How does online food ordering system work ?
Online food ordering & delivery marketplace has been a promising business idea from the start. And it is evident from the success of the first generation of online food ordering startups like FoodPanda, GrubHub, Zomato and Swiggy.
Online food ordering marketplaces are primarily based on the “aggregator business model” in which the business owner earns revenue through service commission. So basically, they provide a centralized hub where all the restaurants & other food outlets of the target market are listed for customers to order from.
Here is a step wise snapshot of how things work in online food ordering marketplace:
- Customers explore the portal for cuisines & listed restaurants
2. Customers place the order along with delivery details & make payment
3. Marketplace owner cuts commission & routes order to restaurant for delivery
4. Order is delivered by the restaurant or a 3rd party delivery service
