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How to set up a food delivery business like UberEATS?

This blog is primarily meant for businesses and entrepreneurs who want to set up a food delivery business like UberEATS. The blog provides insights regarding UberEATS making inroads and mobilizing the entire food industry with its UberEATS’ app features ever since its inception.

1. introduction

Do you recall and remember when we had to go to restaurants to get good food? Those days were hard, indeed.
Ordering food online and having it delivered at your home is something that we, the consumers are liking with each passing day. And with the sudden and unexpected disruption of covid, more consumers than ever have begun to realize the convenience of online ordering.
The food delivery market in the previous few years has got enormously big. The rapid growth of technology and easy smartphone availability has contributed massively to this enormous rise. Besides this, what has led to the food delivery growth is the changing consumer lifestyle, their eating habits and them seeking convenience of the highest order; something which these food delivery apps easily provide. Remaining in the confines of your home, the food delivery apps provide you plethora of food choices to order things of your liking 24*7.
As the number of food delivery apps and varieties of food ready to be served on the platter increase globally, food deliveries are increasing all the more and they have inarguably become a furor not just among the consumers, but businesses too.
So, how does your business create an app that is highly profitable and yielding like Uber Eats? The previous five years or so have been very demanding of food delivery apps. The consumers are widely preferring them and the food delivery companies can’t be happier.
Whether it be the likes of Grubhub, Uber Eats, DoorDash, Swiggy or the consumers themselves, everyone is liking and enjoying the phenomenal shift to such platforms. These large number of food delivery apps and massive choices available therein, ordering food from local restaurants through your mobile phones, or logging in to the restaurant’s websites, render food delivery to be one of the most rapidly changing and growing industries in today’s times.

2. Learning about the statistics: industry Numbers that speak Volumes

2. Learning about the statistics: industry Numbers that speak Volumes

The following food delivery trends and statistics are a strong witness to the fact as to how important and big the food delivery industry is getting day by day.
  • Chinese consumers generate the most revenue when it comes to food delivery– As of the year 2020, China’s market size of online food delivery services stood at 66,462 billion yuan or 102 billion US dollars. This statistic is overwhelming in the sense that it easily surpassed the market predictions according to which the revenues for the year 2020 were to reach an approximate of $51,514 million. Moreover, as found mentioned in a report, China is the largest market for food delivery with a market size of $27.3 billion in 2021.
  • The United States market is estimated to grow big and its revenues are estimated to reach $26,527 millionFinding itself in the second place to no other country but China, the United States’ food delivery market has an overwhelming potential as trends reveal and statistics suggest. Given the whopping revenue figures, a 1% annual growth rate in the US market is expected. New York city, by virtue of the amount of money spent, shows the greatest number of users of food delivery apps and services. In fact, the NYC food delivery statistics reveal that the average New Yorker spent $773.7 on food delivery. Occupying the second spot is San Francisco with a spending of $579.8 per person.
  • The food delivery rivalry in the US market is cut throat Such is the competition in the United States’ food delivery market that where on one hand as of the year 2018, Grub Hub held 34% of the market share, Uber Eats stood at 27%. Door dash followed the two closely.
  • As of March 2022, Door Dash dominated the food delivery market with a whopping market share of 59% and Uber Eats stood at the second position with 24%. As of the year 2021, though Door Dash dominated the San Francisco food delivery market, Uber Eats app was the most used one for food delivery service in Miami.
  • As per a report, China’s online food delivery revenue was forecast to reach over 67 billion U.S dollars by the year 2024.
  • Instacart orders soared up– Affected by covid in 2020 and unable to go out, a large number of people in US turned to Instacart. It went from getting 8,20,000 orders in February to 14 million in the month of April. This is one of the most significant examples of the rapid growth in the food delivery market, but US food delivery statistics show that this trend is synonymous to popular companies like DoorDash, Uber Eats, Grub Hub, etc.
Note: As per the mention in an article published in February 2022, 45 percent of the company’s total revenues earned in 2021 are by Uber Eats. In point of fact, Uber Eats has grown from $1.9 billion to $8 billion of revenues.
So, as the statistics suggest, this goes without saying that the industry is big enough to accommodate as many players as they may come across and the potential it has is highly promising. Food delivery services offering solutions through food delivery apps are here to stay.
So, a natural and obvious question that pops up in mind is how to develop a highly efficient food delivery app and what should be its features so as to lure more and more customers into using it? Or rather a straightforward question would be- ‘How to set up a food delivery business like Uber Eats?’

3. UberEATS: Providing its food delivery prowess year over year

3. UberEATS: Providing its food delivery prowess year over year

Before we start to put things into perspective and begin learning about the strategies and tactics for successfully setting up a food delivery business, let us have a look at the following overwhelming statistics about UberEATS that has already given many a leading food delivery business a serious run for their money.
According to the most recent report from, UberEATS is the most downloaded Food & Drink category app in the globe for April 2019. The app has almost eight million downloads, a year-over-year growth of more than double since the year 2018. Where on one hand, the most app installs for UberEATS stood at 24 percent for India, it was closely followed by the United States at 21 percent.
The below provided figure reveals the competitiveness and singular leadership of the UberEATS app around the world for the year 2019.
Similarly in the year 2016, a report from published in January 2017, UberEATS app was downloaded more than 10 million times worldwide since its February 2016 official launch.
The chart below visualizes monthly downloads of the UberEATS app during 2016, and hence is highly suggestive of the UberEATS food delivery app and service’s success and contention in the same year, compared to its two largest competitors viz a viz GrubHub and Postmates in the on-demand meal delivery space.
Sensor Tower’s data shows that GrubHub’s estimated worldwide downloads for the year 2016 totaled approximately 3.07 million, while Postmates totaled approximately 3.6 million. Additionally, UberEATS achieved an average month-over-month growth rate of about 23 percent from March 2016 through December 2016.
As per a mention in an article published in the New York times in November 2020, having acquired Postmates, the two companies together would have a whopping 37 percent share of food delivery sales in the United States alone, as reported by Edison Trends, an organization which monitors credit card spending.

4. UberEATS’ business model

Riveting and arduous as it may sound, UberEATS has worked up its way rather perseveringly. With a large number of food delivery apps available, to be able to retain a competitive spot for long, tells the tale of a business that has efficient work processes and an exhaustive business model.
By defining its work processes neatly and categorically and thoughtfully deliberating on the business model, successful corporate houses already take that big leap required to flourish in the market. UberEATS is a classic example of this.
Below is the business model of UberEATS that gives a beautiful insight into how food delivery businesses should be run.

UberEATS is an aggregator business that connects and is the coming together of three parties viz a viz,

  1. Restaurants or food joints– Businesses who list their cuisines and food items on the UberEATS platform
  2. Customers– People who choose and order food to be delivered from the app
  3. Drivers– Individuals who ensure a smooth and timely delivery of the food or cuisine so ordered, by the customers.

The business model of UberEATS is so simple yet benefitting that everyone involved in the chain gets a part of the collectively availed benefits. To say so, the relationship so developed is mutually profitable for everyone which is why perhaps the association generally goes a long way. UberEATS does not operate a fleet of delivery drivers. Because it doesn’t generally own any restaurants or vehicles to ensure delivery of food, its overhead costs are very less.

Instead, what it does to make profits is that it charges a certain percentage from both- the restaurants and customers, for every order they make and hence keeps itself going.

Since the drivers so involved are independent and not employed by UberEATS, they do not need to be paid any fixed salary, which again is a big saving. Instead, they earn for every delivery they make.

Moreover, they don’t have to work for fixed number of hours. Accepting deliveries of food remains at their discretion. The more they work and deliver, the more money they make. This is an added perk for them.

Customers win too, as they get the convenience and flexibility to order food of their choice from any restaurant they like through an app which allows for a rememberable app experience and hassle-free transactions.

They don’t have to make out time to go out again after coming back from the office, face unnecessary traffic snarls, burn their vehicle fuel and waste time, which again is nothing less than a big saving for them. After all, who would want to miss out on such opportunities? Perhaps, no one. If you are busy, UberEATS has got you covered, it appears.

Hence, the customers are the most satisfied ones when they find food delivered to their doorsteps.

