How Uber Works
Uber is an on demand transportation service which has brought a revolution in the taxi industry all across the world. The business model has made it possible for people to simply tap their smartphone and have a cab arrive at their location in the minimum possible time, leaving a lot of budding startups yearning for an App like Uber and wondering how Uber works.
Uber is one of those few tech companies in the world that has been valued over $70 Billion. Uber has already received an equity funding of $22.2B and is present in 633 cities worldwide. These facts surely show the trust of investors in the business model and make it easy for us to imagine how much revenue will the organisation be making once it attains liquidity.
In this post, we have highlighted some unknown facts and figures along with a detailed explanation about the model by which Uber earns money and how uber works. Uber’s customer segments, value propositions, key problems, solutions, cost structure and revenue model have also been discussed. For budding entrepreneurs, we have catered to the rise of ‘uber for x’ startups and what you should be looking for in this space. Read on!
Uber Founders, Funding received and Timeline:
Founders: Travis Kalanick and Garrett Camp.
Company Headquarters: San Francisco, California, United States.
Funding received by Uber: $22.2 Billion. (as of December 2017).
Company Valuation: Over $70 Billion.
Number of Users: More than 50 Million.
Number of registered drivers: Approximately 7 Million (as of November 2017).
Average number of daily Uber Trips: 1 Million
The successful timeline of Uber:
Uber’s Revenue Generation Model:
If you have ever travelled in a taxi, you might have paid the driver in cash at the end of your journey. The cash collected by each journey is the only source of revenue for a traditional cab company. Uber is no different. Neither does Uber have a different revenue model than the one mentioned above nor it has any other source of revenue as of now. But just imagine 1 million rides a day. It will help you calculate those big numbers that the company earns. Let’s dig a little deeper to understand Uber’s source of income and see how uber works
If you’re wondering what is Uber technologies fee, what has made them so successful is the fact that the revenue model is as unique as their business model. See how uber works:
1. Different cab models to cater to everyone:
Uber has not limited itself to a particular segment of cars or to a particular segment of people. There is Uber X, Uber Black for those who love to travel in a black car, Uber Taxi for those looking for cost-efficient solutions and Uber SUV for those who want luxury.
2. Surge Pricing Technology:
Variation in cab fares according to the situation is an important aspect of their business model. Whenever the demand increases, per mile prices, are automatically increased. The new price depends on the number of available drivers and the number of requests made by people who want to travel. It has applied for a price surge technology patent in the US.
3. Other Uber rides:
Uber has come a long way from cabs. It now offers boats, helicopters, as well as some other transportation, means on demand. They recently launched a motorcycle-pickup service in Paris, a delivery service in San Francisco, and an ice-cream-truck-delivery service in a few cities too. However, these means are available in selected geographical locations but it has led them to add new streams of revenue into its business model.
Salient Features of Uber
- A user can tap his smartphone and call a cab at his location.
- The driver has the option to accept or reject a ride.
- If the driver accepts the ride, driver details are sent to the customer along with ETA.
- The customer can track the driver as he arrives at his location.
- The driver can also track the exact location of the customer and reach his exact location.
- The payment procedure is handled by them
- In some countries like India, they have even started accepting cash payments which are paid directly to the driver.
- The business model had a rating system in place for drivers right from the beginning, where a customer can rate the driver after his ride.
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- No need to wait for a taxi for long times.
- Free rides on certain occasions and discounts from time to time.
- Prices lesser than the normal taxi fares.
- Uber’s tagline says – Your personal driver. It lets customers travel in style.
- Fixed prices for common places like Airport etc.
- An additional source of income.
- Flexible working schedules. Can work part-time or simply whenever they like.
- Easy payment procedure.
- Those who love to drive can earn money while pursuing their hobby.
- Uber pays drivers to be online, even if they don’t get any request.
- Do not own a car.
- Do not want to drive themselves to a party or function.
- Like to travel in style and want to be treated like a VIP.
- Want a cost-efficient cab at their doorstep.
Uber has such a vast customer segment that it has got something on offer for everyone. From Uber Taxis to Uber Black and from Uber X to Uber SUV, the company has got a vast range for its customers to make a choice.
Uber serves professionals as they hire an Uber cab to and fro work. For this Uber did few tie-ups with corporates in the beginning and does so when it launches in a new city in a new country. Apart from professionals, Uber tries to touch the hearts of people by offering special services like:
Uber for Kids: A special service from Uber dedicated to parents who want their kids to reach home from school in an Uber cab.
Uber for Senior Citizens: Another special service from Uber where it targets senior citizens. As per the statistics, Senior citizens make for up to 30% to 40% of total rides in many cities. This made Uber have some special features for seniors and hence attract more senior citizens on the platform. Check out this post from fortune: Why senior citizens are flocking to Uber.
All this might raise another question in your mind. The question about how does Uber find them or how does it market out to its target audience? We extended our research beyond Uber business model and came up with an entire growth model of Uber and some insights about how you can build an Uber like App.
Growth Model: How Uber finds customers
In less than 6 years, Uber has managed to become the best example of a city-by-city mobile service company roll-out. Many generic pointers that I talked about in this Blog Post regarding scaling User Acquisition efforts for On Demand platforms borrows elements right from Uber’s playbook.
Let’s try to decode Uber’s Playbook and how it plays out as it launches in a new city or a country:
The underlying principle here is that for every city it launches, it faces the same chicken and egg problem. The advantages that Uber has as compared to new startups in this space are:
- A lot of money to incentivize both drivers and customers.0
- Rock-solid processes or playbooks that have evolved through experience launching Uber in 311 cities till date.
- An already known brand that gets early curious adopters.
Everything starts with a small city launch team. Every city has a general manager who heads the customer acquisition as well as driver acquisition. The first cabs to come on board are generally professional drivers who are already associated with local taxi companies and have their own cars.
First customers come from various local advertising channels like FM radio, newspapers, online advertising etc. Uber is such a large name that people are already waiting for the cab company to start services in their city.
Uber Business Model Canvas
4 Step Model About How Uber Works
- Step 1 (Request a cab): The first step in the business model is about creating a demand. People have a smartphone app which lets them request a cab instantly or schedule it for some time later.
- Step 2 (Matching): As soon as the request is made, a notification about your details are sent to the nearest driver. The cab driver has the option to accept or reject the ride. In case he rejects, notification is sent to another driver in that area.
- Step 3 (Ride): Customer can track the cab when it is arriving and the ETA is also shown to the customer. The meter starts as soon as the customer sits in the cab which can be tracked through the customer side app as well. Friendly drivers make sure that the ride is comfortable for the passenger.
- Step 4 (Payment & Rating): Once the ride is over, the customer gets an option to rate the driver. The rating system is an important part of the business model as it lets a person know about the driver before booking a ride and helps him trust the driver.
How and Why Uber became so successful:
Uber’s business and revenue model just can’t be stated as complete if this widely asked question about their successful journey is not answered. There were certain factors that led to Uber’s success. Here’s a brief journey that Uber went through when it launched. The similar journey can be followed by any startup which aims to make it as big as Uber.
The problem with Local Taxis
Earlier, people had to stand on the street side and wave their hand in order to signal a taxi to stop. The wait time, the inconvenience and high rates were a problem for everyone. Quite a few taxis were available and drivers/taxi companies used to charge whatever they thought was right. There was no control on prices and people were left with no other option. Apart from this, the situation was worse during peak hours as it was quite hard to find an empty cab.
The launch of Uber
Uber recognised the ongoing problem in regard to booking a taxi and gave a technological solution through a mobile app. The solution to book a cab by tapping a smartphone brought a revolution in the taxi industry. The app was officially launched in 2010 and soon became popular due to the value it provided to people.
The early adopters
It is quite difficult to market a newly launched product or service in any geographical area. What gave it the edge is that it launched in San Francisco, a city which is home to tech-savvy people. The first drivers on the platform came through cold calling. Many of them were professional drivers with other cab companies or were self-employed as a taxi driver.
To get their first customers, they took to social media and other mass marketing means. It offered discounts, free rides and rates that were too less as compared to other cab services in the city. The first customers were those who enthusiastically wanted to try a new service. It offered riders from club venues to user’s doorstep so the party people were amazed. It offered rides to the corporate sector who worked in offices helping them to save time.
Word of Mouth advertising
Whosoever took a ride in Uber was baffled by the first-hand experience. This made the early users become regular customers and they also helped spread the name by word of mouth advertising. This word of mouth advertising was one of the major driving force
Main Growth opportunities tapped by Uber
- Party people who go to clubs, parties or events.
- Business Travellers and Tourists.
- Cab at the doorstep in bad weather conditions.
- City’s Nightlife.
Problems Uber still faces
Lawsuits: Uber has pending lawsuits in courts of New York and San Francisco. According to Uber, all drivers working for it are its partners while the court says that they are employees. Uber is not the only company facing such a problem but in fact, almost all companies who hire 1099 workforce are under the scanner.
Chicken & Egg problem (New city Launch): Uber faces the chicken and egg problem whenever it launches in a new city. Acquisition of customers as well as partnering with new drivers is not an easy task. To solve this problem, a marketing team starts working in a new city by reaching out to professional drivers. Soon, online and offline marketing is initiated. Discounts are always the main USP to woo customers in the starting stage. Read – How to solve the chicken and egg problem.
