What’s The Difference Between Food Delivery Apps and Food Delivery Aggregator Apps

Food Delivery Apps

Having a late-night craving used to involve getting out of your pajamas and walking out to get it yourself, or going to bed without eating anything. You can now have anything from fast food and street cuisine to Michelin-starred dinners and stylish bubble tea sent to your home utilizing food delivery apps, in addition to having your selected meal delivered directly to your home.

Foodpanda was the first company to develop a food delivery app, back in 2012. Fast-food giants and a scattering of privately owned firms managed by a small number of restaurant venues were the only players providing regular, on-demand meal delivery services at the time.

A robust business model, strong team, restaurant listing/advertising, meal delivery, subscription programmes, live events, White Label access, Zomato kitchens, and Zomato Gold are just a few of Zomato’s success factors. Since then, the startup’s growth has been unstoppable. Zomato has evolved into one of the most popular and widely utilised foodtech platforms, growing ambitiously over time. There have undoubtedly been many ups and downs in the startup’s journey, with the downs occasionally outnumbering the ups.

As more food and beverage companies focus on delivery, they are given the opportunity to communicate with their customers through the development of an on-demand food delivery app.

What Is A Food Delivery Application, Exactly?

When it comes to food delivery apps, it’s a basic mobile app that allows customers to buy meals from any eatery in a specific area using their phone or tablet device.

In most cases, an online meal delivery system includes the following applications:

  • Meals can be ordered through an online food delivery app.
  • App for delivery drivers
  • In restaurants, this application is used to receive and manage food orders.
  • Back-end processing, support, and other activities for a meal delivery company’s application

If you’re seeking similar food delivery apps development services, Cruzo can help. A top-notch on-demand food delivery app development business that can help you create a smart app.

Let’s Take a Look At What A Food Aggregator Application Is

In simple terms, restaurants use food aggregator apps to develop platforms and reach out to present and potential clients. The restaurants’ interaction is hosted on a third-party app. And the firms keep the costs, which cover both delivery and logistics.

However, the fees are substantial as a result of the cuisine’s increased exposure and advertising on the internet in recent years. An aggregator’s job is to perform tasks and improve sales production, hence increasing the commission that must be paid on each order.

So, that’s the distinction between a food delivery app and a food aggregator app.

Let’s Get a Little More Specific About Which Business Model Is Right For You

According to Second Measure, huge delivery aggregators dominated on-demand food delivery app development in April 2020 in the United States: Doordash with 45 percent, Grubhub with 23 percent, Uber Eats with 22 percent, and Postmates with 8 percent, leaving only 2 percent of sales to other businesses. Independent enterprises have partnered with both third-party platforms and large national corporations. Many restaurants saw no other option but to improve sales volume in order to do business with them.

These companies operate in different ways in specific ways, yet they all work in the same way in general. They allow restaurants to promote their menus on their platform, and when customers place a delivery order, the order is delivered by delivery contractors who use the network.

Third-party platforms may promote a restaurant to hungry users in their area who are using the app. Even if the consumer frequents the restaurant and does not require the app to locate it, they charge a large commission on each order placed through their platform.

Restaurants want the aggregator’s convenience and traffic to entice app users, but they slightly look down upon circumstances where the app takes a shortcut and offers nothing in exchange. Some businesses that use delivery aggregators are now publicly urging customers to order straight from their websites and phone lines, offering special discounts or limiting the options available on the app.

To get beyond the limitations of third-party systems, restaurants are increasingly turning to food delivery app development solutions. Hybrid hyperlocal delivery, which is becoming increasingly popular among chain restaurants, refers to eateries that run their own online ordering platform but outsource delivery to a third-party company. This eliminates the problem of aggregators charging exorbitant fees while also minimizing the requirement for a large investment in full-time delivery personnel.

Final Thoughts

In many cases, food delivery apps will outperform aggregator apps. By selecting for food delivery app development, restaurants may customize their look and more reliably change their menu. While entirely controlling the owner, the application may also handle communication between restaurants, customers, and suppliers. You can also run promotions and send push notifications to your customers. This may make it easier to communicate with customers and maintain long-term relationships.

Before voicing their opinions on mobile ordering apps, restaurant owners should be aware of the industry’s growing variety beyond aggregators with a large public presence. Restaurants would benefit from seeking alternate ordering and delivery methods that they control, as they are less satisfied with their reliance on third parties to sell online. 

Contact our business and sales team at 6370951983 if you’re also seeking for on-demand food delivery app development. Or, you can contact us here online.