How to earn from food delivery app

Ordering food in a go is a huge business today. Despite the huge competition, many food delivery apps are emerging day by day and making a huge profit. But many have some questions in their mind such as how does one start-up the food delivery business? Does it earn profit from the food delivery app? Let's dive into it.

First, let us understand the concept of the food delivery app. Food delivery app assists in the delivery of food from local restaurants and hotels. Online food delivery apps allow customers to order food from their location with a single tap with their mobile phone.

How it will benefit the customers?

Customers of the food delivery app need not have to call to make an order and go to the restaurant for the pickup. Customers can place the order in just a few clicks. They can deliver the food to their customer to their places. As it saves a lot of time and effort from their customer. Customers have the choice of selecting their favorite restaurant and effortlessly pay through various online payment methods.

How to make a profit from Food Delivery App?

Through Commission

10–15% for every food delivery company earns a commission. While customers order the food they choose to either pay by cash or prepaid, with the restaurant return a certain amount of commission to the online food delivery company.

Through Advertisement

Advertisement on the app is another way that food delivery apps make money. A food delivery company can offer to advertise to restaurants at an additional cost. In the food delivery app, a restaurant can pay money to be featured at top of the search result for some time. If a restaurant featured at the top of the list can attract more customers. As the restaurant which pays high for advertisement will be getting listed higher in the results that is more the restaurant pay to a better position on the app.

Through Peak Hour Charge

The food delivery app can make a profit by hiking the delivery charges during peak hours such as lunch or dinner times. Delivery to some locations or certain menu items is locked during these busy hours. The customer has to pay extra to deliver the food to a particular food to a particular location.

If you are looking for food delivery app development company, just check Appcoup. The company holds expertise in developing Food Delivery Apps on every platform, be it Android or iOS.