Let’s Create a Food and Grocery Ordering App Like Talabat

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The Food Delivery Sector is brimming with potential. How can a slick mobile app assemble all its offerings, bursting the future bubble?

There is never a sleek time to order a pizza. When hunger pangs – you ‘order’ it; when it is the weekend – you ‘order’ it; when it’s an office party – you ‘order’ it; when it’s your kid’s birthday – you ‘order’ it; when you have to party with your friends – you ‘order’ it;

As Zomato And Swiggy Steer Towards Food Delivery

Now, Foodtech giants like Zomato, Swiggy are not restricted to food delivery only. The food delivery battle is heating up, and here’s why this is a space to watch out for:

Zomato drew massive investor attention earlier in 2021, with a billion-dollar and IPO. It was a planned strategy as they effectively killed competition and acquisitions like UberEats, SpoonJoy, and TinyOwl. Swiggy (Swiggy Genie) raised $800 million this year – in a fresh round of funding.

Divergent Business Models – Swiggy vs. Zomato

Swiggy – Food technology giants like Swiggy follow the super app route with the ‘Customer First Approach’ like Gojek. These started with a hyperlocal food delivery model, delivering up to 20-30 Kilometers. They are now expanding this service vertically to offer goods and groceries via Instamart and Swiggy Genie. Instamart is built on Dark Stores Model and is a second attempt after Swiggy stores; As Swiggy is about to acquire Dunzo, if it falls through, maybe merging all their offerings into a Super Offering.

Zomato – FoodTech startups like Zomato originally started as restaurant delivery services, now into food delivery. It is now expanding horizontally and has become a full-stack foodservice player with its services like Hyper pure. They are going ‘Partner First’ – marking their entry into B2B space. Restaurants gain by outsourcing raw materials. Food delivery partners like Zomato control raw materials by placing the ‘Pure’ tag on these restaurants. It cuts dependency in the long run. They continue to make money through ad sales, Zomato Pro subscription, and delivery.

Where Talabat Does Fits In the Food Delivery Business?

Talabat is a premier food delivery service in the Middle East, besides Uber Eats and Zomato UAE. It (1) brings exclusivity, (2) puts clear conditions to partner up with restaurants (only with those who do not offer their services across to other food delivery apps like Deliveroo or Uber Eats etc.). Apps like Talabat offer exclusive partnerships, on-demand restaurant listing, and organizes on-demand delivery partners to facilitate food delivery.

How Does Talabat Work?

  1. Restaurants partner up with Talabat and list themselves on the platform.
  2. The customers sign up on the app, search and place an order from their favourite restaurants.
  3. The restaurant receives the order and starts preparing the meal.
  4. The restaurant selects a delivery person to deliver at the desired location.
  5. The delivery person picks the order from the restaurant and delivers it to the customer.
  6. The customer gets regular updates through notifications in their food delivery mobile app.

Business Model of Talabat App

‘Key’ Resources

  • Large database of restaurants
  • Technology Platform
  • Delivery Persons

Key Activities

  • Taking Online orders
  • Hiring delivery persons
  • Managing logistics to process orders and transactions
  • Collecting restaurant information
  • Creating and Managing

Value Propositions

  • Customers can order food online; they can give ratings and reviews, customers can browse menus of various restaurants, customers track their orders, customers can pay efficiently online
  • Restaurants extend their customers base, Get an online platform to save their customers, Restaurants empower small restaurant owners.
  • Delivery Persons earn an additional source of income. They get flexible time slots and even receive tips from users.

Key Activities

  • Taking online orders
  • Hiring delivery persons
  • Managing logistics to process orders and transactions
  • Collecting restaurant information

Customer Relationships

  • Customer support chat
  • 24*7 customer support

Cost Structure

  • Technological setup and running costs
  • Salaries to permanent employees
  • Payments to delivery persons with fuel expenditure;

Key Partners

  • Restaurants
  • Delivery Personnel

Customer Segments

  • Users
    • People who don’t wish to cook
    • People who want to eat from outside
    • People who
    • look for restaurants of various cuisines.
  • Restaurants
    • Which do not have delivery guys
    • Those who do not take online orders

Revenue Stream

  • Commission out of each order
  • Delivery charges
  • Advertising

Channels

  • Website
  • Mobile app for Android
  • Mobile app for iOS

Revenue Model of Talabat App

Salient Points:

  • Commissions
    • 15% to 20% on the restaurant’s order bill
    • 5% to 10% on the Tablet exclusive restaurant’s order bill
  • Delivery Charge
    • No minimum order delivery requirement
    • Higher delivery rates in periods of high demand
    • Drive consumers to order the delivery charges above the threshold.
  • Advertisement
    • Banner ads
    • Priority listing of restaurants
    • The higher the list, the higher the cost the restaurant has to pay

How does it help?

