance

Since you are only using one part of the platform, you are not consuming much data. Thus, decoupled headless commerce solution makes your platform more responsive and improves performance.

Remain Competitive

These days brands have to become more flexible and provide outstanding personalized product offerings to the customers. In a headless commerce solution, the decoupled architecture allows brands to make changes on the fly, deploy rapid updates, and stay ahead of the competition.

Agile Marketing

Headless commerce solutions can adapt to new platforms and support any technology when they are developed. This allows it to deliver a personalized customer experience across platforms. 

It helps the marketing team to launch their content marketing campaigns across multiple platforms and different brands.

Seamless Integration

The decoupled architecture of headless commerce enables seamless integration of different platforms or technologies using APIs, which makes it easier to communicate with other platforms.

Still, looking for why your brand should go headless? Check out why

Yelo is the headless commerce CMS your business needs. It is suitable for small to large businesses. The omnichannel capabilities and the flexibility of the platform enables you to integrate it with any API or SDK your business needs.

Blog Jungleworks
E-Book: Everything You Need To Know About Headless Commerce Learn How Headless Commerce APIs Let You Seamlessly Scale Your Marketplace Experience Download E-book Now
  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

Online food ordering has become a fad among customers all over the world. Nowadays, the customers prefer comfort, and thus, want their food, groceries, and almost everything delivered to their doorstep. This gives the home delivery service sector its own space. On the other hand, customers also prefer to have piping and sizzling food just came out of the kitchen. That can be picked up by themselves on their route or drive-through so that it can be consumed fresh. And here, the takeaway services come into play. At present, both these services of home delivery and takeaway are HOT! Let’s read about the Just Eat business model for Takeaways.

just eat business model

About Just Eat

Just Eat’s mission is to empower consumers to get the most out of their takeaway experience. The brand is also known by the name Just Eat Takeaway. It is a hyperlocal marketplace that is connecting customers to restaurants for online food ordering. In other words, it acts as an intermediary between independent takeaway food outlets and customers. It is headquartered in London, England.

Just Eat allows users to search for local takeaway restaurants, place orders, and pay online, and select whether to have their orders delivered or picked up. There are more than 580,000 local restaurants participating on the platform, which is present in 24 countries worldwide. 

History of Just Eat

Initially, Just Eat was incorporated in Kolding, Denmark. It was founded in 2000 by Jesper Buch, Laurens Groenendijk, Marc Wesselink, Martijn Rozendaal, and Per Meldgaard. Back then, the then 25-year-old Buch was completing a diplomatic internship in Norway. He was craving some old-fashioned Italian pizza one night. Buch had no knowledge of any local pizza places since he was new to the area. He discovered that most information about local restaurants is not readily available on the internet. And thus, it is extremely difficult for customers to order food online.

This frustration acted as the spark for what would turn out to become Just Eat. With over 10,000 employees worldwide, Just Eat Takeaway has multiple offices serving various parts of the globe. The UK’s biggest market belongs to Just Eat, with over 122 million orders processed alone in 2018. Canada is considered the second established market for Just Eat. With the contribution of 22.8% of the company’s revenues in 2018, it operates under the subsidiary brand ‘Skip the Dishes’.

just eat timeline

Peeping into Just Eat Money Earning Channels

With millions of monthly customers, Just Eat has grown quickly in recent years. By doing this, the company expanded into other cross-selling opportunities, such as selling advertising space on its highly frequented apps and offering business catering services.

  • Restaurant Commissions: In the United Kingdom, Just Eat charges restaurants £699 to get access to the service, and for each order placed through the website or mobile app, Just Eat charges a commission of 13-14%. Commissions account for over 90% of the company’s revenue.
  • Delivery & Service Fees: Delivery fees for the U.K. vary from zero to £4.50 per delivery, based on the distance of delivery. Just Eat also charges £1.99 for its service fee, which includes both the payment processing fees and other services.
  • Sponsored Placements: Just Eat Takeaway makes money via sponsored placements via a so-called Cost Per Click (CPC) model. This means the restaurant will pay a small fee for every click the customer makes on a promotional link.
  • Interchange Fees: When using a traditional debit card or credit card, an interchange charge is applied, which is paid by the merchant. Approximately one percent of the fee goes to interchange. The partnership between Adyen and Just Eat is likely to result in both companies sharing that income.
shorcode

Know how Yelo can add value to your Business

shorcode

Understanding the Just Eat Business Model

The company operates on a marketplace business model. In order to operate, there are two interdependent customer segments that are both needed:

  • Consumers: Users who want to be able to order takeout from local restaurants.
  • Restaurants: Businesses that offer takeout and wish to gain a larger customer base outside of traditional channels.

As the intermediary between the customer and restaurant, Just Eat manages the product discovery and sorting, the order and payment processing, and sometimes even the delivery.

Just Eat business model utilizes a hybrid model, meaning some of its restaurant partners utilize their own delivery fleets while with others, it works together with independent contractors to fulfill orders. Afterward, these couriers are paid a per-order fee (on top of the tips they receive). Orders are accepted and fulfilled by couriers using a separate app. On the Just Eat website, visitors can explore all the available menu items, or they can download one of the mobile apps, available on iOS and Android devices.

Just Eat Funding, Revenue & Valuation

  • According to Crunchbase, Just Eat and Takeaway.com have raised a combined $2.9 billion across nine rounds of equity and debt funding. Leading investors include Rheingau Founders, Prime Ventures, Redpoint, Index Ventures, 83North, Venrex, and many more.
  • Upon the merger of the two companies, Just Eat Takeaway was worth roughly $10 billion. Currently, the business is valued at nearly $17 billion.
  • In fiscal year 2020, Just Eat Takeaway generated revenue of $2.85 billion, an increase of 54 percent over fiscal year 2019.
just eat takeaway

Competitors of Just Eat

  • UberEats: UberEats is an online food ordering and delivery platform launched by Uber in 2014. Users can browse menus, read reviews of restaurants, order, and pay for food from participating restaurants via an application on iOS or Android, or through their web browser.
  • DoorDash: DoorDash, Inc. operates an online food ordering and food delivery platform. It is based in San Francisco, California, United States. As the biggest food delivery service in the United States, it holds a 56% market share.
  • Zomato: Zomato is an Indian multinational restaurant aggregator and food delivery company founded by Deepinder Goyal, Pankaj Chaddah, and Gunjan Patidar in 2008. Zomato provides users with menus, reviews, and ordering systems for restaurants and food delivery services in select cities.
  • Swiggy: Swiggy is India’s largest online food ordering and delivery platform, founded in July 2014. The company is based in Bangalore, India, and operates in 100 Indian cities as of March 2019.
  • Grubhub: Grubhub Inc. is an American online and mobile prepared food ordering and delivery platform owned by Just Eat Takeaway that connects diners with local restaurants. Founded in 2004, the company is based in Chicago, Illinois.

Summing Up

If you are thinking of getting into a business similar to Just Eat business model, then Yelo can be the ultimate solution! Yelo can help you create a hyperlocal marketplace platform. With the aid of its all-encompassing range of features, Yelo can help you cater to your wide and varied customers in the easiest and most efficient manner possible.

