All You Need To Know About The Food Delivery Business

I would like to share an incident that changed the way I look at the food delivery business. Recently, I ordered food from a restaurant through a very famous food delivery app. The estimated delivery time was 30 mins. After about 45 mins, I got a call from the delivery worker that he had met with an accident en route and that the food got spilled. He then requested the owner for compensation. But the latter denied saying that it was the driver’s fault and that he could redeliver the food, but the driver had to pay for it. This literally shook me! I canceled the order, as that was the least I could do.

This incident prompted me to know more about what goes on in the food delivery industry, the role of food delivery apps, and what it is like to be a food delivery guy. The result — Me writing an article on it!

We might have witnessed or heard of people on bikes with logoed t-shirts and bags delivering food to the customers at their doorstep. But have you ever wondered what happens behind the screens?

First, let us understand how a food delivery app functions.

The workflow of a food delivery app

Initially, the customers place an order or schedule an order in the app. Restaurants are notified about the order. They then prepare the food requested by the customers. Food delivery persons collect the ordered food from the restaurant and then deliver it to the customers. After receiving the ordered food, customers can leave their feedback and suggestions.

From the workflow of the app, it is quite explicit that the food delivery workers play a vital role in the food delivery business. They serve as intermediaries, bridging the gap between the food delivery business owners and the customers.

What is the need for a food delivery app?

There are several reasons why entrepreneurs are increasingly coming forward to create a food delivery app for their business. Let us discuss a few such significant reasons below.

Undocumented delivery workers

The prevalence of undocumented delivery workers can be addressed. Users must create an account to use the app. They can sign up using their mobile numbers, email IDs, or social media accounts. While registering, they will have to produce some basic information, including their name, age, contact details, identity proofs, etc. Thus, verifying the identity of the delivery workers is not as difficult as it used to be. This adds credibility to the food delivery company, thereby making it more reliable.

At the doorstep

Food delivery apps are certainly boons for the people. They can get the food of their choice with just a few taps on their smartphones! This helps them save a lot on their travel expenses.

Delicious food at affordable prices

A food delivery app notifies the users about the discounts, offers, and best deals from various restaurants and food chains, thereby making it possible to save a lot of money without having to compromise on the quality and quantity of the food.

The Downside

Though the industry of food delivery seems to be lucrative and highly rewarding, an in-depth analysis is required to understand the shortfalls. The following are some of the major negative aspects of the food delivery industry that need to be addressed so as to improve the efficiency and the living of the food delivery workers.

1. Payment discrepancies

One of the major problems that need immediate attention is the discrepancy in the payment. Usually, food delivery workers are paid based on the distance traveled, duration of delivery, and several such parameters. It is estimated that a majority of the food delivery workers rely on the apps for their primary source of income. However, more often than not, they are paid less than they deserve. As a result, they will have to go the extra mile in order to meet their daily living expenses.

1. Technical errors

Dealing with technical errors can be very challenging at times. Many cases have been reported wherein the delivery workers were misdirected to the wrong places, and they had to figure out the right location by getting help from the customers or the passersby. This eats up a lot of time. In some other cases, the status of the order was not updated in the app properly. These technical glitches can also be a major factor contributing to the reduction of wages.

1. Perks and allowances

Delivering food can sometimes be risky. The number of orders will be dramatically high during bad weather conditions, as people will find it difficult to travel. In an attempt to maximize the profits, delivery workers are encouraged to work during these hard times too! To combat this issue, delivery workers are covered by medical insurance. However, the real difficulty is when they are not covered as promised. Similarly, these delivery workers find it hard to avail of most of the perks and allowances that they were initially promised.

Wrapping Up!

Thus, it is essential to develop a food delivery app in such a way that it is both revenue-generating as well as employer-friendly. Certain regulations need to be imposed so as to streamline the business flow and to make the best out of this highly competitive as well as profitable business.