Trust and Safety Issues: There have been cases where Uber drivers have acted rude to passengers. Some cases where Uber drivers have outraged the modesty of female passengers have come to the limelight. This is a big challenge for Uber. Although the company takes all steps such as police verification of drivers and their ID details but still such cases cannot be ruled out completely.
Takeaways from Uber Business Model
- Go for less ownership model. Uber does not own any cab but still provides over 1 million rides a day through its partner network.
- Choose an industry. Think about the most common problem it has. Find a solution and disrupt the existing model through technological infrastructure. That is what Uber did in the cab industry.
- Treat your initial users as kings. They are really important for the growth of your business.
- Expand step by step. Do not add everything in your business model in the first go. Uber started with cabs but now even has boats, helicopters, bikes and other means.
- Opportunity won’t come to you. You have to look for them. Uber created an opportunity by offering discounted rides for particular event venues and hence got its first customers.
- Treat your workforce an important part of your business. Uber calls its drivers as partners and gives them a decent 80% of the total fare.
There’s no doubt in the fact that Uber has brought a revolution not just as a taxi company but as a business model where businesses reach out to serve customers at their location. A lot of startups have already made their app like Uber and many others have made small iterations to launch startups in various industry verticals.
Want to create an App like Uber? Get in touch with us and know how we can help you build the next big thing!
Grocery markets have been showing quite a high increase in businesses across the globe. Almost all the countries in the world have a fairly good percentage of rural population through which the rural grocery markets are getting benefited. Rural businesses are more focused on selling groceries, fruits, and vegetables as these are the ultimate living essentials for the people residing in those areas.
But, do you think you are making the most from your current physical grocery store business in the rural areas, or do you project your grocery business future to only remain restricted to the rural geographies? I guess not, right? Definitely. Even after being located in a rural area, your grocery business can still perform wonders by pushing its limit to the horizons and serve the urban areas or cities or countries alongside the rural population, seamlessly.
This is the power of digitization. While urban demand for grocery products remains sluggish worldwide, the rural grocery market is growing faster than ever in some of the largest emerging economies. You get enormous options to scale your business online and get highlighted in the global market and be one of the best grocery businesses.
Let’s see what are we going to look at, today!
- Reasons for the increase in grocery business opportunities in rural and urban areas
- Conducting market research to start & scale online grocery business
- Keeping track of online grocery platform competitors
- Identifying & retaining prospective customers
- Building communication strategy
- How to pick up a pace to launch your online grocery business?
Reasons for the increase in grocery business opportunities in rural and urban areas
The rural grocery market tends to have a huge supply in the rural areas as the rural people are more concerned about the daily/everyday needs of their life like food, shelter, and clothing rather than other luxurious items, so no matter how big or small your grocery business is, it will definitely sprint. In the urban areas also, the case is almost the same, the only difference is that rural people tend to buy grocery products of a low range or negotiated price, but the urban people go for both types of price ranges.
Many physical or offline grocery stores faced a drop in their businesses due to certain reasons at a certain point in time, the very recent example being Covid-19. In such a phase, the online businesses have proved a boon for the consumers which in turn has profited the businesses too, especially the grocery business. Thus, we should encourage ourselves and every small business to go online and actually, never stop growing.
Economists estimate that the rural grocery market has considerable profit and prospects for the grocery & many more industries. Reasons for the increase in grocery business opportunities in rural geographies are:
- Industrialisation in the rural areas has brought in income stability and has increased the household purchasing capacity. It also facilitates an increase in rural employment in the agriculture sector, thus making these households earn their living.
- Certain government policies have helped to do away with poverty and unemployment problems in the rural areas, thereby increasing the income of the family as a whole.
- The changing lifestyle of the rural population over the period. Startup versions of the products are giving way to branded commodities.
Conducting market research to start & scale online grocery business
This is the most important factor in a business in a remote area. Whenever we try to scale a business to more regions or cities, apart from the ones in which we are already serving, we need to understand the upcoming sectors or areas in which we are going to transfer. You need to understand the target customer base for your grocery products. First of all, for taking your business online, you need to create much awareness about your grocery business and start to know what kind of population will actually like to order from you online through web apps or mobile apps and for this, of course, the targeted population will be the one having access to much electricity and obviously the technologies in their areas. Get to know the income levels of the communities residing in the rural as well as urban areas, the purchasing power of the basic family in that community, their needs, and how much they would be willing to spend for that product. This will not only help you identify your prospective customers but their characteristics too, such as age groups, product interests, etc.
Keeping track of online grocery platform competitors
When going to participate in a race, it’s always advised to keep a thorough check of the other participants to know their strengths and weaknesses which in turn can help us cast ourselves accordingly. In a similar fashion, if you are completely set to rocket-start your online grocery business, just have a quick sneak-peak to other grocery businesses already in place. Mentioning a few of them below:
- Instacart: Instacart is an American company that operates a grocery delivery and pick-up service in the United States and Canada. The company offers its services via a website and mobile app. The service allows customers to order groceries from participating retailers with the shopping being done by a personal shopper.
- Gopuff: Gopuff is a consumer goods and food delivery service operating in over 650 US cities through approximately 250 fulfillment centers as of March 2021. Users can order items online or via the Gopuff app and get the items delivered.
- BigBasket: BigBasket is an Indian online grocery delivery service. The company primarily delivers grocery goods found in convenience stores, home essentials and food supplies to its customers. BigBasket was founded in December 2011 and has its headquarters in Bangalore, India.
- Grofers: Grofers is an Indian online grocery delivery service. It was founded in December 2013 and is based out of Gurgaon. As of 2018, the company has raised about $535.5 million from investors including SoftBank, Tiger Global and Sequoia Capital.
Identifying & retaining prospective customers
Identifying prospective customers or clients is an important aspect of the success of any business. This includes the identification of customers who possess the highest urban & rural grocery market potential. You need to identify the target group for each grocery product; one needs to analyze the purchasing power of the family as a whole; the income level and the average finance or percentage of savings utilized for purchase of grocery; the employment, under-employed, and unemployment scenario of that area; identify the particular age group, and their choices of the types of grocery products and rural/urban products and so on.
Scaling the grocery business and moving towards urbanization, does not mean that you lose your existing customers from the rural geographies because “Every Customer Matters!”. Your existing potential customers could play a key role in pulling in new customers, hence making a chain of potential customers ranging from rural to urban areas.
The untapped potential of rural e-commerce is getting clearer with the level of digital adoption we’re seeing; the next wave of internet users that are coming online are in rural areas—from the current 18% penetration in rural areas, it’s expected that, by 2022, internet penetration will be as high as 50%. These enablers will mean a much higher CAGR for rural e-commerce than urban, and it is estimated that this market is likely to be a $10-12 billion opportunity in the next four years.
Building communication strategy
Creating an appropriate communication channel for your customers is the right path to follow when it comes to retaining your customers. Be it rural areas or urban areas, a successful reach to the customers is what the business demands. Communication channels for educating about your grocery business may be banners or hoardings, TV advertisements, pamphlets, etc. but the powerful channels today are emails, social media platforms, digital marketing, and many more. And for you to adopt these powerful digital techniques, you have to take your physical presence of grocery business online.
How to pick up a pace to launch your online grocery business?
After you have followed the above steps of conducting market research, knowing your competitors, identifying potential customers, and building a communication strategy, the next step you need to take is the smartest decision of pushing your grocery business online from the rural grocery market. Thinking of how? Don’t pressurize your brains!
Apart from providing the best possible information that we can, we come along with the solution to your problems too. We have the best way that you can set up your direct-to-consumer grocery delivery app in exactly no time with Yelo.
Take a quick sneak peek at the Grocery demo of the platform that Yelo offers.
It would help you to set up your launch via a strong digital presence. Apart from it, we are also offering robust delivery management software that can allow you to make sure that your grocery products reach on time to the desired location. For this, you may check out Tookan as well. Always remember, business decisions taken at the right time can make the time right for your business. It is the time when you should think out of the box and come out of your comfort zone to make your business sustainable and scalable in the market. For more information about how Yelo & Tookan can help you, feel free to connect with us.
Third-world countries have broken conventional beliefs and have given rise to some of the current trends. Countries like the United States and Canada are leading the way in legalizing the use of marijuana.
Marijuana use is now legal in 33 states across the United States. As marijuana becomes more widely available for recreational and medical purposes, it has created new business opportunities. By 2023, the legal cannabis business will reach nearly $40 Billion.
- What is Leafly?
- Leafly Business Model
- Strain Explorer
- Dispensary Locator
- Leafly Revenue Model: How the Weed Delivery Giant Makes Money?
- Delivery Fees & Commission
- Membership Plans
- Hike in Prices
- The statistics of the cannabis market
- Leafly by the numbers in 2021
The E-commerce space has attracted the majority of industries to go online in some capacity. More businesses are attempting to join the on-demand era to cater to the rising customer base that prefers the convenience of on-demand services.
We have compiled a summary of everything about Leafly, including its business and revenue model, to give a better understanding of how the cannabis delivery business operates.
What is Leafly?
Leafly is a widely-used and well-known online resource for medical patients and cannabis enthusiasts worldwide. The delivery platform has undoubtedly influenced the visual design world in the whole cannabis industry. Founded in 2010 by Brian Wansolich, Scott Vickers, and Cy Scott, the company was sold to cannabis investment firm Privateer Holdings.
