Want to Start Food Delivery Startup? Read Business Models, Challenges

Want to Start Online Food Ordering and Delivery Startup? 

The advancement of technology has given birth to many prominent businesses, and now in this era of internet, food ordering and delivery are going to be a layman’s thing. However, why food ordering and delivery is popular? No issues if you are tired and in no mood of cooking, you have good options just a few clicks away.

If we check food ordering stats of consumers then we find in every five people, one is ordering food once a week.

This number is going to increase in the coming few years, so this is an extraordinary time for entrepreneurs to dive into the sea of opportunities.

Why Start On-Demand Food Food Delivery Startup?

Why Start Food Delivery StartupAs per the statistics, in the 2016 restaurant industry, food and drink revenue in the US reaches 782.67 billion U.S. dollars.

The online food delivery has contributed approximately 206 billion U.S. dollars to this figure.

Food ordering and delivery mobile is a hassle-free and trusted medium for consumers to get their food in just a few minutes, so its popularity is on the sky.


Food Delivery Startup Business and Revenue Models:

The three famous business models which are ruling the industry are the following:

  1. Order-Focused Platforms
  2. Logistics-Focused Platforms
  3. Full-Service Platforms

Before doing all the things, every startup sets their revenue model to generate earnings for the company. Some time, startups spend a lot to win the market and set their target to become profitable in the coming few years, but it is not the case for everyone.

Challenges to Consider When Building a Food Delivery StartupFood Delivery Startup Challenges

1. Funding Resources

This is a fundamental requirement for every startup because without funding no company can fuel its resources. To start basic operations as well further expansion every company tries to impress investors with their idea.

2. Development and Deploy

Once the company got the funding, the startup will need a web and mobile application to get the orders. These applications must be feature rich, like the eye-catching design, products, easy navigation to categories and payment functionality. With all these options one more thing which is more than essential is application security. To cater all the solutions company will have to outsource trusted app development company or hire in-house developers which is more costly and full of hassles.

3. Business Partners

As we discussed above three business models, the company can choose any one as per their interest, but they will need trusted business partners for the success of every model. When making restaurant chain, must ensure to verify all the necessary things before taking on-board.

4. Customer Support

You have done everything well, but still, there will be a bunch of problems. To cater all the issues customer support is must, for now, days, but technology has solutions for everything, so you can also automate various things to solve the customer queries.


Building the food ordering and delivery services you can manage funding and all operations but with these, you must need expert and reliable technology partners? Before sealing any deal consider the following checklist which must be expected from the web and app development company.

  • The app must be featured rich to avoid human touch
  • Development cost must be low
  • User-friendly interface
  • Easy to customize
  • Easy to manage
  • Timely delivery of functional mobile application
  • Generate maximum ROI

Also Read:

Things to Keep in Mind Before Launching Your Start-up

Tips for Finding a Career You’re Passionate About

5 Best Small Business Profitable Ideas for Young Entrepreneurs in 2018

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