Restaurants make their part of gains and profits as they get their chances of online visibility increased to a good degree, and in return, this brings increased profits for them when customers see their presence on the app, go through their cuisine offerings and order food.

UberEATS in the previous few years has worked up its way pretty smartly and intelligently. It prospered all the more during covid, when people worldwide sat in their homes and had no other option but to order food online for the family. UberEATS made the most of this time. By applying the right set of marketing strategies and designing an engaging, easy to use and user-friendly interface for customers, they brought in for themselves chunk of market shares. Finding an opportunity in the lockdown, had it not worked diligently on its software, apps and UI designs, etc. it would not have been here where it stands today.

To find out the essential features of an app that are helping businesses stay afloat in such crunch times as of ours, read on.

5. How to create a feature packed app like UberEATS?

5. How to create a feature packed app like UberEATS?

In order for you to establish and develop your food delivery business, the first and the foremost thing is to develop an app that promises ease and convenience in today’s times. Notably, creating an app like UberEATS requires a team of diligent developers and efficient tech savvy members. A catchy UI design and an engaging interface like that of UberEATS, are two features among many, that users worldwide appear to be most influenced by.
UberEATS, through its food delivery app makes ordering and delivery an easy and a worth remembering experience for its users. It follows three really simple and hassle-free steps viz a viz- browse, order, track and get it delivered.
You can easily navigate through the app and look for your favorite cuisines, place an order of your choice, see the estimated preparation time of the cuisine so ordered, the time needed to deliver or reach your destination and also track your cuisine in transit as to how much distance it has covered and what part of it remains or approximately how much time will it take to reach you. As a matter of fact, UberEATS has an efficient and robust delivery monitoring system that allows you to track your orders till the time it is delivered.
Given below is a list of things that need to be taken care of by businesses, smartly and aggressively.
All products
  • Organizing and curating the website content smartly: If the success of apps of food delivery companies in general and UberEATS in particular, is anything to by, the first thing that makes it happen is its aesthetic appeal. The better managed and smartly curated the contents of a website or an application are, the greater is its chance of making it big. By virtue of providing better personalization of mobile apps through the use of artificial intelligence, UberEATS has the front row seat in this innovation.
  • Recommendation of wanted suggestions on apps: Machine learning has been a boon for aspiring businesses. It is with the help of this technology that past user history is monitored and existing contextual information is utilized by UberEATS that suggests food alternatives and cuisines of individual consumer choice. This is something that the other aspiring businesses can also replicate.
  • An app that provides holistic information: An app or a food delivery software that is user friendly and engaging at the same time evokes great interest in them. To be able to provide a classified yet complete information about food items and its delivery aspect through your app, makes you competitive enough to take any rival head on. This is what UberEATS does, perhaps. Its app is all about easy exploring and is touted as one of the most user-friendly app. For instance, if a user looks for sugar free products, he gets to find them easily on the app. Moreover, he can easily find and navigate through the smallest of details regarding ingredients used, estimated preparation time, expected delivery time, etc.
  • Order hassle free, irrespective of where you are: A food delivery app that advertises food aggressively but doesn’t provide the convenience of having it anywhere a consumer wants, is nothing but a failure in today’s extremely fast paced times. UberEATS takes a good care of this by enabling smooth and timely deliveries at various places like parks, hospitals, offices, gymnasiums, hotels, etc.
  • Facility of pre ordering through apps: Several users around the world who run short of time and want to get food of their choice and taste on time, they prefer UberEATS most of the time. You can pre book your order and specify a time for delivery of the food item you want two days after or may be next week. This feature of apps may provide a business with the much-needed distinctive competence and subsequent competitive advantage in the food delivery services’ market.
UberEATS appears firmly set to continue going in the food delivery services’ market. Having acquired its once a rival firm, Postmates, the future for Uber looks to be focused on food delivery, with some expected expansions into grocery delivery in North America and Europe in the year 2022.

What remains to be seen is how other food delivery businesses catch up with the growing worldwide acceptance of providing food delivery solutions through the use of food delivery apps.

6. Checklist for businesses in the food delivery industry

6. Checklist for businesses in the food delivery industry

  • Is your business capable of proving its mettle in the food delivery industry?
  • Does your business have a good website?
  • Does it have a mobile app which is user friendly and is capable of evoking interest in consumers?
  • Do you have the requisite resources to pursue the right set of marketing strategies?
  • Can your business expand its outreach through the use of social media?
  • Can your business collaborate with social media influencers and food bloggers?
If a business can find answers for itself for few of the above-mentioned questions, if not all, it can certainly work up its way to reaching a competitive position as that of UberEATS. Having listed a plethora of takeaways in the form of business model, statistics, data, app features, etc. for businesses and entrepreneurs, it remains to be seen how many food delivery service providers are actually able to replicate the strategies and app-related features as that of UberEATS so as to provide their customers with feasible food delivery solutions and stand out in the marketplace. Afterall, In a crowded marketplace, fitting in is a failure. In a busy marketplace, not standing out is the same as being invisible.
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Evolution of hyperlocal eCommerce

Build a platform and prepare for the unexpected; and you’ll know you are successful when the platform you’ve built serves you in unexpected ways.

1. introduction

When was the last time you or your family member bought something online? It wouldn’t be too long ago. Right? The answer to this limpidly defines the widespread impact of ecommerce on people inhabiting various geographical regions.
Literally all of us, barring a handful few, have somewhere or sometime been involved in making online purchases because of one reason or the other. This online buying trend has grown among the masses by leaps and bounds, lately. But there has been less inquisitiveness about it as to what is making it so desperately demanded by a whopping score of population, and that too at an unbelievably quick pace.
In this era of ecommerce, technology intensive businesses and quick deliveries rule the roost. The galloping smartphone adoption rate, increasing internet penetration, growing sedentary lifestyles, etc have all contributed heavily to the transformation of ecommerce to hyperlocal ecommerce. So, to say so, we are living in an age of quick commerce that demands ultra-fast deliveries. In order to meet such needs and demands, ecommerce has made way for a more refined, digitalized and automated model, which has come to be popularly known as hyperlocal ecommerce. And as a matter of fact, hyperlocal ecommerce has dramatically changed the way brands now reach out to their customers, making it faster and easier for them to make purchases on the fly or in transit, while avoiding the hassles of facing clogged traffic or going to the store.

2. Why is ecommerce growing so fast?

The rapid adoption of smartphones, easy and affordable access to technology, and the convenience of shopping from anywhere, at any time are the major reasons for the rapid growth of ecommerce. Attribute it to ecommerce, online marketplaces have been on the rise since the mid-1990s with the launch of giants we know today, such as Amazon, Alibaba among others. Amazon in particular is known for its unique growth strategy that has helped them achieve mass-adoption and record-breaking sales.
Retail e-commerce sales worldwide from 2014 to 2026

3. How fast did it grow during Covid-19?

The Covid-19 global ecommerce surge was initially born out of necessity. Online shopping provided a practical alternative as retail locations closed and people stayed indoors to avoid the virus spread. In fact, the dramatic rise in ecommerce amid movement restrictions induced by Covid-19 increased online retail sales’ share of total retail sales from 16% to 19% in 2020, according to estimates in an UNCTAD report.
All in all, for so many reasons discussed above, ecommerce has been moving steadily and has gained immense pace during covid-19. Expected fast delivery of products and reduced operational costs for businesses remain at the heart of such ecommerce activities which has perhaps led us to hyperlocal ecommerce.
In short, ecommerce is gradually becoming a thing of past and has taken a backseat, while hyperlocal ecommerce, leading from the front, has pretty convincingly caught up with the pace of growing contemporary demands as it endeavours and continues to serve and satisfy hyperlocal needs.

4. What is hyperlocal ecommerce and its marketplace?

4. What is hyperlocal ecommerce and its marketplace?

The word ‘hyperlocal’ means going local in your business. Hyperlocal ecommerce is a form of business that focusses on the needs of geographically local consumers. Hyperlocal businesses focus on geographically nearby consumers for fulfilling their on-demand needs usually through a website or mobile app or any online platform including social media. Like Amazon or Flipkart, a hyperlocal ecommerce marketplace is an online multi vendor marketplace for a localized or small geographic zone. Advantageous as it is, setting up a hyperlocal ecommerce marketplace is an erupting business idea and it is making businesses around the globe go gaga over it.

