The Rise in Popularity of Online Food Delivery from Multiple Restaurants

The online food delivery industry has thrived remarkably over the past 3-4 years, thanks to the rise of digitalization and technology. This sector has become one of the most promising business ideas of the decade, with the revenues of companies like Zomato, Grubhub, and Uber Eats increasing each year.

The growing number of mobile users is driving a significant demand for online food ordering and delivery services. According to Business Insider Intelligence, orders placed via smartphones were expected to account for more than 10% of all quick-service restaurant sales by 2020, turning mobile ordering into a $38 billion industry.

Many restaurants are eager to join these online food delivery platforms because it helps them reach a broader audience, beyond just local patrons or those who already know about them. These platforms also offer benefits like review and rating systems that help customers find the best service providers. Additionally, restaurants can cut down on their own marketing costs since the delivery marketplaces typically have their own marketing teams.

Despite the dominance of established names, many new entrepreneurs are keen to enter the food delivery market each year. This is largely because many regions remain untapped and the number of online food ordering users keeps growing.

Starting an online food delivery business, though, isn’t easy. Aspiring entrepreneurs need to consider various factors, particularly funding. There are multiple revenue generation avenues in this business model, which can be lucrative if navigated correctly.

The first step to entering the food delivery business is developing a comprehensive website and mobile app with multivendor capabilities and a range of other features. There are two main ways to go about creating these digital platforms: