Know The Difference! Food Delivery Apps Vs Food Aggregator Apps
Once upon a time, having a late-night desire meant having to change out of your Pyjamas to go out and buy it yourself or going to bed without eating anything. In addition to being able to have your preferred meal brought directly to your home, you now have an abundance of choices to select from, including anything from fast food and hawker cuisine to Michelin-starred meals and fashionable bubble tea using a food delivery app.
The first-ever food delivery app development was of foodpanda, back in 2012. At the time, the only participants providing regular, on-demand meal delivery services were fast-food corporations and a scattering of privately owned businesses operated by a small number of restaurant establishments.
As part of the 2015 wave of food delivery mobile app development-based startups, Deliveroo teamed up with honestbee, which has since ceased operations in Singapore. UberEats was launched the following year. However, it was forced to close its doors when ride-hailing competitor Grab took over Uber’s activities in Southeast Asia in March 2018, resulting in the creation of GrabFood.
As more and more food and beverage companies focus on delivery, they are presented with the chance to interact with their consumers using an on-demand food delivery app development.
Statista predicts in 2021 that the online market for food supplies will have a turnover of USD 28.486 million. With an annual growth rate of 4.3% (CAGR 2011-24), it will increase revenues to 3.839 million over four years. This figure is expected to increase further. It directly represents on-demand food delivery app development. The restaurant will have the most significant portion of the market, with a sales volume of US$ 16,564 in 2021. China, too, with USD 56,936 of sales in 2021, will be the biggest market.
Read More: Top 5 Food Delivery Apps In USA
Thorough knowledge of the distinctions between a third-party food aggregator app and a food delivery app that link consumers directly to the restaurants they want to purchase from is advantageous for any restaurant operator who is just getting started with online ordering.
What Exactly Is A Food Delivery Application?
When it comes to food delivery apps, It is a simple mobile application that enables consumers to place food orders from any eateries in a particular region using their phone or tablet device.
In most cases, the following applications are included in an online meal delivery system:
- Customers may purchase meals via an online food delivery app.
- App for delivery personnel
- Application for receiving and managing food orders in restaurants
- Application for a food delivery company’s back-end processing, support, and other functions
If you are also looking for such food delivery app development solutions, iCoderz is at your service. A top-notch on-demand food delivery app development company that enables you to build an intelligent application.
Now, Let’s See What A Food Aggregator Application Is?
In layman’s terms, food aggregator apps are used by restaurants to create platforms and reach out to current as well as new customers. A third-party website hosts the engagement of the restaurants. And the expenses, which include both delivery and logistics, are kept by the businesses.
However, the charges are high due to the increased exposure and promotion of the cuisine on the internet in recent years. The purpose of an aggregator is to carry out duties and increase sales production, thus raising the commission that must be paid on each order.
So, that’s the difference between a food delivery app and a food aggregator app.
Let’s Get Into A Bit Of Detail About Which Business Model Suits You?
According to Second Measure, on-demand food delivery app development in the United States was dominated by big delivery aggregators in April 2020: Doordash with 45%, Grubhub with 23%, Uber Eats with 22%, and Postmates with 8%, leaving just 2% of sales to other businesses. Independent businesses have collaborated with third-party platforms, as well as major national corporations. Numerous restaurants saw no other way to conduct business with them but to increase sales volume.
These businesses operate differently in specific ways, but in general, they run similarly. They enable restaurants to advertise their menus on their platform, and when a delivery order is made, it is fulfilled by delivery contractors who utilize the platform.
Third-party platforms may advertise a restaurant to hungry consumers browsing the app in their region. Still, they charge a hefty commission on each order that goes through their platform, even if the customer frequents the restaurant and does not need the app to locate it.
Restaurants want the aggregator’s convenience and traffic to attract consumers who use the apps but hate situations in which the app takes a shortcut and provides nothing in return. Some restaurants that utilize delivery aggregators are now openly encouraging consumers to purchase directly from their websites and phone numbers, giving special discounts or restricting their choices on the app.
Restaurants are increasingly resorting to food delivery app development solutions to circumvent the restrictions of third-party systems. Hybrid delivery, which is gaining popularity among chain restaurants, refers to restaurants that operate their online ordering platform but outsource delivery to a third-party business. This mitigates the problem of excessive fees charged by aggregators while also avoiding the need for substantial investment in a full-time delivery staff.
In many places, a food delivery app may surpass aggregator applications. Restaurants can adapt their look and more reliably alter their menu by opting for food delivery app development. The application may also manage communication between restaurants, customers, and suppliers while completely controlling the owner. You may also conduct your promos and give consumers push alerts. This may simplify the communication and enduring connections with consumers.
Restaurants operators should comprehend the industry’s increasing diversity beyond aggregators with a significant public presence before expressing their views about mobile ordering applications. As restaurants are less content with their reliance on third parties to be sold online, they would profit from looking for alternative ordering and delivery options that control them. If you are also looking for your on-demand food delivery app development, contact our business and sales team at +91 93090 90932 or [email protected].