The company was embarked on a new mission to provide cannabis administrators with credible information to leverage better business results in no time. The platform has created the world’s largest web portal for all the essential information while beneficial for patients to have quick access to get their medicines delivered at their places.
With around 15 million monthly visitors and more than 40 million page views across mobile apps and websites, Leafly is one of the largest cannabis platforms globally. The platform enables its users to rate and review different cannabis dispensaries and strains of cannabis. They allow consumers and patients to determine which cannabis products are appropriate for desired effects or particular preferences.
Leafly was the first cannabis company to advertise in The New York Times. In addition to this, they generate money by selling, advertising, and listing packages for the cannabis industry.
Leafly Business Model:
Leafly began as a popular strain review website and recently expanded its platform to include a dispensary directory. The website has grown to become the most popular marijuana company directory and community on the internet.
Possessing knowledge from the cannabis domain, Leafly has its platform for delivering marijuana. Having said this, they increase sales without having to compete on an aggregate platform or cooperate with another provider.
Many marijuana dispensaries are seeking to be a part of Leafly in order to gain exposure. Let us take a look at how it is gaining more and more traction.
Leafly allows consumers and patients to search for cannabis strains based on medicinal needs such as nausea or anxiety and desirable effects such as creativity or euphoria. The strains are organized periodic table manner, with color-coding to indicate if they are hybrid, Sativa, or Indica.
Leafly users can search for dispensaries by entering their zip codes, state, or city name. On the Google map, all of the closest dispensaries are shown, making it easy for users to find and purchase the medications they require. They can look at detailed dispensary profiles that include reviews, menus, store locations, and images, among other things.
Users of the popular solution, Leafly, can provide their reviews of dispensaries they have visited or strains they have tried. The weed delivery platform provides them with a brief comment section to share their thoughts and rating option, helping them rate the dispensaries. Users can also evaluate the strain based on desired effects, summary data, qualities, and other factors.
Leafly Revenue Model: How the Weed Delivery Giant Makes Money?
According to the report, pharma businesses are anticipated to attain a mixed market size of $2.7 billion by the end of 2023 and about $360 million in the next four years. The key growth drivers for weed and e-pharma are the increasing smartphone usage and internet penetrations and the ease of ordering anything through an eCommerce platform.
Delivery Fees & Commission:
As a business, Leafly earns revenue by placing commissions on the sellers using their platform to reach new customers and use its delivery chain. On the customer front, charging them delivery fees to connect them with their preferred stores makes the transaction smooth and quick.
Many on-demand platforms offer advertising services as a way to boost their revenue. Leafly offers advertising services to interesting stores and dispensaries wanting to promote their products, in return, charging them for displaying their ad on the app’s screen.
They are selling membership plans to the clients. Apart from their regular shopping, this package will provide them with additional exclusive discounts and incentives. Reduced delivery fees or other such incentives could be made possible by the ideas.
Hike in Prices:
As demand grows, raising the price of the products can be another way out.
Leafly generates revenue by selling online display ads and priority listing packages to companies in the cannabis industry. Display advertising campaigns are sold on a Cost Per Impression model. More than 4.5 million orders are placed with businesses on Leafly each year, generating $460 million in gross merchandise value (GMV) annually for Leafly partnered retailers.
Let us gain more insights into the cannabis market.
The statistics of the cannabis market
Recreational and medical cannabis are the two types of cannabis available on the market. Since the legalization of medical cannabis, it has become an on-demand business. Let us look at the report to see how it has grown over the years and since legalization.
- According to the study, the global legal cannabis market would grow from 14.9 billion dollars in 2016 to 42.7 billion dollars in 2024. With this graph, it is safe to conclude that the cannabis business is rapidly expanding and has reached a point where it benefits both customers and marketers.
- Increased marijuana consumption worldwide has emerged as a market-changing trend, providing a glimpse into the dynamic cannabis sector.
- The total sales of legalized recreational marijuana amounted in 2018 — $4.4 billion.
- The total sales of recreational marijuana in the U.S. have generated — $11.67 trillion.
- The recreational marijuana market in the U.S. is valued — $3.2 billion.
- In the next decade, the recreational marijuana market will be accounted for — 67%.
In a nutshell
These statistics and facts reveal that the cannabis delivery sector has already flourished on a global scale and will continue to do so in the years ahead. As a result of this fact, worldwide marketers have engaged in the profitable cannabis delivery business.
Given the growing competition in the cannabis delivery business worldwide, startups and established companies are considering investing in cannabis delivery app development to gain a firm foothold in the market.
All in all, the Cannabis industry poses some significant upside for technologically transformative businesses. There are a few major players that are tapping into the medical marijuana delivery market. Leafly, Eaze, Weedmaps, Budly, Heyemjay are some of the leading platforms in online cannabis delivery services.
Leafly is the most trusted platform for discovering cannabis products and purchasing them from legal, licensed sellers worldwide. Each year, over 120 million people use Leafly to learn more about cannabis and place online orders with local businesses.
Leafly by the numbers in 2021
So far, Leafly has recorded over 4+ million orders placed online with 120 million website visitors. With more than 4500 stores listed online, Leafly is leading the way for online cannabis delivery. In addition to this, Leafly is the leading customer acquisition tool for more than 8,000 brands and 4,500 retailers who use Leafly to make millions of online orders happen every year.
As the statistics depict, the on-demand cannabis delivery businesses are in the limelight and have a bright future ahead. However, there are still a few things that need utmost attention – discovering the right market, procuring the necessary licenses and permissions, taking care of the legalities and development of the platforms.
Take the easy road and have a platform like Leafly with Yelo today. Contact us today to address the needs of the community by starting a cannabis delivery service. Book a free demo now.
Are you curious how the Instacart online grocery business works and how you can be the next Instacart of the World?
Undoubtedly, it is one of the most current technological innovations with a business plan that has shaken the world!
Due to the wide availability of products, easy-to-use mobile applications, and convenient delivery of products at the doorstep within a specified time frame, the online grocery business market is witnessing an exponential rise in the number of consumers in recent years. One such online grocery business that has gained significant popularity and has become a model to follow is Instacart.
Instacart is an on-demand grocery delivery service that delivers groceries and household goods to customers’ doorsteps.
In this article, we will look into the working of Instacart along with some tips and strategies on how you can start your online grocery delivery store like them.
Instacart: An Overview
Launch Date: 1 July 2012
Founded by: Apoorva Mehta (CEO / Founder) and Max Mullen (Co-Founder)
Headquarter: San Francisco, California
The global online grocery market has surpassed $190 billion in 2019 and is anticipated to expand at a CAGR of 28% between 2020 and 2026.
Due to the pandemic and the subsequent lockdowns, sales in online stores started exploding—owing to a surge in demand. Online delivery became the safer way to purchase essentials as opposed to visiting crowded stores during these difficult times.
Modern-day technology has made shopping easier. Instacart is one of the most popular grocery delivery apps in the North American region. You can use it to get your groceries delivered to your doorstep in as little as an hour. Instacart allows you to shop from the comfort of your home using your smartphone or computer.
All you need to do is create an Instacart account, select the products you want and schedule a delivery either within an hour or later in the day or even in the next few days. An Instacart shopper will assemble your order and facilitate home delivery.
It also allows an in-store pickup option that saves you the trouble of walking through the stores searching for your desired products. Just select products you want on Instacart, schedule a pickup time, and pick them up directly from the store.
The Business Model of Instacart
With its unique technology-driven business model, raised by a former Amazon engineer, Instacart is revolutionizing the online grocery business industry. Due to its exponential growth aided by a stable and futuristic business model, Instacart is ranked as one of the USA’s most promising companies. In addition to this, it is currently valued at 7.6 billion dollars after raising an additional 600 million dollars. Statista reports that around 85% of the USA and 70% of Canadian households rely primarily on Instacart for grocery shopping.
Different stakeholders of Instacart:
Instacart directly connects users with shoppers and does not own any store, instead it provides an online platform for grocery retailers to sell their products. The shoppers are part-time employees or independent contractors who shop for the customers and deliver to their doorsteps. Instacart makes revenue from the placement fees from the grocery stores and delivery fees from the customers.
Instacart knows that its success and growth heavily rely not only on the customers but also on two other major stakeholders: grocery manufacturers, retailers, and personal shoppers. The company provides a great platform for the store owners to advertise and sell their products and offers excellent opportunities for gig-workers to earn bucks as part-time personal shoppers.
Benefits offered by Instacart to customers:
- Delivers 1000+ fresh and organic products to your doorstep within 1 hour.
- In addition it provide huge discounts through promo codes on new products.
- Serves more than 25,000+ grocery stores. Users can order from even reputed stores like Costco, ALDI, Kroger, Safeway, Albertsons, and more.
Here is what Instacart offers to the shoppers:
- Shoppers are provided with a flexible working schedule.
- Shoppers can choose between two working models, either as a full-service or an in-store shopper.
- A full-service shopper works as an independent contractor.
- An in-store shopper works part-time
The value offered by Instacart to retailers:
Instacart also has tie-ups with most of the local grocery store owners.
Grocery store retailers use Instacart’s popularity to increase their revenue through online sales. Stores will have the opportunity to increase the number of loyal customers who can purchase from them even outside Instacart.
