Questions

Before I answer the question, it is incredibly important to understand what gaps there in the present delivery model are that you are following. To understand this gap, I will suggest you Servqual Model.
SERVQUAL is a diagnostic tool that exposes a firm’s weaknesses and strengths in the area of service quality. The five dimensions of SERQUAL are delineated below:
a) Reliability – ability to perform the promised service dependably and accurately. The ability to do things first time right eliminating the need for rework.
b) Responsiveness – willingness to help the customer, speed of response to resolve customer issues
c) Assurance – knowledge and courtesy of employees, ability to convey trust and confidence
d) Empathy – caring and personalized attention to customers. Look from customer’s point of view.
e) Tangibles – appearance of physical facilities, equipment, personnel and communication materials. This provides the physical evidence of service. Tangibles provide the customer proof of the quality of service.
The purpose of the SERVQUAL measurement scale is to compare mean perceptions and mean expectations to arrive at gap scores for each of the five dimensions. Following are the important lessons from the SERVQUAL model:
a) Customer perceptions are highly dependent on the attitudes and performance of contact personnel.
b) The service process is as important as the outcome.
c) Consumer perceptions cannot be easily predicted.
SERVQUAL is a useful starting point for measuring service quality. It is most valuable when compared with a firm’s own past service quality trends and with measures of competitors’ performance with regards to service quality.
The Gap Model of Service Quality was first proposed by A. Parasuraman, Valarie Zeithaml, and Leonard L. Berry in 1985. In this model, customer satisfaction is largely a function of perception. If the customer perceives that the service has met their expectations, then they will be satisfied. If not, they will be dissatisfied. If they are dissatisfied, then this can be attributed to the five-customer service “gaps” shown below. Let us understand the gaps in service design and delivery:
1. Service Quality Gap: This is the difference between the service expected by customers and the service actually received by them. Example – Uber may indicate a maximum waiting time of 7 minutes while sourcing a ride – but in reality, the cab may land 10 minutes after the booking.
2. Management Understanding Gap: This is the difference between the quality expectations of customers and the perception of those expectations by management. A customer who gives his car for maintenance may expect a quicker delivery, but the garage may decide to focus on excellence.
3. Service Design Gap: This is the gap between management’s perception of customer expectations and the translation of this perception into delivery standards. In a business school, the faculty members may work hard to deliver quality education by providing resource material in addition to classroom delivery. But the students may only desire a classroom delivery (thanks to Google, students may feel that they can source their own material).
4. Service Delivery Gap: This is the gap between established delivery standards and the actual service rendered. For example, an eatery may set the standard time for billing as 5 minutes but in reality, the billing process may take 8 minutes.
5. Communication Gap: This is the gap between what is communicated to consumers and what is actually delivered. A sea-facing resort may post beautiful pictures of its rooms and the views from the hotel rooms but if the customer feels that the reality is starkly different, this can lead to a communication gap.
It will be a grave injustice if I pass a judgement on the question without understanding which gap you are suffering from. You have not mentioned it either. Therefore, these are the 3 models that I would suggest:
Various business models are being adopted by these start-ups in an attempt to take meal preparation & food delivery concept to new heights. Here we are dividing these start-ups into three major categories:
1) Aggregators (Order-focused delivery service)
2) Logistics-focused food delivery services, &
3) full-service food delivery service. So now let us explore each one of them:
1. Aggregators (Order-focused delivery service): You can even call this one a mediator as this is what an aggregator does - to mediate between customer & various local restaurants. Here you get access to a variety of cuisines all via a web page or smartphone app. The main job of an aggregator is to facilitate and provide customer support for the orders. Now how do they function? Well, after signing into an app or a website, users can have a look and compare the prices, menus, ratings & reviews, and accordingly can place orders. After the order is confirmed by the customer, it is the aggregator who is responsible to pass that order to the restaurant. Then on, the actual delivering part is managed by the restaurant. Aggregators get to gain a fixed fee on orders which were placed through their service. Usually participating restaurants bear this fee, with no additional costs to customers. Four US-based big players - Delivery Hero, Food panda, Grub Hub, and Just Eat have attained huge success on an international scale in this arena and offer their service in various parts of the globe.
2. New Delivery: Same as aggregators, new food delivery platforms do a wonderful job here the users can compare menus of various restaurants and make orders from various restaurants via a mobile app. However, when compared to aggregators, new delivery platforms also offer logistics to their partnering restaurants. With logistics services being provided, this platform opens new prospects to the new-on-the-board restaurants that have no experience with food delivery. Restaurants can immensely benefit by partnering with this kind of partnership, as they can conveniently deliver orders without the stress of paying the drivers, as everything is covered, even the cost of vehicle maintenance & insurance policies. This way, restaurants can set their focus on crucial aspects like upgrading customer service. As compensation for the same, new delivery players charge a fixed amount from the restaurant as well as the customer. Like they receive a fixed margin of the order by the restaurant, while a small flat fee from the customer (super easy, isn't it?) Now despite this huge cost of maintaining delivery vehicles and drivers, the new delivery players attain EBITDA margin of more than 30 percent. The players consist of brands operating worldwide such as Foodora and Deliveroo, which continue to capture new regions. It is expected that the addressable market for this very kind of delivery model is going to exceed $20 billion by the year 2025.

3. Full-service On-demand delivery: Well, the main aim of these start-ups is to make healthy food available to people in no time (so to meet the pace of today's fast-paced world). Here, there are no-third parties involved, as they are having their own chefs preparing food in-house. There are hired in-staff courier boys so that meals are timely delivered to customers. To understand the functioning of this model, we have Munchery, the prominent full-stack delivery solution in the US, as for an example, where you can order a meal by looking at the daily menu, and then they will deliver it within an hour-long delivery window. The orders for the next day can also be scheduled if someone wants to plan that ahead. Food ordering is quite easy with each dish on a menu consisting of a picture as well as a list of ingredients, and a chef's name, who will be cooking it. Reviews given by customers regarding each meal can be checked as well as one can directly message the assigned chef.
Without any doubt, a full-service food delivery model is where you have a great level of control over customer experience. Like, you can manage everything, starting from the food that is being served to them, ensuring it is fresh and delicious, and the orders are timely delivered. After all, you are certain to benefit from having your own chefs & delivery people. When combined this with ratings & ratings, you have great potential to enhance your services more. But there are downsides as well to this model, as to begin with, it would require ample funding, initially at least. Like how else can you manage salaries to so many employees as well as numerous equipment? Then the insurances and certifications needed for your business to comply with laws & sanitary standards further add to the load. Now as we talk about nominal expenses for salaries & equipment, the aggregator model will certainly attract you, however, this one is harder to manage to owe to immense competition in the market.
Like till date, it's GrubHub that owns this market with a partnership with more than 50,000 takeout restaurants in cities more than 1,100 in the US, as well as London. So, if you plan to enter as a small-budget company, you can imagine how tough it is going to be to beat this biggie.

Then there is also an issue of limited market growth opportunity. Here the partnering restaurants with their own logistical manpower can easily join an aggregator platform without the need to invest a big sum of money, but then what about the restaurants which are not delivering on their own?

This New delivery service seems to fit the pocket of most in the league. Like it partners with restaurants which never delivered before, thus expanding the overall availability of food delivery in the market. Who knows that in the coming future even restaurants delivering food on their own might prefer to rely on these new delivery players as outsourcing logistics tend to be cost-effective.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 2 months ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2020 Startups.com LLC. All rights reserved.