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How to Succeed with a Services Marketplace: Choose the Model that fits you right!

By Guest User 9th November 2015

A services marketplace (SM) is one where discovery of services/skills forms the basis of its offering to clients/customers and opportunities for paid work form the basis of its offering to freelancers/professionals. It has made an existing marketplace more liquid, better managed, and more transparent.

There is no doubt that SMs are becoming the usual way to find help. The ease of use is a major consideration. For example, consider trying to get a number of quotes from house painters. Without an online tool, you’d have to find and contact some painters, extract quotes, send them specifications. Using an online marketplace, you can fill in your specifications online and let them contact you with quotes. Infact, the example I have taken is from Thumbtack, an online platform based on a lead generation model, that lets customers receive up to 5 quotes from professionals/enterprises for a service required.

While there are home service startups like Handy, Zaarly, TaskRabbit, Alfred that let you hire a person to do home chores and run your errands, there are professional service startups like Elance, ODesk, Freelancer where you can find everyone from freelance designers and marketers to web developers. Additionally, UpCounsel for attorneys, VouchedFor for accountants and financial advisers, RecruitLoop for recruiters and Skillbridge for consulting are a handful of startups offering specialised on demand services online. All of them work by matching clients with high-quality independent professionals/enterprises/freelancers with the skills, pricing and availability needed. It’s being labelled the “on demand talent economy” or the “Uber-fication of services”. If you can hit the Uber app to get a ride when you need it, why wouldn’t you do the same to find a person to help you assemble furniture at the push of a button?

Related Reading : How Freelancer became the biggest marketplace for Freelancers in 6 years

sercive marketplace_featureimage

Challenge of Running a Services Marketplace

Services marketplaces present a unique challenge. Most services marketplaces cannot facilitate a transaction before the buyer and seller agree on the terms of the service. Also, actual exchange of money often follows the delivery of the service and the delivery of the service requires the buyer and seller to directly interact with each other. Connecting buyers and sellers directly before facilitating the transaction cut weakens a marketplace’s ability to capture value. The party that is charged is naturally motivated to abandon the platform and conduct the transaction off-platform.

To own the transaction, provisioning workflow management solutions to facilitate this exchange is a great way to create engagement and stickiness for users. The following things need to be taken care of:

  1. Value for both Stakeholders: The workflow tools should create additional value for both sides, not just for one. This prevents either side from abandoning the platform for the transaction. For example, on Elance (Upwork), before making a hiring decision, clients have the opportunity to speak live with freelancers using built-in messaging tools.  Freelancers can evaluate prospective clients based on data such as a client’s track record for awarding posted jobs, history of job feedback, and how much a client has spent hiring on Elance.
  2. On Platform Reputation: The interaction management tools should feedback into some form of on-platform reputation. Reputation is an added source of value that ensures stickiness to the platform. Over time, the rating increases discoverability of an expert on the platform and acts as social proof for further clients. For example, taskers on TaskRabbit are not only vetted before they register but are also community reviewed. Their rating is visible to all potential task posters and they can justify prices by the rating they get online.

Business Models in the Service Industry

The different business models in the services industry are based on how they are charging the users on the platform:

Transaction Based Model

In a Transaction Based Model, the marketplace takes a cut of each transaction generated through the platform. A transaction fee model also scales well: the more sales your platform generates, the more revenue you bring in. For Eg. TaskRabbit works on this model (Related Reading: How Task Rabbit Works? Insights into its Revenue Model )


Customers & Suppliers: They only pay a fee if and when they sell or buy something. By taking away the upfront costs of listing and the risk of not making a sale, this model encourages more suppliers to join the platform, thus increasing a marketplace’s supply.


Lead Based Model

In a lead based model, professionals (suppliers) pay to send quotes to customers. The platform makes introductions between customers and professionals based on the specific needs of a project. Professionals who confirm they are interested and available make bids for customers to choose from. The actual cost of this pay-per-quote model depends on the type of service the customer is looking for.

For example, Thumbtack has found success with such a model. It used to work on a transaction fee-based model, but failed because the degree of commoditization was low for the services it provided and they found it hard to remain in the loop when a task was completed. (Related Reading – Marco Zappacosta on Thumbtack’s evolving business model)


Platform Owners: As you are not asking your user base any money, it is easy to get a larger user-base fast. After getting them on the platform, you can easily get suppliers to participate in the marketplace with a simple up-sell.

Suppliers: A lead-based model gives a low-commitment way of getting on the platform to suppliers — their own web presence.

Customers: This model of having suppliers pay to bid on a project results in more qualified options and is an easier way for customers to find the right supplier.


Subscription Based Model

In a subscription-based model, customers are billed on a recurring basis and receive their services at the same time every month or as per their convenience. For eg. home services startup, Alfred, lets you hire your house help starting from $22 a week, billed monthly. (Related Reading –

How Alfred helps take the “Work” right out of Housework)


Service Provider : The benefit with subscription services is that once a customer signs up, there are high chances that they will stick around. It’s much easier to predict revenue and robust customer insight for cross-selling or marketing.

Customer: This model eliminates the inconvenience of buying things/services again and again, and customers prefer to pay a low upfront expense than paying expensive fees for every purchase, Furthermore, the monthly or other periodic payments are often offered at a discount, enhancing overall satisfaction.


VERDICT : As seen above, a start-up can decide to attack the market with a full-stack approach and manage the marketplace or even become the provider of the service. By standardizing the offline service, you can get closer to the simplicity of an online transaction. However, the downside is you need to take on the added operational complexities and risk of managing, guaranteeing, and/or providing the service. So, generally speaking, you should try to move your business model as close to monetizing the transaction as possible in order to minimize the friction for onboarding supply. But if the underlying service or product doesn’t lend itself to this model, then you could try and adopt the lead-generation model.

