Every food business would have known about the UberEats mobile application and the business model that made it an outstanding success, earning huge profits in the millions of dollars.
It is very certain that, on seeing how impressive the business model is, people would love to create their version of the UberEats app in the form of an UberEats clone app solution. But to understand the UberEats business model and how it makes money, it is necessary first to know some information about the UberEats mobile application and also its business model.
What is UberEats?
UberEats, launched in 2014, is an American online food delivery company based in the city of San Francisco in the USA. The name was inspired by its parent company, Uber Technologies, Inc. Uber Technologies is known worldwide as a leading multinational transportation company that provides services like ride-hailing, peer-to-peer ride sharing, and much more.
UberEats helps connect hungry customers with local restaurants and then deliver food right to the customers’ doorsteps.
How Does UberEats Work?
The functionality of UberEats can be explained through the following steps.
- Eatery filters, menu filters, and ratings will help zero in on the desired food dish.
- The payment can be made by a multitude of methods, traditional and also digital.
- A delivery executive will be assigned to deliver the food from the restaurant.
- The customer can track the order from when it gets confirmed until it gets delivered.
- The ratings and feedback for the delivery services can then be uploaded via the app.
The UberEats application is compatible with both the iOS and Android operating systems. So, when developing an UberEats clone solution, ensure that it has a broader reach by being supported in all the major mobile operating systems.
The UberEats Business Model
The business model that Uber uses is based on three models: on-demand, multisite platform, and aggregator. It collectively features the customers who can order food by checking the menu, the delivery personnel who deliver the food, and the restaurant partners who list their menus with the app’s help. The business model canvas of UberEats covers three transactions listed below. Let’s get to see an outline of them.
Restaurant Partners
Eateries partnered with UberEats can set menu prices and also pay UberEats a commission for every order. UberEats serves to help restaurants expand their customer base, as it is also invaluable as a powerful marketing and advertising tool. This way, a lot of money gets saved from the restaurant’s side.
End Customers
All food gourmets can set up an account through the UberEats platform to order food from a diverse range of eateries based in the locality. End customers can find what they need with the help of a few swipes and taps on the mobile app.
UberEats app optimizes everything related to the user experience to the next level by providing updated menus, prices, and an estimated arrival time for every order. The status of the order is visible in the form of real-time updates.
The chances of errors becomes minimal significantly because the users place the orders directly through the app. Earlier, this method was carried out by having someone else note down the orders on a mobile phone, where the chances of mistakes and miscommunication are very high.
Furthermore, there are a plethora of payment options available, so there is no need to bring cash or use any other type of payment. Everything is accomplished through the digital realm.
Delivery Personnel
The delivery partners act as independent professionals who get notified regarding orders before picking them up at restaurants and thereby delivering them to the customers. Information regarding deliveries comes through notifications based on their current location. They are finally paid for every successful delivery that gets carried out.
UberEats app serves to enhance everything needed to optimize revenue for delivery executives. The app also helps in providing flexibility to the delivery personnel, where they can work whenever they want to. All the time consumed in labor contract policies is removed from the picture, removing many headaches. The executives can work by using a car or bikes as their means of transport, based on the location. This way, a lot of employment opportunities are provided for people.
When using an UberEats clone script to develop a food delivery app solution, ensure that the business model of the given UberEats clone uses a combination of all the three models mentioned above for better chances of success in the highly competitive market.
How Does UberEats Make Money?
There are several ways UberEats makes money, some of which are,
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Commission
The primary revenue stream for UberEats is based on commissions, where money is generated from restaurant commissions and services offered to customers through the food delivery app.
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Delivery Charges
Speaking of delivery charges, they vary according to the location, the distance, and the availability of drivers. This way, pickup, delivery, and fares related to the distance are summed up using varying combinations. When ordering through UberEats, the total cost is associated with factors that take 25% of the order, where the minimum charge is $2, when cheaper than $12.
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Promotional Deals
Several famous restaurants and popular food chains provide special promotional deals to optimize sales. Exclusive commissions and fees are paid by such brands based on deals that are negotiated.
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Surge Pricing
The dynamic pricing algorithm can be applied when there is an extremely high demand for the UberEats clone solution or any other food delivery app solution. This so-called “busy fee” is calculated depending upon how many orders are placed in the same locality simultaneously, along with the availability of delivery personnel.
More Details Regarding the UberEats Business Model
UberEats is a conglomerate that brands and manages its food delivery platform and all other costs. With that said, the cost structure related to a typical UberEats clone solution also encompasses the following.
- Platform maintenance
- The cost spent on bringing in new customers and staff
- Legal costs
- Credit card expenses associated with Research and Development
- Customer support expenses
UberEats encompasses a lot of partners and technology providers in the form of GPS and payment integration modes. Ultimately, the restaurants, the delivery partners, and the customers must always get equal importance during a successful UberEats clone app development.
The Pandemic Vs. the UberEats Clone App
In light of the pandemic that has enshrouded the entire world, developing a food delivery app with effective measures is essential for the success of that UberEats clone app solution. Safety and other considerations are a must for the well-being of the customers and delivery partners.
Some features, like the following, can be incorporated using an UberEats clone script solution.
- Smart Mask-on software for delivery executives
- Special features to ensure the necessary usage of gloves and sanitizers
- A functionality that ensures zero-contact delivery
- COVID-19 Heat maps
- A functionality authorizing delivery personnel to work only if they upload proof of vaccination
Concluding Lines
Now that the business model of UberEats is understood, creating an UberEats clone solution will become an effortless procedure. The critical point to remember is that all parties involved in business should get equal priority. The power of an UberEats clone app solution can help expand the franchise’s worldwide expansion.
An UberEats clone script from a reliable mobile application development company serves useful to create a highly customizable white-labeled food delivery app solution. This can help food delivery enterprises scale up the ranks in popularity and also suffice the demand. So, look out for UberEats clone script software that offers the best features and functionalities that come with various advantages.