Also Read: On demand business models
The Revenue Model of Instacart
Instacart has four fundamental channels from which it generates revenue. They earn their revenue from:
- Markup prices of the grocery stores:
- Delivery fees for products ordered
- The membership fee for using Instacart
- Offers and schemes on purchases
How is Instacart Keeping Up With the Demands of people in the Present COVID Situation?
“We saw five years of growth in five weeks, and the growth has continued as we grew over 300% year on year ” – This quote from Apoorva Mehta, the CEO of Instacart, sums up the stellar journey of Instacart in the pandemic.
Instacart has shown exponential growth during the pandemic outbreak and was well-positioned to handle the crisis. In fact, on 23rd April 2020, Instacart added 250,000 more shoppers to its crew to meet the rising demands due to lockdowns.
The supply-side growth (by adding a lot of shoppers) during the pandemic was largely driven by the impact of the pandemic on the demand side (more users ordering groceries online). Most people are acting responsibly by staying at home and staying away from crowded areas like grocery stores. So there was a natural inclination for people looking up to Instacart for their grocery needs.
However, Instacart also faced significant backlash in areas like delivery times and employee satisfaction. During the initial months of the pandemic, which was dominated by panic buying, Instacart dominated the grocery delivery market and was delivering more products than America’s largest grocer, Walmart, says Second Measure, a data firm. The number of chains Instacart served has increased by 60%, and almost 500,000 Instacart shoppers are cruising around 45,000+ stores across the USA and Canada.
The result – revenues had hit $1.5 billion. Forbes reported that Instacart has grown from a loss of $2 per order during 2019 to a profit of $3 per order in 2020. Since the start of the pandemic, Instacart reported positive cash flow for three consecutive quarters for the first time.
To thrive in this competitive world, you need to provide some additional value to your customers over and above the must-have features. Here are some unique features you can offer:
Shared Shopping List:
If there are several members in a family, imagine the chaos that will be generated while preparing a shopping list. You can make this process seamless by allowing sharing of product lists across different members and creating a common place to access all the orders.
his will eliminate the risk of missing or duplicating grocery products. Instacart and other apps have this unique ” shop with friends ” feature through which consumers can view each other’s s list. Try incorporating this in your grocery platform.
Tracking the Order Delivery:
Fear of missing the delivery makes customers anxious, and they end up staying at their homes waiting for the order. Employing GPS tracking and mapping will allow users to track their orders and go about their day without anxiety.
The delivery fee usually depends on the size/quantity of the order, location, and delivery time. You will also end up charging higher during busy shopping hours. While some customers might not mind changes in prices, the users should be instantly notified about the price change before confirming the order.
How to Be the Next Insatacart?
Growing demand for grocery and food delivery apps, attractive government incentives for small and medium businesses, and, most importantly, untapped workforce have created a conducive environment for those looking to start their own online grocery delivery app. Let us now understand what constitutes a platform like Instacart.
Must-have Features in your grocery delivery app:
Furthermore, are some of the most common core features found in most online grocery business delivery platforms (including Instacart) – Product categorization is the arrangement and placement of products into their respective categories. The process usually gets complicated when there are thousands of products belonging to multiple categories.
You should offer a search functionality where users should be able to find the products seamlessly by entering keywords in the search bar.
Offer a separate profile section where users can manage their personal details, addresses, billing details, set preferences for future orders, view order history, and view loyalty points.
Customers usually prefer a platform that offers multiple payment options such as cash, cards, digital wallets, and gift cards, with an option to redeem loyalty points and apply promo codes. After placing an order, the customer should also receive an invoice on his email and the order details should be recorded in the user profile section.
Your checkout process should be simple and should capture minimal details. Capture just the contact details, payment details, preferred delivery time, and delivery instructions.
In conclusion, we can say that online grocery delivery businesses such as Instacart are skyrocketing in terms of revenue generated, and the number of orders served. Moreover pandemic has created an everlasting change in consumer behavior. They now prefer to order their groceries online instead of shopping in the stores for convenience and safety.
Yelo supports all your business needs. It is an end-to-end direct to consumer ordering platform
It provides your business with smart delivery tools that are perfectly tailored to maximize ROI. Build your own marketplace with Yelo.
Above all, if you want to start an online grocery business like Instacart, this is the right time. But remember, the quality of delivery that you offer will be your biggest competitive advantage when you start your online grocery business. Undoubtedly, exceptional delivery quality can only be achieved through efficient and seamless business operations. This is possible by adopting a delivery management system like Yelo. It helps you manage your business operations better and optimize the delivery process for efficient and faster deliveries.
Cannabis has been one of the fastest-growing industries in the past couple of years. With the legalization of Cannabis and its ever-increasing popularity, as a result there is a rise in the need for Direct-To-Consumer Cannabis Delivery Platform.
Setting up a Cannabis Delivery Platform can seem complicated. On the other hand, a well-made plan might be just the thing to make sure the Platform has all the features that may be needed.
For those who are Marijuana connoisseurs or just looking to start a new business like Uber for weed, we will cover the essential features of a Cannabis Delivery Platform and provide the tools to create the Platform with ease.
What are the features that should be available in a Cannabis Delivery Platform?
Building a cannabis delivery platform is not just about how the app works for the customer. It is about a harmonious relationship between all the parties involved in a transaction: the customer, the delivery rider and the management. Above all, building a truly successful and efficient Cannabis Delivery platform means understanding the synergy between these elements and creating fluidity.
A cannabis delivery platform should have three applications/dashboards.
Customer App for cannabis delivery platform
Cannabis mobile apps and a website for online orders
Building an app and a website are essential elements for a cannabis delivery platform. The website and application act as a digital door to the virtual store.
The look should be fresh, simple and, most importantly, inviting. A Platform should look and function in a manner that is inviting and pushes the potential customers into making a transaction.
Real-time tracking and updates
Providing the customers with real-time data about their order and delivery enforces trust in the brand. This will allow customers to track their cannabis orders and keep them updated when the status or ETA changes. Therefore, clients do not have to worry about delivery security ever again.
Customer verification & instant payments
Serving in a state with legalized medicinal marijuana is a prominent feature. Checking and ensuring that potential customers hold a valid prescription is of utmost importance. Let customers upload a legal prescription and photo ID through the app to serve in the best interest of both the business and the customer. As a result, the instant verification of the customer can redirect them to the payment gateway.
Most importantly, this is to ensure they do not lose out on precious time while making sure of compliance with the norms set by the authorities.
Push notifications for clients
With the limited options for advertising it is essential to emphasize and try to build on repeat customers. To achieve this, push notifications for customers could prove to be a hidden gem that will drive the reorders for a Cannabis Delivery Platform.
Driver App for Cannabis delivery platform
Instant notifications for new orders
Providing a team of delivery riders instant notifications for any new order will ensure a proactive approach for all business fonts, from customers getting satisfactory updates to the drivers planning and managing their delivery schedule.
Route optimization for drivers
Drivers can efficiently manage their delivery by providing them with an application that quickly helps them consider multiple destinations. The app ensures on-time delivery by assigning the shortest and fastest routes.
Order fulfilment status
On completion of every delivery, the driver gets an online confirmation that the delivery is completed. They can close the current order delivery and move on to the next task at hand, ensuring optimized delivery.
Manage everything in one place
Get all the orders along with their statuses under one umbrella. Manage and track deliveries, see upcoming and booked orders in one master app. One can even look to customize offerings and put our new deals straight from the manager app.
Monitor all types of metrics through the manager app. Be it several deliveries, cancelled orders, ratings and reviews or even driver performance. Get all the data in a single place to constantly improve businesses working on the go.
Sales reports and analysis
Firstly, as a business owner it is essential to track the revenue with further analysis to get better results. Secondly, the sales reports will provide real-time insights along with accounting details.
The aim of this is to identify opportunities to grow a marijuana dispensary business.
Top 3 companies to help build a cannabis delivery platform?
Let us get to the big picture.
What are the tools one can use to build a Cannabis delivery platform?
Yelo provides entrepreneurs with a set of tools to build their own Direct To Consumer (D2C).
It is a platform curated to allow to build a Cannabis delivery platform with ease. It has preset models and templates based on many similar businesses.
Moreover, all the features we have discussed many more can be taken care of by Yelo with ease. Features like customer profile management, real-time chat support and Data-Driven CRM are just some of the features in the wide array provided by Yelo.
Certainly the best part is that one can take a trial and explore the features that it offers by trying the features available with a demo in place before going ahead and making a purchase.
In short, Yelo has it all.
EmizenTech is an organization that builds customized mobile applications for its clients based on their requirements.
They do not have any preset template or demo that can be used. However, they provide a service option to the customers to build an application based on any prerequisites and demands.
Codiant is a tech company that can implement a cannabis app solution to handle massive traffic, streamline large amounts of orders, and secure online payments and other customer interactions and data. They offer a wide array of technologies for a Cannabis app.
To sum it up, we have discussed all the essential features to make a Cannabis Delivery Platform a success. These features may not seem important individually, but as a whole they provide everything needed for the Platform.
We have given a list of organizations that can help create a Cannabis Delivery Platform.
Surely go ahead and Start your trial! Build your Cannabis Delivery Platform and decide!