Get in Touch with us if you want to build the next big marketplace! And let’s begin your journey to success 🙂

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The On-Demand economy has supplanted traditional business models faster than we anticipated. The administrations combined with two or three applications empower the provisioning of products and enterprises.

The On-Demand Economy is defined as the economic activity created by technology companies that fulfill consumer demand via the immediate provisioning of goods and services.

Supply is driven via an efficient, intuitive digital mesh layered on top of existing infrastructure networks.

The On-Demand Economy is revolutionizing commercial behavior in cities around the world.

The number of enterprises, the categories represented, and the industry’s growth are all increasing at a rapid rate. Businesses in this new economy are the result of years of technological advancements and changes in customer behavior.

Many ask: Is this a bubble? Is this a short-term trend? Is the hyper-growth we’re seeing going to slow soon? Categorically and unequivocally — the answer is no. The new on-demand models have opened the door to real-time fulfillment of goods and services, which consumers have embraced with a frequency that is unprecedented.

It is no longer a question of if the On-Demand Economy will revolutionize the way people transact or create thousands of jobs or move governments … this is all happening.

The economy has made its reach in every online business sector transacting today in 2021.

on-demand | Jungleworks

The On-Demand Economy has shown an usher in a paradigm shift similar to what was seen with the advent of the internet in the late 1990s.

Why is the on-demand economy expanding at such a rapid pace?

“The internet makes human desires more easily attainable. In other words, it offers convenience. Convenience on the internet is basically achieved by two things: speed, and cognitive ease. If you study what the really big things on the internet are, you realize they are masters at making things fast and not making people think.”

— Ev Williams, Twitter co-founder

In the analogy, consumer behavior has turned. Smartphones provide instant access to texting, e-mail, media, and other online activities, instilling a sense of entitlement to quick, easy, and efficient interactions. According to The On-Demand Economy’s survey of 250 Whole Foods and Trader Joe’s customers, “ease of delivery” was the most important factor in consumers’ decision to buy food online.

The report reveals that the on-demand economy’s growth is a result of its alignment with consumers’ growing need for greater convenience, speed, and simplicity, whether it’s the ease of scheduled deliveries or the commensurate reduction in time required.

Fast-moving technology businesses competing in this space have created new models that are altering industries that have traditionally lagged behind in terms of innovation. In the on-demand world, the ground transportation, grocery, and restaurant industries are great examples of hyper-growth categories, with growth owing in large part to the deployment of new technologies on top of existing infrastructure.

on-demand | Jungleworks

“Welcome to the uberification of our service economy,” says RRE’s Steve Schlafman. Market circumstances and technology advancements driving the growth in on-demand services include a huge increase in the number of smartphone-connected users, simple and secure transaction flows, and location-based services, to name a few.

How is the business world being disrupted by the on-demand economy?

  • Increased prospects

One of the biggest challenges that the on-demand business model has solved is the friction in the offline purchasing process. This business model has made it possible for customers to order any goods or services online and have them delivered to their homes in real-time. Consumers have praised the efficiency and ease with which the services are delivered, leading them to prefer organizations that provide on-demand services.

As a result, practically everyone is looking forward to riding the uprising ‘Uber for X‘ wave today. They’re building on-demand firms in a variety of industries, including healthcare, transportation, education, and retail.

  • Entrepreneurship is emphasized.

On-demand software solutions are also helping to bridge the gap between entrepreneurship and the corporate world. It allows employees to choose their own working hours and receive remuneration based on the amount of work completed. This has made life easier for those who want to start their own business or who need to work numerous jobs to make ends meet. It has also had a huge impact on company culture, causing everyone to admire each other’s entrepreneurial spirit.

  • Increased customization

Consumers have had a taste of tailored services thanks to Uber, Airbnb, Via, Instacart, and other on-demand delivery services startups’ functionality of gathering and analyzing user data. They are dissatisfied with traditional business processes and want every organization to function in such a way that they may have a highly engaging experience.

This has presented a great opportunity for enterprises in specialized industries that have yet to be challenged by the on-demand economy. Furthermore, consider how to provide the best-customized services in order to be the first in their specialized market.

  • More flexibility in the workplace

As previously said, the on-demand business model allows employees to choose their own working hours and be compensated accordingly. This has increased workplace flexibility, allowing everyone to contribute to their full potential while studying, taking holidays, and conducting other daily tasks. And, in the end, provide greater employee happiness and corporate expansion.

  • Expanded scalability

On-demand app services are extremely safe and scalable. As a result, when you integrate them into your business processes, you obtain a highly scalable way for meeting your company’s various needs.

These suggestions have convinced entrepreneurs and marketers that the on-demand business model is more profitable than the traditional approach and that switching to the former is a must.

How can the on-demand economy impact your business?

If you’re still unsure whether this is the best move for your company, scroll down right now.

As per the Harvard Business Review, more than 22.4 Mn users spend over $57.6 Bn on On-demand services. This includes spending of around $36 Bn on On-demand marketplaces, $5.6 Bn on taxi services, and $4.6 Bn on food/grocery delivery services, annually.

Also, it has been noted that 86.5 Mn US citizens have used an on-demand service at least once in their lives.

Another report states that 51% of people who offered online services in the on-demand economy saw a rise in their financial situation, while 64% of them are hoping for an improvement in the future.

Average on-demand spending per year is shown below in graph

avg. spending od | Jungleworks

Such on-demand mobile app economy statistics are clearly indicating the proliferating market scope and encouraging everyone to step into his economy and leverage a wider range of advantages. But, what’s more interesting is the way it is transforming the traditional business model.

