In one app, thousands of people are waiting to get food delivered to their doorsteps. An app like UberEats is at the height of food delivery app development. The Uber-owned food delivery service makes it convenient for consumers to get their favorite dishes right to their door in record time. But if you’ve been considering getting into the food delivery business, there are some things to consider before jumping in feet first. After all, this isn’t just about delivering food. It’s also about managing relationships with stakeholders such as restaurants and customers, understanding the business models, generating revenues?, and following relevant regulations.
Before we move on to the four factors that make UberEats so successful, let’s talk about its business model.
The Uber Eats Business Model
Uber Eats is a good example of a multisided platform business model. A multisided platform (MSP) is a business with two or more distinct groups of participants. For example, a restaurant, an individual rider, and the customer are three groups or sides of the UberEats business model. These different sides interact on the MSP to create value for one another. In other words, the MSP (powered by Uber Eats) facilitates a seamless connection between the three main parties involved in the food delivery value chain.
When consumers order food on Uber Eats, they connect two people; the restaurant that’s cooking the food and the delivery driver who will bring it to them. Both of them benefit from having this service, as do the consumers. It’s a win-win game.
The benefit for the restaurant is that they’re able to reach new customers who may otherwise not have visited them due to factors such as location or hours of operation. Restaurants can use an app like UperEats to expand their reach and gain more customers without opening a new restaurant or hiring more employees. For drivers, they can use UberEats as an additional source of income while they continue working at other jobs. The benefit for the consumers is that they don’t have to leave their houses or office to get food. All you need is an internet connection and a smartphone.
4 Things To Know Before Building A Similar UberEats Like App
1. How Does Uber Eats Work?
If you’ve ever used Uber Eats, you may have noticed that it’s slightly different from ordering an Uber ride. The only thing the two services have in common is that they’re both ways of getting around town without having to drive yourself.
With Uber Eats, users can order food from their favorite restaurants and deliver it at their doorstep in no time. This service is available in over 6,000 cities globally and has been used by millions since its launch in 2014.
When you open the UberEats app on your smartphone, you’ll see a list of nearby restaurants available for ordering. Searching for specific foods or locations will help narrow down your options. In addition, you can filter by cuisine type, price range, distance from where you are at the moment, or even how busy the restaurant location is known to be. These places are described as ‘busy areas’ on the app so that you don’t waste time before delivering your food!
When you find a restaurant that looks appealing, you can tap on it to see what’s available for ordering. Also, you’ll be able to see reviews from other custom mobile app development and photos of the food and price so you can decide if it’s worth ordering.
2. Who are the stakeholders of Uber Eats?
There are three major stakeholders in the Uber Eats ecosystem: restaurant partners, courier partners, and customers.
- Restaurant partners: Restaurants are essential partners in Uber Eats’ business. They use the app to manage food orders and update menus. Their participation in the marketplace is crucial to providing a high-quality product and income stream for other parties involved.
- The end consumers: Consumers are also key stakeholders because they’re the one who gets the delivery. Without them, there would be no Uber Eats.
- The couriers: These are the Uber Drivers who have registered to deliver food via the Uber Eats platform. They’ve all been background-checked by UberEats.
3. How does Uber Eats Make Money?
UberEats monetization model is an exciting mix of four primary revenue sources: delivery fees from customers paid advertising from restaurants, commission fees from restaurants, and ‘fees for busy areas”.
Delivery from customers: Uber Eats has a variety of delivery charges depending on the location and availability of its delivery partners. It charges a flat delivery fee and a service fee of 15% of the order’s subtotal. If a customer’s order is less than $10, $2 is charged as an order fee.
Paid advertising from Restaurants: With the increasing number of restaurants in the app, gaining visibility becomes even more important. Uber Eats offers restaurants an opportunity to pay for ads appearing during the app experience. The cost of a restaurant’s ad is determined by how many times the ad is clicked on.
Restaurant Commission: Restaurants pay Uber Eats percentages based on how much food they sell (and sometimes other factors). To become partners, restaurants pay a one-time processing fee of $350 and a 20%-30% commission charge per transaction.
“The Busy Area Fee”: In areas with more orders than delivery people who can fulfill them, Uber Eats charges what it calls a “busy area fee.”
4. What are the FDA Regulations for food delivery services?
The Food and Drug Administration (FDA) has strict regulations on how food should be produced, transported, and sold to consumers. They also work with local restaurants to help them maintain quality control over their food. As a business trying to build an app like Uber Eats, you will be responsible for ensuring that your business meets FDA requirements. Following them keeps your customers safe and helps you grow your business. Here are some tips on how to follow FDA compliance rules:
1. Understand the regulations for your business.
2. Follow good manufacturing practices to prevent food product contamination and ensure they are handled properly at every stage of production, storage, and distribution.
3. Use the FDA Food Code to guide your restaurant’s operations.
Summary
It seems that the world would be more efficient if everything was delivered to us. UberEats is one answer to make that a possibility. Creating a custom app may be a great option if you want to customize the food delivery experience for end consumers and don’t mind the initial legwork. And since there’s such an upsurge in demand for food delivery apps, becoming a food delivery platform service may be an easier way to get into the on-demand economy.
