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March 24th, 2020

Main Insights To Start A Food Delivery App And Generating High ROI


Starting a new business is a hassle and can be really difficult if you have no knowledge about how to get started with your business. The Food Delivery business is one of such businesses that have cut-throat competition and might not be easy to handle for a newcomer. Things become difficult if you do not have the slightest idea about the market, the industry standards, and most importantly the food delivery app development, which is the center of this whole business. Well, no need to worry as we have all the stuff here for you. Check out these Main Insights To Start A Food Delivery App And Generating High ROI.

Business Model

In any business, before we get started with the actual main application of our business model, we need to plan out everything carefully. So to start your own online food delivery business, you need to first plan out things carefully and the first thing in this step is to decide what model you are going to use. On a very basic level, there are two types of models you can choose from, first, the aggregator model and the second one is the logistic support model. Make sure that you choose the right model according to your business requirement, it is very crucial for the smooth functioning of your business. A good business model helps in planning a good food delivery app.

The aggregator model can be simply defined as a model that connects clients to a specific business. For instance, in the food business, it is like associating restaurants with hungry customers. In this model, if a customer makes a request to a restaurant and let’s say the restaurant accepts it. In between these two processes, another process is required for a complete transaction that is to deliver the food package. This part is included in the logistic support model. Now based on your business plan you can easily choose which model to choose for your business application. However, you need to be careful as this application will lay the foundation for your business.

Your Source Of Income

At the end of the day, it does not matter, how great of a business plan you had, how hard you worked for it if your business does not produce any returns. There is no use in investing in something that does not benefit us. So you need to make sure that you plan your sources of income with your business parameters.

Additional Charges

A good thing always comes at a price. And if you feel that your delivery services are better, faster and more agile than most of the other businesses, then you could simply charge a little extra for this service. Nobody would cancel their order just because they do not want to pay a little extra as delivery charges. However, you need to constrain yourself here as asking for too much might lead to business loss.


It’s not too much if you count it at an individual level, however on a daily basis it does make a difference to your all over income. So, you need to fix your commission for each order that is received by the restaurants, through your application. You can either have a fixed commission rate for all the restraints you make a contract with or you can fix according to the individual restaurants.

Use Pricing Algorithms

There are thousands of algorithms that can be used to change food prices based on different parameters like demand, availability, popularity, etc. These algorithms will help you set prices based on these parameters. This way you could obtain maximum profit from your business. So make sure to use these surge algorithms to raise food and delivery charges.


No matter what you do, you won’t be able to operate properly if you don’t advertise your business regularly and as a brand in a unique way. Apart from this advertising is a two-way business, you can also advertise other businesses on your application to make some money. It’s a great business and every application does it nowadays. However, you need to be careful as putting on too much advertisement destroys your application’s central motive and might drive your clients away. Also if possible try to put on advertisements in a way that your users do not feel awkward or annoyed by the advertisement pop-ups.

Apart from this, you need to make sure that your application has a smooth running backend and an amazing front end design. Also, you need to make sure to add some vital attributes to your application such as –

In-built Payment Gateway

You must have an inbuilt payment gateway so that your clients do not experience any problem paying on your application. Also, your gateway must provide different options to pay. Apart from this make sure to include payment applications for better smooth transactions such as PayPal, Paytm, Phonepe, google pay, etc.

Cancellation and Refunds

There would be certain cases where your customers would like to cancel their orders after paying. Making sure that your apps allow your users to do so. Also there you need to take care of the refund process.

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