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How to Make Money from a Food Delivery App like Talabat?

Umar Tazeer by Umar Tazeer
October 14, 2022
in Technology
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Online food delivery is becoming a mainstream practice, especially in cities like Dubai and Kuala Lumpur, famous for traveling and tourism. 

The unprecedented growth and popularity of food delivery apps like Uber Eats, Door Dash, and Grub Hub have encouraged entrepreneurs across the globe to capitalize on this opportunity and dive into this lucrative market. And Talabat is an example of that!

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What is Talabat?

Talabat is the most popular food delivery app in the GCC region, including Kuwait, United Arab Emirates, Qatar, Egypt, Oman, Bahrain, and Jordan. It has over 20,000 riders across the UAE, completing more than 10,000 orders a day.

What Makes Talabat so Special?

Despite strong competitors like Uber Eats, Zomato, and Deliverio, Talabat has become the go-to food delivery application for people in Dubai and the GCC. Here are the x reasons why:

1.      Order Tracking

Talabat allows users to track their orders using GPS. This real time parcel tracking feature has enabled users to get accurate time estimations.

People hate to wait, especially for food. Some renowned delivery apps have been reported to show wrong time estimations so that users don’t cancel their orders. And this very deception has caused thousands of people to switch to Talabat for its 100% accurate estimated delivery time and real time parcel tracking feature.

By keeping track of all the information you need, such as what items are available, what items need to be prepared, and what the customer’s order is, the right Restaurant POS software can help you create an efficient order-taking process.

2.      Super-Fast Delivery

Following in the footsteps of the famous pizza franchise Dominos, Talabat strongly focuses on delivering the meal in no time. The food delivery giant pays lucrative commissions to the delivery riders and reward them for excellent profile ratings.

This practice of appreciating timely delivery has made Talabat the focal point for delivery riders who wish to add another source of income by working by part-time. Talabat currently has over 20,000 delivery riders in UAE alone and is actively looking to add more people to its supply chain.

3.      Multiple Payment Integrations

Integrating multiple payment options was the need of the hour, especially in UAE and Kuwait, where most people are either tourists or expatriates. Talabat was among the very first food delivery business to address this issue and integrated different payment options.

With Talabat, users can order their meals online and pay via credit card, mobile wallet, crypto wallet (in some restaurants), and even cash on delivery.

4.      Search Filters

Talabat lets users apply advanced filters and search nearby restaurants and home chefs using the GPS feature. If you are convinced to invest in building a food delivery app, ask your mobile app development company Dubai to integrate advanced search filters that let users search via reviews and delivery time.

This approach will also force restaurants to double-check the food quality and deliver it to the riders on time.

How do Food Delivery Apps Make Money?

It’s essential to plan the app’s monetization ahead of the operations. Most food delivery apps fail to break even due to a lack of planning about monetization before starting the development phase. 

Here are the three most popular monetization models that a food delivery app in Dubai business can use to make money:

Subscription

The subscription model is the most successful monetization practice in the food service industry. Apps like Talabat, Delivery, and other popular food delivery apps across the world can be seen using this method, as it helps them build a recurring customer base and get extensive cash in subscription fees.

The subscription model is relatively new in this industry. However, it been used successfully in other service industries for decades.

Commissions

Another popular monetization model is to charge a commission fee from the restaurants and home chefs for each order. Most food delivery businesses in Dubai charge between 7 – 35 percent commissions from the vendors for letting them use their platform.

This model is beneficial for both business owner and vendors, as they can sell to a broader audience already available on the platform.

Delivery Charges

The third popular monetization method is to charge a commission from vendors for each delivery. Some food delivery businesses charge a flat 10 – 25 AED to the vendors, while others prefer charging a fixed percentage of the total amount of the bill.

This method is probably the most sustainable method in the entire food delivery industry. It enable small restaurants and home chefs to sell to a broader audience without worrying about the delivery.

How to Build an App like Talabat?

Building a food delivery app like Talabat is not as overwhelming as it might appear, thanks to the increasing numbers of mobile app development companies in Dubai and the GCC.

Sign-up for the free initial consultation session for your mobile app on the website of app development companies. Prepare your questions before attending the consultation session and ask them to email you the details.

Ask about the tech stack and the development models, and check their portfolio. Don’t forget to research the company’s reputation online on platforms like Yelp and Trust Pilot.

Finally, compare the packages of all the companies you have interviewed and kick start the development of your app.

Wrapping Up…

Building a food delivery might involve substantial capital, but it’s worth every penny. The food delivery market is lucrative, especially in Dubai and the GCC.

Do comprehensive market research, find the gaps in the food delivery business in your area, partner with the right development company, and enter the market with a bang!


 [M1]Please check if there’s any keyword remaining and add it to instead of this one. Or just send me a text on skype.

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