Major industries propelling the on-demand economy

Since Uber disrupted the industry by creating one of the first on-demand apps, it has influenced other industries to implement similar concepts.

Some of the popular apps that are driving the on-demand economy are Postmates (on-demand food delivery app), Drizly (on-demand alcohol delivery app), Handy (on-demand moving app), Lyft (on-demand cab booking app), InstaCart (on-demand grocery delivery app), and many more.

According to a survey conducted by Burson-Marsteller, the Aspen Institute, and Time, over half of all Americans (42%) had used at least one on-demand service.

Not only that, but one of the main reasons why on-demand apps are driving the economy is that they employ 22 percent of the population or 45.3 million people.

This is the compelling rationale for VCs and Angel investors to back any firm that uses the term “on-demand” in its business strategy.

The emergence of on-demand services has prompted businesses and startups all over the world to automate their services and make them more accessible to customers.

  • Travel

After the online marketplace, travel is the industry that is most affected by the on-demand economy, thanks to Uber.

Apart from that, the top five on-demand firms in the globe, four of which are in the travel and transportation industry, have garnered more than 75% of total funding.

When we consider the scale of success that Airbnb and Uber have achieved, they should be viewed as inspiration rather than competition for new entrepreneurs.

The data for US on-demand transportation market size, by service type, 2018-2025 is shown below in the graph.

transportaion od | Jungleworks

The example of Didi, a cab booking app in China, tells us that nothing is impossible. It beat Uber in its own game and became the #1 cab booking app in China.

This is not the first time that Uber faced a setback. In India, Ola is giving tough competition to Uber by providing similar yet one of a kind taxi on-demand taxi booking services.

Some successful business models-

How Uber Works: Insights into the Business & Revenue Model

How Lyft Works: Insights into Business Model

How Jugnoo Taxi Works

How to Build a Corporate CarPool App?

  • Food Delivery

Food delivery apps have metamorphosed the way we access and consume food. They’ve reimagined the concept of food accessibility – they save time, are quick, and only take a few phone clicks.

In recent years, many food entrepreneurs have developed quickly and globally. Food solutions are always in demand, so it’s a perfect place to start building your on-demand food software.

On-demand food delivery applications are now widely used for breakfast, lunch, supper, and even snacks. According to Statista, the online food delivery sector in the United States generated US$306,808 million in sales in 2021 and is expected to show an annual growth rate (CAGR 2021-2025) of 10.01%, resulting in a projected market volume of US$449,292m by 2025.

For eateries that did not previously provide home delivery, on-demand food delivery applications have proven to be a godsend. Both restaurants and customers are charged by these food delivery companies.

Yearly increment in food ordering from on-demand apps till 2020 is projected in the below graph.

on-demand | Jungleworks

In countries like the United States, the United Kingdom, and India, the market has already matured. In countries like Saudi Arabia, South Korea, and Brazil, on the other hand, it is still expanding.

Some successful food delivery business models

InstaCart Business Model: How it Works? 

How GrubHub Works: Business Model Explained.

Food On Demand: Business Models of Meal Delivery Startups

What does it cost to make an app like UberEats?

  • Healthcare

One market, in particular, that is in severe need of on-demand services is healthcare. Patients are currently standing in line for hours waiting for their turn.

Furthermore, in one city, there are just a few pharmacies that are open 24 hours a day, seven days a week. As a result, patients confront numerous difficulties in the event of an emergency.

The healthcare business has been transformed by on-demand services. Patients can now order drugs from the comfort of their own homes at any time.

The app not only allows you to order medicines and have them delivered to your door, but it also allows you to schedule doctor appointments and receive medical reports.

Possibilities for On-Demand Health Care Services include the following:

Call a doctor at home (e.g., Doctor on Demand)

Talk to any doctor across the country or world (e.g., Healthtap)

Order medicine 24/7 (e.g., Pillpack)

Successful business model-

mPharma business model

  • Home Services

With the emergence of the on-demand economy, the home services sector witnessed a significant shift. It was also one of the most conservative industries to adopt the on-demand economy.

Following healthcare, this is another industry that desperately needed to join the on-demand economy. Home services have the most potential because they encompass all professional services such as machine repair, carpentry, pest control, electrician, babysitting, plumbing, and housekeeping work.

No app can deliver all of the functions in one place. Customers can choose from a variety of apps that provide various services. For example…

NuevaCare (On-demand home care services provider for elders)

Handy and Serviz (On-demand field services to contact electrician, plumber, and more)

Some successful business models-

How Does the Urbanclap/ Urban Company Business Model Generate Revenue?

Fiverr Business Model

Upwork Business Model

  • Transportation & Logistics

Transportation and logistics are delicate industries. However, it, like other verticals, suffered a significant transformation after entering the on-demand economy.

Logistics services have been more efficient and smooth than ever before because to on-demand moving apps like Postmates, Deliv, GetWagon, and others.

Small players/independent movers and packers have been able to reach out to more customers, thanks to on-demand apps. Customer experience has also improved thanks to mobile apps.

Previously, courier monitoring via SMS was available from transportation providers. Customers may now track the courier in real-time using integrated maps, thanks to an upgrade to a smartphone app.

Apart from these benefits, on-demand apps also regulated the messy price structure of the various transportation companies and individual transporters.

Some successful business models-

How DoorDash Works | Business Model & Revenue Sources Explained

How FedEx Works – Business Model & Revenue Sources 

How you can take advantage of this boom?

It’s clear that on-demand solutions will remain dominant in years to come as the chase for convenience and accessibility doesn’t seem to die down. As technology climbs up the ladder, consumer demands and trends will skyrocket. 

on-demand | Jungleworks

On-demand business model targets delivering solutions to customers at the moment, which has always been an innate consumer need. Getting everything at your doorstep at any hour of the day feels like magic and gives consumers a sense of empowerment.