The pandemic has re-written rules for every industry from airlines to oil & gas, and restaurants to dispatch industries. Right from ceasing manufacturing units to major supply chain disruptions or frenzied panic buying scenarios, the first few months of the outbreak wreaked havoc all across the globe.
While the world was crushing, industries erred on the side of caution. The logistics industry was quick to resume operations as the demand for online products and services skyrocketed. But the dispatch operations today are not even close to what they used to be a few years back. The uncertainties wrought by the pandemic have created a radical shift in the industry.
When the pandemic struck, the logistics industry was quick to respond to the widespread chaos. The companies made sure that the products were delivered to their consignees even during the toughest hours. Apart from the medical supplies, several other critical parcels were delivered by the dispatch agencies. They worked round the clock to deliver on time.
But the job of front liners or agents who risked their lives to deliver parcels wasn’t as easy as one might think.
In this post, we will unearth some of the problems faced by dispatch-related companies during the pandemic, and how they were subdued with some of the best dispatch technologies in place.
Impact of COVID 19 on Businesses Related to Dispatch
The government’s restrictions aiming to slow down the spread of the virus led to a complete shutdown of economic activities. When the lockdown was announced, the supply chains across the world were completely disrupted. Not only international logistics but even the inland logistics of several countries came to a halt.
The effect of the lockdown was observed within 2-3 days. As more than 90% of the logistics services were stopped, businesses had a tough time coping with fulfilling orders. The effect of the lockdown was sustained in the sector in the days and months that followed.
As time passed, many countries started lifting some restrictions on the movement of people and goods. It was then the logistics industry started on its path to recovery. Post the initial days of the lockdown; there was a spike in demand for goods. Groceries, food, medicines, etc. were the commodities that were in excess demand. Customers had restricted access to offline retail stores. A lot of people turned to online retailers to fulfill their requirements.
The dispatch industry is definitely one industry that has proven to be a boon during these unprecedented times. It has played a pivotal role in ensuring that the global flow of goods and essentials is unhindered, despite a major dearth of transportation and massive disruptions in the supply chain. Although millions were unemployed due to the pandemic, the sector alone created thousands of job opportunities for the unemployed.
It is one industry that has worked relentlessly to ensure that the goods and supplies reach every nook and corner of the country. Today, our shopping preferences may have altered, but the frequency remains, thanks to the evolving dispatch network.
The Way Forward
Businesses have come up with a lot of innovative ideas to combat the ongoing situation. In the past few months, we have seen businesses take steps to cope with the situation. Some of which are:
- New safety standards and protocols: Safety and security of all the stakeholders are vital. There has been a complete overhaul of the safety standards. Concepts like “no-contact deliveries” have emerged in recent times. Not only this calls for new delivery methods, but also for new methods to collect payments as well as collecting cash is not the best option as it once was. Presence of hundreds of different online payment gateways makes it difficult for organisations to collect and keep track of the payments. This is exactly where dispatch software comes in.
- Embrace the next-gen technologies: Advancements in Artificial Intelligence and Machine Learning have led to massive reforms in almost every sector. Automation has always been seen as a devil destroying employment opportunities, but on the contrary, it has made workplaces a lot safer in the post-COVID times.
- Enhanced logistics capacity: There is a dire need to increase logistics capacity worldwide. There has been a steady increase in the number of online orders over the past couple of years. COVID 19 has only sped up the process. To cater to the requirements of the ever-growing industry, businesses need to make investments in logistics.
- Improved resiliency: In such unpredictable times, one should always be ready for surprises. Unpredictable events like shortage of inventory and workforce might happen anytime. The logistics system should be made more resilient to overcome hurdles.
- Collaboration with new partners: People have realised that the only way to move forward is to move together. New partnerships are the key to sustain the businesses in COVID times. Brands with a limited dispatch capacity can outsource the work to logistics companies to make their job easier. These new collaborations will ensure that the end-user faces no inconvenience. Such partnerships will also create new opportunities for all stakeholders.
Using dispatch software to manage your tasks is an inexpensive way of field service management. A feature-rich software like Tookan can contribute to boosting the overall productivity of an organization in many ways. Now we will see how to dispatch software contributes to the functioning of a business related to dispatch.
Role of Dispatch Software
Well-designed dispatch software is the pillar of the supply chain. In the present times, it is impossible to keep track of all the consignments manually. It would take a team of hundreds to do what a dispatch software can do all by itself. Here is how the software can change the industry:
- Simplify the process: Apart from being extremely simple to use, the software simplifies many steps involved in logistics. Features like Route Optimisation and Geofencing make it easy for the administrators to keep track of the activity of their agents and their activities. Once specific roles are assigned to each team member, they can issue instructions to their on-site employees.
- Integration of multiple payment gateways: While collecting cash is the least preferred option; online payment is all the rage these days. Every online retailer and business has shifted to digital payment modes. Collecting payments from customers is no longer a problem. Tookan can integrate with over 50 different digital payment gateways so that the businesses and customers can get various choices for making payments.
- Accessibility: Dispatch software makes it possible for businesses and customers to know the exact status of their freight. All you need is a PC or a smartphone connected to the internet to know everything about your consignment. With a good dispatch software, it’s easier than ever to access the information about your shipment.
- Scalability: In times like these, businesses should always be prepared for a surge or dip in demand. With an efficient dispatch software, it becomes easy to adapt to the always-changing demand. The size of the business does not matter as long as the work is related to dispatch.
It wouldn’t be incorrect to say that dispatch software like Tookan can help a business cut down costs, increase the overall productivity and improve the overall customer experience. The software is trusted by several companies like Pizza Hut, Swiggy, KFC, Burger King, McDonald’s and many more.
It is certain that the GDP growth will slow down for the next couple of quarters, but it’s just a matter of time before things fall back into place and the usual business resumes.
Several vaccines have been developed for the COVID-19. The next biggest challenge in the dispatch industry will arise when these vaccines are shipped to people worldwide. In developing countries, things are bound to get even more challenging. The only way to deal with the obstacles is to accept the latest technologies and put them to work.
For now, online retailers are doing their best to deliver the products at the earliest, and being able to fulfil orders within a day or two sets an online store a class apart from others. With the right dispatch software, this is possible.
No matter if the business is small or big, Tookan is a one-stop solution for all your dispatch related issues. The software comes with a 14-day trial so that you can check out all its features before spending a single penny. Visit our homepage for more information.
On Friday (16th July 2021), the IPO of food delivery unicorn Zomato Ltd was completed with a subscription of 38.25 times, putting an end to one of India’s most eagerly anticipated public offerings.
The Zomato IPO received bids for 29.04 billion equity shares on the third and final day of bidding, against an IPO size of 719.23 million.
- A record made by Zomato IPO
- Consumers and entrepreneurs in the food industry
- Take Away from Zomato’s IPO
- Want to make your own business like Zomato?
Allotment of shares will be done on July 22, Refund will be processed on July 23 to one who will not get the shares (depends upon computerized lottery system) and the stock is likely to be listed on BSE on July 27.
A record made by Zomato IPO
- 1. Largest Anchor Tranche(>4,000 Crore)
- Most Retail Application Ever in an Indian IPO (3.2M+)
- Highest Institutional demand for Private sector IPO in India (>1.55 Lakh crore)
- Highest Demand Mobilization by a Private Company in an Indian IPO (>2.10 lakh crore)
Zomato Current Business Model
Presence: 525 cities among 23 countries (as of March 2021)
Partner Restaurants: 389932 (As of March 2021)
Zomato is valued at $8 billion, or slightly under Rs 60,000 crore at the upper end of the price spectrum of Rs 72-76, with a presence in 525 cities in India and an average of 6.8 million people purchasing food every month. Here is the complete Zomato business model explained.
Consumers and entrepreneurs in the food industry
Their efforts are enjoyed by all of us: consumers and entrepreneurs in the food industry. They have also generated millions of jobs in India—mainly delivery partners who do not need to be educated to take up a job that pays them far above the per capita income of an average Indian earner.
This has shattered the old-timers’ power, and young entrepreneurs who have accepted, excelled, and produced value is now leading the pack.
Take Away from Zomato’s IPO
Food delivery via aggregators is the future of the food industry (due to better customer satisfaction and better unit economics). But we have so many customers who have been able to see a growth of 10X or more, by building their platform like Zomato.
Want to know Why White Label Food Delivery App Is The Best?
Want to make your own business like Zomato?
Change is tough to adjust to, yet we will become extinct if we do not. Many of us desire to run a business similar to Zomato, Swiggy, Ubereats or so. As an entrepreneur who has always been able to create huge value for my customers and shareholders, an initial public offering (IPO) is everyone’s dream.
It’s always better to create your own brand rather than Paying high commissions or depending on others. If you wish to gain a quick market share, then Yelo can be a perfect choice for your Zomato clone. It is a low-cost, market-efficient, and robust system that can deliver your app within 24 hours. Yelo uses a no-coding infrastructure that takes you to market in no time. Choose what is best for your business today.
The most common stimulus for socializing and creating friends is alcohol or liquor. A party isn’t a party until there’s some drink involved. So, whether you prefer a glass of rich red wine with dinner or like to get a little tipsy with your friends, a liquor delivery app or an on-demand alcohol delivery service will come in handy.
Having your booze delivered is similar to having your groceries or cooked meals delivered to your home. As an on-demand alcohol delivery business, there are undoubtedly some additional safeguards, licenses, and rules to follow.