Talabat’s business model has steered it into an array of Qatar food ordering service industries. They primarily earn from three sources:

  • Commissions – They charge 15% – 20% commission per restaurant order bill.
  • Delivery Charges – They receive orders under various caps. There is no minimum order requirement. However, they increase the cost of logistics per order. And in periods of high demand, or midnight deliveries, they often charge high. It also helps the consumers to order the delivery charges above the threshold.
  • Advertising – They use banner ads and priority listings to generate advertising revenue.

Also, Talabat does not exchange customer data.

They enable their customers to know about which restaurants are open. They tap their ability to have a consistent income stream by paying a restaurant premium (the restaurant’s priority listing). The higher the list, the higher is the cost the restaurant has to pay.

How is Talabat App Beneficial, Especially in the Middle – East?

It lists on-demand restaurants, organizes on-demand delivery partners that deliver food items. Talabat’s business model focuses on the hyperlocal on-demand service of the food delivery sector. Their business model benefits restaurants as well. Talabat operates through its websites to make restaurants and small street vendors visible to the general public.

People who want to purchase items from eateries, groceries, gift shops, and flower shops form a strong basis of Talabat’s clients.

What Are The Core Features Of An App Like Talabat?

The User Panel

  • Login
  • Location
  • Homepage
  • Menu
  • Setting Pickup On The Map
  • Cart Selection
  • Review Screen
  • Part Orders
  • Offers & Discounts
  • Contact Information
  • Tracking Delivery Boy
  • Search

The Restaurant Panel

  • Dashboard
  • Accept Or Decline Orders
  • Manage Restaurant’s Account
  • Payments
  • Delivery Boy’s Application
  • Login
  • Order Requests
  • Order Delivery
  • Order History and Logs
  • Calls/Chats
  • Push Notifications
  • Wallet
  • Withdraw Payments
  • GPS Tracking
  • Transaction History
  • Online Support

What Challenges Do Food Delivery Apps In UAE Face?

  • Shifting Customer Preferences
  • Unstable Market Prices
  • Difficulty in adhering to food quality standards
  • Managing Customer Expectations
  • Improper Food Handling
  • Threat Of competition
  • The Logistics challenges that food delivery apps face catering to geography, the scope of getting higher orders from a specific area, ensuring the food quality, and allocating several vehicles;

How Do Food Delivery Apps Plan To Surpass These Challenges?

Suggested solutions for food delivery apps include:

  • Managing resources to lower the operational costs
  • Creating customer-centric marketing strategies
  • Keeping up with the market trends and upgrading their business strategies to adapt to newer trends
  • Maintaining a higher level of responsiveness, customer friendliness, and support

What Factors Affect The Cost Of An App Like Talabat?

FeaturesTime TakenAverage Cost
Technical documentation40 hours$1000 – $2000
UI/UX60 hours$1500 – $3000
Front-End and Back-End Development400 hours$10000 – $20000
MVP Testing80 hours$2000 – $4000
Polishing and Bug-Fixing40 hours$1000 – $2000

Frequently Asked Questions

  • Are there any alternatives to Talabat UAE?

InstaCart, BigBasket, FreshDirect, Weezy, and El Grocer etc.

  • What are some technical aspects to consider while developing an app like Talabat?

The user interface, database, front-end, the back-end of the application.

  • What does Talabat charge for its services?

It does not charge anything for the restaurant delivery services that it offer.

Conclusive: Bursting The Future Bubble With Talabat App

The margins from the food delivery aren’t enough to sustain, and hence, diversifying into new businesses is a need. While Zomato and Swiggy have ambitious plans, they also have challenges on the way. These include a high reliance on delivery staff which is emigrant workers, and scarce in a pandemic. They will gradually need to metamorphose into full-blown e-commerce players and witness competition (Amazon and Flipkart). All this, with a set of highly demanding and evolving customers. Create a potent food delivery app like Talabat UAE, reach out to us!

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About Author
Manish Jain

Manish Jain

Manish Jain is the co-founder and Managing Director at Konstant Infosolutions. He is responsible for the overall operations of the company and has played a major role in bringing Konstant up from its humble beginnings and, with his immense energy and drive, transforming it into a globally trusted name in IT solutions.

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