The future of on-demand solutions is bright, as newer technological enhancements are turning user experience a notch up. With seamless UIs, and use of AI has now altered the way we shop and transact. On-demand business services have taken a further leap as we have become more dependent on solutions that give us instant gratification. 

Regardless of what type of business you run or what products and services you sell, your customers are the most important aspect of your company.

As a result, it’s critical to comprehend your target audience, who they are, and what they truly desire. You will lose if you do not adjust your business plan to reflect your clients’ evolving requirements and demands.

Uber, Amazon, and Netflix are just a few examples of companies that have digitally transformed themselves in response to changing customer demands and portability, resulting in significant revenue.

But On-Demand economy is not limited to only these. Corporates are coming with new ideas and applying the on-demand model in every business. 

Like –
Real-estate On-Demand Economy Service Business
On-Demand Economy Print Services 

On-Demand Economy Business Intelligence

And many more….

But don’t worry we have covered this all for you

From food ordering and delivery platforms to pharmacies, grocery, beauty, alcohol, cannabis, and any use-case you can think of, Jungleworks provide a platform to set up your on-demand business from anywhere at any time.

We offer end-to-end customizable ready-made platforms, endearing to enterprises or businesses which need to go online, prototype software, and automate processes quickly.

Be it a hyperlocal business, direct-to-consumer or headless, Jungleworks no-code platform is suitable for your every business need.

Jungleworks offers inbuilt themes and other pre-created aesthetic elements to help you craft your own brand image. All these creative aspects are provided to make your business feel highly personalized to the users, thus enhancing their shopping experience. Moreover, Jungleworks gives you access to several other advanced features such as 100+ payment gateways, high-tech integrations, availability in 50+ languages, setting access control, and much more.

Setting up an on-demand business has never been easier. Try now, Start from 14 days free trial!

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Let’s face it, entrepreneurship is HARD!

Every businessman’s journey is often laced with a whole lot of RISK, Innovation & identifying opportunities at the time of adversity. Those are the conditions that a real entrepreneur best thrives in & that’s what seems to be the case with Rajat Deshpande as well, CEO & Founder, FinBox & our next guest at the BootStrap Garage Podcast. 

Long time acquaintances Rajat & Samar Singla, our host & a serial entrepreneur himself come from the same alma mater.  Now back together after years to discuss the ropes of entrepreneurship today, as two successful entrepreneurs themselves, these two seem to be paving the way for what will be the next generation of tech-heads & entrepreneurs.

The Beginning: FinBox 1.0 

Just like every experience FinBx 1.0 witnessed Rajat stumbling, falling & getting up only to figure out his path forward. Sharing in the podcast, Rajat talks about how he was constantly juggling & experimenting with an interesting mix of tech & analytics in terms of career prospects. Once gaining considerable experience in both he moved on to learn more about B2B & B2C business & how they function. 

With a smooth transition into the tech industry which was driven mostly by curiosity & the aim to learn the ropes of the web world, both front and backend. This then was followed by a Eureka moment in 2015, which led to FinBox 1.0 which he then built with his brother in 2017. FinBox 1.0. was essentially a personal finance management application, categorizing your spend patterns based on the SMS text messages. The App did fairly well attracting organic downloads in big numbers but didn’t translate into a working business model due to the impatient nature of the partnership & zeal to prove the working business model. 

Perhaps tapping spending habits for not-so-frugal users could be seriously frugal, added a humoured Samar.

Learnings from Phase 1

  • Patience is the key, don’t take business decisions in a hurry 
  • Focus on customer acquisition before jumping on to make money. 
  • Pick your area of expertise & focus on it. 
  • Understanding the B2C & B2B business model and taking a well-thought pick for what works for you, some of the major causes for FinBox 1.0’s dip.

FinBox 2.0: The Second Phase 

The ethos of what we do is basically that we build stuff, that other people can use to build more stuff. We build APIs & SDKs for the landing ecosystem. What we’ve recently come up with is an immediate finance platform that helps anybody embed financial services in a  non-financial app in min 3 days &, max 3 weeks.  Which otherwise is a whole 1-2 year process.

The second edition witnessed FinBox turning into what is said to be one of the country’s first account aggregators — systems that let potential borrowers prepare and upload one set of financial documents and then allow access to the online file from multiple potential lenders. The startup further strengthened and consolidated its credit intelligence portfolio that already boasts a robust risk assessment and alternate data decisioning engine.

With a lean team of 40, Rajat Deshpande & his team are a firm believer in wearing many hats. Well versed in the tech part of the business as well, the majority of FinBox’s team can manage everything from coding, building products, marketing to finance of course and he takes great pride in that.

Rajat believes that the future of FinTech in India is fairly in its early days. However the next few years are hopeful, he predicts a 10x growth in the next 5 years but something like a pandemic has changed the dynamics & future numbers. As for the government, they are also figuring out how mainstream FinTech should look like.  

As for sharing his take on working with the family, he mentions there are definitely some “interesting moments & disagreements” but he always feels backed up!

SO, in Rajat’s own words, 



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Ecwid makes it easy with centralized inventory, order management, pricing, and more. Your online store is just a few clicks away. Get started for free today. Seamless Upgrades. Free Social Network App. Existing Site Integration. Payment Gateway Support. Lightning Fast.

The Tookan integration with Ecwid streamlines the end-to-end ordering and delivery processes. Now you can automatically send Ecwid orders to your Tookan account directly and start dispatching, tracking, and managing the deliveries to be fulfilled out in the field!

The integration process is very simple and takes only a few minutes to set up. Here’s a step by step guide:

Step:1 Navigate to App market under App section on Ecwid and search Tookan, click on install, and open app.