COVID-19 has resulted in a dramatic shift in consumer preference from physical retailers to online sellers. Businesses are migrating to online mode to stay competitive as an increasing number of consumers join the platforms every day.
- A look at the worldwide alcohol market
- What Are the Benefits of Starting Your Own Alcohol Home Delivery Business?
- An Ideal Online Liquor Delivery Platform
- Stages Involved in Developing An Online D2C Alcohol Delivery App
- Why go Direct-To-Consumer (D2C or DTC)
- How Yelo can assist to build an on-demand alcohol delivery app
The alcohol sector isn’t lagging in terms of adjusting to the new normal. According to studies, the on-demand alcohol delivery sector is predicted to reach $1,684 billion by 2025, growing at a CAGR of 2%. The exponential expansion has attracted significant time and financial resources, resulting in quick returns for business owners.
There are a few leading solutions in this arena, giving inspiration to multiple investors, like Drizly, Wine.com, Total Wine, Minibar, etc. So, how do you go about launching an alcohol delivery service? That’s what we’ll be discussing in this blog today. Learn insights about Minibar and Thirstie.
A look at the worldwide alcohol market
Before entering, It is wise to measure the depth of water. This is why we must consider what directions the alcohol industry’s market may go in shortly. According to credible sources, the global market for alcoholic beverages will prosper because it is expected that by 2025, this industry will have grown to $1,684 billion. In 2017, the same industry’s market capitalization was $1,439 billion.
Without a doubt, the market is growing at an unusually fast pace. It is self-evident that the inherent ease of the online liquor delivery business would propel market growth at a rapid pace. All we see are endless potential and prospects in the market, where this concept has yet to be introduced.
What Are the Benefits of Starting Your Own Alcohol Home Delivery Business?
Since the coronavirus pandemic began, demand for alcohol has skyrocketed, making now the ideal moment to start your own alcohol delivery business. One of the biggest reasons to start an alcohol delivery business is to help with social distancing and to provide citizens with vital items without breaching any lockdown restrictions.
Another motivation to establish your own alcohol delivery business is that many restaurants and pubs have closed due to movement limitations. As a result, many were hesitant to purchase outside food and drinks for fear of contracting the disease.
In 2017, the global alcoholic beverage market was worth $1,439 billion. And by 2025, this is expected to reach $1,684 billion, indicating a CGAR of 2.0 percent between 2018 and 2025. This growth is primarily driven by the surge in the global young-adult demographic, increase in disposable income, and hike in consumer demand for premium products.
Alcohol delivery apps help businesses attract more customers and maximize revenues by offering unique and simple services. These apps provide a greater return on investment, allow for cashless transactions, and allow admins to keep track of daily transactions. As a result, investing in the development of an alcohol delivery app will undoubtedly pay off handsomely.
- Easy accessibility – All you need is an internet connection to order a bottle. You simply need to go to the website, fill out a form, and your drinks will be delivered within the specified time frame.
- The purchase price – The majority of the time, online liquor delivery services offer drinks at reasonable prices. A significant quantity of money is spent in a bar. Furthermore, if you believe that time is money, internet orders eliminate the need to go out and buy.
- Fast delivery – What if you require the drinks immediately? Let’s say you have an unexpected visitor and don’t have a single bottle on hand. What will you do in that case? Enters the system for online delivery. You enter a few data, and your order is delivered to your door within an hour.
- Waiting time – When ordering online, the time it takes for your purchase to be delivered is determined by the service provider. They can take several hours to bring your drinks, which might be very inconvenient for you, especially if you need them right away.
- Availability – What guarantee do you have that you will get exactly what you want? What if they, like you, have run out of stock? Consider this before relying on online deliveries to treat your visitors.
- Authentic payment system – This can be used by any form of online business. They should provide you a variety of payment options and ensure that your transaction is completely secure. It would be ideal if they also offered COD options.
- Licenses and permissions – For any online liquor delivery service, certain licenses and permissions are a prerequisite. The strictness to obtain these permissions can depend on the rules and regulations set by the authorities in different countries/states/regions
An Ideal Online Liquor Delivery Platform
If you want to build an on-demand applicant business, you must recognize that a single application must be suitably qualified to operate with liquor stores, employers, distribution personnel, and the administrator. The objectives of each member in this chain vary greatly, and if the apps can satisfy all of them at the same time, the ultimate goal is to construct a business application that provides the optimal on-demand liquor delivery application to all stakeholders.
The layout and appearance of your alcohol delivery app should be customizable and rendered while maintaining the brand’s theme to attract customers.
The app should allow restaurants to track menu items so that sales and prices can be adjusted in the future.
Age Verification –
Whether you’re using or banning the service, the age requirement must be your top focus in your liquor delivery application. Furthermore, each country has its own variants and distinctions in regulation when it comes to alcohol policies that you should be aware of.
Push Notifications –
After a chat with the client, concentrate on the product’s features until the aesthetics and user interface were well-managed. For the management of pending requests, bargains, and customized updates, a push notification must be provided so that the consumer cannot avoid them in any situation.
If you have the resources, connect a chatbot to the app. It can be powered by artificial intelligence or by dedicated staff who can help clients with questions about orders, programs, and promotions, among other things.
Stages Involved in Developing An Online D2C Alcohol Delivery App
Selecting a Partner – Choose a firm to design and create your app. Research, analyze, and deciding on a company with which to collaborate on your idea.
Product discovery – Figure out what you want to make, who you want to make it for, and why. Defining your product’s goal and end consumers, as well as clarifying your app’s vision. To create your MVP, you must first decide which features are the most important.
UX / UI app design – Determine how your app will work and look. Creating a user journey map, clickable wireframes, visual user interfaces, and motion design (animations & screen transitions).
Project kick-off and setup – Final preparations before beginning app development. Defining each team member’s job, reaching a consensus on rules and next steps, as well as configuring tools.
App development with Quality Assurance – App production with Integration: plan, code, build, test (and repeat). Ensuring Quality Assurance at every stage of app development with manual and automated tests.
Preparation and release of the apps on the Google Play and Apple App Stores – Uploading assets required by law and promotional materials, beta testing, improving the product page/store presence, and everything else your app approval requires to go as smoothly as possible is all part of the release process.
Post-development phase – Detecting crashes, app statistics monitoring, product enhancement, and development. Your app maintains its appeal and adjusts to changing market conditions as well as user feedback.
With Yelo, you can provide your consumers with a seamless online alcohol delivery experience while also generating revenue from your alcohol marketplace business.
Why go Direct-To-Consumer (D2C or DTC)
D2C is an e-commerce model in which manufacturers have complete control over the creation, promotion, and sale of their products to customers via digital channels. The D2C model eliminates the intermediary, giving manufacturers more control over their brands than traditional retail, which relies on distributors and wholesalers. Traditional retail is being disrupted by this business model, which offers various competitive advantages over traditional retail techniques, including:
- Increased control over brand messaging and consumer engagement.
- More opportunities to innovate.
- Direct access to customers and their data.
- Gain higher margins.
- Expanded market opportunities.
How Yelo can assist to build an on-demand alcohol delivery app
With Yelo, you can have the best app features that every on-demand alcohol delivery service should have. Make certain that these app features are created just for your digital app solution.
Customer App –
Login: By registering for the app, customers can find high-quality drinks and discounts on them.
Liquor Listing: After registering, the user will be able to see all of the listed drinks from the nearby establishments. Check the price and learn more about the drinks.
Apply Filters: Using the most up-to-date app development skills, you may add filters to your app, making it easier to make purchases. The filters allow you to choose from a variety of liquor categories, pricing points, and drink customer ratings, among other things.
Place Orders: Once you’ve decided on your poison, you may place a drink order.
Track Order: Once you’ve made your order, the app, like any other delivery service app, will display you an expected delivery time. Get the order status, such as process, still in the queue, out for shipment, and so on, with this function.
Cashless Payment: Just as the rest of the world is turning cashless, the alcohol delivery app is following suit. The software accepts various payment methods, including credit/debit cards, net banking, PayPal.
Order History: There are instances when you want to order the same drink you had the night before or the week before. You may view prior orders and repeat orders with a single click using the order history function.
Product Review & Feedback: Users can rate both the delivery service and the drinks based on their experiences.
Store App & Dashboard Panel –
Login: This feature is similar to the user panel, alcohol or liquor shop owner will register as a shareholder and obtain a one-time password (OTP) by text message or email.
Manage Drink Categories: The liquor store owner can categorize his or her drinks into categories like wine, beer, whiskey, and Breezers.
Drinks and Snacks: Some stores include complimentary snacks and other goods with their drinks. The owner can utilize this feature to list such add-ons for users, making it easier for them to order.
Manage Prices: A liquor store owner will be in charge of managing the price details for their shop’s profile on the app, and they will be able to do so using this app function.
View Ratings & Reviews: The owner of the alcohol store can view the user’s ratings and reviews and make necessary modifications based on their candid feedback.
Manage Earnings: The liquor store owner can use the app to analyze monthly or weekly earnings and manage profits and costs.
Admin App –
Admin Login: The primary business and app owner, as well as his or her administrative personnel, can access their super admin app and dashboard. The admin may examine the full business and functioning channels through the app dashboard using this super dashboard app.