Start your own online food delivery business with home delivery or takeaway or even both, and cater to the hunger of your customers with exotic delicacies!
Would the trial of the platform give you more confidence? We know you better. Hop on Yelo’s free 14-day trial and get started today!

Blog Jungleworks
E-book: Hyperlocal Marketplace: Marketing Strategy For Local Businesses Learn what are the best marketing strategies for hyperlocal delivery and ordering businesses in our free e-Guide Download Free E-book
  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

In 2013, Will Shu and Greg Orlowski launched Roofoods Ltd. (Deliveroo), a British online food delivery company. The company began in the U.S. with only a few listings and modest revenues, before expanding internationally. That’s when the company began to grow dramatically, with revenues reaching about £18 million in the third year. We’ll dive into the Deliveroo business model in this article.

In 2016, revenues reached £128 million, making it one of Europe’s fastest-growing businesses.

Deliveroo doubled its revenue in 2017 to £227 million, an increase of 116 percent since the beginning of the company. Their first driver was William Shu. To get to Chelsea in Central London, Mr. Shu drove about for around six hours.

Deliveroo business model

The aim was simply to deliver excellent local eateries to everyone’s doorstep, right at their doorstep. When it comes to food, Deliveroo has you covered whether you want milkshakes for breakfast, a fresh salad for lunch, or an Italian main food for the evening.

Deliveroo business model

Using Deliveroo, customers can order food from nearby restaurants and have it delivered directly to their homes or office. Those who use Deliveroo’s services can order food via their website or through their mobile apps, which are available on both Android and iOS.

To establish a new hyperlocal on-demand business model, they integrated the aggregator strategy with the marketplace and logistics model. Disrupting previous business models where ordering partners like Just Eat operated separately from delivery partners like Onfleet.

Under this strategy, it tries to tackle both the problem of bad restaurants and poor delivery. 

Restaurant Partners

Restaurant partners are high-end restaurants in the area that may or may not provide doorstep delivery but are eager to grow their audience by partnering with them. These premium restaurants are some of the most well-known eateries in the world, and their companies have grown significantly since partnering with them. 

Deliveroo’s revenues have grown at a pace of about 30% every year, according to the company. Some of the fantastic prospects that they offer that other food delivery companies in the UK have failed to provide to these restaurants include:

  • Brand promotion: These restaurants’ brands are constantly promoted through their channels and various growth programs.
  • Service: In addition to extremely effective 24×7 Customer support and specialized account management. Deliveroo gives its restaurants and gourmet kitchen partners constant help in terms of performance analytics to evaluate the health of their companies.
  • Tech support: Deliveroo has strived to equip these businesses with fully automated procedures that are simple to understand and use. Further allowing them to receive and deliver orders in the most efficient manner possible.
  • POS Integration: It has also created a Restaurant Partner API, which enables integration between Deliveroo and restaurants’ POS systems. This allows restaurants to see all Deliveroo orders in real-time in their POS system.
  • Growth: Deliveroo business model also has an Editions program, where it helps restaurants launch new locations in new areas. Based on their algorithm and technology-driven market research into people’s food preferences and eating habits in that region.

Delivery Partners

Deliveroo’s delivery channel consists of a fleet of over 30,000 riders that pick up freshly prepared food from restaurants. Further to bring it to consumers within 30 minutes on their bicycles, motorcycles, and scooters. 

These hustling riders are one of the most famous elements of Deliveroo’s successful business model. It gives them a lot of credit for helping Will Shu achieve his goal of altering the food delivery platform situation. 

Deliveroo

These riders not only make a good living, but they also get a lot of bonuses and help. This is why they choose Deliveroo over other food delivery services. Some of these are:

  • Insurance: Deliveroo business model makes sure that its riders are safe on the roadways. Their cars are offered pay-on-go Insurance with the aid of the Zego app which is connected to this platform.
  • Tips & Referrals: These riders make about £7-8 per hour depending on how many hours they work. They also get to keep all of the tips that the customer provides during the order process on the app. On average, an everyday rider makes £120 per week in this manner. In addition, they receive £250 for recommending riders to Deliveroo.
  • Other perks: High-quality safety equipment, Deliveroo necessities, free foreign money transfers, promotions, and savings for riders. They are also given access to free internet tools and are encouraged to establish social organizations, such as the Deliveroo riders’ network.
  • Flexible Work Hours: These riders have a lot of freedom in terms of working hours, and they may pick when they want to work. They can just log in and start riding whenever they want with the Deliveroo rider app, which allows them to organize their schedule properly.

Deliveroo business model: How does it work?

In the Deliveroo business model – The app and website platform is their primary operational channels. These platforms were selected through a technology-driven innovation and growth process, and food is ordered in the following manner:

  • Customers may choose from a variety of foods from a variety of cuisines by searching for them on Deliveroo’s website or mobile app. Customers may choose the nearby area where they want food delivered based on the postal code, and neighboring restaurants are listed on the app.
  • After that, customers may make their orders and pay for them using highly secure payment channels like credit cards, PayPal, Apple Pay, and others after selecting their food from the partner restaurants. The ordering procedure using the app takes less than a minute to complete.
  • When the order is completed, the restaurants are alerted of the food that will be cooked, along with any extra information provided by the customer. Those who place the order may also monitor their food using the Google Maps API, which is linked to Deliveroo’s app.

As the Deliveroo business model places a premium on quick delivery of great food. Riders are stationed within a 2.2-kilometer radius of the eateries they sign up for, making pickup and dispatch a breeze. Riders are informed on their individual apps to arrive at the pickup spot as soon as the customer places the order.

These riders ensure that hot, sizzling food is delivered to customers in under 30 minutes without compromising the food’s quality.

Deliveroo UK

Deliveroo: How does it earn money?

Deliveroo’s business strategy and revenue model, like many others, is built on a commission + fee system. Revenues are created by the combination of several businesses. APIs and channels that aid in the generation of the company’s major revenue streams.

The channels that Deliveroo uses to earn income are listed below.

Upfront Fees for Deliveroo Drivers / Riders

According to the most recent version, the commission charge structure is as follows:

£2 pickup charge + £1 delivery fee + variable distance fee determined by the software application system. The remaining balance is paid to Deliveroo. Individuals interested in working as a Deliveroo driver must submit a £150 security deposit in addition to downloading the Deliveroo Driver application.

Registered Restaurants that sell through Deliveroo

Deliveroo business model refuses to disclose the exact commission structures that they charge restaurants; nevertheless, a number of restaurant owners allege that they charge them a 20% commission fee for each completed order. Deliveroo now has over 35,000 establishments registered.

Shoppers / Buyers

Deliveroo has 45,000 daily users in the United Kingdom. 80 percent of a solid loyal user who will not move or transfer their services or apps (UK users are more likely to remain using Deliveroo’s services, boosting Deliveroo’s income streams).

