How to earn money from an online food delivery app?

Introduction

Food delivery applications make it easy to get food delivered to you from nearby eateries or food cooperatives. Customers may get meals from various restaurants with a single swipe on their phone using online food delivery applications.

The primary benefit of meal delivery apps is the convenience and simplicity with which they may be used. Customers are no more required to place orders over the phone and then collect it up at a restaurant. All of this is available through food delivery apps with only a few clicks. Instead, customers may use online services to find their favourite restaurants, see menus, make orders, and pay.

Let’s understand how you can earn money from these food delivery apps;

Delivery charges

If a restaurant itself does not have delivery staff, the various apps can handle it for a charge. Based on the route, delivery fees might be a proportion of the purchase price or a flat amount. Apps that transport restaurant food to clients’ homes can earn £129 million. As a result, delivery fees are the primary source of revenue for all meal delivery applications.

Peak Hours

To profit from meal delivery applications taking advantage of peak hours is the best idea. During busy hours, a delivery cost is added to this monetisation strategy. UberEats, for instance, charges more between lunch and supper. In addition, UberEats restricts cuisines and locations during busy hours and costs an additional price to make them accessible.

Advertising

Food delivery apps also generate money through advertising. Restaurants can pay for extra advertising through a delivery app. For example, advertising in a delivery app might entail putting an eatery at the top of search results for a set amount of time. Swiggy’s revenue comes primarily from this source.

The proportion of commission

A commission percentage is another way to monetise a meal delivery app. Restaurants and online meal delivery apps can work together on predetermined commission rates depending on purchase size. Just Eat, for example, generates revenue by charging eateries a fee on transactions.

Conclusion

As shown by the growth of famous firms like UberEats and GrubHub, online meal delivery is a potential business idea. So if you’re thinking of starting your food ordering app, concentrate on these four methods to make money.