Manage Payments: The app’s principal admin is in charge of overseeing and managing all payments and transactions.
Order Management: The administrator may keep track of all allocated orders and data.
Settings: Within the primary admin app, the admin maintains all of the connected applications’ settings, such as adjusting prices, allowing/blocking a store owner, product listing, and so on.
Marketing Management: From within the admin app, the admin may control the entire marketing process for the app and the vendors (alcohol store owners), including adverts, email templates, app banners, and promotional campaigns.
Real-Time Analytics: The software gives the super admin access to real-time analytics on a variety of variables. It also generates information on the number of orders, the region with the most orders, peak delivery hours, and so on.
A Ball Park Figure –
Taking into account all of the aforementioned technical and non-technical considerations, the typical cost of developing simple alcohol and food delivery app is between $10000 and $15,000.
It is impossible to overestimate the importance of rising in the face of adversity. To rebuild the economy and return stronger than ever before, we must design every approach feasible.
With your own alcohol delivery service, you may help society with social separation while also increasing your profits as you supply alcohol during the COVID-19 outbreak.
Contact us today if you’d like to address the needs of your community by starting your own alcohol delivery business with Yelo. Book a free demo now!
Smartphones have made life simpler and easier than ever before. These days, smartphones have become a necessity and the digitization of everything has taken technology one notch higher. It’s becoming easy for everyone to avail of all kinds of services with a few taps on their smartphones. Smartphones have reduced the need for waiting in long queues. Almost every service, nowadays, has websites and apps through which one can avail any service at their fingertips.
Car wash has always been a tiring task but now people can avoid standing in long queues by downloading an app or booking appointments on websites and leave the rest on the service provider. These websites and apps are customised by a specific car wash brand to reach individuals who would prefer not to stroll into an outlet without any prior arrangement. Also, these applications and websites can target online clients and offer a desirable service.
Why should you invest in an online car wash service booking app and website?
From a business owner perspective, either it be car was Android or iOS app development, it forms an amazing revenue stream. Any business model or idea which makes life easy for individuals, becomes a good source of income.
Also, the increase in app usage has increased the demand of online services and opened up several opportunities for investors and business owners to reach a higher number of potential customers and scale up their business. The trend of on-demand services is not going to end anytime soon because people, nowadays, are habitual of taking service online, making such apps the right choice to invest in. Let’s take a look at some of the facts and figure:
- People spend most of their screen time (92% of their total time) on apps which is a supportive figure for building apps.
- According to reports, the US car service market has valued at 33.0 billion for the year of 2018, and the industry is expected to grow at the rate of 3.2% for the next 5 years.
- With a compound growth of 3.2%, the market is expected to reach $41 billion in the year 2025.
- If we talk about the recent market growth of car wash, it has been analysed that:
Approximately 28% of car wash service has been taken by the users who visit several times in a month followed by 48% of car wash service has been taken by the user who visits every month and lastly, 5% are the users who take this service every 6 months.
Market stats for online car wash service demand:
The U.S. car wash service marketplace size was worth USD 14.21 billion in 2020 and is predicted to enlarge at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. The demand for car wash offerings has been growing during the last decade because of their accelerated comfort and a wider option of budget and comfort. The growing environmental guidelines prohibiting residential vehicle washing practices are predicted to enlarge the client base for car wash brands, thereby increasing the demand for the service. Busy schedules and time constraints have additionally brought about customers giving their cars to expert car washes in preference to cleansing them at home.
Advantages of on-demand car wash app – For users
- Easy and convenient access
Within a few taps, users can book a car wash service regardless of time.
- High Responsiveness
Brands who are offering service, always choose to have a dedicated resource to take care of all the concerns they receive on their platform.
- Wider options/facilities available
When someone is looking for the right service, it’s likely that they checkout the other options available which they might need.
- Offers and discounts
Brands usually come up with the offers and discounts to compete with the high demand of the services which can help users to opt for the services without breaking banks.
- Time saving
With a few taps, users can book a service and avoid the hassle of standing in long queues.
- Better information available
A user can checkout the services which are available and the pricing for the same, after which he can choose the appropriate service he needs.
Advantages of on-demand car wash app – To Service Providers
- Maximise Efficiency
Since the demand is getting high, service providers get a better understanding of the requirements of the customers and accordingly they can keep updating.
- Possibility of reaching higher potential customers
Through word of mouth, any service and brand can be spread to a limited number of customers but when a brand decides to take their service online, it reaches a higher number of customers where customer reviews and marketing plays an important role.
- Can make you good profit
When a large number of audience members come to know about your business, they are more likely to choose your service which can increase your profits as your user base increases.
- Car wash is essential
Nowadays, not everyone has the time to maintain their cars and they gladly pay to the one who does their chore.
After getting to know the WHY of online car wash service, now comes HOW can you set up your on demand online car wash service website and apps? We have got you covered here.
Steps involved in launching an online D2C Car Wash App and Website
Steps to Start Online D2C Car Wash App and Website
- Create Your Marketplace
- Setup your Store
- Add Domain
- Add/Update Service
- Setup Your Delivery Configurations
- Create Your First Booking
Yes, setting up your business is this easy with Yelo. Not only this, but also get a free 14 days trial.
But why Yelo?
This is the most interesting question, we love to cover it every time. Yelo covers some amazing features to take your business to the next level. Let’s have a look at a few of them:
- Automate Logistics
Assign tasks, schedule, and manage your booking by automating repetitive tasks.
- 100+ payment gateways
From Paypal to Razorpay to Paytm, Yelo has integrated with over 100+ external payment gateways from around the world.
- Customizable Checkout Template
Customize your checkout screen by adding custom information with each booking that the customer will fill during checkout.
- Customizable Notifications
Yelo allows you to send customized notifications to your customers as per the demand.
- Live Chat
Listen to your customers. Identify pain points and solve customer queries. Chat on every booking.
- SSL certificates
Your website and app will include SSL certificates to keep your data and customer information safe.
- 100% Uptime and 24*7 monitoring
No need to worry about downtime with Yelo, we work around the clock to make sure your website is always online.
- 100+ native languages supported
Go local, build, connect, blend in with your customers by launching the application in their regional language.
Like most industries, the demand of the car wash service industry has increased by the rise of technology.
With the car wash sector flourishing, the possibility to turn a profit from car wash services is just remarkable. About 85% of the buying happens online and about 1.4 million cars are owned by people across the globe
And that is why Yelo is here for you. Yelo is a hyperlocal marketplace development platform that gives you access to ready-to-use features for creating your own online brand. And when we say, ready-to-use, it does mean that no coding, testing or designing skills are required in setting up your own brand online.
Experience top-grade features for launching your own car wash service brand and directly reaching potential customers online. Book your free 14 days trial now!
Are you still confused or thinking about how to start your own online cake delivery service? Don’t worry we are right here to help to educate you about the latest trends and happenings in the cake delivery business and will help you create your own cake delivery hyperlocal marketplace.
Almost every celebration is incomplete without cake. As cakes are the lifeline of every celebration whether it’s a birthday, anniversary, wedding, or any other celebration every single participant in the occasion waits for the delicious piece of cake.
In the present world, bakery products or cakes are the most loved dishes that every individual likes. Alongside that, they are the bubbling energy source everyone crowds around.
It is a phenomenal chance to begin your own online hyperlocal cake delivery service or take your offline bakery service on the web.
We are here to assist you with the right strides to begin your online bread shop business and make the most out of it.
Why an Online Cake Business?
The interest in prepared items has consistently been increasing. With a quick-moving way of life and the need for effectively open food, prepared food sources have become a staple for some. An online cake business can give you admittance to a large number of families without putting resources into a tremendous bakery shop arrangement.
Quick moving Lifestyle
Today, most adults are occupied with their furious way of life, shuffling work, wellness, and voyaging. This doesn’t leave them with a great deal of time to cook newly flavored and delicious cakes and so forth end up being a solid substitute for online delivery services.
Smooth and simple process
An online cake shop makes the whole interaction amazingly smooth and simple. Rather than tolerating orders physically in-store or by phone, you can straightforwardly acknowledge orders through your site and further start the executions of cake at your ease. When you smooth out your order requests process, you can rapidly speed up execution and deliver quicker.
Simpler to Display
With an online store, most of the efforts of physical arrangement are not required and also a handsome amount is saved which is required in physical arrangements to showcase the items. An online store gives you the adaptability to offer item shoots and show your items in an undeniably more appealing way.
Interest For Safe and Hygienic Products
As the interest for safe and hygienic items has expanded after the pandemic hit, individuals like to shop on the web. Along these lines, an online cake delivery store can help you acquire your client’s trust and sell all over.
Easy to Scale
Online marketplaces are more likely to scale than disconnected ones as you don’t have to contribute an extensive piece of your investment funds into running it. You simply need to put resources into the fixings, hardware, bundling, and transportation. The whole store is online, which saves you from the issue of store execution.
Sell from the Convenience of Your Home
You don’t have to buy a shop in your area or some other region, with an online store you can begin selling from your home and at last scale your business whenever required. It gives you the adaptability of preparing whenever it might suit you and running the store based on your conditions.
So let’s start with the most awaited question:
How to start your own cake delivery service?
Follow these means to effectively begin your online cake delivery business or move to the online space with your current physical bakery shop.
