Planning to Build a Food Delivery Platform Like Uber Eats in 2021?

Ordering food online is made easy by platforms like Uber eats, Deliveroo, GrubHub, and Postmates. These food ordering and delivery platforms have brought a significant revolution in the food industry by providing more convenience to the customers and an opportunity to expand for the restaurants.

In the past few years, we have seen a constant increase in the number of platforms like Uber Eats as well as an increase in the number of restaurants registered on these platforms. Predicting the scope of growth and adapting to the new trend of “ordering food online” many entrepreneurs like you plan to start a food delivery business like Uber Eats.

Well yes, it is a great opportunity and to plan a business similar to a well-established business like Uber Eats makes your decision more convincing.

But the question here is that “Is it a good idea to start a business like Uber Eats in the year 2021?”

Let’s discuss this in detail to come to a conclusion.

A) What does Stats Say?

• According to eMarketer, food delivery apps are rapidly growing in popularity, with a prediction of more than 20% of US smartphone users will use a food delivery app by 2021.

• Due to the COVID-19 pandemic, the restaurant industry is facing continuous operational challenges, due to which the customers are turning to food delivery apps like Uber Eats that motivates other restaurant owners to offer online food ordering and delivery services and adapt to the new trend.

• The COVID-19 pandemic has altered consumer behavior, as customers are adapting third-party delivery apps at an accelerated pace, compressing years of growth into months.

B) Impact of COVID-19 Pandemic on Online Food Delivery Business

The initial time was hard for all types of eCommerce industry as it was difficult at first to identify the level of impact and the ways to deal with it during the first phase of the pandemic.

The online food delivery sector also faced a hard time for employees where many had to shift or faced a salary cut because of the lockdown where restaurants were unable to operate.

Many restaurants and food chains were permanently shut-down due to a “non-profit situation” that became the reason for unemployment for many employees associated with the food industry.

But the situation changed in the second phase when the lockdown was removed and the restaurants were given permission to resume their operations.

• If we particularly talk about “Uber Eats” the company saw a 10% increase in the number of self-serve signups by the US restaurants in the month of March as shared by the Uber CEO Dara Khosrowshahi.

• With an increase of 30% in the number of people signing up for their food delivery service since lockdown, Uber Eats has witnessed growth in terms of customers.

On the other hand, the customers also preferred ordering food online from their favorite restaurants as the pandemic restricts them to visit crowded places and avoid direct contact with people.

C) Here are some reasons why the customer prefers to order food from platforms like Uber Eats:

• As the pandemic has restricted the restaurants to serve the customers, the restaurants have started their own food delivery services to fulfill their customer’s demands.

• The concept of COVID-19 safety features has also been an effective way to build trust among customers and operate the food delivery business during the pandemic. Such as contactless delivery, curbside pickup, etc.

Read more about the safety features here: The COVID-19 Safety Features

• Availability of more options in terms of both: the number of restaurants and the variety of food items available to order.

• Online food ordering is famous among the millennials, but the COVID-19 precautionary measures to stay away from the crowded places have encouraged other age groups too to join the list.

• Not just the food items but orders for bakery items like cakes and other party items are also placed online as the delivery process is smooth and convenient.

• The online food delivery business model is famous among the working professionals that prefer order lunch from food ordering and delivery platforms.

Suggested Read: Here is a Brilliant Startup Idea of Online Office Food Ordering & Delivery Business

D) How to start a business like Uber Eats?

This is a basic question that you as an entrepreneur keep looking for to be sure about your investment and business idea. Although whenever you have to start a business you need to be through with the marketing opportunities and treats for which you need a market analysis.

Here are some points that you must be interested in knowing before you invest in a business model like Uber Eats:

1. Business Model Canvas

2. Business Model

3. Revenue Model

Let’s take a look at the graphical representations for the above-mentioned points:

1) Business Model Canvas for Uber Eats

2) Business Model of Uber Eats

3) Revenue Model of Uber Eats

D) Ubereats Competitors

Although Uber Eats is a well-established brand, the growing competition in the market and similar platforms available for the customer have always put some challenges in front of top player UberEats.

• GrubHub

Among the top names, a very familiar name is GrubHub. Established in 2004 in Chicago GrubHub is considered a top choice of customers. GrubHub operated in more than 4000 US cities with more than 300000 restaurants registered on GrubHub.

• Deliveroo

Another name among the food ordering and delivery platforms is Deliveroo that was established in 2013. Deliveroo operates in 200 locations across the Netherlands, the United Kingdom, Belgium, France, Spain, Ireland, New Zealand, Singapore, Hong Kong, etc.

• DoorDash

Founded in the year 2013 DoorDash has become a popular player in the list of online food delivery businesses.

• Postmastes

Operating in more than 2940 US cities since 2011 the establishing year of Postmastes.

The biggest competition to platforms like Uber Eats is from similar and better startups coming with new concepts.

E) How to Build a Platform Like Uber Eats?

By now if you have decided to “start your online food delivery business like Uber Eats” then this section is an important one for you. To build a platform like Uber Eats you need to develop a website and a mobile app like Uber Eats.

The concept is simple as there are many eCommerce companies and food delivery solutions that offer you with the services to build a website/app like Uber Eats.

You can pick and choose these companies based on the price they offer, features offered, after-sales technical support, etc.

As we are specifically talking about “Business like Uber Eats” in this case you can opt for a ready-made solution that is cost and time-efficient. Also, it is a tested and tried solution which does not need efforts like in case you opt for building a website or app from scratch.

If you are interested to know more about Uber Eats, you can read the following blog that I found covering all the answers about starting a business like Uber Eats How to Build an App Similar to Uber Eats? A Detailed Guide

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