Business Concept: Aggregator of Delivery Services for a Small Town

The size of the American online food delivery market exceeded a billion dollars in 2014 and nearly doubled compared to 2013. Surveys show that the vast majority of people, regardless of their income level, regularly order groceries or ready meals for home delivery.

All these facts indicate that food and grocery delivery is a quite promising business. However, setting up a food and grocery delivery service always requires significant investments: at least one courier with a vehicle, a warehouse or kitchen, specialized equipment, and more. Fortunately, today mobile technologies can offer a different, less costly option: a delivery service aggregator.

What Is It?

Delivery City is a mobile delivery aggregator that consolidates all the city's restaurants and stores into one convenient service.

This mobile application is completely free for both buyers and sellers and provides residents of your city access to quality products from a maximum number of local stores and restaurants.

Delivery City significantly simplifies the process of ordering food or groceries for home delivery, saving its users from the need to search for restaurants online and enter their address or payment details repeatedly. Delivery City includes a complete catalog of companies and their products, allowing users to place and pay for orders in just a few minutes.

Business Model

Food delivery business is considered one of the most promising for small provincial cities. While residents of large metropolises have long been served by hundreds of delivery services, smaller towns face an obvious shortage of such services.

Unlike global aggregators like Delivery Club, ZakaZaka, and others, Delivery City is tailored specifically for small cities where the supply does not meet the demand.

With Delivery City, you become a mediator between the seller and the buyer, earning commissions from orders placed through the mobile app.

This scheme is equally advantageous for restaurants or stores: with Delivery City, you provide them with the opportunity to increase turnover without additional expenses for rent, staff, and more. The most significant service you offer to the store or restaurant owner is advertising, as by promoting your mobile app, you also promote their business. Additionally, an average restaurant spends around $10-12 to attract a new customer. By collaborating with you, a restaurant gains a new customer for just a few percent of the actual order value.

Moreover, running a business with the mobile delivery aggregator Delivery City requires minimal investment and pays off faster than organizing a standard delivery service.

Let's Look at the Numbers:

Fully developed mobile app Delivery City (+technical, marketing, and legal support): $1,200
Average order amount: $12

Therefore, if your commission rate is 10%, Delivery City will pay for itself after just 1000 orders, which translates to 1-2 months, while the payback period for a standard food delivery service starts at 6 months.

Interested?
Contact us to find out all the details: hello@arcanite.ru