Setting up an Online Cake Store
The initial step to start selling on the web is setting up your online store. This implies you need to begin with your site or restrict yourself to a commercial center to sell your items. It would be an extraordinary thought to begin selling through online social media channels like Instagram, Facebook esteems to foster your site. In the event that you need to set up a store in minutes and urgently list your items, you can do it with Yelo. You can add catalogues, pictures, pricing, and so on.
Numerous bakers or chefs use Instagram to sell their items. On the off chance that you are one such pastry specialist, you can use Yelo to set up your site and app and give your clients more knowledge into what you do.
In any case, setting up an online shop store is fundamental in the event that you need to begin a cake delivery business. It is the substance of your brand and where your clients will shop.
Rundown Products Properly
The subsequent stage is to list your items. On the off chance that you sell different things, ensure you mark them in various classifications and show them on different pages. For, e.g., If you sell cakes, treats, bread, and give customization, guarantee that these are recorded under independent classifications. This will assist your purchasers with exploring the site.
Every item should have its portrayal and pictures. Guarantee you click the photos of your items and don’t source them from anyplace on the web. Since the photos are the solitary wellspring of approval for your client, they can determine the business destiny on your site.
Request Management System
The following fundamental part of your site ought to be the request the board framework. You can introduce a request to the executives’ framework to record all approaching requests to not pass up any. This will help you stay refreshed and furthermore give you space to deal with your creation better.
Then, reach out to your printer to assist you with giving modified bundling. This should incorporate the name of your brand and your online media presence. Thus, this will help your client remember your brand and come back to you again. The bundling should be suitable so the item isn’t harmed while it is being delivered.
Solid Delivery Network
It is fundamental to have set up a vigorous conveyance network for your business. You should search for a choice where you can have different conveyance accomplices who can assist you with conveying items hyperlocal. Yelo by Jungleworks is one such application provider that can assist you with giving conveyance for your business. Best of all, you can transport with accomplices like fatafat. Since some pastry shop items like cakes and cakes require quick conveyance to keep up with your item’s surface, this conveyance application will assist you with conveying.
With each item you convey, you will undoubtedly get positive or negative feedback. Your clients may even need support with utilizing the site. In this manner, you should put a client support system where the client can connect and explain their questions in regards to your store’s items. Clients who need to ask about explicit administrations can likewise contact you by means of this encouraging group of people.
4 reasons why the online cake delivery market is growing rapidly.
- Quick Service
The most important thing which everyone seeks in an online delivery business is the time of delivery. In today’s world, no one wants to wait for hours to get their cake delivered. People have started moving towards online cake delivery services because they don’t have to physically visit the stores and most importantly the delivery time is really quick which helps people trust the industry and grow it.
- Customized designs of cakes
Every individual has its own taste and likings when it comes to cake. If a person physically visits a bakery to find its most likely cake there are very limited choices available and a person has no choice to choose any of them. But when it comes to online cake delivery people get plenty of opinions with a variety of designs and customized as per the requirement which best serves an individual requirement.
And the most important thing is that every individual expectation is met under one umbrella.
- On-time Delivery
The major aspect of an online cake delivery service is the delivery at the right time. Most people trust online delivery services just because they don’t have to hustle or worry about things getting delayed. People prefer online cake delivery services because most of the time they don’t have time to physically go to the bakery and receive or sometimes they want to surprise their loved ones in which online delivery fits in the best role.
- Reasonable prices
As one can find plenty of options available in terms of design and flavors of cake, people also find different price ranges which suit the individual pocket. The best part about an online cake delivery marketplace is that they are easily available and that too at reasonable rates. Online platforms come up with time to time discounts and decent price ranges that don’t hurt the buyer’s pocket as well.
Future of online cake delivery industry
The cake industry has never lost its charm and value. Its value has been always increasing. In 2018 the market reached US$ 7.22 billion and the market esteem is projected to surpass US$ 12 Billion by 2024.
Isn’t it interesting data but guess what it’s gonna be more interesting and rising as this pandemic has given a new rise into the market by opening the door of the hyperlocal marketplace.
The online cake delivery service business in India is booming, and in the event that you have the skill for preparing, it is an astounding opportunity to examine and connect with clients across your city. Begin today and sell those delicious cakes now!
Book your free trial with us on Yelo today.
Flowers have been a massive part of any event over the years. From happy and sad moments like birthdays and weddings to funerals. Social events like Mothers day and Christmas all involve the use of flowers. With the current COVID pandemic, there is a feeling that this industry has started wilting. From this we have seen the springing of a new bud which is Direct-To-Consumer (D2C) flower delivery.
Let’s take a look at how Direct-To-Consumer might be the ray of sunshine needed to take this industry to the next level.
The scale of the Floral industry has been massive. We have seen some big numbers in this industry in the past few years.
Flower Industry Facts
- The US flower industry is estimated to be worth USD $5 billion.
- The global ornamental plants and flower market is projected to grow at a CAGR of around 6.3% in the 2021-2025 period.
- Based on the floral industry statistics from 2020, there are 31,663 floral businesses in the US, with an estimated 65,339 workers.
Since the pandemic, there is a shifted focus of consumers to want their products delivered to them at home rather than go out and purchase them. This can truly be a boon for D2C flower delivery services.
To Start a Direct-To-Consumer Flower Delivery Business, keep the following points in mind:-
1. Understand your competition
A crucial aspect of any business is to understand who your true competitors are.
Try to analyse what they are doing and how you can use that to help you find success. Strategies of your competitors can act like case studies for you and show what are the pros and cons of doing things a certain way.
Nothing works better than having a look at tried and tested strategies, so keep an eye out for that!
2. Try to create a lucrative brand name
Brand names go a long way helping you get that brand image you want. Try to keep your brand name short and fun. Something that’s catchy will subconsciously boost your brand recall and help you go the extra mile in the long run.
3. Make your platform user friendly
This is perhaps the most important thing when it comes to creating your own business.
The question is how easy is it for my customer to place an order?
At the end of the day what matters is how many customers are going ahead with their orders. As a business it is crucial to make sure the ordering process is user friendly. The easier it is to order, the more people will go ahead and complete their orders.
4. Take constant feedback from your customers
The responsibility of a business is to keep working towards improvement. Without improvement your likelihood to succeed goes down. An extremely efficient way to constantly improve is to listen to the customer. After all they are the ones that you are serving. Listen to their advice. Take their feedback, be it positive or negative. Each customer’s feedback is a stepping stone to improve and as a business a step towards success.
5. Be flexible to changing consumer demands
The human mind is intriguing. There will always be a conflict of choice with so many options to go for in the current ecosystem. As a result, all industries keep on changing.
As an entrepreneur it is a prerequisite to keep an open mind and be open to exploring new horizons. For that is the true way to create the most business opportunities. Be on the lookout for emerging trends, and don’t be afraid to take a step out of your comfort zone and try meeting the changing demands of the customers.
Selling Direct-To-Consumer: Need of the hour?
With the floral industry expected to grow 6.3% to 57.4 Billion USD by 2024, it is essential to study these statistics and adapt to these changes.
The pandemic has led to a major shift in industry trends which earlier relied on purchase from physical stores to purchasing online and getting flowers home delivered. This shift has paved the way to a segment that was previously underestimated, which is Direct-To-Consumer flower delivery. Flowers are a commodity that are relevant for any event that takes place and are still widely purchased products. Simple the channel has shifted from offline stores to an online medium.
The real question is why should I take my business online? And How will it benefit me?
Advantages for delivering Direct-To-Consumer
1. Greater profit margin
Selling direct to your customers rather than using an aggregator reduces your cost, by saving you commission charges and as a result boosts your profit margin.
Cost minimization is a top priority for every business and when you are selling direct to your customers you can easily enjoy this benefit.
2. Strong brand loyalty
When selling direct to customers (D2C), you know one thing for sure. The customers are here to purchase from your brand, rather than any third party platform on which you might have been selling. This ensures that you have a direct opportunity to form long lasting relationships with your customers which ultimately may generate repeat business.
3. Lower customer acquisition cost
A key advantage of selling direct to customers is that the cost of acquiring a new customer is considerably lower as compared to traditional retail channels. By eliminating the middleman, brands are able to offer lower retail prices which as a result make the product more lucrative to the customer.
Coming to the main question
How do I start a Direct-To-Consumer flower delivery service?
To your surprise, setting up your own Direct-To-Consumer flower delivery service is easier than you think.
The team working on Yelo, has already curated a Marketplace building platform which allows you to build your own Flower delivery business. The focus has been on empowering young entrepreneurs and small businesses with the right set of tools to compete in this digital era.
Yelo provides a highly customizable platform, making it the ideal solution for your requirement of building your own D2C flower delivery service.
Yelo’s easy to use tools help you run your business on the go. With an efficient dashboard users can manage orders and bookings with ease while also showcasing some of your best offerings to the customers.
There are a bunch of features that yelo offers :
- Customsable interface
- Chat with customers
- Payment gateway integration
- Reporting & Analytics
- Ratings & Reviews
All in all, the shift in the consumer preferences has made it clear that D2C services are the next big thing in the Floral industry. Businesses must understand the importance of bui;ding their own platform for selling.
The great part is you can go ahead and take a Demo as well as a 14 day free trial of the Yelo platform. So don’t wait! Go ahead and make your own platform now!