Integrate Your Ecwid Account with Tookan

Step 2: Fill in the details 

Integrate Your Ecwid Account with Tookan
  1. API KEY* –  You can find this API Key from the Tookan Dashboard > Settings > API Keys > V2 API Key
  2. Timezone* –  Can be retrieved from
  3. Delivery Buffer time(in  minutes) –  Buffer time to pick your order (default: 0)
  4. Toggle the Button to “Only Delivery” or “Pickup & Delivery” for order creation on Tookan accordingly.
    Only Delivery – Only Delivery task will be created on Tookan
    Pickup & Delivery – Both Pickup and Delivery Tasks will be created on Tookan
  5. Geofence – Enable this toggle, if you’re willing to apply Geofence i.e. marked on Tookan to the tasks coming from Ecwid.
  6. Auto Assignment – By enabling this, you can use the auto allocation algorithm configured on Tookan for the jobs created from Ecwid.

After filling these fields successfully, click on save. You’re good to go!

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Online commerce is getting competitive every day. With changing consumer behavior, it is becoming tough to survive in the space. In order to grow profitably in today’s era, your business needs to have a well-defined UI and UX which encourages customers to shop with you. Generally, businesses update their UI and UX periodically in 1 to 2 months, but the customer needs are evolving faster, which inevitably leads to a slower growth rate. This is where businesses need headless commerce to succeed.

Headless commerce is very flexible and adaptive. It enables businesses to change the UI and UX on the go and test multiple frontend templates rapidly to select the winning design that generates the most revenue for the business. It also will enable businesses to adapt to new technologies and integrate them with their platform with ease using APIs.

headless commerce


  1. What is headless commerce?
  2. What is the difference between traditional and headless commerce?
  3. Is headless commerce right for your business?

What is headless commerce?

A headless commerce platform is a decoupled platform in which the frontend and backend are separated from each other and communicate via APIs. Compared to a traditional platform, it does not have a set template for the frontend but instead a flexible layer that can be modified accordingly to deliver content to the consumers.

What is the difference between traditional and headless commerce?

We are living in an era where technology is constantly evolving. When using a SaaS solution or any traditional commerce platform, you have a very tightly bound architecture, making adopting newer technologies difficult without tweaking the existing architecture. The headless solution solves this problem and makes the adoption of the latest technologies easier. Since everything is connected via APIs, a single API is needed to integrate newer technologies with your existing system.

When using a traditional SaaS or even a custom platform, it comes with a predefined frontend that does not provide a lot of flexibility to change the UI and UX. In contrast, a headless commerce platform enables your business to have a flexible frontend with greater control over UI and UX, which you can keep evolving as your customers’ needs change with time. This ability to change and test different UI and UX helps your business to select the winning design to enter newer geographies and provide a better customer experience.


Know how Yelo can add value to your Business


Is headless commerce right for your business?

Headless commerce has many advantages but does your business needs it right now? Let’s find out.

Let’s compare two businesses:

Business A is just starting up and is in a very nascent stage. And, the average number of monthly transactions and revenue is low. Since business A is not doing many transactions. It does not make sense to invest upfront in hiring developers and building a custom UI and UX early on. Thus, they should use a SaaS platform to scale their revenue and transactions.

Business B is in a more advanced stage. They are doing more than 10,000 transactions a month and now need to differentiate from other businesses and provide a unique customer experience. 

In business B, they need more control over their UI and UX to scale and grow their business further. Here, a traditional commerce platform or a SaaS solution limits the business to do so. This leaves them with two options either they build a custom solution or choose a headless commerce solution. Building a custom solution for a single store requires a huge investment. Since many resources are needed to build a perfect personalized system. Though it gives you total control over the frontend and backend of the platform. It takes up a significant amount of time and investment to build it.

Headless commerce solves this problem by bringing the best of both SaaS and custom solutions in one package. It enables businesses to have total control over their frontend while keeping the costs of development low. The loosely coupled frontend and backend of headless commerce enables businesses to have a flexible frontend. Which allows them to do rapid testing of different frontend templates to scale and grow their business.

Thus, headless commerce is right for the businesses:

  • Who want to total control over the frontend of their business.
  • Find the UI and UX of their current traditional CMS limiting.
  • Want to reduce the workload on backend developers.
  • Wish to test multiple frontend templates and are satisfied with their backend solution.

Yelo’s Headless Commerce

Yelo’s headless commerce lets your brand provide a unique experience to your customers by powering your business with its best-in-class backend technology. The seamless integration allows you to integrate any 3rd APIs you might need to upscale your business in real-time. You get the freedom to build your omnichannel brand and get complete ownership of your site architecture.

To know more about Yelo’s headless solution, Connect NOW!

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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
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“Engagement with the customer today … is understanding that you must be present in a conversation when they want to have it, not when you want to. It’s just the way people buy today”

– Bob Thacker, Gravitytank Strategic Advisor and former CMO of OfficeMax

Mobile marketing automation is the perfect approach for customer engagement today…due to multiple reasons. Everyone has a mobile phone today and the majority of web traffic is on mobile.
Mobile marketing is the most convenient thing for customers and so should be for businesses. But, you can’t be available 24×7 to engage with your customer, thus, mobile marketing automation that helps you engage with your customers at the time of their convenience.

Mobile Marketing

Mobile marketing | What is Mobile Marketing Automation? Hippo

Mobile marketing is a multi-channel digital promotional activity that uses mobile devices such as smartphones and tablets to reach the target audience via email, SMS and MMS, social media, websites, and apps like WhatsApp.

Mobile marketing is one of the most important digital marketing strategies used by businesses to promote their products and services. It also assists organisations in reducing paper costs and denotes a quick and convenient method of interacting with target customers. It enables the integration of new, innovative advertising methods with existing marketing strategies to increase their impact and approachability among target users.