5. What is a hyperlocal delivery model?

A hyperlocal delivery model is an online business model in which the on-demand needs of customers are met through local offline shops via a digital platform. The model focusses on increased automation and geographical proximity of the buyers and the vendors in order to achieve maximum ordering and delivery efficiencies. It is pertinent to note here that the hyperlocal model enables the brands to reach out to their target customers directly, removing the middlemen, etc as part of the traditional business model. This provides customers with a better shopping experience as it offers convenience and quick delivery, especially in the areas of logistics, food and groceries.

6. The hyperlocal discourse

Hyperlocal ecommerce has been one of the most talked about concepts in the recent past; and hyperlocal ecommerce players, with their agile and customized delivery options, have caught the eye of discerning consumers. Delivering almost all sorts of products and services like food, groceries, apparels, home care, personal care, accessories, etc, hyperlocal ecommerce has just not been able to provide services at the doorstep of the customers, but it has also infused a new lease of life in several ailing and floundering businesses, and has empowered them considerably.
The hyperlocal space has seen a tremendous rise in the number of niche brands across categories like home décor and essentials, home services, groceries, and pharmaceutical sectors. As the markets have witnessed more growth lately, traditional brands have shifted their focus towards hyperlocal and direct-to-consumer business models. This transition has been accelerated further due to increased internet usage and evolved consumer behaviour.
So, the evolution of hyperlocal ecommerce is not individualistic in nature. In fact, it is mutual- implying, it is the evolving consumer behavior, need for urbanization and growing technological intervention that is pushing businesses towards the hyperlocal space.
Ramping up the pace of hyperlocal ecommerce and much to the delight of aspiring hyperlocal businesses, covid-19 struck in 2020. During the pandemic, the hyperlocal ecommerce space became the most sought-after destination for businesses and consumers alike, as restrictions and quarantines meant delays and logistical nightmares, especially for the sellers. With the covid outbreak and strict social distancing norms put in place, customers found physical shopping difficult. What instead they found easy was to resort to online shopping through websites and applications to even buy their basic necessity items. Moreover, several individuals who had children and old-age people found online shopping a safer option to get their daily essentials. In addition to that, the cashless and contactless features of online shopping led to nearly every household opting for online shopping.
The sudden surge in the popularity of scores of businesses can undoubtedly be attributed to the pandemic that has pushed each and every vertical of every industry to shift and adapt to the digital medium. It would be rational to point out that the period after covid-19 has seen an exponential rise in the use of hyperlocal platforms and deliveries. Courtesy to the pandemic and other lifestyle changes, the delivery apps have become extremely popular and in order to avoid crowds, people are willing to take advantage of food and grocery home delivery services.

How apt is the saying that every crisis situation presents an opportunity to try something new?

And, how wise are businesses to have turned hyperlocal seeing opportune times in the pandemic or the changing habits of consumers, for that matter?

7. Factors contributing to the hyperlocal growth

Let us see a few factors that have contributed significantly to the growth of hyperlocal ecommerce.
  • The Pandemic- With a surge in covid-19 cases, business activities came to a standstill. Back then, people started to explore of options to satisfy their needs and started to buy things online and sellers too chose to make them satisfied by catering to them. This was a required push for hyperlocal ecommerce. Since then, as almost everything is being bought online now, it is for us to see how tremendously hyperlocal ecommerce has evolved.
  • Ingression of technology- Technology has pronounced many a business’s decisions and going hyperlocal is one of it. Seeing the impact technology was making and the way people were getting used to internet and social media like services, businesses found a quick refuge in hyperlocal ecommerce. This has led to them growing immensely in the recent few years.
  • High smartphone adoption rate- With global smartphone adoption rate estimated to have reached over 78 percent in 2020, prudent businesses saw it all coming. With smartphones in every hand and the users having access to internet and social media, businesses have quite successfully made the most of this opportunity by coming onboard a hyperlocal marketplace. They have made quick bucks as consumers have frequented hyperlocal platforms for satisfying their food cravings and meeting daily essential needs, etc more often than ever.
  • Business mechanization- Businesses learning to adopt technology and getting mechanised is one solid reason why hyperlocal ecommerce has flourished. Businesses capable of adopting technology have successfully done so, and have made their processes highly mechanized and automated. It is this automation that has made drone deliveries among other features become a possibility; and hence the hyperlocal growth.
Let us see a few factors that have contributed significantly to the growth of hyperlocal ecommerce.
  • The number of hyperlocal commerce shoppers will increase by 52% to reach 214 million by the end of 2022.
  • The hyperlocal delivery industry was worth $1,324 billion in 2019 and is expected to grow to $3,634 billion by 2027, with a CAGR of 17.9% throughout that time.
  • The global hyperlocal service market size was valued at $1714.60 billion in 2020, and is projected to reach $5188.60 billion by 2030, growing at a CAGR of 14.9% from 2021 to 2030.
  • According to India brand equity foundation, the Indian e-commerce market is expected to grow to $200 billion by 2026 from $38.5 billion as of 2017.
  • The software powered robotics market in logistics is expected to reach $15.58 billion by 2026.

8. Reasons that are making hyperlocal ecommerce go boom

8. Reasons that are making hyperlocal ecommerce go boom

  1. The hyperlocal e-commerce marketplace is a blessing for several local offline retailers and service providers. Hyperlocal e-commerce helps local store owners to take their business to its next growth phase. 
  2. Hyperlocal e-commerce gives customers a much better shopping experience. They get to shop products from the comfort of their homes without having to pay extra shipping fees and get the product delivered at a lesser price. 
  3. In a fast-paced world of ultra-fast deliveries, consumers are preferring to stay at home and order their things of need. Through the hyperlocal model, they get quick and safe deliveries of products and they are saved from the hassles of going out and shopping.
  4. Hyperlocal ecommerce advocates the concept of automatic instant delivery. i.e. deliveries at unbelievably fast pace. Since hyperlocal businesses operate only within a particular geographical area, it helps the businesses attend to the needs of their customers in a quick and efficient manner. Automatic instant delivery mechanism has turned out to be one of the major features of hyperlocal ecommerce and has contributed to its increasing popularity. 
  5. Last but not the least, it enables hyperlocal businesses to increase sales and ramp up their revenue in a shorter time frame as they have an increased visibility and more chances of presenting their products online, in front of their customers. 

9. Future of hyperlocal ecommerce

Given the trend of evolution and pace of growth of hyperlocal ecommerce, the future appears to be highly promising. Business areas and industries that are left untouched till now can be made to go hyperlocal. Seeing the hyperlocal ecommerce space blossoming, several hyperlocal retail businesses may diversify from one category of business to another over the hyperlocal ecommerce marketplace platforms.
Additionally, hyperlocal ecommerce, the way it has been galloping, is certain to grow beyond the urban regions and foray into more specific rural areas and also tier II and tier III cities that have till now been incompletely or partially served.
Moreover, as the impending technology gets more dominant over how businesses are run, it is expected that they will turn highly automated, thereby introducing things like advanced robotics and AI-inspired trials for products that really need to be tried, for instance apparels, accessories, etc. Perhaps, there are a few tech businesses that are in the nascent phase of doing it. In all possibility, they are going to come upfront soon and will become increasingly prominent.
Last but not the least, hyperlocal ecommerce, backed by superb and state of the art technology, is highly likely to introduce drone deliveries on a large scale. It just remains to be seen how soon will that happen.
Also, advancements in technologies like AI, blockchain and big data provide an inducement to the commerce sector to adapt to hyperlocal. Deliveries continue to become speedier and hassle-free, permeating the shopping experience with the traditional warmth and familiarity of visiting neighbourhood stores while doing so from the comfort of your couch.
The way forward to ace the hyperlocal space is to get on board with intelligent and futuristic SaaS platforms. The coordination between multi-point picks ups and places of delivery while nailing end-to-end visibility is only possible with SaaS.

