What to start a food delivery company? Here's the lay of the land

The food delivery sector has really become a very significant part of the restaurant business. And there are a huge number of players coming into the market and some great opportunities all over the place for actually starting your own business or extending your own capabilities to take advantage of these trends. So in this first video, I just want to go through the various aspects of a food delivery and talk about the players who might be involved each time. And from here we can go and dive into a bit more detail of potential opportunities and how you can get involved in each sector.

So let's just start with the three lines here. I've got a bit of a Venn diagram here to kind of divide up the various players in here. And the first is, there are three kind of distinct activities involved. There is the delivery of the food, so going and picking up food from a restaurant and delivering it to a customer. There's the preparation of food, and that's not necessarily just a straight up restaurant anymore, it could be some kind of food preparation, or food aggregation, or putting together a set of recipes and all of the ingredients that you need, or whatever it is. And then there's the actual act of selling. So in this case, I'm talking about e-commerce. So there's the actual being responsible for marketing to the customer, and then taking payment from that customer, and providing that information to the restaurant so that they know how to prepare. So those are the three main aspects that I think make those up and the three easiest to get involved in.

Then you get a little bit of overlap, well not a little bit. Each of those particular activities has the opportunity to overlap on a delivery by delivery basis. So your business might be involved in multiple of these sectors depending on one particular transaction. So let's have a look at how they overlap and the sorts of players who get involved in each space. So in here, in the very middle, number 4 ... oh, let's not do that .... let's draw in that number 4 here in the middle. This is where the same person or the same entity has been the one who's made the sale off their own website that orders come in, they've made the food themselves, and then they've got their own delivery drivers to go and do the delivery. So you might think of number 4 as being Domino's Pizza, or something like that.

Let's take a look at number 5. So in number 5 you're doing the preparation and the delivery. So you haven't made the sale. In this case you're probably a restaurant or something like that and you've received an order through a third-party ordering service, like a Menulog, or Eat Now, Eat 24, Grubhub, whoever it is, and you're doing your own delivery.

In number 7, you're doing the selling and the preparing. So this would be the case of say a restaurant who has their own e-commerce site and they've made the sale, they've prepared the food, and then they're using a third-party courier service, a third-party food delivery service, like a food cab that does delivery type thing.

And then here in number 6, we've got a sell and deliver model without being the one doing the preparation. And so this is UberEATS, Deliveroo, big players like that who are setting up ordering platforms and then having their own logistics arm as well to actually make the deliveries.

And then outside of those you've got just, you know, kind of selling and doing nothing else. That would be an e-commerce platform like the original aggregators, like Minilogin and Eat Now.

And the prepare, this is if you just happen to be a restaurant or a service that's making the food but someone else has got the e-commerce site, and then someone else is doing the delivery. Or say the sale has come from UberEATS, or something like that, and then you're the restaurant making the food and you become kind of the kitchen for that deal.

And finally, delivery. So that's not just being a delivery driver, there's a growing number of services that are just outsourced food delivery services.

So there are a whole bunch of different players and they fit in, in different aspects, and they overlap a lot, and they also jump from one to another so that they can be involved in multiple different transactions. For instance, in some markets, Grubhub doing the selling and the delivery, they're fitting in here. And then in other markets, they are doing the selling and someone else is making the delivery. So you can see it's quite easy to jump around. As a restaurant, sometimes you'll be doing all three, being in there. Sometimes you'll be doing the selling and the preparing, and got someone else doing a delivery. Other times, you'll be, you know, doing the preparation and the delivery, if you're getting the order from Menulog. So you can really be in multiple of these at any one time.

So that should give you a good overview of the various roles. You don't have to pick one role and build a business around it. But these are the roles that add value in every single food delivery transaction and there are plenty of opportunities to get involved in all of those. And we're going to talk about those in some specific detail in some more videos. So, hopefully, that was useful. Feel free to get back to me with any questions. And, otherwise, I'll talk to you soon.