Some of the top-performing apps in the startup sector across the world are online food ordering startups. There is no stopping this trend. People like to eat different foods and they won’t stop exploring. This demand is carefully harnessed by the online food app startups using the latest technologies and are keeping their customers on their toes.
Recently few startup enthusiasts said that the food app startups like Ubereats are not going to survive long because of their business and revenue models; soon people will turn towards the traditional way of ordering foods. There is little truth in this statement. Being associated with many food app startups in the last 5 years, I am sure that the growth will be positive and many new advances are on the anvil to make food app platforms easy for all its users.
Below I list some points regarding the future scope of Ubereats like app startups. This may help you to make informed decisions if you are thinking about launching a startup.
Cloud kitchens are online ordering and delivery-only restaurants. These restaurants spend less money on assets and labor force. Ubereats like food startups process a lot of data of its users and using it, the consumer food eating habits can be easily formulated. These valuable data can be used to set up cloud kitchens and prepare foods. Hence in less time, it is possible to capture the audience.
Cloud kitchens for food app startups can be an additional source of revenue.
Prospects in Tier 2 & 3 cities
With urbanization spreading to tier 2 and 3 cities, consumer spending in these areas also starts to increase. People in these places are likely to spend more on trying delicious foods. Even Ubereats stated that it is performing well in these new regions. This trend will further improve in the coming years.
VC funding and other external funding is vital for food app startups. Discounts and offers are important to engage customers and bring more customers into the fold and funding is needed for it. At present VCs are more inclined to fund on-demand food apps like startups.
The possibility of getting funds for a food app is more if it offers something innovative and can capture a niche audience.
Little disruptions in future
A startup model can break only if it is disrupted and this happens for many tech startups. As of now, disruptions are at least not possible now for online food ordering delivery. Its business model has evolved and now has come to a slowdown. With no disruptions, there will be more certainty.
These points would surely help you to gauge the potential of the online food ordering startup business. Nevertheless, I always recommend you to work hard to bring some sort of innovation to your new startup and have a set of niche products to satisfy users.
Recent advances have a lot of things to do with making the online ordering simple and effortless. Make sure you use it effectively.