The global economic conditions have changed as a result of the COVID-19 pandemic. Whereas most businesses were affected by the COVID-19 pandemic, a few businesses made a profit from it as well. One prominent example would have been the competitive online food delivery business, which experienced a rise after the pandemic.

The online food delivery business is booming, owing to the many opportunities it provides to all participants involved: customers, restaurants, and channels. According to Statista data, profit in the Platform-to-Consumer Delivery section is forecast to increase at a cagr of 6.76% annually by 2023, resulting in a market value of US$79,608 million. This obviously shows that those who want to launch online food delivery marketplaces have a promising future ahead of them.

Despite the fact that the service has provided a vast number of openings for entrepreneurs, the online food delivery market is highly competitive. As a consequence, before approaching the dynamic business market, there are a range of initiatives that can be taken. We’ll discuss how to launch an online food delivery company in a competitive market in this article.

Do market research on the below factors:

  • Location

This sector’s future target areas are the hyper-local divisions of urban and semi-urban areas. So, make a preliminary business study to assess the best location(s) to capture the most market share in the emerging market.

  • The interest of people

Your customer base must be familiar to you. This means you’ll need a lot of data-driven information for your prospective customers, as well as knowledge of their food preferences and tastes.

  • No. of Restaurants in the region

Analyze the number of restaurants in your hyper-location areas that will be able to sell food. Additionally, make sure that your customers have a selection of flavors and cuisines to pick from.

  • Delivery staff availability

To catch complex geographic synergies between facilities and customers, make sure to find your own delivery team. As a result, food delivery chain management must consider in order to effectively plan the delivery network and compete with competitors of food service providers.

Ensure that the majority of the target demographic is teenagers in many competitive strategies. This is due to the fact that food delivery acceptance is strongly linked to age, mostly with the under-35 age group leading the trend.

Different food delivery business ideas:

To minimize close competition with market giants, choose the Business model. There are many food delivery business concepts that have a great deal of potential while still being different from the previous ones.

  • Platform to consumer

This is among the most on-demand food delivery services, focusing on delivering meals to customers from local eateries. The business model is focused on a multi-restaurant food delivery service that is overseen by the platform provider.

  • Restaurant to consumer

This business segment includes restaurants that sell food orders to customers. The order can be placed by food delivery websites or directly on a restaurant’s websites, and delivery is managed by the restaurant.

  • Online Table booking

If you choose this business model strategy, customers can book a table at a restaurant through your website. The platform owner’s primary sources of income are commissions for each booking, on-site discounts, and banner advertising.

  • Prepared Food Delivery Service

The purpose behind this business model is to deliver tasty, nutritious, and sizzling meals to the customer location at a decent price. The startup will manage the kitchen operation or the online food-ordering platform.

Start hyper-locally: Intermediaries must develop channelized workers in order to make food delivery in the shortest time possible under such a business model. This helps in the revitalization of nearby restaurants and the takeover of a competitive advantage over other food industry participants.

Choose technology platform carefully:

Once you’ve decided on the best business model amongst the various food delivery concepts, the next step is to choose the right technology platform. Make sure your marketplace is filled with the right features and functionality to take advantage of any possible opportunity in the dynamic online food industry.

  • Features

A featured pack should be the ideal web solution for starting an online food delivery business. Some of the most key elements to have on your website are listed below:

  1. Stores with many locations
  2. Restaurant Ratings
  3. Modules of marketing
  4. Reward points and coupon codes
  5. Numerous revenue-generating options


  • Mobile Apps

Please ensure that the online food delivery app for restaurants not only helps your consumers to access your website from their mobile in today’s modern society. It must also allow them to download a mobile app that provides ease and a superior user interface.

  • Payment gateways

In today’s world of digitalization, consumers want to pay for their orders online. As a result, incorporating world-class payment gateways into your business would offer you a significant competitive edge. This is because it is important to keep the customer’s needs at the forefront.

  1. Gateways for local payments
  2. Integration of Wallets


  • Customization options and scalability

The food market is rapidly changing. As a result, to stay on top of the ever-changing industry trends, make sure your online food delivery company is well-crafted and conveniently customizable. Furthermore, owning a highly flexible marketplace with copyright would offer you a significant competitive advantage over your competitors. As a result, if you want to set yourself apart from the market, you’ll need scalable technologies such as CMS with functionalities.

  • Technical support

Ensure the technology partner agrees to provide you with pre-and post-launch support when designing and deploying the online food delivery online store. It should be a feature-rich food delivery marketplace platform that offers free website maintenance/support for one year to fix bugs and errors.

Ways to beat competitive online food delivery business

Money’s power is becoming increasingly significant in the dynamic online food delivery market. The more money you put into digital media, the more well-known your business becomes. As a result, you must digitally optimize your online food marketplace.

  • Target niche audience

The easiest way to keep ahead of the competition is to look for something no one else will. You should reach niche markets such as college students and business professionals in this scenario. You can also draw new customers by forming strategic partnerships with other companies.

  • High ranking on Google

In today’s digital world, having a good Google ranking is crucial. This can be achieved by using powerful search engine optimization methods and engaging in Google AdWords on a regular basis.

  • Social media marketing 

As a digital marketing platform, social media plays a vital role in generating more leads and creating brand awareness. To advertise your business, you might undertake a pre-launch social media marketing campaign.

  • Send notifications by e-mail or SMS 

Send professional notifications and messages to your consumers by e-mail or SMS, the first most effective mode of contact.

  • Word of mouth marketing 

Word-of-mouth is the most effective kind of marketing. Strategies for influencing or word-of-mouth promotion are required. To grow your consumer base, you can contact local food bloggers or conduct “refer a friend” promos. Furthermore, provide your consumers with the utmost experience possible, and they will undoubtedly suggest your services to their friends and family.

  • Use of banners or local newspapers 

Traditional marketing tactics, such as the usage of banners or local newspapers, are necessary to get the attention of your target demographic.

  • Highlight and sell your USP

You must have something unique or different that you can market and sell to your customers in order to stay ahead of the competition. This unique selling point (USP) might be something that differentiates you from your competition.

  • Establish a responsive customer support

By developing a responsive customer support team, you may increase your customer base and retention. A team that can provide excellent customer service and set your food delivery business apart from the competition.


The COVID-19 outbreak has boosted the on-demand food delivery industry significantly. In other words, it has established a new norm for on-demand food delivery. This suggests that there will be a rush of on-demand food delivery apps services in the coming years. So, if you’re thinking about joining the sea of best food delivery apps, Contact us for the on-demand food delivery services.


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