How to start an online food delivery business in India ?

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Everyone needs to eat 3 times a day don’t you think food delivery is a great business opportunity then?.

You can start an Online Food Ordering and delivery business!

you must be knowing big names in the sector like Zomato,FoodPanda  and the latest entrant Swiggy .

Legal Requirements:

In India, if you are starting an online food ordering and delivery business like Food panda

No licencing is required you just need to be a registered firm (proprietorship partnership,LLP,private limited )

MOU (memorandum of understanding ) for Tie Up

You need to sign a MOU with all your merchants on the terms, % Commission, and quality of food assurance from them, its safer to note down their food licence number in MOU .

Expenses and Operations cost

If You are looking to start your Own Food ordering website in your city you need to do a research in which locality you want to start it, what is the delivery radius, how many different restaurant are available, how many people order from home, once done you need few things

  • Online Food Ordering website with App to host your products (expense 2 lac to 3 lacs) will take 2 months to roll out by a professional developer team.
    A small team with 2 people can work to manage the orders on web.(this can be you and your co-founder).
  • 2 delivery boys with 2 scooters initially get 2nd hand to workout. (monthly cost of 20k , as delivery boy salary, fuel and scooter maintenance will be 10 k each).
  • Digital Marketing +SMS Blasting in your city where you wish to start.(5–10 k a month for initial 3 months).
    total of 35 k a month operation cost to run, so 35 k X 6 Months = 2.1 lacs.
  • You need to get at least 20–30 orders a day min of Rs 300/- to make up the operating cost. say with a commission of 20% that is you need to get Rs 60/- per order. (30*60=1800/day = around 54k/month (total revenue in commissions).
  • profit = total revenue – operation cost= 35 k – 54 k = 19,000/month (now after few months start scaling it to other areas by increasing restaurants and delivery boys ).

If you want to try an alternative and Start Online Food Ordering and delivery service without any huge investment Risk you can contact Dinomeals an Online Food Ordering Company from Mumbai, they can share you their website and app for Online Ordering.

Or they can set up a Website and App for you. You just need to take care of Delivery and marketing and the rest will be managed by dinomeals tech engineers at back end.

Best of Luck.

 

 

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