DoorDash is done thanks to UberEats

Food Delivery Services: Eight Business Models

4. Virtual restaurant

Uber revolutionized the taxi industry, now Uber Eats is doing a lot to turn the global delivery industry upside down. As of October 2018, Uber Eats had 1,600+ virtual restaurants around the world, including nearly 1,000 in the United States. Most of them operate from existing restaurant kitchens, but with new brands that are only available from Uber Eats.

An example of such a virtual restaurant concept is SushiYaa in Dallas: The small sushi chain operates five physical restaurants under the name SushiYaa - but their kitchens also have dishes for around two dozen virtual restaurants such as Bento Box, Poke Station or Mandu Dumpling House, which has completely different dishes and is only available through Uber Eats.

Another form of virtual kitchen includes the licensing of existing restaurant recipes and menu cards in a virtual model. The Good Uncle startup concept uses this to survive in the university catering segment. Good Uncle offers high quality ready meals at different prices. They are delivered with our own delivery fleet using the drop-off method.

5. Aggregator ODP - No Driver Fleet

If someone said, "Let me solve all of your delivery problems for a small part of your sales," many restaurant operators would step in, especially those who want to get into the market with a low initial investment. Online delivery providers are now entering the market with a business model that is based on a customer-oriented app, website or phone number and an enormous amount of back office computing power to increase the volume of orders.

To be successful, the aggregator must be a world-class matchmaker for food orders. He needs a large customer database and a wide range of restaurant menus that are offered in large cities. For many ODPs, the biggest hurdle to entering the market is the cost of customer acquisition. In contrast, they do not need their own fleet of drivers for delivery in this delivery model. The drivers work on a fee basis as independent deliverers with their own vehicles.

6. Consolidator - Bulk Drop System

The most expensive part of the delivery puzzle is getting the food to your door, also known as “the last mile”. One way to minimize this effort is for the customer to receive the delivery at a central drop-off point.

Yun Ban Bao, a startup in New York City, targets food desserts for its many Chinese-born residents. To do this, it uses direct marketing via the Chinese online service provider WeChat. This creates a separate delivery market with the advantage of pre-ordering and prepayment.

Yun Ban Bao takes online orders for the next working day and then sends the orders out in a mass delivery model. In this way, the company reduces delivery costs and maintains control of its driver fleet. With a fixed delivery network and predetermined distribution points, often outside parks, office buildings or apartment buildings, this system is more similar to a bus route than the taxi route model with individual delivery.