The secret of Deliveroo’s success

  • Accessibility & Convenience: Ordering food online has never been easier than it is now with Deliveroo business model. Deliveroo ensures that every step of the procedure, from selecting the cuisine to delivering it to your home, is done in a professional manner. In the global food landscape, its popularity has skyrocketed by a wide margin.
  • Brand development: As a result of its vital services and dwindling numbers, this business has been able to develop its own brand. Since then, Deliveroo’s income has grown by about 650 percent a year. It’s no secret that Deliveroo’s high-profile restaurant partners have seen a significant increase in income. A robust customer base has been the focus of Deliveroo’s seasonal programming and advertising efforts.
  • Affordability: Customers are able to afford any food at a normal price with Deliveroo, while still enjoying the pleasure of dining in a restaurant for an affordable amount of money.
  • Technological Innovation: The company prides itself on its cutting-edge customer practices. Deliveroo has already been able to reduce delivery times by 20 percent thanks to its ‘Frank’ algorithm. Which uses strong predictive technology to determine the most effective way to distribute orders based on restaurant locations, riders, and consumers.
shorcode

Know how Yelo can add value to your Business

shorcode

  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

The growing SaaS sector comes with its own set of risks and benefits. Business models are rapidly expanding, and these changes are reflecting on bigger priorities. As a result, SaaS’s dynamic nature has taken two paths: vertical SaaS and horizontal SaaS.

But, in terms of software solutions, what is the difference and how do each of these wings work? According to a recent press release, the SaaS industry is predicted to grow to almost $60 billion by 2023.

This category of SaaS products includes solutions that completely engulf and fill the needs of a specific industry. For example, food, pharmaceuticals, grocery, life sciences, etc.

Consumers usually prefer to buy from sellers who provide a specialized assortment of products and services. Commerce platform buyers shouldn’t expect anything less from their software vendors.

The vertical SaaS commerce solution is the amalgamation of core commerce competencies and industry-specific enhancements, leaving enough flexibility to build in the unique practices that make a business distinct and successful.

The true power of a vertical SaaS commerce comes from the fact that all of the commerce components have been trained, trimmed, and fashioned for a specific industry vertical – with all of the best practices built-in, such as guided selling, self-service options, specialized pricing, specialized bundling, and subscription billing, for example.

In the article

The business benefits of vertical SaaS

Over the previous decade, vertical SaaS software packages have grown in popularity and will continue to do so. Vertical SaaS holds a lot of promise for businesses of all sizes, especially as they grow more digitally savvy towards no-code and move away from on-premises, in-house IT and toward cloud-based IT.

  • Minimal deployment time

Customers receive their renters quickly, but commerce, like other SaaS goods, would come pre-installed and ready to use straight immediately. The benefit for a specific area is that molding or last-mile adjustments can begin much sooner. It enables worry-free infrastructure management while also cutting IT costs.

  • Scalability

The infrastructure of a vertical SaaS solution auto-scales to manage up-and-down cycles without wasting valuable resources on tracking, monitoring, and maintenance. It also means getting frequent, automated software updates with seamless advancements, enabling continuous, quick innovation.

  • Integration

From the beginning, vertical SaaS commerce would provide strong, tight, and native preset integrations with other goods. Consider how ERP, billing, governance systems, payment providers, and marketing could be integrated with some of the industry’s most vital commodities.

  • Benchmarking

Commerce entails a range of industry-specific regulatory and legal duties that can be addressed through strong governance systems. An industry-specific commerce solution provider can take on the burden of staying on top of these complex and frequently changing rules.

  • Governance and compliance

Commerce includes a number of industry-specific regulatory and legal obligations that effective governance procedures can address. An industry-specific commerce solution provider can take on the responsibility of staying on top of these constantly changing and complex regulations.





vertical saas | niche marketing | jungleworks

The demand for specialized solutions will grow as the imperative for digital transformation spreads to additional industries and commerce solutions become more of a mainstay and key source of revenue creation for businesses. Consumer products retail is the current focus, and there are already a number of tailored solutions on the market.

But, perhaps, at some time, vendors will pay attention to customer demand, recognize the income and customer loyalty opportunities, and jump in. When the road forks, vertical commerce (SaaS) will be the clear one to choose.

The best SaaS platform solution for food ordering and delivery marketplace

If you’re a fledgling entrepreneur with some fantastic ideas and concepts and want to create a food ordering and delivery app, Yelo can be your best solution.

Yelo is a pre-managed hyperlocal marketplace development platform that gives you access to ready-to-use elements for creating your food delivery app or website.


In technical terms, Yelo, a SaaS system allows users to create a food ordering and delivery app without writing even a single line of code, designing, and testing. 

The reasons why you should use Yelo to build a marketplace or take your food business online are manifold. For Instance –

  • Build without Coding
  • Proficient management abilities
  • Single-day launch
  • Extensive features and functions
  • Integrations
  • Design your marketplace
  • Multiple payment gateways
  • Marketing and SEO
  • Help and Support

Yelo comes with the most diversified features in the category and unlike our competitors, it has no hidden charges with the best pricing plans. We provide all the functionality of a SaaS commerce solution, including:

  • Covers niche markets that offer higher chances of lead conversion (Companies often have higher customer retention due to the level of niche expertise they offer)
  • Companies enjoy a lower customer acquisition cost and limited marketing spend
  • Is compliant with industry-specific standards and requirements
  • Product content management capabilities
  • A powerful, fast search engine supporting flexible navigation
  • Well-integrated web content management capabilities with omnichannel support
  • Streamlined cart and checkout capabilities and order management
  • Promotion, bundling, pricing
  • API extensibility features that support headless commerce scenarios
  • Real-time Analytics
  • Social logins

And many more….

Now go ahead and set up your online food business with Yelo and be a successful entrepreneur.

Don’t just wait and admire, start your business with our 14 days free trial now!

To read more refer to our resource page.

shorcode

Know how Yelo can add value to your Business

shorcode
  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

Let’s Understand the “Why” First

Before getting into the “how”, let’s first understand the “why” of building the best mental health app. Don’t you think it’s a bit opportunistic to say that you should build an app for people struggling with mental health? Well, all businesses are opportunistic in nature. However, the most impactful ones do more than just topline and bottom line. They touch people’s lives and in one way or the other improve the social fabric of our society.

Mental health app

It’s a sad reality that the modern world has mind-numbing statistics when it comes to people suffering from mental health issues, big or small. Recently, a blog published in World Bank presents a gory picture of how severe it is.

“Today, nearly 1 billion people live with a mental disorder and in low-income countries, more than 75% of people with the disorder do not receive treatment. Every year, close to 3 million people die due to substance abuse.  Every 40 seconds, a person dies by suicide. About 50% of mental health disorders start by the age of 14.”

Now, I can imagine what you must be thinking. “Yes, yes it’s a worrisome thing and I get your point, but just like many other health issues, aren’t there medical consultants to help people out? Are you not blowing this out of proportion?

Are we?

