Over the last 5 years, we have seen a surge in demand for food delivery services. As online platforms or apps for food ordering and delivery are growing in India, food delivery agents face increased demand for their services.
Food tech companies like Zomato and Swiggy revolutionized the concept of the food delivery business in India. However, their operational model didn’t favor sustainability and gave rise to the demand of sourcing the delivery service from a third-party agent.
We will discuss the growth in demand for food delivery service business in India and the steps of running the business successfully in this article.
The Demand for Food Delivery Partners
In the current world, the food delivery system is growing substantially. As more people shift their food ordering and shopping preferences to online platforms, we see a growth in demand for food delivery partners. We expect this trend curve to surge up further owing to the Indian palate for fast food.
A market survey by the Boston Consulting Group and Google on the online food-tech market of India predicts annual growth in the demand for food delivery partners by 25%-30%, resulting in a business of about $7.5-$8 Billion by the end of 2022.
If you plan to initiate your food delivery business in India, it is the perfect time for you.
How to start a food-tech delivery business in India?
The food delivery business is up-and-coming in India under the current market scenario. If you want to be a part of the food-tech industry, it is time to go online and follow the below steps.
Step 1: Decide the Business Niche
The competition in the food delivery e-commerce setup is relatively higher than before. Hence, before you start your business, it is essential to select a business niche. While starting, it is better to emphasize specific food types.
Select a cuisine, ensure hygiene and safety and initiate.
Step 2: Identify the Target Audience
Like every business, you need to identify your customer base. Start by defining your delivery area. Choosing a location close to your kitchen will always ensure the quality and freshness of the food during delivery.
Identifying your target customers helps in deciding the niche or cuisine you would cater to. You will also understand the type of delivery they seek. We suggest starting with a hyperlocal food delivery model where you always provide your customers with hot and freshly cooked food.
Step 3: Website Creation
If you need to sustain yourself in the modern world of food-tech business, leveraging technology is essential. Using telephone-based food ordering and delivery will not provide success.
Online exposure is necessary in today’s world. To have a high business volume develop an easy-navigable business website for people to place their food orders. When you list food items on your menu, ensure you leave a short description.
Step 4: Mobile App Creation
Having a website is no more enough. People nowadays prefer to order their food in one touch through their smartphones. Creating a mobile application thus improves your conversion rate. In fact, it does your brand promotion. Using an application makes it easier to track an online order, preparation time, and the time taken for food delivery.
Step 5: Build a Delivery Channel
Efficient food delivery service requires a strong network of delivery people. You need to establish a connection with various experienced food delivery partners to cover teh radius of your delivery location. The delivery experience determines the ultimate customer food ordering rating for your company. Hence, select a trusted partner for the job.
Hyperlocal food delivery gets a better rating when you source professionally trained delivery executives. Outsourcing from delivery agents requires mild investment. It is worth noting while creating a budget for your business.
Food delivery partners like SARAL offer a delivery radius of 50Km.
Step 6: Arrange for Business Licenses
Obtaining your business license is essential in a food delivery business. It is a mandate to obtain an FSSAI license for every food-related establishment in India. Other licensure includes gathering a trade license, GST certification, health license, trademark registration certificate, etc.
Connect with your city’s Municipal Corporation and arrange for all the necessary licensure. You can get your FSSAI license on the official Government website.
Step 7: Website Promotion
The final step of setting up your food delivery business and probably one of the major investments in website promotion. Without proper digital marketing and social media campaigns, all the business efforts successfully get wasted.
Hyperlocal marketing techniques are the best for a food delivery startup business. It is essential to ensure that your customers are aware of your presence in the market.
The food-tech market is in high demand, and the has a positive growth curve. Upcoming years promise a boom in the industry and a high inflow of revenue. If you wish to establish your food delivery business, this is the right time to begin. All you need is thorough planning, hyperlocal market survey, and innovation to initiate the business.