How Talabat Works – Business and Revenue Model Explained
How Talabat Works – Business and Revenue Model Explained
Last Updated on June 22, 2022
Nowadays, millennials are switching their preference to various on-demand food delivery services from traditional eating. From a wide range of restaurants, limitless cuisine, and a single-click payment option, mean delivery apps undoubtedly on demand have made life less complicated. Rather than conveying convenience as a straightforward service feature, food delivery apps convey convenience to each client at every level.
The on-demand food delivery industry is an incredibly competitive industry with every competitor constantly offering something new. The reality is, in any scenario, that the customers need everything at the press of a single button. This is the key reason why on-demand food delivery applications have become a part of our lives.
With the emergence of these applications, now Individuals can order their favorite snacks from the comfort of home and receive immediate delivery of the same, right at the door. If a businessman or a corporation wants to invest in this multi-million dollar industry, the best way is to develop a Food Delivery App.
According to Statista as of 2021, UAE is the second-largest market for online food delivery and ordering. One such company that has recently emerged as an underdog in the on-demand food delivery industry is Talabat. Let’s talk about – what is it, how it works, the business model, and everything else.
What Is Talabat
Talabat is one of the most famous Qatar-based companies which is focused on food and grocery delivery. Talabat was founded in 2004 by a team of entrepreneurs who took advantage of the business opportunities online to order food. It helps the user to search for nearby restaurants and to get offers at their location for ordered food.
Here are some facts about the company
|Founders||Founded on||Headquarter||Total Funding raised ($)|
|Abdulaziz Al Loughani||2004||Kuwait||$1.57 billion|
Like any other food and trusted food ordering application, Talabat also allows you to check the full details of the restaurants and their food menu right before you add your desired items to your cart. It also allows easy customization according to the needs of the customer and they can find the best deals in one place. Besides this, the application allows you to choose the payment option of your own preference – such as Debit or Credit card or even the COD (Cash on delivery).
People could use their food delivery services on both major platforms through the website and the mobile app available on Android and iOS. Since its inception in 2004, Talabat has been taking advantage of the online food ordering opportunities in its target market and has been growing manifolds ever since.
They operate in middle east countries such as Kuwait, the Kingdom of Saudi Arabia, UAE, Oman, Bahrain, Jordan, and Qatar.
Business Model Of Talabat
The first and foremost thing about Talabat is that it not only lists on-demand restaurants but also organizes on-demand delivery partners that deliver food items. Talabat’s business model is solely focused on the hyperlocal on-demand service of the food delivery sector. Talabat makes use of revolutionary technology and design to close the gap between food lovers and restaurants. It works on a dual relationship basis and is therefore also responsible for restaurants benefiting.
Talabat operates both via its websites and through its smartphone app. Urban foodies use the application to order meals from their local restaurants online. In addition to listing restaurants, Talabat also shows restaurant bug menus on its application to allow the foodies to select from a wide range. Local street vendors who cook excellent food but were not in the field of attention are also seeing great success and that orders because they couldn’t spend much on marketing.
If the customer has attached items to the cart and places an order, he/she will monitor the order. The user will also be able to connect to the delivery boy and inform him about the address. However, the address and location are taken at the time of order but if the customer needs to get some order-related information, he/she can get it.
Customer Segment: Talabat ‘s main customers are the people who want to order food from restaurants and restaurants nearby. People who want the food delivered to their doorstep are Talabat ‘s customers. Since its latest announcement, the form of customer has been introduced. Talabat ‘s clients are mostly people who want to purchase items from eateries, groceries, gift shops, and flower shops.
Revenue Model Of Talabat
Talabat’s business model turned the company into an early driver in the Qatar food ordering service industry and had a given basic business model, but since they were founded, they have started earning revenues from other avenues. To create an app like Talabat it is important to understand the revenue sources you can adopt for your app.
Here are some of the major avenues from where Talabat earns money.
In general, Talabat charges a fee of 15 percent – 25 percent on the restaurant’s order bill.