The Stigma

Unlike many other health issues, talking about mental health is a taboo in our society, no matter how “progressive” or advanced it is. There are stereotypes that people with mental health issues are violent, dangerous, freaks, and what not. Media, over the period of time, has often portrayed them as unfit to lead “normal” lives. There is a long history of such discriminatory behavior towards people struggling with mental health problems, and that explains the inherent hesitation among its victims to come out and talk about it.

Okay, okay. I understood it’s a grave concern, but why build a mental health app? They could still go to doctors without telling anyone anything at all, right?

Well, not entirely true. You see, it’s one thing to sympathize with people and completely another to be one. This WHO article states

“Investment is required on all fronts: for mental health awareness to increase understanding and reduce stigma; for efforts to increase access to quality mental health care and effective treatments; and for research to identify new treatments and improve existing treatments for all mental disorders. In 2019, WHO launched the WHO Special Initiative for Mental Health (2019-2023): Universal Health Coverage for Mental Health to ensure access to quality and affordable care for mental health conditions in 12 priority countries to 100 million more people.”

To acknowledge that there is an issue, and to act on this, to do something about it, requires a hell lot of courage. And given how reclusive and “socially-distanced” our world has become recently (courtesy COVID-19), it is all the more difficult to identify the right avenues in order to address one’s mental health problems. However, recent developments (Yes, I’m referring to Covid), have also been a blessing-in-disguise of sorts.

Why Mental Health Consultants Need an Online Presence?

Mental health app

Many businesses have realized the importance of taking their practice online. Medical consultants, aka doctors too, have been able to diagnose their patients virtually without subjecting each other to unseen risks of going out. This is specially good for people suffering (or suspected of suffering) from mental health issues. They can comfortably choose the expert of their choice and, without having to confront them physically, seek the best help possible. This one single aspect of online consultation has dramatically instilled confidence (or at least the willingness) in people suffering from mental health problems to not just come out, but also get the issues resolved in the most effective way possible. In short, it’s-

  • Accessible
  • Affordable, and 
  • Convenient for both, the patient and the doctor.

How Big is the Opportunity?

Certain key factors such as, increase in aging population, fast-paced and stressful lifestyle and increased focus of governments all over the world on mental health issues are driving the mental health app industry. There are more than 300,000 health apps in the app stores all across the world, and mental health applications demonstrate the highest growth. According to an article published in MarketWatch, mental health apps industry will grow to USD 3.3Bn by 2027 with an annual average growth rate (CAGR) of 20.5%.

Also, this is not just one composite industry. It is further bifurcated into many sub categories (and hence separate app universe) depending upon the specific issues such as mental disorders, substance-abuse disorders, depression/anxiety, co-occuring disorders, and other peripheral mental issues. 

While high revenue numbers and unprecedented growth have been observed everywhere, the exact numbers are closely linked with demography, penetration of internet services and support initiatives from the government. That said, the scope is immense across all geographies’ viz, North America, South America, Europe, Asia-Pacific and the rest of the world. Quite expectedly, the apps are readily available and downloaded from across all platforms/devices, viz. iOS and Android. The apps, then, come with weekly/monthly/yearly subscription or with one time payment (need based) business models.

Here are some recent headlines regarding mental health app industry

  • First-time downloads of the top 20 mental wellbeing apps in the US grew by 30% from January to April in 2020
  • Talkspace has recorded a 500% increase in requests from therapists to join the platform.
  • BetterHelp recorded nearly 2x the number of users seeking help with stress and anxiety over the last year.
  • US government has granted $5.5 billion for the Substance Abuse and Mental Health Services Administration (SAMHSA) in 2020.
  • FDA has eased entry for counseling apps during the COVID-19 pandemic
Mental health app

What All Services Can You Provide Through Your Mental Health App?

The mental health app, as an industry, is quite diverse owing to the fact that people face different varieties of mental health issues. Just like our physical health, mental health can vary in its type, severity and urgency with which it needs to be addressed. While they could vary a lot in its type, here is a list of some of the most commonly observable mental health issues that people struggle with.

  • Anxiety, Depression & Mood Control
  • Behavioral and emotional disorders in children
  • Bipolar affective disorder
  • Eating Disorder
  • Obsessive compulsive disorder
  • Paranoia
  • Psychosis
  • Dissociation and dissociative disorders
  • Post-traumatic stress disorders
  • Schizophrenia

This is obviously not an exhaustive list, but it does give an idea about how varied the issues could be. As a result of this, many consultation marketplaces offer very specific services which have experts pertaining to particular practices only. While others provide one-stop solution to all sorts of mental health issues. Needless to say, once such platforms gain traction i.e. build trust among its users, which includes both the practitioners and the patients, they expand their catalogue of services to other health issues too.

Top Features to Include in a Great Mental Health App

For Doctors/Consultants

Scheduling Tool : 

A scheduling tool becomes necessary for doctors. From where they can manage their workload and timetable conveniently. The feature should be integrated with a functional calendar which will manage appointments, leave notes, and so on.

Treatment Plans:

Every therapist and doctor have different charges for different treatments. So, this feature should allow the doctors to showcase their plans for the patients according to the various treatments offers.

Chat, Audio & Video Sessions with Patients

This is again a very crucial feature for both the doctor and the patient. Both should be able to talk to each other, be it via audio/video call or through normal chat. It will be also helpful to share files like lab results, documents etc., with each other within chats. 

Furthermore, many healthcare apps use a chatbot that asks users about their symptoms and concerns, so doctors can understand the problem from the beginning. 

Analytics:

It’s also important to provide specialists with different metrics to manage, track, and optimize various aspects of their counselling practice.

It can include:

  • Daily/weekly/monthly number of patients.
  • Total number of patients.
  • New patients (requests).
  • Total revenue
  • Revenue from each patient.
  • Satisfaction rate & reviews etc.

For Patients

User Profile

The basic of any healthcare app allows users to create their own user profiles.  It makes the process convenient for both the patient and the doctor. The point is to create your mental health app structure and design seamless.

Sign-up and Sign-in

The entire process should be short and easy. Our attention span is too short, and we usually get frustrated when we have to fill a long and tedious form. And if a common individual with no health issues can get irritated, then people who are suffering with any kind of mental health issues would get frustrated with too many steps. So the entire sign-up and sign-in process should make their life easier. 

Meditations & Mental Activities

Meditation feature may help patients understand their feelings better, understand the true reasons why they appear, and have a more aware lifestyle. Furthermore, it will engage them with your app in a more personal level. The idea is to get the patients to feel secure and connected with your app.

Apart from meditations, there are a bunch of different activities that can be added in your mental health app:

  • Breathing exercises.
  • Stretching & yoga
  • Sleep & lifestyle etc.
Chat, Audio & Video-calls

It is quite obvious that if the doctor has a chat, audio and video feature, the patient’s interface should also have the same. This is very important for mental health apps. A patient must be able to chat, call, or video call with the consultant from within the application.

Emergency Feature

This is one of the most important features to include in your mental health app. Patients with mental health issues can get anxiety attacks, panic attacks, and other such problems that require immediate solution. The app should provide them an option to send emergency messages to their doctor and caregivers with one click.