10. Winding up

Having discussed the factors and reasons behind the phenomenal growth of hyperlocal ecommerce and the prospects that lie ahead for hyperlocal businesses, one thing that can be established for sure is, we will continue to see a convergence of the digital and physical world, and those who conquer that trend will be the market leaders.
Hyperlocal ecommerce certainly offers both convenience and efficiency to the business and the consumer. The need for instant gratification when it comes to shopping, lightning-fast fulfilment and delivery and tech-savvy revolutions like geofencing and automatic instant delivery features are driving the ecommerce sector into hyper localism, solving key challenges like optimum route planning, managing peak hours, order consolidation, multi-point pick up, etc.
With more technological advancements, as hyperlocal ecommerce is destined to get more time and cost efficient, it will surely become fierce and competitive.
The hyperlocal ecommerce market is estimated to record ground-breaking growth in the years to arrive. To maximize and optimize operations, businesses must come up with ideas that help them re-brand and re-invent themselves so as to stand out and differentiated and reach a wider audience.
In order for that to happen, businesses must ‘evolve’ hyper locally.

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How is the hyperlocal delivery model revolutionizing the eCommerce industry?

Build a platform and prepare for the unexpected; and you’ll know you are successful when the platform you’ve built serves you in unexpected ways.

– Pierre Morad Omidyar

1. introduction

Owing to the rapid growth and adoption in technology and forced by the sudden and unfortunate pandemic crisis, the majority of the world is starting to discover the values of online retail and digital landscape. Forced to stay in isolation, a felt need to go online, rapid digitalization and growing urbanization, among others have all significantly contributed to the rise in figures of ecommerce industry across the globe. The way ecommerce marketplaces worked was pretty fine until the customers discovered a need for quick deliveries. And this need for quick delivery and rapid availability of products and services has resulted in the birth of hyperlocal marketplaces.
So, what is a hyperlocal marketplace? Why is it so impactful? And why is the hyperlocal delivery model so desperately wanted? We will find out step by step.
Before we go on to discuss about one of the most fancied concepts- i.e., hyperlocal marketplaces and their delivery model, of today’s times, let us gain brief insights into ecommerce industry and marketplaces that would help us develop a more comprehensive understanding of hyperlocal world.
Ecommerce marketplaces are sort of online ecommerce websites or place where a user can find different brands of products coming from multiple vendors, shops or person showcased on the same platform. An ecommerce marketplace model is the one that utilizes an information technology platform in order to facilitate trade between the buyer and the seller.
This model has been adopted widely by a large number of businesses. Some of the leading and prominent ecommerce marketplaces include Amazon, Flipkart and eBay. Ecommerce marketplaces help to streamline the production process through a simple portal and manufacturers can sell the products directly to the customers.
Besides this, ecommerce marketplaces can create more opportunities for the sellers and buyers. This can be understood by the fact that where on one hand there is real-time information about the updates or slashes in price as well as the availability for buyers to get the best deal; on the other hand, the platform also acts as an additional sales channel for businesses to promote and sell their products and offerings effectively to a large target market.
Moreover, an online marketplace, since it is not bound to any area or region, can enable overseas sales by providing opportunities to trade in international and global markets. An ecommerce platform substantially reduces the marketing costs of businesses than what they would have incurred had it been for going international through a traditional process.
Below given are some of the ecommerce statistics that can help us know as to how ecommerce has transformed over time and how monumental its impact has been. Let us dig in.

2. Some ecommerce statistics

  • According to Statista, retail eCommerce market sales worldwide will reach $6.54 trillion in 2023 as against $3.53 trillion in 2019.
  • Statista forecasts the global online sales to reach 22% of all retail sales in 2023.
  • By 2040, 95% of retail purchases are likely to be made online and traditional retail may be hardly existent (Nasdaq).
  • As per a report from UNCTAD, the rise in ecommerce amid covid19 movement restrictions increased online retail sales’ share of total retail sales from 16% to 19% in the year 2020.
  • According to Wunderman Thompson Commerce, 43% of shoppers now feel more positive about shopping online; and approximately 40% of consumers report that they’re more comfortable with digital technology than before lockdown.
  • Half of retail spend is expected to be online as consumers live with covid-19.
  • A study of over 30,000 global online consumers shows that 70% want an amazon prime-like service from other brands and retailers.
  • Wunderman Thompson Commerce’s Future Shopper Report 2022 shows that over two-thirds (64%) of global consumers want brands or retailers to provide a “more innovative” online shopping journey, all the way from the initial product search to the moment of purchase.
  • As per eMarketer report, US ecommerce will cross $1 trillion in 2022.
  • As per eMarketer, the pandemic boost in ecommerce sales accelerated growth in US ecommerce channel advertising to 49.8%.
  • It also states that roughly 70% of online buyers already purchase from foreign sites.
  • Almost 1/4 of all ecommerce orders are predicted to be cross-border commerce by the end of year 2022.
  • According to eMarketer, 80% of retailers worldwide agree that cross-border trade has been profitable or that sellers have successfully increased sales as much as 1,000% after expanding their marketplace presence.
  • According to Oberlo in 2021, 48% of online shoppers go straight to a large ecommerce marketplace.
  • Ecommerce sales are growing so quickly that it is expected to make a whopping 22 percent retail sales worldwide by 2023.
  • In the same report published by Oberlo, the number one reason people shop online is free delivery. Other key reasons include the ability to use coupons and apply discounts (41 percent), be able to read other customers’ reviews and feedback (35 percent), easily return their items (33 percent), and have a quick checkout process (30 percent).
  • Mobile ecommerce accounts for 45 percent of US ecommerce sales.
  • Approximately 84% of online shoppers said they won’t buy from an ecommerce site that is not secure (WHSR, 2021).
  • 85% of consumers prefer free shipping over fast shipping (Deloitte).
  • 75% of shoppers expect free shipping even on orders under $50 (NRF, 2019).
  • 65% of shoppers say they check free shipping thresholds before adding more items to their online cart (NRF, 2019).
  • The number one reason why people shop online is to make use of the free shipping option offered by ecommerce stores (Oberlo, 2020).
  • 5% of global internet users have purchased products online.
  • Segmented campaigns to email subscribers drive a 760% increase in revenue.
  • Online stores with a social media presence have an average of 32% more sales than those that don’t.
  • 74% of consumers rely on their social networks to make purchasing decisions.
  • 40% of all online purchases made during the holiday season are done on smartphones.
  • The average shopping cart abandonment rate approximates 70%. Shipping fees and other extra costs are the main reason why shoppers decide not to finalize the purchase online (Baymard Institute).
So, having put forth few of the facts and figures about ecommerce marketplaces, it becomes binding upon us to know more about the concept, that has led us to hyperlocal ecommerce and the growing use of hyperlocal delivery model that is revolutionizing the ecommerce industry.
E-commerce, if understood and practiced through a hyperlocal lens, is, in fact hitting the peak of the online world and it opens a slew of opportunities for visionary start-ups, established businesses and aspiring entrepreneurs. The entire hyperlocal model is so efficient and quick that it is giving physically well-established businesses a serious run for their money. By virtue of having a highly efficient model, hyperlocal ecommerce has surely and pretty convincingly overtaken the advantages of a traditional ecommerce.
Let us find out about the various aspects of a hyperlocal journey and the hyperlocal delivery model; And, why is it being adopted by customers and businesses with an exaggerated zeal?

3. What is meant by hyperlocal ecommerce?

One of the most eye-catching and compelling trends in the ecommerce world is hyperlocal ecommerce. Hyperlocal ecommerce simply refers to an activity undertaken by a business that is aimed at building a local environment or a local network which enables customers to purchase products and services from retail stores or vendors in and around their neighbourhood.
In other words, a hyperlocal marketplace is the one which caters to the needs of customers within a fixed geographical territory. The ambit of hyperlocal operations has grown so big that it has hardly left any industry untouched. Be they food supplies, groceries, laundry services, home essentials or personal care, hyperlocal ecommerce is the pivot around which businesses have learned to revolve and function. Such a fantastic growth has added a new dimension to the ecommerce sector, thereby popularising hyperlocal deliveries.
Hyperlocal ecommerce became increasingly popular during the pandemic of covid19 that affected almost the entire world. With its outbreak in the beginning 2020, global shutdowns and strict social distancing was announced. With this announcement, the world started to feel the need for quick and safe deliveries. This is where hyperlocal deliveries increasingly made their way. Customers found it easier and safer to resort to online shopping for meeting their daily needs. Businesses too relied heavily on a robust hyperlocal marketplace software to generate sales and ramp up their revenues. Hyperlocal delivery model has since then become a widely practiced model among businesses.
The sudden surge in the demands of certain products and growing popularity of brands is undoubtedly due to the pandemic that has pushed each and every vertical of all industries to shift and adapt to the digital medium.
In addition to this, the busy lifestyle, growing sedentary habits and improved standard of living are also accentuating the growth of hyperlocal e-commerce companies as they provide everything at the customers’ doorstep.
So, what’s this model all about that businesses are adopting crazily? Let us find out.