Growth Opportunities in the mobile marketing market

The global mobile marketing market is expected to grow at a compound annual growth rate (CAGR) of 18.9 per cent from USD 10.5 billion in 2019 to USD 25.0 billion by 2024. The popularity of mobile marketing with increasing mobile devices, high penetration of mobile users, growth of social media and advertising, and increased use of mobile web and mobile applications are the major factors driving the mobile marketing industry.

Mobile Marketing Market Growth | What is Mobile Marketing Automation? Hippo
  • The global mobile marketing market size is projected to grow from USD 10.5 billion in 2019 to USD 25.0 billion by 2024, at a CAGR of 18.9% during the forecast period.
  • Popularity of mobile marketing with increasing mobile devices, high penetration of mobile users, and increased use of mobile web and mobile applications are fueling the mobile market growth.

In 2020, the number of unique mobile internet users was 4.28 billion, indicating that more than 90% of the global internet population uses a mobile device to access the internet. Mobile phone ownership and internet usage are expected to rise in the future as mobile technologies become more affordable and widely available. This upward trend in mobile internet adoption is most noticeable in developing digital markets where mobile networks are the primary means of internet access. Today, mobile internet traffic accounts for more than 55% of total web traffic, with mobile connections accounting for an even larger share of page views in mobile-first markets such as Asia and Africa.

Mobile Marketing Market Growth | What is Mobile Marketing Automation? Hippo

According to CNBC, almost three quarters (72.6 per cent) of internet users will access the web solely via their smartphones by 2025, equivalent to nearly 3.7 billion people.

Mobile marketing is a must for all businesses today 

Mobile Marketing Automation

Mobile marketing automation is the process of performing repetitive marketing tasks at scale. With Hippo, marketers can plan, coordinate, manage, and measure all of their campaigns from a single dashboard.

Brands are moving away from the laborious personalization of digital content. Instead, they’re leveraging automation software to send personalized messages to the right customers at the most critical time.

Automation is a step-by-step process that saves time and increases engagement, allowing marketers to go further and do more. For example, automation can segment and target based on what consumers are doing, creating a library of rich content to engage users.

You can retain customers with automation. With an email, users will receive the message in their inboxes and be encouraged to re-engage with your company at a later date. Push notifications, unlike emails, will only stay on the user’s phone for a certain amount of time before it gets deleted or forgotten about.

How does Mobile Marketing automation work?

It enables brands to target large groups of people with campaigns that occur across every stage of the user journey. This is perfect for people looking to reach a large number of people.

Using data-driven insights, app teams can create specific segments for individual app users. This customized experience creates a personalized, relevant app experience for everyone. Marketers can reach the right people with mobile messages such as push notifications, emails, in-app messages, and App Inbox. These marketing tactics not only encourage key conversions but also build a new level of trust with your target audience.

Brands can use instant messaging to send tailored messages to consumers at very opportune times. For example, a message could be triggered when a user falls dormant for several days or completes their first purchase.

Mobile marketing automation can engage customers at every stage of their journey.

How Can Mobile Marketing Automation Benefit Your Business?

Mobile marketing automation is hugely beneficial for both businesses and the consumers they are marketing to. In this new era, notifications on our smartphones will make it easier for us to complete our daily tasks with less stress. On the other hand, we can also expect targeted promotions and coupons that will help customers save money.

There are multiple advantages for opting for Mobile Marketing automation:

  • Large audience: Over half of the world web traffic is on mobile, Mobile Marketing provides huge potential customers to target. Thus automating it would help you reach them efficiently.
  • Swift Response: Mobile is always in hands of your customers. This can result in them read the message and respond to it instantaneously. Automating mobile marketing would help you be ready for their responses whether good or bad.
  • Low cost: The cost of mobile marketing is minimal compared to other modes of marketing. Even other digital mediums can take a toll on your budget, while Mobile marketing can reduce your marketing costs.
  • Easy tracking: Mobile marketing automation helps you in tracking all your marketing campaigns. You can get complete data analytics of mobile apps from impressions to clickthrough rate, from conversions to bounce rates. You can even accumulate data regarding your customer’s geographics, demographics and behaviour which can help you in segmenting your prospects for future campaigns.

Attract customers with Mobile Marketing automation |What is Mobile Marketing Automation? Hippo

Let’s put it all together!

In today’s world, people are either asleep or connected. The best time to reach them is when they are both awake and connected

In the digital age, it’s time for marketers to get personal. Mobile marketing automation platforms enable you to customize your marketing campaigns with a few simple clicks. This means a better connection with your customer and a more successful campaign.

Mobile marketing is absolute for any business. With 55% web traffic coming from mobiles and market size growing at 18.9% CAGR, any business that does not perform mobile marketing is bound to fail. The question is how to do it. One option is to hire a team of experts to perform mobile marketing second one is to automate mobile marketing.

Mobile marketing automation is inevitable because you can’t perform every activity of mobile marketing and hiring a team can empty your pockets, especially if you are a small or medium scale business. 

Automation of mobile marketing can grow your business to great heights. But choosing the right automation software is a pickle. That’s where Hippo comes in. 


Hippo is among the leading SaaS providers for support and customer engagement. Hippo is trusted by brands like McDonald’s, KFC, Adnoc across the globe and can be integrated with your business within a week. To learn more about Hippo and how can it help you grow, you can visit our resources or schedule a live demo from our experts.

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We live in times when the lines between what we do online and in real life have blurred. As we continue to change our shopping behavior, businesses are stepping up their game to provide customers with a seamless customer experience. 