Push-Notifications:

This feature is useful to remind patients about their activities, daily tasks, journaling, and so on. Moreover, it can also work as a confidence booster by sending motivational and encouraging notifications to remind people how strong and capable they are. So, you can help one realize what they are capable of with the help of such push notifications. Even though the end goal of the mental health app is to help people, we must not forget about the business part. Push notifications can be used to offer personalized offers, which eventually will help you to increase sales.

Conclusion

A successful idea not only requires merit, but right time and right partnerships too. Indeed, this is one of the most opportune times to build a mental health consultation app. Moreover, to build something that not only does good business, but also improve people’s lives is nothing short of public service. 

A mental health app, in that sense, brings accessibility, affordability and convenience to those seeking professional help to deal with their mental health issues without having to go through the societal pressure of opening up in front of everyone. In addition, it also helps professionals to be available for the people who are seeking help and not comfortable for a face to face consultation. The mental healthcare industry  is moving towards digitalization to start providing services remotely, and nobody wants to lag behind when it comes to running a successful business.

mental health app

If you’re thinking of making your own mental health app or growing your current mental health consultation business, Panther is a go-to platform for you. No coding required & launch within a day! And to get started, you don’t need to invest in a large customer support team. Panther offers a robust chatbot feature that doesn’t just help patients with basic queries, but does a lot more. 

Curious about how Panther can help you take your online mental health consultation practice to the heights of success?  Get in touch with our experts straightway. We’d be glad to help you on this journey towards success.

If you enjoyed reading this, we’re sure you will also love to check out what we have in store in our resources.

If you need any help with the development or have questions left, feel free to reach out to us. We’d be happy to help you on your journey to improving people’s mental state!

Contact Us

  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

Hyperlocal businesses are the ones where one wants to build a local ecosystem that enables customers to buy anything from their neighborhood stores.

Hyperlocal refers to all businesses in your vicinity, the nearby General merchant, Restaurant, Market, Mall and other products and service providers. Hyperlocal platforms solve the problem of matching immediate demand with the nearest available supply in the most optimized manner.

E-commerce business are brands that go “national” or  “international”, having large operations with economies of scale and branding to succeed. The appeal of these brands is strong and consumers are happy with both pay and wait for shipping.

Why go Hyperlocal?

The hyperlocal delivery industry was worth $1324 billion in 2019 and is expected to grow to $3634 billion by 2027, with a CAGR of 17.9% throughout that time.
Rapid improvements in the hyperlocal delivery sector have been spurred by rising customer demand, which has been fueled by increasing internet and smartphone penetration, urbanization, and changing customer behavior.
Consumer expectations are growing as a result of the proliferation of e-commerce platforms, online marketplaces, and delivery-based enterprises. Customers are drawn to firms who deliver things faster than their competitors, therefore the hyperlocal delivery model opens up a slew of possibilities for entrepreneurs.

The largest barriers to E-commerce players in the industry are

  • 1) The logistical challenges of getting deliveries on time
  • 2) The negative perception of fraud
  • 3) Huge technological cost
  • 4) High shipping cost

For a hyperlocal business to set up an online shop they both have to invest to overcome these barriers and then find the promised land of customer discovery.

Transactions

Hyperlocal business has an extreme physical vicinity to the consumer. While a vast E-commerce retailer may expect you to order today so that they can deliver tomorrow, a hyperlocal grocery merchant would guarantee that you get the grocery with an hour.

The differentiating factor of a hyperlocal business is that their whole supply chain is found entirely near to the customer and also the vendor. Thus making the transactions trustworthy and easy.

Delivery

Hyperlocal platforms resolve the problem of matching quick demand with the nearest available supply in the most optimized way. In short, if you require your air conditioner fixed, wish to order food from an excellent restaurant or need to get a haircut inside the comforts of your drawing room, just look towards a hyperlocal system for a solution.

hyperlocal delivery business model

Communication

Hyperlocal marketplace system is more helpful for both merchants and customers. The merchant can simply add the location where they can ship their products. The customers can enter their area, check the available products and merchants in that area. The Merchants/administrator can add their location according to their products are shown to the customer. They can also add shipping rate as per the location range thus making communication easier.

Service

Though hyperlocal businesses usually do not have as strong a brand as a large online retailer, they often evoke a greater degree of trust. This can be explained by the fact that the customer feels quite in control of the entire supply chain, i.e., the customer knows where the product is being sourced from, in-case it is a furniture or any electronic device he knows he can get it assembled in case of a problem, he will also know where it’s present location is, and as a consequence when it will be delivered.    

Benefits of Hyperlocal eCommerce Businesses:

  • Scaling or expanding to a newer geography is harder as one needs to replicate a similar model frequently in various regions. But getting started is easy
  • Marketing spends are very effective given the little geographic spread of a hyperlocal business is limited
  • Controlling quality and inventory can be easy and one can focus on a customer-centric model

Bridging the offline vs online gap

As consumers, they need an instant gratification and ease to move between physical and online shopping experiences. However, the current online and offline shopping experience are disconnected and non-personalised.

Yelo act as a personal shopper to help customers to find what they need in the store and helps the retailer to understand more about customers creating a holistic view of the customer profiles, allowing retailers to extend services to enhance offline experiences with digital enhancements.

Location-based technology is here, and we’re currently witnessing the emergence of the missing piece of the puzzle—a shift in the consumer mindset. For this reason, retailers need to be considering the use of location-based technology to improve their customers’ experiences, drive revenue and increase operational efficiency.

Due to shift in consumer mindset, hyperlocal business needs to be considering the use of location-based technology to interact with customers’ in proximity to enrich their experiences, drive revenue and increase operational efficiency.

Wrapping up

Prior to starting a business Think ahead, not just for the present, but also for the future, and ask yourself Is Hyperlocal The Future Of E-Commerce?

People want faster delivery and they trust local, eCommerce will soon be replaced with Qcommerce (quick commerce: delivery within 45 minutes).

If you are planning to start a hyperlocal business, you have come to a right place. we can provide you a cloud-based on-demand ordering platform where hyperlocal businesses can offer direct-to-consumer and multi-vendor services to consumers. Sign up with Yelo today and hop on a free 14-day trial.

Want more information read: 5 Reasons Why Hyperlocal Business Is a Growth Opportunity

  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

On-Demand apps are gaining popularity, particularly food delivery apps. With millennials turning online to order food from the local restaurants rather than traditional eating, the focus is shifting to hyperlocal on-demand food delivery. Talabat is one of MENA’s on-demand food delivery apps giants, which provides a wide range of limitless cuisines from its restaurants.

What you’ll learn ahead:

Talabat

Talabat – The Origin

Talabat started in 2004 with the vision to make food delivery an effortless experience for both the customers and restaurant owners. It has revolutionized the concept of food delivery in the MENA region. From the time of modems advancing to seamless technology, it provides its customers with easy and fast delivery, accurate tracking, and two communication channels between customer and delivery agent.

According to CrunchBase, Talabat acquired Zomato in 2019 for 172 Mn, which helped them gain the majority market share, forcing UberEats to close their operations in these regions.