4. What is a hyperlocal business delivery model?

4. What is a hyperlocal business delivery model?

A hyperlocal business delivery model, also known as the on-demand delivery model is the one that focusses on meeting the needs of geographically local consumers. The model aims to bridge the gap between demand and supply with an efficient network of suppliers and vendors who fulfil consumer demands by selling them what they need at their doorstep.
Technically, a hyperlocal delivery model is an online business model that caters to customers’ on-demand needs, which are met through a local ecosystem. To put it across in other words, the customer uses a hyperlocal platform or service aggregator (through a website or an app) that assists the vendors to deliver the products and make reach the services to the customer’s doorstep in the respective geographical location. Grocery shopping, food delivery, luxury products, gift items, health care, and many other services have taken a different dimension altogether with the successful coming into being of hyperlocal e-commerce platforms.
What is the USP of the hyperlocal delivery model?
The unique selling proposition (USP) of the hyperlocal business model is its ability to get good quality products and services delivered at peoples’ doorsteps at ‘unbelievably fast speeds.’ That’s what a hyperlocal platform’s ‘automatic instant delivery’ feature does for the customer. The moment he has clicked to order a product, it is all lightning fast. Astounding delivery times! No?
Suppose you are one of the hyperlocal start-ups in your area. You connect with your customers through a mobile application. Unlike an e-commerce application where customers shop for things with an expectedly long one-week delivery margin, the hyperlocal delivery model is about speed and quality. For instance, you get an update that a customer in a nearby geographical area wants fresh whipped cream to bake a birthday cake. Being connected with the local dairies and food chains, you instantly order a fresh cream pick up through your driver app and alert your delivery man. And within 30 minutes the customer gets the fresh cream and reviews your service.
Not just this, but what’s more interesting about the hyperlocal model is the fact that using digital platforms makes it increasingly convenient for the customers to monitor the entire process and keep track of deliveries in real-time.
A hyperlocal business model usually has the following features-
  • It is a keen-eyed and personalised business that focuses on the needs of geographically local consumers.
  • It targets a specific area with a high demand for goods and services.
  • The entire model is so developed that it caters to the well-defined needs of people in an effective and efficient way using modern techniques viz a viz artificial intelligence, drone deliveries, etc.
  • The unique selling proposition of this business model is its ability to get good quality products and services delivered at people’s doorsteps at unbelievably fast speeds.
Technologies such as GPS (Global Positioning System) and mobile applications and the widespread use of social media have played a prominent role in accelerating the pace of hyperlocal ecommerce. The entire hyperlocal model has been so well received by businesses and customers alike, that they are liking every aspect of it.

5. How does a hyperlocal delivery model work?

5. How does a hyperlocal delivery model work?

A hyperlocal model is a series of interrelated activities. A hyperlocal delivery model is usually said to be adhered to when the following sequence of events happen.
  1. The customer places an order of a product that he wants to buy.
  2. The hyperlocal business receives the order and informs the offering and delivery partners.
  3. The offering partner then gets the product ready.
  4. The delivery partner picks the ordered product from the offering partner.
  5. They finally get it delivered to the customer’s specified location.
Suppose, a customer places an order for a required food item through the hyperlocal on-demand food delivery platform. The platform receives that order and passes on the details to the offering partner (local store) and the delivery partner (delivery person). The delivery partner then picks up the required food item from the local business and delivers it to the customer’s specified location.

6. Major partner in a hyperlocal ecommerce Business

6. Major partner in a hyperlocal ecommerce Business

As discussed above, the key and forefront players are the ‘merchant and delivery partners.’ Besides them, a hyperlocal company may also join hands with ‘map API providers’ and ‘payment processors’ for smooth functioning of a business. Let us know about them briefly.
They are the vendors, local store owners, manufacturers, wholesalers and retailers who are ready to cater to the needs and ordering demands of the customers. The hyperlocal business procures goods and products from such partners.
They are the delivery persons who work as partners for the hyperlocal platform. Such delivery partners can decide their own working hours.
Companies like google provide map APIs to hyperlocal businesses in order to assist their live order tracking- a feature which is fundamental for hyperlocal platforms. Such map APIs help track the location of the delivery personnel and also show the whereabouts of their order.
Haven’t you come across the options of payment gateways while placing an online order? That’s payment processors working for you. Payment gateways help in keeping track of all the customer payments and ensure smooth order processing. Payment gateways like Stripe, PayPal, etc., provide such services to hyperlocal platforms.

7. Benefits associated with a hyperlocal delivery model

7. Benefits associated with a hyperlocal delivery model

The biggest merit associated with a hyperlocal delivery model is that the platform efficiently and uninterruptedly drives the entire process and earns a commission for the role it plays and the local stores and vendors get amplified visibility and improved delivery services in the process.
Apart from this, there are several other benefits that businesses and customers enjoy.
  • A hyperlocal delivery model is cheap to adopt and it brings reduced costs for the business.
  • It is generally free from human errors as the entire model is highly specialized and automated, by virtue of having a hyperlocal marketplace software at its back.
  • By being naturally efficient, the model saves a business’s time and efforts to a great extent.
  • Businesses can easily track the deliveries by obtaining real time information on the driver’s whereabouts. The advanced GPS tracker inbuilt into the software allows access to each driver’s location.
  • Businesses, through a hyperlocal model, can have increased customer engagement and communication. Because more and more customers are using hyperlocal platforms, businesses can reach out to a large number of them.
  • Customer relationship is also strengthened for businesses. This leads to increased customer loyalty.
How to launch your online restaurant delivery business with hyperzod?
  • A hyperlocal delivery platform eliminates the need to visit a store to get the product. It provides customers a virtual and an in-store shopping experience as they choose the products online at their own convenience at affordable rates.
  • Such platforms give an opportunity to pick products that are sold by multiple hyperlocal business owners all at once.
  • It gives customers the option to pay for their products and services through multiple payment methods. Hyperlocal platforms have an inbuilt support for various payment gateways.
  • With hyperlocal ecommerce spaces, customers can look, touch, feel and try the product at the nearby retail store if they wish to.
  • It provides customers with doorstep delivery solutions and ensures a lightning-fast delivery for them.
  • It provides customers with a forum to have their say and resolve their grievances promptly, thereby giving them a smooth shopping experience.
  • Moreover, hyperlocal ecommerce businesses also offer huge discounts and sales which makes customers choose hyperlocal ecommerce over other traditional shopping methods.
Hyperlocal ecommerce focuses on the delivery, quality, and variety of products and caters to the needs of the consumers. From the business perspective, investing in hyperlocal ecommerce markets helps brands add value to their image in the market and increase their customer base. It also enables them to enhance their services and run their operations seamlessly along with fulfilling the customer’s needs and preferences.

