On-demand business idea #2: food delivery

One of the most practical models for an on-demand business is food delivery. Food delivery services have been around for ages, and there have been people ordering food ever since restaurants have opened. And it makes sense that an on-demand food service would be very successful if it was implemented right. There is always a readily available market for on-demand food delivery services because people are naturally always hungry. And if you create a business model that is right for food delivery as an on-demand service, then you could be seeing a lot of success for yourself.

How do you create an effective business model for food delivery services?

When you are creating an on-demand service for food delivery, there are a few things that you will have to remember to do, especially if you want to reduce the number of potential problems that you will encounter in the future. By following these guidelines, you can ensure that the business model that you create for an on-demand food delivery service remains robust and relatively problem-free. And in order to do that, you can just ensure that the business model that you create adheres to these tips and guidelines. You can read more about that below.

5 factors that will affect your customer’s experience with on-demand food delivery

You can, for example, consider a few of these factors, when you are creating a model for your on-demand business idea. You can use these factors as a way to create a business model for your food delivery service. Or you could simply apply the various factors to aspects of your business model for your food delivery service. Either way, these factors could definitely affect your food delivery service.


The first factor is the convenience of ordering. Customers must find it very convenient to find food, order it, pay for it, and have it delivered. You will have to ensure that the food delivery service that you create is very convenient to use. You will need to focus on streamlining many of your services in order to ensure that everything is conveniently smooth. Try to make choosing food easy, by showing customers a way to narrow down their restaurant choices. You should also try to choose a payment method that is relatively easy to use for customers. This means that many customers prefer to pay by card.

Delivery time

The timeliness of the delivery of the food is also another factor. Customers will want their food to either be delivered in the shortest amount of time possible or at the very least within a reasonable time frame. You are more likely to get repeat customers if you focus on delivering your food in a timely manner. This is where streamlining your services could also help. By streamlining your services, you could greatly speed up your food delivery. And the faster that the food is delivered, the happier your customers will become.


Another factor that you have to consider is the cost. You should try to avoid overcharging on your services or adding on other charges to your on-demand food delivery. Customers may find that using your app is more convenient. However, they will end up ordering food by themselves if they find that it is more expensive to use your food delivery services. You should try to focus on reducing costs on your own end if you want to increase a number of customers that you have. By reducing your costs, you could end up attracting more customers to use your on-demand food delivery.

Decision making

Customers should also be able to find it easy to make decisions in ordering food. So this is another factor that you will have to consider. One of the more lengthier aspects of ordering food is choosing which ones to order. And by helping your customers choose their food, you will be able to speed up the process of them buying their food greatly. You could do this, by allowing your customers to save their favorite restaurants.


The ease of transaction is also another factor that has to be taken into account when creating a business model for a food delivery service. Again, you should make this step as convenient as possible. For example, you could handle all of the payments to the restaurants on your own end, and you just let the customer pay through credit or debit card after the transaction is complete. Or if the widespread use of such payment methods is not available in your area, you could end up just allowing your customer to pay through cash once all of the food has been delivered straight to their door.

What are some models of on-demand food delivery services to follow?

Just like in any other on-demand business service, there are many other successful models of on-demand services that you can follow. Many of these on-demand business ideas are actually pretty successful and have established themselves as the premier on-demand food delivery services. So if you are starting up one of your own, you may want to consider following some of these business models too.


FoodPanda is one such on-demand food delivery service. This is a widely used food delivery business because it is very convenient. Payments, ordering, and delivery is very convenient, with the company handling most of it on their side. FoodPanda partners with many local restaurants in order to ensure that they have delicious food to serve to their customers.


Munchery is a food delivery service that handles all of the steps of the food preparation. It handles the production of the food and delivery too. One advantage of this type of food delivery business model is that the company gets to control all aspects of their food delivery service.


JustEat is a food delivery service that makes it easier for the customers to order their food. It allows customers to order food from restaurants quite easily, by providing a database that customers can browse through in order to find the contract details and menu of a local restaurant.

These are only a few examples of on-demand food delivery services. Having a similar business model requires paying attention to 5 main factors. By applying them you could reach success in your on-demand business idea.

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