A business’s success today is measured by how many memorable experiences it crafts for its shoppers. Incorporating a world-class payment experience helps companies break geographical restrictions and reach customers where they are. Today, many payment options that range from cards, UPI payments to digital wallets have entered the fray to make online purchases accessible to everyone. 

That’s why Yelo has partnered with Razorpay, so your business is not left behind in the race to give your customers an enhanced customer experience. 

Razorpay is India’s leading payments solution provider that empowers SMEs and enterprises to accept, process and disburse payments. Further, its users enjoy the ease of doing business with the convenience of 100+ payment modes, including credit cards, debit cards, net banking, UPI payments, and third-party digital wallets. With Razorpay, managing your Yelo marketplace. Automating NEFT/RTGS/IMPS bank transfers, collecting recurring payments, and sharing invoices with your customers become simpler on a single platform. 

Yelo Razorpay partnership

Razorpay is India’s leading payment gateway in the last few years. One can chalk down the payment giant’s success to its sharp focus on customer satisfaction and providing excellent service. Yelo by Jungleworks has also always put customers first. By joining hands with Razorpay, Yelo hopes to bring its users closer to a seamless and sophisticated payment system that can help you grow your business. 

How to Integrate Razorpay on Yelo’s Dashboard 

Yelo’s platform is designed to be a scalable, agile, and flexible product that allows for integrations and modifications to suit your unique business needs. Additionally, by integrating your online store with Razorpay. Also, you can focus on your business and leave the hassles of money movement to us.

With Razorpay Route, you can easily split incoming payments to individual accounts, make vendor payouts, and manage your marketplace money flow. 

Razorpay is already defined and embedded for users as it gets built into your Yelo website. Use the Razorpay Payment Guide to set up Razorpay on your site today. 

Cutting-Edge Payment Features to Boost Your Businesses 

Razorpay’s product suite is designed to empower e-Commerce businesses with the right tools to accept online payments. 

With Razorpay, business owners can: 

  • Accept Payment in 100+ Modes 

With Domestic and International. Credit & Debit cards, EMIs (Credit/Debit Cards & Cardless), PayLater, Netbanking from 58 banks, UPI, and 8 mobile wallets, Razorpay provides the most extensive set of payment methods. 

  • Provide Checkout and Global Card Saving 

An easily integrated checkout with cards saved across businesses, so your customers can pay seamlessly everywhere. 

  • Get a Powerful Dashboard 

Get reports and detailed statistics on payments, settlements, refunds, and much more for you to make better business decisions. 

  • Enjoy Robust Security 

Razorpay’s payment gateway is PCI DSS Level 1 compliant and undergoes frequent third-party audits. By a dedicated internal security team to make sure your business data is always safe. 

Why Yelo – Razorpay is the Way Forward 

In an online business, the checkout page is where shoppers become customers. Giving your customers the convenience to pay is essential to increase conversions and sales. Further, you stand to gain an edge over your competitors and grab more market share by delivering such value to your customers. 

Yelo by Jungleworks was built on the foundation to offer more value to users. The Yelo – Razorpay partnership aims to help your business enhance customer retention and, thereby, customer satisfaction. Also, for business owners who use Yelo’s website, Razorpay’s payment gateway will provide your customers with an easy, simple, and safe online payment experience.

Redefining Your Customers’ Payment Experience 

As a business owner, your top goal is to make decisions that are best for your brand. Additionally, a stable and reliable brand image goes a long way in influencing consumers to choose your business over your competition. 

In addition to this, more than 50 lakhs businesses trust Razorpay to simplify their payments. You, too, can join millions of Razorpay’s happy users and simplify your customers’ online payment experience. 

Start accepting payments with Razorpay today!

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The global pandemic has vastly affected businesses around the world. Whether it’s a large industry or a small industry, every sector has faced a depletion in the growth of success. 

The need to be healthy and safe has mandated one to maintain social distance and stay at home. In this period, most of the businesses have adopted the D2C strategy to meet the demand and supply vice versa, maintaining the social guidelines.

The path of digitalization turned out to be a profitable opportunity for a large number of businesses, but with the adoption of the d2c strategy by the businesses, the pain of the loss has been suffered by most of the traditional retailers.

Fortunately, curbside delivery has emerged as a solution to their problems and also given the means to reinforce the work and shop. All types of retailers are working towards their curbside delivery service by enhancing or launching various features for customer engagement. 

Curbside delivery allows customers to make a purchase online, then drive to the nearby business retail store to pick up the product, without leaving their vehicle. It provides convenience to customers as well as to experience the hassle-free delivery service without waiting. 

This could be a win-win strategy for the retailer to satisfy the needs of their customer efficiently and enhance loyalty by providing an excellent curbside pickup experience. It cuts down the cost of delivery charges for which the customer might pay instant gratification immediately by obtaining their order.

Curbside pickup has become a more common way to shop for customers and retailers. It allows both parties to adhere to the social guidelines and be safe from any of the risks. 

This impact might be overseen in future too, as the customers might prefer getting direct delivery to the car, resisting to get into the shops. 

The convenience of instant delivery of online orders will encourage many customers to continue with the same facilities in the future. Also, curbside pickup is a more profitable opportunity for retailers than home delivery service. 

Due to which the retailers might also prefer to continue with the same strategy by experiencing the customers with ease and comfort, increasing customer satisfaction and loyalty.

What are the Benefits of Curbside Delivery? 

benefits of curbside delivery: Tookan

Curbside delivery is a beneficial strategy for businesses that want to enter the long-term game. Some of the benefits are: 

  1. Avoid Delivery Charges

Every customer tries to avoid shipping charges of the product, curbside pickup facility enables retailers to eliminate the barrier of delivery and serve the customers with a good service experience. In turn, it emerges to be a good move by the retailers. 