8. Wrapping Up

Taking into account the hyperlocal delivery model and the benefits that arise out of it for businesses and customers, it can be asserted that hyperlocal ecommerce businesses have left many traditional ecommerce businesses behind and have rendered once-used-to-be-efficient business processes as obsolete. As against the traditional ecommerce deliveries, consumers are preferring hyperlocal ecommerce because it is unbelievably quick and convenient.
There is no doubt about the fact that hyperlocal ecommerce has paved the way for innovation and infusion of technology in business processes (say artificial intelligence, robotics, drone deliveries, use of crypto tokens as payments, etc.) and hence has made the overall shopping experience swift, convenient and flexible for the customers. It works 24*7 aimed at providing a high-end shopping experience to the consumers.
Hyperlocal ecommerce is a flexible and an accepted concept and the impact of hyperlocal model has not been contained to any specific industry. Be it food delivery, grocery delivery, home essentials, medical supplies, couriers or logistics, etc, all have been impacted to a considerable degree.
While there may be certain apprehensions in the minds of vendors/sellers about the hyperlocal delivery model, but the matter of fact is that the hyperlocal ecommerce has revolutionized the way business is done. From accepting orders to getting swift deliveries done, it is all highly technology-intensive in the hyperlocal space.
What’s more? Gauging from the way it is moving and the pace it is accelerating at, it is near about witnessing a boom and appears unstoppable. It seems that in the times to arrive it will contribute even more significantly to the growth of retail and the ecommerce industry. Owing to its approach of providing the customers with an enhanced shopping experience, its acceptance by businesses will surely and naturally witness a surge in the times ahead.
Hyperlocal businesses are slowly but steadily growing in the global market. They provide valuable and cost-effective solutions to the needs that could not be fulfilled by brick-and-mortar businesses earlier. They have become a convenient resort for people to buy what they need at their doorstep without making any extra effort or travelling long distances.
This asserts that the future of hyperlocal businesses is filled with vast opportunities and businesses, to a significant extent are prepared for revolution. It is just a matter of time before hyperlocal business models replace the traditional ways to buy things completely.

Amidst all the business growth, expected developments and the hyperlocal revolution that is happening around, the question is-

Is your business ready to be a part of the hyperlocal revolution that is up for grabs?

Start your business today

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How to shape a successful marketing strategy for digital marketplace?

“Not since the digital revolution in the early ‘90s has technology placed such a comprehensive burden on business, employees and individuals to reinvent their business plans, services and products, and themselves to keep pace with the changing marketplace.”
– Simon Mainwaring

1. introduction

“The only option better than a multi-vendor e-commerce marketplace to showcase all your products and offerings and grow your business, is a multi-vendor e-commerce marketplace that is promising and is talked about more often.”
Digitalization, as permeant and inevitable as it can get, is laying its pervasive hands upon businesses and customers alike. It is spreading like wildfire from urbanised areas to pockets of several suburbs and to the rural corners of the world. That’s how ingressing digitalization has been, lately.
E-commerce marketplace platforms and the growing hunger for hyperlocal deliveries has impacted and digitalized businesses and customers, often for good. This has resulted in the coming into being of highly sophisticated and technology-intensive online platforms, which are commonly known as digital marketplaces.
A digital marketplace is thus an online platform that creates a venue for both buyers and sellers to transact over a product or a service. It helps bring together the potential buyers of a product or service with the providers of that very product or service. In simple words, a digital marketplace is an intermediary platform that doesn’t own any assets in the form of products or merchandise to be sold.

2. Businesses and digital marketplace: Understanding the growing relationship

2. Businesses and digital marketplace: Understanding the growing relationship

With businesses and entrepreneurs increasingly getting into the digital marketplace, the competition has not just transformed but has intensified more than ever. Businesses, irrespective of their nature, are partnering with the providers of digital marketplace or the so-called hyperlocal marketplace solutions to support their digital platforms. Not just this, but their reliance on such hyperlocal marketplace softwares is increasing day by day.
Without a digital marketplace, a business, no matter how flourishing and prosperous it is, can constrain its ability to reach out to its customers and present to them its offerings. Digital marketplaces are the need of the hour since they are vital for building positive value about your brand and creating an exceptional and an unforgettable customer experience.
Right from selling food items to clothes and groceries to stationaries, it’s all getting done online, and digitalization is the pivot around which modern day businesses are moving. Think of UberEats, Swiggy, Amazon, Doordash and eBay, and know that their brand reputation is only because they have boldly chosen to go online in the e-commerce world. And courtesy to digitalization and automated business processes and techniques, they have been able to maintain their competitive positions over time.
So, before we go on with the discussion of what ways and strategies will best meet the digital marketplace objectives, it is imperative to understand about the parties involved in the digital marketplace. Essentially, a multisided business model of a marketplace involves the following participants.
  • Operator or the marketplace owner: It is a company that provides a digital platform for facilitating buying and selling in the digital marketplace;
  • Buyer: It refers to customers who buy from different merchants who are onboard the digital marketplace platform;
  • Seller/Merchant: It is the company that offers its products or services to be listed for selling on the digital marketplace platform.
These three parties generally inhabit the digital marketplace ecosystem. Each of them has his role to play in order to achieve mutual gains arising out of their co-existence on the digital platform. This mutual reciprocation has helped facilitate digitalization and technology intensive business processes worldwide.
In fact, seeing the growing reach of digital commerce, many traditional physical stores are quickly laying their hands on digital marketplace platforms. Walmart is one big name among many, that started its own online marketplace in the year 2009. After witnessing some industry peculiar highs and lows for a few years, the United States’ largest retailer, surpassed one lakh sellers in its marketplace, nearly thrice more than it was before the covid pandemic hit the world.

3. Some useful statistics

Below are some statistics so as to gain insights into how big the digital cum online marketplace is increasingly getting with each passing day.
  • To put a statistic in point over here, as of the year 2021, Amazon and eBay, both stand as the most visited online marketplaces worldwide.
  • By the second half of the year 2021, Walmart was the third most visited online marketplace in the United Sates.
  • As of the year 2020, TaoBao and Tmall were the world’s leading online marketplaces based on gross merchandise volume, with roughly 600 billion US dollars each.
  • A homegrown Latin American marketplace player, by the name of Mercado Libre, is one of the fastest growing online marketplaces globally, with an expected compound annual growth rate (CAGR) of approximately 66 percent between 2019 and 2021.
So, whether your business prefers to sell its offerings on eBay, Amazon or other leading marketplaces, it’s important that you keep track of the latest e-commerce statistics and trends from time to time. The rapidly changing paradigm of the digital marketplace industry as well as world transforming events and phenomena, such as the covid pandemic, can have a big impact on global e-commerce figures.
For this very reason, staying a step ahead of what’s happening today is essential. And for this very purpose, various ways or marketing strategies have been put in place that businesses should learn to adopt.
So, isn’t it advisable for businesses to start working on their aspects concerning digitalization and incorporation of automated processes? Certainly, it is. And one of the primary tasks for them is to know what kind of marketing strategies will work for the digital marketplace and how to shape them.

4. Essential touchpoints prior to choosing a strategy

4. Essential touchpoints prior to choosing a strategy

But prior to implementing any strategy, it is vital to explore various aspects of your digital marketplace that may lead you to prefer one marketing strategy over the other. These aspects help a business develop efficient market plan and strategy accordingly.

a. Explore the target audience

Making out a detailed profile of your customers and their needs and choices is in fact one of the most fundamental things to do. Once you are able to get a track of what do they buy more often, when do they prefer to buy, etc, you can easily draft strategies that will be in conformity with their needs and choices. such strategies are deemed to be highly relevant. The biggest merit of pursuing this approach is when you find customers’ needs evolving or changing, you can bring about a shift in your strategy too.

b. Do research of your competitors’ marketplace

Analyze and evaluate digital marketplaces that run in the same niche as yours. Go about searching for and identifying their products, pricing methods and prevalent marketing practices. This sort of a research helps outline your benefits as compared to your competitor’s marketplaces.

c. Highlight your USP

Expanded as unique selling proposition of a business, this feature makes it look unique. Find out the USP of your business, and show your customers what is special about your digital marketplace. By putting your best foot forward through USPs, the digital marketplace becomes an easy grab for the visitors.

d. Discover customer touchpoints

In this, when a customer visits your digital marketplace, his behaviour at various touchpoints is observed and evaluated. Herein, each touchpoint describes a customer’s actions and how your business responds to it. With the help of this, a business can optimize and personalize customers’ experiences in the light of its marketplace.