Moreover, Talabat is continuously trying to get exclusively Talabat restaurants on board. In this way, restaurants earn other advantages, such as increased exposure and often a 5% – 10% reduction through commissions. And, because the impact is much greater than the reduction in sales, Talabat vigorously does it.
The commission percentages are dependent on different factors, such as order frequency, restaurant location, Talabat’s reliance on the restaurant, competition reckoning percent, penetration into the new town, and so forth.
- Delivery Charges
Talabat has no minimum order delivery requirement, which means that frequently they can receive orders under all caps. The cost of logistics per order is increased.
After Talabat became stronger in the market, delivery charges began paying for small amounts (depending on the region and the area). In periods of high demand, storms, special occasions, and midnight delivery on select markets, Talabat also even charges higher rates for delivery.
It also helps drive consumers to order the delivery charges above the threshold.
Two models – banner ads and priority listing of restaurants are the two things through which Talabat produces advertising revenue.
Apps and websites for regional restaurants are promoted and displayed. Different regions on the page shown differ in levels because the restaurant’s banner ad is noticeable.
Talabat does not exchange customer data, so the restaurants rely on raw revenues to be created by greater visibility only.
In general, Talabat gives customers a list of restaurants open. This has taped this ability into an income stream by paying a restaurant premium in return for giving restaurants priority listing. The higher the listing, the higher the cost the restaurant has to pay.
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Features Of Talabat
More comprehensively, a step-by-step approach is described below explaining the features of the Talabat application. The attributes we will concentrate on fall into the following three categories:
- The User Panel
- The Restaurant Panel
- The Delivery Boy Panel
The User Panel
After using the Google Play Store or Apple App Store, the application has been successfully downloaded and installed, customers have to access the login page and registration page and they use this app to access their account.
There are a number of features in this application, which are:
This process is simplified by the developers of Talabat through the social inclusion of Facebook, Gmail or even the validation of a single OTP on the mobile user level.
All minute information is shown in the list of available restaurants, depending on the position of the customer. Consumers should also search for maps to pick their favorite locations.
This monitor shows the list of nearby restaurants currently open. It is crucial that the home screen is tidy because many things/objects have to be set up and the user who can switch off a lot will be confused by advanced or high fibre display technology.
It is one of the main features of the user application of Talabat. After selecting a particular restaurant, the user will be shown the specifics of the menus available on this screen in a clear way such as names, dish images, contact no, user feedback, estimated delivery time, etc., so that overlapping segments don’t annoy the user.
- Setting Pickup On The Map
Enable GPS or begin typing your address – the app recognizes your exact location. You can set the pickup position on the map.
- Cart Selection
This segment is used to handle the order requests until payment is made. Through clicking on a plus or minus button, a customer will be able to raise or decrease the number of foods. With all the taxation details, the overall cost should be indicated transparently and the amount should be adjusted by changing the cart quantity automatically.
- Review Screen
The customer is then sent to the check-out page where the order has to be checked via various payment gates available. The cash alternative is also available
- Part Orders
The app developer should also provide customer feedback and suggestions in every aspect of the restaurant.
- Offers & Discounts
The owner of the app may also alert the user via push notifications about its favorite restaurants’ latest deals and special offers.
- Contact Information
The contact details for the delivery guy and restaurant will at times also be convenient to have.
- Tracking Delivery Boy
Tracking the exact location of the delivery boy and see him reach your place live is an amazing feature which any user could have. Followed by push notifications, arrival time, and one-tap call-button.
This section is located on the top of the user’s home screen and is required for the food delivery application on demand. In a matter of seconds, users can scan the name of the food and all eatery names where and at what price the dish is available.
The Restaurant Panel
Once you set up the profile, which is the dashboard, the users of the app are redirected to the home page of the application. They will be able to keep track of the pending orders, completed orders and orders being processed here for more input and a summary of what is going on.
- Accept Or Decline Orders
This is the most important aspect of creating on-demand food delivery applications, as a major concern is the timely delivery of foods. Consumers can cancel the order if it takes longer than the delivery date or time set and it counts such a delay as a failure and can leave a negative image. Not all establishments can deliver home because the app will have a scale on the restaurant account page and the owner can switch to yes or no from there. On the restaurant side, there has to be a way to confirm or cancel the order.