Talabat, which started as a food delivery app, now also delivers groceries, pharmaceuticals, etc., and has been venturing into qcommerce by providing deliveries to its customers in 30 mins or less.

Now Talabat is the largest food delivery and grocery delivery platform in the MENA region. It operates in 7 countries through GCC, namely, Kuwait, United Arab Emirates, Qatar, Egypt, Oman, Bahrain, and Jordan.  

The business model of Talabat

Talabat’s business model is based on-demand hyperlocal delivery service with a majority focus on the food delivery sector. Talabat uses best-in-class technology to bridge the gap between the restaurant owner and the customer, thereby providing customers a smooth purchase experience. 

Talabat has both a website and a mobile application. Customers can order food or groceries using either of them. Apart from ordering food from the nearby restaurants, it also shows the menu of the restaurants to the customers to help them choose from a variety of dishes.

The general flow of how every on-demand hyperlocal service works is very similar to other aggregator platforms. A restaurant partners with Talabat and gets listed on the app. The customer registers on the app and selects a restaurant for ordering. Once the order is placed, it is sent to the restaurant. The restaurant starts preparing the order, and a delivery agent is assigned to pick up the order from the restaurant and deliver it to the customer. During all this, the customer gets a notification about each step of the process and can track their order.

How does Talabat make money?

Talabat has a three-pronged approach to its revenue model, where the revenue comes from 3 sources:

  1. Commissions on orders
  2. Delivery Charge
  3. Advertisements 

Commissions:

Talabat takes 15% – 25% commission from the restaurant’s order bill. It also offers restaurants a reduction of 5% to 10% on commission if they opt for exclusivity. This helps them with getting exclusive restaurants and decreases competition in the market. 

Delivery Charge:

Talabat has no minimum order size for delivery requirements, which helps them get orders of all sizes. The delivery charge decreases as the order size increases. 

Advertisements:

Talabat monetizes advertisements in two ways:

  1. Banner Ads:
    This involves showing the restaurant ads on the banner, which provides restaurants more coverage.
  2. Priority Listings:
    This helps restaurants to get listed in the top 5 listings, which helps them gain visibility in front of customers. Customers generally order from the topmost listings, thus, allowing the restaurant to gain more customers.
shorcode

Know how Yelo can add value to your Business

shorcode

Features of Talabat

Features of the Talabat app fall into three categories:

  • Customer App/Panel
  • Restaurant App/Panel
  • Delivery Agent App/Panel

Features of Talabat’s Customer App/Panel

  • Login: Talabat provides customers with an option to login or register using social logins, email, phone number, and OTP.
  • Location Selection: Talabat Customers have an option to select their location to see all the restaurants in their location.
  • Menu: Once the customer selects a restaurant to place an order. He/She has the ability to go through the restaurant menu. Each restaurant menu can have multiple theme-based categories for different products.
  • Online Payment: With changing customer preference towards online payment. Talabat provides its customers with the option of online payment using UPI, Credit/Debit cards, etc.
  • Reviews: Ability for customers to write a review for restaurants.
  • Order History: It provides customers with their order history, enabling them to reorder.
  • Product Search: It can be a cumbersome task to find a product when you don’t know which merchant provides it. Talabat solved this problem by giving customers a feature to search products and bringing up merchants that supply the product in the search results.
  • Tracking delivery agents: Talabat’s customer app/panel gives customers the ability to track the delivery agent delivering their order.

Features of Talabat’s Restaurant App/Panel

  • Dashboard: Each merchant has its own merchant panel. The merchant dashboard enables them to set up their profile, keep track of their revenue, order status, etc.
  • Accept/ Reject Orders: One of the major difficulties in an on-demand business is about keeping the supply in check. In the food delivery or grocery delivery business, there can be a certain time when a particular food item or grocery item is not available. In order to resolve this issue, Talabat provides its merchants with an option to accept or reject the orders.
  • Manage Restaurant’s profile: It gives the restaurants the ability to set up their own menus, promotional offers, banners, etc. It enables the restaurant to function independently with full efficiency.
  • Online payments and commission settlement: Talabat’s merchants get their payment at regular intervals after deducting the commission. They have the ability to see their daily revenue report on their app/panel.

Features of Talabat’s Delivery Agent App/Panel

  • Login: The drivers can log in through social channels, email, and phone numbers using OTP.
  • Calls/Chat with the customer:  There can be a certain time when the delivery agent might need to have a word with the customer or vice versa. To help with this, Talabat provides its delivery agents with 2-way communication with their customers so that they can connect to resolve any concerns they might have.
  • Wallet: The wallet gives the ability to the drivers to store their daily earnings and tips, which can then be transferred into their bank account.
  • Accepting/ Rejecting Deliveries: Delivery agents have the ability to accept or reject the delivery task based upon their preference.

Learn more about the top features you need to create the best-in-class on-demand grocery delivery or food delivery app.

Cost of creating an app like Talabat

Yelo helps you achieve the technological know-how for creating an app like Talabat. Yelo is a no-code saas-based ordering platform that enables you to automate your ordering management flow while managing vendors on your platform. 

Yes, you read it right. Yelo promises you an app like Talabat with all the necessary features to help you grow exponentially on a budget. You can choose from different plans and get a jumpstart on your business. Check out the different plans we have: Yelo Subscription.

Want to try Yelo for free?

Here’s a link to a free Yelo account for 15 days.

  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

Foodpanda is an online food delivery platform that connects users to thousands of local food points i.e catering to the hyperlocal delivery model. It is one of the most widely used apps for ordering food from restaurants. Users can choose from a variety of menus and place orders for home delivery or pick-up at the most competitive prices. It only takes a few clicks. Foodpanda provides menus, customer ratings, and other information for over 115000+ restaurants in over 12 countries.

Foodpanda began operations in March 2012 in Singapore.

In this article-

The business model of Foodpanda

Foodpanda maintains a website and a mobile app that allows its customers to order food from listed restaurants.

How does an online food ordering platform work? 

There are 4 types of stakeholders involved in the working process of an online food ordering marketplace: Marketplace Owner/Admin, Merchant, Customer, and Delivery Management. Here is the breakdown of how things work in an online food ordering marketplace: 

The administrator forms partnerships with merchants from various regions and adds a number of restaurants to the platform.

Merchants include information such as the restaurant’s name, menu items, operating hours, working days, and packaging information, among other things.

Customers can sign up for the platform using their email address or a social media account.

Customers use an advanced search tool provided on the platform to find their favorite restaurants and select food items after completing the registration process.

Customers confirm their orders by paying via their preferred payment method.

Merchants take the order and begin preparing the food according to the suggestions of the customers.

After receiving order requests, delivery boys go to the merchant’s location to pick up the order.

Customers may follow the status of their orders as well as the position of the delivery team in real-time.

When the food is ready, the delivery team picks it up and delivers it to the consumers. The platform/app owner or the merchant is in charge of the order delivery.

Every order placed through the platform earns the marketplace owner a portion of the commission, with the remainder going to the merchant’s account.