5. Marketing strategies for digital marketplace

5. Marketing strategies for digital marketplace

a. Explore the target audience

Businesses wishful of succeeding in the competitive digital marketplace must learn how to stand out from the rest of the competitors in the industry. This differentiation may be in any product feature, speedy delivery mechanism or any other thing that enriches the overall customer experience. As a business, while pursuing differentiation, one should try finding answers to the following questions- What makes your brand distinctive and stand apart from the masses? Why should the potential customers choose you over and above other online marketplace players? What can your business offer to customers that rival businesses cannot?

b. Search engine optimization

Also, commonly known as SEO, this strategy helps your business’s website to rank higher on a search engine results page (SERP), thereby enabling more traffic. The fundamental goal of search engine marketing is to rank on the first page of google results for search terms that mean the most to a business’s target audience. But, how should a business go about shaping and implementing SEO and watch itself grow? Firstly, search and identify the relevant keywords with good search traffic potential. Then, learn to publish a high quality and extremely relevant content and one that has the ability to influence. Ensure that the content so published is optimized for search engines and for users. You may include links from trustworthy websites. Next, keep your content updated, in tandem with the modern demands and needs. Lastly, measure the results.

c. Invite referrals

Commonly known as a referral program, it is a system that incentivizes and provides rewards to customers when they recommend your offerings to their family, friends, relatives or anyone else in the social group. In other words, customers who make such referrals are generally considered loyal to the brand. In fact, they act as brand advocates, on behalf of the business. This is one fine way to reach out to an increasing number of customers, thereby attracting more traffic on your digital marketplace.

d. Content marketing

Using content as a tool to promote your marketplace and get noticed can be another effective way of discovering and coming clear of your indistinct identity as a business in the digital marketplace. Developing content like interesting blogs, insightful articles, videos or infographics can get the audience engaged and interested in your marketplace’s offerings. A spectacular example of content-based marketing strategy in point over here is that of Beardbrand campaign. They have a blog by the title of Urban Bearded Man that is strictly focussed upon bearded men. Aimed at all those men who take pride in caring for their beards, the blog offers a lot of insights about different aspects of beard care and everything related to it- from razor models to the optimal temperature of the towel that is applied to the fact after shaving. Such contents attract the target audience to the marketplace. As a result of good content, the Beardbrand’s website attracts hundreds and thousands of visitors every month.

e. Boost your social presence

Businesses in digital marketplace domains thrive better when they have an organic social presence. The benefits of social media can be availed only when businesses learn to use it to their advantage. Businesses can make sure that the social media channels and websites are stocked with vibrant images and engaging videos. The frequency of such posts should be high and rich visual content must be created so as to look appealing. Other ways to take advantage of social media is by hosting giveaways, associating with expert bloggers who are active in your niche and using appropriate hashtags.

f. Take part in online events and discussions

Discussions and debates across various online platforms have become quite commonplace. But businesses taking part in them is still not so. Therein, lies the opportunity for passionate and futuristic businesses. They can leverage their expertise by participating in virtual conferences or webinars to get the word out about their business.

6. Conclusion

There are plenty of marketing strategies to be employed in order to promote your online or digital marketplace; however which strategies a business should employ majorly depends upon the nature of the business, its objectives and goals that it has set for itself. A few of the below mentioned questions can help one figure out the appropriate strategy.

Are your customers wanting uniqueness in your products and offerings? If yes, are you capable of providing it to them? In this case, the differentiation strategy can work best.

Do you have a bunch of loyal customers who are expecting a bit more from you than what you provide to the new customers? Try inviting referrals and it may work wonders.

Does your audience want a good content in the form of insightful blogs so as to connect more with you? Content-based marketing strategy can see you through.

Does the audience for your products flock to specific social media platforms? If so, those platforms can be a good place to focus upon.

Is your main goal to reach new customers who haven’t heard of your brand and are unaware of your offerings? Search engine optimization (SEO) can show you a way out.

Lastly, and above all, is your business really desirous of adopting a successful marketing strategy for its digital marketplace? If yes, now is the time

Because, remember the words that occurred at the very beginning- “Technology has never placed such a great burden on businesses to reinvent their plans, strategies, services and products to keep pace with the changing marketplace.”
So, would you shy away from owning that burden and shouldering it responsibly as a business? All this, while you surreptitiously but firmly believe that it is nothing less than a blessing in disguise for you.
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How Food Delivery Apps Have Changed the Shape of the Restaurant Industry?

1. introduction

In the present times, if there seems an industry that is flourishing like anything and is highly promising, it is the restaurant industry. As the industry trends pick up pace, and growth appears imminent, few questions may often arrive in every food entrepreneur and a passionate restaurateur’s mind, viz a viz –
  • How profitable can this industry be?
  • Is it time to go all guns blazing for us to be dubbed as one of the industry-leading food businesses?
  • How can our business make significant gains while contributing to the industry’s overall profit?
  • By adopting what techniques and processes can our business become a market leader?
The list of such questions for perceptive businesses may be quite long. Addressing allied questions from time to time and working hard to finding solutions about it, makes businesses more forward looking and future oriented.
But the going is always not that easy as it may apparently appear, especially in an industry that faces really fast paced and cut throat competition every hour of the day. So, the question arises- Whether your business can make the most of the booming times in an industry that is characterized by intense competition?

2. Technology: driving the industry changes

2. Technology: driving the industry changes

The world is witnessing a phenomenal shift in consumer buying. While technology has been the main cause behind it, restaurant industry has been one of the most impacted one, albeit for good. Technology has made everything so accessible that businesses everywhere around are witnessing a phenomenal shift in consumers’ buying ways and companies’ business conducting practices. To this statement, online food ordering can be considered no exception.
Increased internet penetration rate, quick and easy access to smartphones, simplified and hassle-free e-banking systems and processes, improved food service logistics and rapidly changing lifestyles have contributed primarily and majorly to online food delivery market growth. Perhaps, such a pressing need is the reason why food delivery app solutions are being offered by software companies.
Customers are rapidly heading online more than ever, a thing worth noticing and something which perhaps, has fueled rapid growth in the e-commerce industry over the previous few years. This shift in consumer shopping habits has been fueled by a variety of causes, some of which are industry or country-specific, while others are the product of global shifts. Most of it can be attributed to the availability of an increased number of online food delivery businesses, a better understanding by consumers of the developments of online e-commerce, a better, easy and secure option for online payments of services, disposable incomes of people on the rise and work from home like activities leaving less time for people to invest in making the food themselves.
The restaurant industry, as mentioned in the above statements, in the previous 10-12 years or so, has continued to evolve phenomenally which is why it becomes relevant and all the more important to take deeper insights about the growth trends in the industry and the statistics that may fascinate us to the limit, thereby leaving us well informed than ever for better business decision making.
The coming together of technology and food industry has allowed several restaurants and businesses to deliver food to consumers much faster than ever. It is this coming together that has given rise and prominence to various forms of restaurant delivery software and food delivery app solutions on offer, which has further resulted in mass digitalization of the restaurant industry.
A good restaurant delivery management software or a food delivery app development company is certainly capable of providing feasible and timely food/restaurant delivery solutions to businesses worldwide, which is why they are being widely preferred.

3. Food delivery apps: Reasons galore for restaurant businesses to smile

3. Food delivery apps: Reasons galore for restaurant businesses to smile

Digitalization has affected several domains of a business, one of which is online ordering. Online food ordering has become a fad in the recent few years. Put it on the pandemic that hit the world in 2020 or the increasingly sedentary lifestyle choices of consumers, there has been a massive surge in the way food is ordered online across the globe. Courtesy of companies offering food delivery app solutions, everything is just a few clicks away and the food is ready and delivered to your doorstep.
Cart screen of ordering app
In a survey of consumers in the US market conducted in April 2020, it was reported that 53 percent of the adults between the age of 18 and 29 years stated that they ordered food online or through an app from a local restaurant during the coronavirus pandemic.