  1. Quickly meet the order 

Creating a good customer experience starts with a fast delivery service. Hence, it enables your customers to get their item delivered within a couple of hours, which adds up a benefit to this. 

  1. Get to review the item

Major times the issue of wrong items delivered has been summed up by online shopping. Curbside delivery enables one to check and confirm their product before receiving and taking it home. Hence, it acts as proof of customers’ agreement over the product. 

  1. Frictionless experience

With the meeting demands of customers on time, retailers have bent down to borrow the latest technology to provide eminent facilities. The use of great technology has enabled the customers to experience frictionless. 

  1. Maintain the social distance
curbside delivery benefits with Tookan

Curbside pickup adheres to the social guidelines by avoiding fewer people interaction or involvement. It ensures the safety of the product too by delivering the right order in a good condition and well-packed. 

  1. Leverages store inventory

Using in-store inventory increases the velocity of your store stock. It means the faster the inventory is cleared up the less handling and damaging risk are associated with it. 

  1. Increases overall sales

Diversifying your business to multiple options can help incur high revenue. Such as converting a portion of your business towards curbside delivery will help you to grow your chain. With the use of BOPIS, the retailers had an average growth of 23%.

The key to the success of retailers is implementing the curbside delivery service to ensure a great customer experience. 

Moreover, opting for a Curbside pickup virtual assistant could help you to maintain a proper flow of meeting customers’ demands. 

For example, the stores that have a high demand for orders and are overwhelmed with calls can generate negative customers which might affect the relationship with the potential customers. 

In such cases, virtual assistants can be an alternate option to solve the issue. 

Key Things You Need to Delight Customers? 

Curbside delivery delights customers

As stated above, the key to success for retailers is to have a good customer experience. Hence, the effective move can help to delight the customer’s experience. The key moves are: 

  • Automate the customer experience – Automating the experience of customers can help you build a better relationship. Such as, enable them to receive the product at their convenience or leisure time. Avoiding the hassle of stating a customer for the delivery when he reaches can automatically help to generate a good customer experience. 
  • Ready the order pre-handed – Synchronizing the time of arrival for the pickup of delivery and getting it ready before the customer arrives can help you to avoid the customer waiting at your store and enable them to shop without stopping. 
  • Educate the staff with the arrival of customers – Eliminating the customers introducing himself for receiving the parcel, and immediately handling them with a simple cross-check of the identity of the owner without wastage of time can help to meet the other requirements. 
curbside delivery: Tookan
  • Know exactly where your customers are – Immediate tracking the customer’s location with the help of the identification mark provided by the customer can help you to identify the customers and deliver the product without any hassles. 
  • Advertising – Businesses need to advertise the curbside pickup service to educate their customers. Using social media platforms or web portals for your advertisement can enable you to incur a high amount of customer engagement towards your service. 
  • Innovative  – The unique features of your business sets you apart from your competitors. Hence, featuring your services with the spark of innovation can help you to lead the market. 


The Curbside pickup service ensures that you aren’t left behind in the competitive market force. Along with building the customer’s experience, it tends to build your brand image too. Well, providing the customers with valuable service can help you to build a better business-customer relationship and enable you to stand up with your competitors. 

So, if you’re looking to diversify or expand your business, a curbside pickup facility is the perfect place to start, as it acts as a co-supporter of your business. Get in touch with Tookan to get started with Curbside delivery right away. 

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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.

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

What is headless commerce and benefits of headless commerce?

Headless commerce is a decoupled approach where frontend and backend are separated and communicate using APIs. The front-end part makes up for the  UI, UX, and everything else a customer interacts with. Whereas the backend system manages, stores data along with features of the platform. 

So in simple terms, Headless commerce is a solution. The frontend and backend are separated and work independently of each other. Therefore, 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

Though decoupled, both parts work with each other and interact via APIs, enabling headless commerce solutions to be more interactive, user-centric, and flexible. Developers can fully utilize any frontend 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 UI and UX of your platform
  2. Improved conversion optimization
  3. Faster to market
  4. Scalabile
  5. Cost savings
  6. Seamless Integration

Complete ownership of UI and UX of your platform

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 consumer side technology. 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 tailor their UI according to their consumer behavior.


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Improved conversion optimization

Headless commerce enables you to test out various frontend templates with customers. 

For example, you can have different UI and UX for one region and a completely separate UI and UX for another region to test, providing better conversions.

Thus, a headless commerce solution allows you to perform rapid testing, which increases your learning rate compared to your competitors.

Faster to market

If you manage to build a customized multi-channel solution for your brand in a traditional setting such as fork ( where the frontend and backend solution is customized according to your needs ), the time to market will become slower, and scaling will become a more tedious process.

Whereas, headless commerce solution enables you to build different frontend experiences at the same time while creating new touchpoints. Since the content and functionalities are housed in the backend, it can be controlled using APIs to deliver anywhere. This reduces the time to market while entering new markets and adopting the latest technologies.


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.

Headless commerce enables the brands to make rapid changes in their UI and UX to keep up with the consumer side technology without using the bandwidth of the backend IT team. Generally, brands using a traditional platform, such as SaaS solutions, roll out UI updates every couple of weeks. In contrast, businesses using headless commerce can adapt to the latest trends more quickly. Since your backend is robust you can scale easily with tweaking the UI and UX.

Cost savings

Brands that go for headless commerce solutions are usually the ones who have outgrown the UI and UX capabilities of their standard or SaaS solution. While the backend fully satisfies their functional requirements, developing a customized frontend experience in a traditional commerce environment is usually very expensive.

Headless commerce enables them to have a flexible frontend while enjoying the same backend engine, which reduces the load on the backend. Thus, it reduces the overall cost of development and maintenance.

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.

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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.

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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 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!

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