How Does eFood Works: Revealed its Business Model and Revenue Model
Constant innovations and digitalization have forced business owners to adopt online solutions to maximize their profitability. The online food delivery market has gained attention from the last decade as it saves people’s time and money and allows them to enjoy lip-smacking food at their homes. Well, Greece is not behind in this race as its eFood online delivery app works on the same concept. Now you must be curious to understand how efood works and the revenue model.
eFood is an online delivery platform that bridges the gap between customers and the restaurants and store owners across Greece. The business model of eFOod is beneficial to restaurants, store owners, and consumers because it includes all three segments in each transaction.
In the above image, we can see that the online food delivery market has generated $12 billion in revenue in Europe alone, and it’s continuously growing. Moreover, the wide scope of the Internet and smartphone usage has paved the way for food delivery companies, and it’s increasing by leaps and bounds. (source)
In this blog piece, we are going to discuss the business model and revenue model of Greece’s popular food delivery company, eFood, and the story behind it.
What is eFood
Before jumping into the business model of eFood or understanding how it works, we should know what eFood exactly is?
eFood is one of the most popular online food delivery companies based in Greece that enables consumers to order food, grocery, wine, fresh meat from restaurants and stores in close proximity to them. Customers can order products through their website of a mobile app that is available on Android and iOS.
eFood does not cook anything or provide a dine-in facility, but they partner up with restaurants, store owners, wine retailers, and butchers in the cities they operate in. Users can place orders online and get them delivered in no time.
Facts And Funding Timelines Of eFood
- Year of Establishment: 2011
- Founders: Constantinos Kyrkinis
- Headquarter: Attiki, Greece
- Industries: online delivery service
- Type of Business: Private
- Acquisition: Acquired by Delivery Hero in 2015
How Does eFood Work
Like eFood, many online food delivery apps in the market follow the same business model and make huge revenue. Online food delivery business is trending these days; there are many entrepreneurs that are looking to launch a business by deploying apps like eFood to maximize its revenue.
eFood is a simple application for all users who want to obtain food and other products at their home. Here are simple steps to follow,
Step-1 Browse Products and Select
This is the first step that makes it feasible for users to browse and choose products from the app. Users can select any product from the given options that they want to be delivered.
Step-2 Make Payment
Once the products have been added, users have to make a payment from the given options.
Step-3 Order Tracking
The prepared package is picked from restaurants or stores by the delivery provider, and users can track this whole process along with the expected delivery time.
Once delivery providers reach the consumer’s location, they can deliver the same package to them. Customers can share feedback and give ratings based on the services.
eFood Business Model: Everything You Should Know
eFood delivery app focuses on the three major segments of the business while keeping all three on the same line.
- The users
- The restaurants and store owners
- The delivery providers
Here is how eFood benefits its segments.
- Users can place an order for food, grocery, wine from the extensive range of products.
- Users can track their orders and contact delivery providers
- Easy and quick solution for doorstep delivery.
For Restaurants and Store Owners
- Strong customer base
- A cost-effective way of marketing
- No extra cost to pay for delivery as this business model providers its own providers.
- Great way to build brand reputation
For Delivery Providers
- Flexible working hours
- A passive income option
- Earn through tips also
Revenue Model On Which eFood Works
We have understood eFood’s business model and its working principles. Now you might have a blurry idea of how this online delivery app makes money. Here we are going to reveal its revenue sources. Let’s get started.
eFood usually gets commission from the restaurants and store owners chosen by the customers. eFood gets a certain amount of commission income from each order.
Another important source of income for the app like eFood includes advertisements. If you are new to the online delivery market and want to promote your restaurant or store, this is a great place. Restaurants or stores get a chance to place on the top for a limited period of time.
certain amount of fees is charged based on delivery location. Rates can be decided based on distance.
bove are the primary revenue sources for eFood that have helped them to achieve business goals and expand
How Much Does It Cost To Develop An eFood Clone
Online food delivery service is gaining a lot of popularity across the globe as it enables restaurants to expand their business reach. Multiple factors come into the picture while calculating the app development cost, such as:
- Platform selection
- Think of features
- App designing
- Functionalities, etc.
To help you implement your online food delivery app – eFood clone, Elluminati will launch your business online and give your users ease and convenience. If you are looking for a customizable solution, it will take considerable time to develop, design, test, and launch.
Nowadays, online food delivery apps are booming in the market as it is beneficial for both customers and restaurant owners. In order to develop an app like eFood, contact us today, our modern solutions definitely reap you many business benefits.