4. Accepting the growing reality of food Delivery apps

4. Accepting the growing reality of food Delivery apps

“You don’t order food. You make a reservation for it.”
Food delivery apps have certainly changed the way a business is conducted. From selling delectable food items and sumptuous delicacies through traditional brick and mortar stores to delivering it to consumers through widespread online presence of several restaurants and food joints, the restaurant industry, in the recent few years, has witnessed some serious changes. Perhaps, changes that have come as a boon to many aspiring and future oriented businesses. Technology and the use of it has certainly helped many businesses scale up their processes and operations.
Companies working on food delivery apps and promising quick food delivery app solutions have not just simplified the process of online ordering but they have facilitated online ordering to a significant extent, too. Imagine ordering food online, without the use of technology and digitalization; you will find it to be an idea of no-good use. Perhaps an idea which is apparently absurd. And rightly so. The use of internet, technology and digitalization has become so ingrained and business-obvious that business processes would remain incomplete and inefficient without them, especially the restaurant industry.
It is the result of digitalization and technology incorporated processes that the global restaurant industry has transformed a lot over the past decade and food businesses have flourished enormously, courtesy to a number of food delivery apps and increasing sedentary consumer buying habits. Were there no food delivery app development services and software to satisfy the food cravings, restaurant industry, in this twenty first century would have traversed a very different path, albeit a difficult one.
Companies offering food delivery app solutions are on the rise more than ever. More and more restaurant businesses are seeking food delivery solutions in order to scale up their business and increase possibilities of generating sales and gaining profit. So much has been the reach and impact of online foo delivery that it is not just eating into the market share of traditional dine-in restaurants but is also replacing home cooking. People, in every country, more or less are frequently opting for online food delivery solutions/restaurant delivery solutions over and above traditional home cooking practices.
After all,
“Choosing online food delivery over cooking is choosing to spend more time with your family.”
Multi Vendor Ecommerce Marketplace Software
Majority of food businesses too, are embracing technological advancements and digitalization to meet consumer demands more efficiently on a large scale. In view of this, a good restaurant delivery management software provides feasible food delivery app solutions to many businesses. In fact, many software development companies have made their delivery apps so robust and efficient, that several leading food joints and restaurants are left with little choice not to partner with them. Such has been the global spread and impact of food delivery apps.
Digitalization in restaurants can be witnessed in both, physical spaces and the online world. Moving with the flow of technology and adopting it has helped many restaurants run their physical spaces more efficiently. One of the ways is by using self-ordering kiosks, which can gather useful customer data, reduce labor costs, and lower the number of incorrect orders.
In 2020, the global interactive kiosk market value reached 26.63 billion U.S. dollars, a figure that was predicted to grow in the future years. This feature of restaurant services became important especially during the pandemic of covid due to health and hygiene concerns, making personal interaction between restaurant workers and customers less possible.
The same can be said for the use of contactless payments. The largest regional segment of the contactless payment market value worldwide was held by the Far East and China, which accounted for around half of the entire industry. The next highest market share was held by North America, followed by Europe.

5. Effect of digitalization on the food and restaurant industry: Knowing the figure

5. Effect of digitalization on the food and restaurant industry: Knowing the figure

Online food ordering has witnessed a big growth around the globe, ever since the pandemic of covid hit the world. If the statistics are to be believed, the market size of the global online food delivery sector reached around 107.44 billion US dollars in the year 2019.
The global online food delivery market size reached 111.32 billion U.S dollars in the year 2020.
The market size of the global online food delivery sector was predicted to rise to as much as 154.34 billion by the end of the year 2023.
Moreover, as a leading contributor to the global restaurant market, the United States quick service restaurant (QSR) industry’s output has increased significantly by over 50 percent since 2007, thereby reaching an all-time high of more or less 283 billion US dollars in 2020.
Delving into the names of the biggest players and one of the most prominent ones in the online food delivery market worldwide, Chinese service -Meituan Waimai was reported to be the firm leader with revenues nearing 14 billion US dollars in 2020. The list of such prominent online food delivery players also includes the likes of Grub Hub, Delivery Hero and Uber Eats.
Moreover, Uber Eats, Deliveroo and Door Dash reported a massive acceleration in orders between the month of February and March, 2020 as the entire world went into lockdown. Now with the effect of covid gradually waning in several parts of the world, the surge in online food demand still doesn’t seem to cool off. Online food ordering is here to stay.

6. Increasing Popularity of cloud kitchens

Also known as a ‘virtual kitchen’ or a ‘ghost kitchen’, a cloud kitchen is a kitchen space for commercial purpose that offers food businesses the facilities and services needed to prepare menu items for take-out and delivery. In stark contrast to traditional brick and mortar locations, cloud kitchens allow food businesses to create and deliver food products with minimal overhead.
Data from recent studies indicate that meal delivery orders increased by more than 150 percent from 2019 to 2020- and the food delivery market is anticipated to increase roughly ten times over a ten-year period from $35 billion per year to $365 billion.
What’s more interesting about ‘virtual kitchens’ is the fact that there are delivery optimized ‘cloud kitchens’ which allow businesses to accommodate orders without any hassles or unnecessary overheads. Restaurants that are cloud kitchen based generally use online food delivery platforms to source orders thereby facilitating delivery orders, and finding easy food delivery app solutions.
Because the food delivery business is witnessing a meteoric rise, cloud kitchens, regardless of any regional or country specific reservations, are quickly gaining popularity among futuristic businesses.
The response of global consumers to such virtual kitchens has been pretty positive and encouraging. As a matter of fact, increasing number of food entrepreneurs and restaurant owners, both new and well-established ones around the world are resorting to cloud kitchens as an ideal business solution to capture this phenomenal increase in food delivery demand. In fact, many restaurants have turned to cloud kitchens as a low cost and low risk way to satisfy this galloping food demand.
Fasoos by Rebel Foods, Biryani by Kilo, and Freshmenu are some of the most popular cloud kitchen chains which are operating in this segment. In order to meet and cater to an increasing number of delivery orders, restaurant chains worldwide are appearing more inclined towards cloud kitchen outlets than dine-in outlets. In fact, they are picking up on this trend pretty fast.
Now, as the hunger for food overwhelms the dining experience, restaurants and food joints are changing their way of operations too. The food ordering and delivery app Swiggy, launched shared cloud kitchen spaces called Swiggy Access and enabled new and existing restaurants to operate delivery-only operations from these kitchen spaces.
Bar graph - How Food Delivery Apps Have Changed the Shape of the Restaurant Industry?
Number of Cloud Kitchen in selected countries,2020
All in all, the idea of a virtual kitchen is getting a wide acknowledgement from businesses globally, which is further leading to increased use of food delivery apps, thereby resulting in more online food deliveries placed every single minute around the world.
The following data and statistics provide a clear idea as to how big the online food delivery market is. As far as the food delivery revenues of countries are concerned, China topped the list at $27.3 billion as of the year 2021. It is worth mentioning that Meituan contributed near about $15 billion to China’s revenue, as the largest food delivery app in the world by revenue and usage. China was followed by the US at $22.4 billion. Then came Europe, UK, etc. in the list.
Statistics giving food delivery revenue of countries
Seeing the whopping adoption rate of food delivery apps by different countries, the numbers and statistics to arrive appear pretty promising. A statistic in point, given below lets us know as to how big the food delivery market size around the world can be in the years to follow.
If research studies and projections are to be believed, the food delivery market size is expected to grow to $250 billion by the year 2027 and to a humongous $320 billion by 2029.

7. Few recent developments

  • In 2021, Delivery Hero went on to acquire Hugo’s food and grocery delivery verticals and expanded its footprint in Central America and the Caribbean.
  • In 2021, Southeast Asia’s biggest ride-hailing and food delivery firm Grab Holdings announced a merger with Altimeter Growth Corp. valued at USD 40 billion.
  • In 2021, Uber Technologies Inc. completed its acquisition of Drizly, and the two companies will begin integrating their complementary delivery apps and services. The purchase consideration was near around USD 1.1 billion, consisting of roughly 18.7 million newly issued shares of Uber common stock plus cash.

8. Making your business decode the meaning of such whopping statistics

8. Making your business decode the meaning of such whopping statistics

Making out from such statistics and seeing the developments the industry is making, the restaurant business is in for a big game. Or isn’t it?

Are food delivery apps the future of food and restaurant industry?

Is the future that is, only for food delivery app development companies?

Are restaurant management software companies the best destination for food businesses, whether new or established?

Are delivery optimized cloud kitchens going to stay competitive, upfront and for long?

Or, Are digitalized food businesses the future of the restaurant industry?

The answers to such questions should be immediately found and acted upon by prudent concerns, because given the pace of growth of the online food delivery businesses, a minute of delay can render your business to become a market laggard from being a market leader; a position a hard-working and prudent business wouldn’t ever like to get into.
So, is your business rightly software enabled and app ready to seek seamless food delivery app solutions and deliver easy and quick restaurant delivery solutions to customers that are looking for one or the other lip-smacking food item 24*7, in some part of this vast business world, or who knows pretty much near you.
The question here is, Can your food business satisfy their hunger pangs and capitalize on their hunger need? Afterall, online food delivery might just be the best and the most satisfying thing about living in the modern world.

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