- Manage Restaurant’s Account
Each eatery can set their restaurant’s promotional images, name, logo, food images, operating hours, minimum order quantity, and add all the menus offered together with the price and estimated delivery time. From their end, they may also mention special offers for any particular item. This entire part falls into the application’s profile section.
In the billing area, users will have the option to move money to banks or some other network, such as PayPal or Wallet, according to their preferences. Along with all the past, it can also be an optional accessory for viewing regular revenue data.
Delivery Boy’s Application
Talabat’s application for the delivery boy has the following features, which make the application so good. They are:
First and foremost, the application allows the delivery boy to generate a user ID of their own and to log in the application using the same.
- Order Requests
If the customer places an order then it is the self-assigned on the basis of the venue. The order would show up with the order ID, the customer’s name, and the delivery address. And he will get all the orders from his position where he is now. If he asks then the customer panel will be shown his profile details, he would either approve or deny the request for an order.
- Order Delivery
If the order is accepted; the delivery person should deliver the order at the customer’s location and complete the order. The order is set, packed, shipped on the way, etc.
- Order History and Logs
This helps the delivery person to see orders he/she has delivered in the past. The order shows relevant data, and can also be sorted by date range, status, and ID.
Once the delivery boy accepts the order the customer must communicate with driver and vice versa. Both possess options to call or send text messages.
- Push Notifications
The delivery person will receive a push notification from the client panel for any alerts that are related to the order imposed and the hand of the admin.
To supply the food it will be billed on a weekly or monthly basis by the admin. If the delivery guy’s app has an in-app wallet then he will get payment in his wallet otherwise the money would be transferred to a bank account.
- Withdraw Payments
In the case of an in-app wallet, the delivery boy will transfer payment from a wallet into his bank account by entering the bank name, account number, or code.
- GPS Tracking
The current location GPS monitoring of the delivery boy must take place to help customers keep track of their orders in real time.
- Transaction History
As mentioned above for payment then the history of the payment transaction will be stored in the app showing the full earning record of the delivery boy.
- Online Support
If the deliverer faces some troubles then he can consult the support team for immediate assistance.
Cost Of Building An Application Like Talabat
Well, the cost of developing a food delivery app like Talabat largely depends on what type of feature you want to enforce in your app. Nonetheless, to offer an estimated value, a basic food delivery app can cost around $12,000-$20,000 whereas a more complex solution can cost more than $40,000.
|USA||$50 to $250 per hour|
|Eastern Europe||$30 to $150 per hour|
|India||$10 to $80 per hour|
|Feature||Time Taken||Average Cost|
|Technical Documentation||40 Hours||$1000 to $2000|
|UI/UX Design||60 Hours||$1500 to $3000|
|Front-End & Back-End Development||400 Hours||$10,000 to $20,000|
|MVP Testing||80 Hours||$2000 to $4000|
|Polishing & Bug-Fixing||40 Hours||$1000 to $2000|
Another important point to know is that creating an iOS app costs marginally less than an Android app, as it needs extensive software testing involving a large amount of money.
In India, the price of developing an on-demand food ordering mobile app starts from as low as $10 to $80 per hour for the full-stack application growth.
Therefore it is important to perform thorough research on the best food delivery app development company before launching an on-demand online food delivery service. To create a successful on-demand food ordering app, this in-depth analysis will help to know the current market and the emerging technology available to support this segment.
Interested to know more about building a food delivery solution? Here Food delivery app development.
Ans. Some apps similar to Talabat are InstaCart, BigBasket, FreshDirect, Weezy, El Grocer among others.
Ans. Yes, it is almost indispensable for an online food delivery app to have a robust structure, Whether it is the front-end or the back-end, the app must be expendable for further alterations and additions.
– The user interface is what the consumers get to see, the more ease of operability it offers, the more the number of users will opt for it.
– A well-versed database and backend to offer the technical team with the best possible support.
– Once, the front-end and the back-end have been built and complied, the app goes live. However, there must be a testing team to check for any loopholes in the application.
Ans. No extra charges are applied other than the restaurant’s delivery fees.