In the food delivery market, Eat24 is one of the remarkable names that acquired massive growth in a short duration. The Eat24 business model has the best strategies like 24/7 food delivery services, vast food choices, hassle-free payments, and a lot more, for engaging consumers with huge numbers. But before we talk about this in detail, we need some background of this industry.
The food delivery industry has been growing in massive numbers. With an increase of 11.51%, the food delivery market is expected to grow by $154.3 billion just by 2023. The reason behind the growing dominance in the markets is due to the customer’s preferences that make it a trend, a veritable buffet, easy access to thousands of eateries, and freedom from prolonged time in the kitchen for the favorite dishes.
Maybe not in the literal sense. But it is probably going in the direction of our concern.
The food industry has been looking for delighting methods for the customers to stay in the cut-throat markets. The business executives can rely on the innovative methods of food delivery businesses, showing definitive results. And here, entrepreneurs can surely rely on an app like Eat24 to enter into the competition and grow. Eat24 is a role model with so much potential and worthwhile business strategies.
What is Eat24?
Eat24 is a web-based meal delivery service that partners with restaurants, allowing customers to order food through a mobile app. It is a three-sided marketplace that serves customers and drivers by joining them in a single platform. It has helped consumers reach restaurants easily, and restaurants can acquire a vast customer base.
In different terms, it is a mediator between restaurants and customers that connects each other for convenience and generating higher business opportunities. With the separate apps for consumers and drivers, the business tasks are conducted fluently in multiple locations resulting in higher revenues. Further, Eat24 has been serving customers with 24*7 support through email and calls, meeting customers’ needs without any delays.
It has multiple revenue channels that grab significant profits for the company, which we will discuss in the latter portion of the blog.
How Does Eat24 Works?
The basic Workflow of Eat24 is the same as the on-demand business model for food delivery businesses that are widely adopted worldwide. It includes three segments of the business – consumers, vendors, and delivery providers. The working model of Eat24 is :
- Customers can order food from desired restaurants through the app
- Vendors will prepare the order and assign delivery to providers
- Drivers fulfill them by tracking the customer’s location through the integrated map.
Facts About Eat24
Launch Year: March 2008
Founders: Chen Shashar, Haim E., Morani Hacmon, Nadav Sharon
Parent Company: Grubhub (Currently)
Headquarter: San Francisco, CA.
Industry: Web-based food and delivery
Acquired By: Yelp (2015), Grubhub(2017)
Success Story of Eat24
Eat24 was one of the fastest-growing food delivery ventures that grew in a short duration. Its founders, Chen Shashar, Haim E., Morani Hacmon, Nadav Sharon, founded the company in 2008. The company has not secured any funding and has expanded its services in 850 cities nationwide, merging with 20000 interactive restaurants menus with over 150 employees.
Eat24 business model has become a unique dime that gets over 1 million unique visitors every month and will generate over $150 million in sales by the end of the year. It was then, in 2015, acquired by Yelp for $134 million. And consequently, it has become the biggest platform to provide food delivery services. Two years after this deal, Yelp sold the platform to Grubhub for $287.5 million. A larger user base of Yelp with 83 million users will be directed to Grubhub’s platform, with a combined 75000 restaurants.
Eat24 Business Model – Follow up for Entrepreneurs
The Eat24 business model is surrogate here for better understanding. The primary concern of Eat24 was to provide convenience to customers by providing online ordering and delivery services. The platform manages restaurants, drivers, and customers within a single platform.
Key Stakeholders of Eat24
As the Eat24 business model is a three-sided marketplace that leverages advantages for all three stakeholders:
- Delivery Providers
Restaurants can acquire a huge customer base through the platform. The business has higher potential to serve customers with the best services paying not so higher charges for the convenience of getting doorstep deliveries. Drivers are also paid well for each delivery service.
The company aims to provide value propositions to the customers, delivery providers, and restaurants. The below are mentioned points value proposition of Eat24 business model for all of them separately.
Value propositions for Customers:
- Customers can order food for instant delivery or can schedule it
- Can save time and money
- Customers can order from any restaurants listed on the platform
- Customers can track delivery services in real-time through the app
Value propositions to restaurants:
- Acquire a huge customer base
- Effective business management
- Exposed to a higher potential audience
The value proposition to drivers:
- Get flexible time for working
- Track most straightforward route for delivery
- Contact to customers within the platform
How Model Segments The Consumers?
- Customers can get doorstep deliveries for food
- Customers who don’t want to cook can order the food online
- As the platform has multiple restaurants, customers get a wide range of items
- Earns benefits provided in the platform
- Restaurants that want to acquire a huge customer base
- Restaurants that don’t have a customer base
- Restaurants that do not have marketing strategies.
Revenue Resources of Eat24
Like other models, the Eat24 business model also has its major income source as commission on orders. Besides, it has other income channels, as the list mentioned below. However, these are not the only ones. Revenue channels can be scaled to any numbers based on the business targets and opportunities a business seeks for itself.
When a restaurant completes a delivery service for orders, earning from that particular order is shared between the restaurant and food aggregator; here, the aggregator is Eat24.
Delivery Charge from Customers
Customers have to pay a little extra for the delivery charges, which is the revenue source of Eat24. While ordering, customers will get the estimation of the delivery charges.
The platform provides opportunities to the restaurants to feature themselves to promote their items or offers. It will make them outshine the platform amongst numerous restaurant lists. Eat24 charges those restaurants for the services.
Conclusion of Eat24 Business Model and How It Works
Eat24, in its initial stages, has acquired huge profits, joining restaurants at a higher pace and gaining a huge customer base. Its business model is the most aspiring one for entrepreneurs and small businesses. Eat24 works to reach heights and was competing with the top models present without any huge funding. Consider the Eat24 business model if you want to move your steps to online food delivery businesses.