Benefits Foodpanda has been reaping through its hyperlocal business model

1. Increasing demand for hyperlocal online food delivery services

Due to the Coronavirus epidemic, SMBs and conglomerates in the online food delivery sector have seen a large increase in demand for their food delivery services over the previous year. During the second and third quarters of 2020, revenue for Foodpanda, DoorDash, Grubhub, Uber Eats, and Postmates increased by 3 billion dollars.

According to a recent estimate by Statista, the total number of users in the food delivery market is predicted to reach 1589.3 million by 2024. According to Business Wire, the worldwide internet food delivery business is expected to reach $192.16 billion by 2025.

Factors like the increasing demand and future predictions make it a very sound case for entrepreneurs to start an online food ordering marketplace for their business growth.                

2. User engagement

Restaurant owners might consider launching an online food ordering platform in order to attract a larger audience and increase revenue. It would be simple to serve people in remote areas with online food delivery services. Customers could be notified of discounts and holiday deals offered on food goods via push notifications sent by an online food delivery company.

3. Improved logistics control

Starting an online food ordering platform can help restaurateurs manage their logistics operations more efficiently. They can keep track of their delivery personnel’s whereabouts in real-time and monitor their progress in real-time. Restaurant operators may handle several orders from a specific area and dispatch the appropriate number of vehicles to delivery locations. Restaurant proprietors may benefit from an online food delivery platform that includes capabilities like BOPIS, geofencing, location tracking, and more.

4. Supporting local restaurants

The COVID-19 pandemic has wreaked havoc on the restaurant business. Local restaurants have struggled to thrive in the food business as a result of the severe limitations implemented by various governments on a timely basis during the last year. In these difficult times, entrepreneurs must invest in the online food ordering industry to assist small and mid-sized restaurant operators. Restaurants can advertise their establishments on the marketplace to sell food online and increase brand awareness.

Seeking to set up the hyperlocal business, exactly like Foodpanda? Check here.

The revenue model of Foodpanda

Registration fee for restaurants

To list a restaurant on Foodpanda’s website/app, the establishment must pay a registration fee. Customers looking for local eateries will be able to see the eatery once it has been added by Foodpanda. The cost of registration varies between $100 and $150. It’s a one-time payment.

From the restaurant Commission 

Restaurants pay Foodpanda a commission on every food order they get through their platform. In most cases, the commission is between 15% and 25%, including all taxes. The commission is determined by the restaurant’s location, its reliance on Foodpanda, and the volume and kind of orders it receives.

Customers Pay a Delivery Fee 

Each order a consumer puts on the Foodpanda app is subject to a delivery cost. Customers must also pay various taxes in addition to this price.

Advertisement

Many eateries, particularly newcomers, use Foodpanda as a marketing platform. By enrolling with Foodpanda, restaurants may boost their visibility. They can also pay a fee to have their brand advertised on the app.

Affiliate Earnings

Foodpanda also makes money by making recommendations on various banks’ credit cards. Furthermore, to stimulate transactions, banks give out discounts and special offers on their cards. For affiliate marketing, Foodpanda works with these banks.

SWOT analysis of Foodpanda

swot analysis of foodpanda | yelo

Strengths

  • Hyperlocal Model hence quick deliveries
  • Well designed platform
  • Built-up brand name
  • Global operations
  • Good investments

Weaknesses

  • Tap on free deliveries
  • Coverage

Opportunities

  • Growing potential market
  • Customer Expansions
  • Loyalty Programms

Threats

  • Increasing competitions
  • Change in economic policies
  • Ease of reaching restraunts

The cost channels of Foodpanda

  • Development and maintenance cost of its online ordering system. The system comprises Foodpanda’s website, merchant app, customer app, delivery partner app, and the backend setup for managing everything.
  • Salaries and provisions for full-time employees.
  • Salaries and incentives for distribution partners.
  • Administrative costs.
  • Customers are given benefits in the form of offers.
  • Returns and refunds.
  • Miscellaneous expenses.

The best solution to build an online food ordering app/website

Online food ordering platforms like Foodpanda, Swiggy, Grubhub, UberEats compete for a long time. To compete with them, choose the right food ordering platform and the best app development company.

Enthusiastic entrepreneurs must capitalize on the current dynamics to give customers what they want; and also commence a thriving startup in the process. To accelerate the growth of this potential sector, Yelo by Jungleworks offers a no-code cloud-based on-demand ordering platform where hyperlocal businesses can offer direct-to-consumer and multi-vendor services to consumers.

Yelo helps you to build a highly efficient and technologically sound hyperlocal ordering platform without the need for coding. You don’t have to create your whole store from scratch, as Yelo offers pre-built modules for all the essential features you need for your business.

It offers inbuilt themes and other pre-created aesthetic elements to help you craft your own brand image. With access to several advanced features such as 100+ payment gateways, 500 integrations, availability in 50+ languages, and many more, you can make your brand highly personalized, thus enhancing their shopping experience.

Start with Yelo’s 14 days free trial now!

To read more about successful business models, follow our resource section

shorcode

Know how Yelo can add value to your Business

shorcode
  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks

In the wake of the COVID-19 crisis, everything changed overnight. Customers want to stay away from the contagion. And, that’s why online food ordering platforms have become valuable. With online food delivery, customers can order online and have their food delivered right to their doorstep from the comfort of their homes. And that’s fantastic! Online food ordering and delivery platforms have enhanced the convenience level of the customers as well as driven the restaurants’ sales in the market through their strong online presence.

Why invest in the online food ordering & delivery business?

  • Recently, the online food industry has boomed, and the sudden increase has created an enormous opportunity for food delivery startups. The global revenue of this industry is expected to show a growth rate of 7.5% resulting in a projected volume of US$182,327M by 2024.
  • 60% of U.S. consumers order delivery or takeout once a week.
  • Online food ordering and delivery have increased by 300% when compared to dine-in traffic since 2014.
  • The on-demand food delivery business recorded unprecedented growth worldwide, with over 14% CAGR from 2018 to 2020.
  • On-demand delivery apps like Instarcart, Walmart Grocery, Shipt, and Target, have recorded a surge in daily downloads of 218%, 160%, 124%, and 98% respectively recently.
  • According to Statista, in 2024, the revenue of the Online Food Delivery segment worldwide would be around 96,864.4 million USD.

How to make money out of your online food business?

The ease of ordering food online and a shift in customer preferences have boosted the online food delivery industry. To meet changing customer demands, restaurants and local food joints have launched their online food delivery software. ​​Here are some of the most lucrative sources of revenue for your food delivery business:

  • Advertisements: Online platforms rely on advertising as a major revenue source. Businesses add discount and promotional banners within their marketplace to enjoy high traffic and escalate sales. It’s a great way to increase revenue and visibility.
  • Premium memberships: Repeat customers are indispensable to businesses that aim to earn balanced revenue through repeat purchases. For that reason, a premium membership is a good option for both customers and vendors. Premium memberships can entail numerous benefits such as zero transaction fees, free delivery, some percentage off on all orders, etc.
  • Commission on every transaction: Charging a commission on each transaction is the most important source of revenue. The admin provides a platform for food via which transactions can be completed. For every transaction that is processed, the business earns a commission.
revenue model for food

What components are included in an online food ordering and delivery system?

