Service industry in India is growing very rapidly and have a great contribution to Indian economy. If you remember, 5 years back service industries like hotels and restaurants were technically very poor. There was a very little presence of hotels and restaurants in web world. There was minimal influence of technology in service industry.
Now after 5 years service industry is very used to web world as well as technology. Technology have changed service industry in several ways. The way of working, customer service standard, promotions and facilities have changed rapidly. This enables a tough competition among them. In other word you can say the business is completely changed over the period.
Now I would like to come to the point. In recent years I have seen several startups that directly do business with restaurants. Home delivery business is a thought of new generation entrepreneurs. They definitely find a gap between restaurants and customers. This gap gave birth to a new concept of homedelivery business. Major players in this field are Tastykhana, Zomato, justeat(hungrybangalore), food ka mood and a place to dine. All of them are startups not more than 4 years in business.
These companies work on different models of business. Among them two models are popular. One is 'Lead Model' and other is 'Delivery Model'.
Lead Model
This model is very favorable as company prospects. As this model requires very small team of 4 to 6 employees to run the operations smoothly. The basic function of this model is to take order from customer and give lead to restaurant. Restaurant prepares order and deliver it to customer. In lead model they charge 5-10% commission from restaurants per order. So revenue come from restaurants in form of order commission, set up fees(very nominal) and advertisements on portal. Zomato, justeat(hungrybangalore), food ka mood and a place to dine they all work on lead based model.
Pros:
Delivery Model
This model is very favorable for restaurants as well as customers. As they commit to delivery food to customer's door step. Basically they provide end to end solution to customers and restaurants. In this model company take order from customer, place order to restaurant and also deliver food to customers. This model requires lot of human resources like delivery boys, customer care executives, sales team, technical team and management team. In delivery model they charge 15 to 25% from restaurants per order and also a nominal delivery charges to customer. So revenue come from both hands in form of delivery charges, commission, setup fees and promotions. Tastykhana is the only major player who works on delivery model.
Pros:
In coming days delivery model will be very popular as it provides end to end solution. This model will work as bridge between customers and restaurants.
Now after 5 years service industry is very used to web world as well as technology. Technology have changed service industry in several ways. The way of working, customer service standard, promotions and facilities have changed rapidly. This enables a tough competition among them. In other word you can say the business is completely changed over the period.
Now I would like to come to the point. In recent years I have seen several startups that directly do business with restaurants. Home delivery business is a thought of new generation entrepreneurs. They definitely find a gap between restaurants and customers. This gap gave birth to a new concept of homedelivery business. Major players in this field are Tastykhana, Zomato, justeat(hungrybangalore), food ka mood and a place to dine. All of them are startups not more than 4 years in business.
These companies work on different models of business. Among them two models are popular. One is 'Lead Model' and other is 'Delivery Model'.
Lead Model
This model is very favorable as company prospects. As this model requires very small team of 4 to 6 employees to run the operations smoothly. The basic function of this model is to take order from customer and give lead to restaurant. Restaurant prepares order and deliver it to customer. In lead model they charge 5-10% commission from restaurants per order. So revenue come from restaurants in form of order commission, set up fees(very nominal) and advertisements on portal. Zomato, justeat(hungrybangalore), food ka mood and a place to dine they all work on lead based model.
Pros:
- Requires very small team to run the business.
- Business process is very easy and cost saving.
- Highly scalable business.
- Business volume is very low.
- Conversion rate is very low.
- Not sure order will deliver to customer.
Delivery Model
This model is very favorable for restaurants as well as customers. As they commit to delivery food to customer's door step. Basically they provide end to end solution to customers and restaurants. In this model company take order from customer, place order to restaurant and also deliver food to customers. This model requires lot of human resources like delivery boys, customer care executives, sales team, technical team and management team. In delivery model they charge 15 to 25% from restaurants per order and also a nominal delivery charges to customer. So revenue come from both hands in form of delivery charges, commission, setup fees and promotions. Tastykhana is the only major player who works on delivery model.
Pros:
- Business volume is high.
- Conversion rate is very high.
- Reduces restaurant's headache as they deliver food.
- Revenue come from restaurants as well as customers.
- They are committed to deliver food at customer's door step.
- Requires a big team to run the business.
- Business process is little bit complicated.
- It takes time to scale the business.
In coming days delivery model will be very popular as it provides end to end solution. This model will work as bridge between customers and restaurants.
Tastykhana perhaps is the only player who has incorporated both Lead Model and Delivery Model to their business propaganda hence having huge earning scope .
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