Ordering system components:

  • Customer website and applications
  • Restaurant/Store dashboard and applications
  • Admin Dashboard – Order Management

Delivery system components:

  • Delivery driver applications
  • Admin Dashboard – Delivery Management

Have a quick look at the working of the online food ordering & delivery platform through the combination of all the above components:

working of food platform

Which are the key features an online food business must have on its platform?

Introducing the 8 key features below:

  1. Independent Marketplace Setup
  2. Browsing and Listings
  3. Restaurant & Catalog Management
  4. Fulfilment and Delivery
  5. Marketing and SEO
  6. Payments & Checkout
  7. Chat & Notifications
  8. Real Time Analytics
  • Independent Marketplace Setup
    1. No-code technology: No-code, as clearly states, means no coding or zero coding. Restaurants can easily set up food delivery platforms without any technical knowledge.
    2. Theme and layouts: To beatify the marketplace, a variety of themes can be browsed and layouts can be applied. This enhances the look and feel of the food delivery platform.
    3. Multi-lingual: When operating globally, the restaurants may have customers speaking different languages, so the food ordering system should definitely have a set of languages from which the desired ones can be selected.
  • Browsing and Listings
    1. Search and navigation: The customers can search and browse the restaurants on the food ordering app & website and view their details.
    2. Geo fencing: By fetching their current location, the customers can even view their nearby restaurants or food stores and order food locally for themselves. These can be viewed both in map & list view.
    3. Sorting and filtering: Searching can be made simpler through the options of sorting and filtering for restaurants and products.
    4. Ratings and reviews: For every order, the customers can rate the restaurant and the delivery driver and also, write reviews for them.
    5. Schedule orders: What if the customer is not planning to order something immediately? Not an issue, with the schedule feature, the customers can have it delivered anytime.
    6. Social media sharing: The options to share the food experience can be achieved through social media like Facebook or WhatsApp, where customers can share the links to the products directly from the food ordering app.
    7. Favorite Restaurants: The access to the favorite restaurants is much more easier when customers mark a restaurant as favorite and just browse the favorites list to place an order from a restaurant.
yelo customer website
  • Restaurant & Catalog Management
    1. Business Categories: No need to be limited to one variety of food. Give your customers the food experience they can get nowhere and offer a variety of food categories ranging from Chinese, Italian to Indian.
    2. Import/Export Catalogue: Have a big list of catalogs to feed in? The feature to import the catalog into the food delivery platform through CSVs can be a big help. Importing of thousands of entries only in a few seconds.
    3. Add-ons and Variants: Supplement the food items through an option of add-ons along with the product so that the customers can choose to enhance their food.
    4. Availability and Schedule: Restaurants can easily setup their opening and closing hours and enable option for Preorder as well, so that the online ordering never stops.
    5. Inventory management: Inventories of food items can be efficiently and accurately managed without any manual interference.
yelo catalog management
  • Fulfilment and Delivery
    1. Real-time Tracking: The customers can never be lost and uninformed if they get real-time updates of their order along with ETAs. This is the most important feature of an online food ordering and delivery platform.
    2. Notifications & Alerts: The customers can easily get notifications and triggers based on the events set on the platform through which they can be updated time-to-time.
    3. Optimized Routes: Multiple orders delivery is no more a trouble now. With the route optimization feature available in the online food ordering and delivery platforms, the drivers can follow an optimized route and do deliveries faster.
    4. Auto Allocation: No human involvement is needed when it comes to the allocation of delivery drivers to the orders, when there is an intelligent feature of auto-allocation that automatically assigns tasks to the delivery drivers based on certain parameters.
    5. Proof of delivery: As a business owner or restaurant, you can verify the orders completed by the delivery drivers by checking the details like Proof of delivery and e-signature.
tookan driver app
  • Marketing and SEO
    1. Search Engine Optimization: Easily control the marketplace’s meta tags, visible sitemap and robots.txt files through SEO.
    2. Gift Cards: Gift card feature can be enabled for customers to send and receive money from their friends and relatives.
    3. Discounts: The restaurants can set discounts on specific products or for the entire product catalogue occasionally to increase sales and consumer traffic.
    4. Social Logins: Help the customers to register and sign in with Facebook, Google or Instagram accounts which is a simpler way to get them connected to the food delivery app.
    5. Promotional Banners: Let the customers know what’s new and exclusive in the food marketplace through the ad banners that can be set based on city or restaurant.
    6. Loyalty Points: Reward loyal customers by offering loyalty points that can be accumulated by placing orders and which in turn, can be redeemed against the next order values.
shorcode

Know how Yelo can add value to your Business

shorcode
  • Payments & Checkout
    1. Guest checkout: Convert your customers towards ordering through Guest Order functionality by which they can browse the catalog first and then complete the checkout.
    2. Delivery modes: Restaurants can offer both types of delivery modes at checkout: Home Delivery and Takeaway. Accordingly, delivery charges can be imposed on the orders.
    3. Cancellation and refunds: The food ordering and delivery software gets completed only if it is providing a feature to cancel the order and have refunds for the same as it is directly connected to consumer behaviour on the platform.
    4. Commission: Business owners can provide the restaurants with their share or commission through the online platform itself and get the settlement done in real-time.
    5. Payment methods: The customers can get the ability to pay online or contactless through the integrations of a plethora of payment gateways, according to their choice.
    6. Wallet: The online food ordering and delivery platform should be able to provide wallet functionality to both the customers and the delivery drivers to smoothen the payments and earning processes.
  • Chat & Notifications
    1. Custom Bots: The custom bots can be used for the food marketplace to engage with the customers and maintain consistency.
    2. Live Chat: Restaurants need to listen to their customers, identify pain points and solve the queries, therefore a feature to chat on every order is mandatory.
  • Real Time Analytics
    1. Google Analytics: With the integration of Google Analytics with the food delivery platform, the access to analytics has no limits. Track sales, visits, and referrals through the GA dashboard directly.
    2. Reports: View and download the analytical reports for the sales, customers and orders and filter them on the basis of date.
food delivery

You would surely be impressed with such a feature-rich platform, right? Now, no more hunting when Yelo is right beside you. Yelo is a no-code platform powering direct-to-consumer and hyperlocal businesses to get digital in the market.
Experiencing fewer walk-in customers? Your next order could be just around the corner and be ready to process it through a vast online food ordering and delivery platform having intelligent technology. Sign up with Yelo today and hop on a free 14-day trial.

Blog Jungleworks
A Beginner's Guide to Building an Online Food Ordering & Delivery Marketplace Learn the benefits of an online food ordering and delivery marketplace and how you can setup your own food business.. Download Free E-book
  • Share this article:

  • Blog Jungleworks Blog Jungleworks Blog Jungleworks
Jungleworks