People nowadays have switched their preference to various on-demand food delivery services from traditional eating. The food delivery apps let customers choose from thousands of chosen cuisines of their choice, delivered right at their doorstep, all just in a click. Talabat is one such platform that has recently emerged as an underdog in the on-demand food delivery industry in the Middle East. How Talabat Makes Money?

Founded in 2004, Talabat is the biggest online food ordering platform in MENA with more than 10,000 restaurants on the platform.

Source: Crunchbase

Let’s go ahead and understand what made Talabat one of the best in businesses around.

Talabat Food Delivery App – The Journey

Talabat is the most renowned brand in the Middle East that caters to customer’s need for food and grocery delivery. Being founded in 2004, Talabat made the best use of the business opportunities available online to order food. The two bulleted points below highlight their transition from their inception.

• Back then, when there was a modem (which made funny noises and gave you a slower internet than a tortoise), a customer would place an order online. Then their team would have to disconnect from the internet, phone the restaurant, place the order, and reconnect to the internet again! No access to Google Maps just exaggerated the issues!
• Fast-forward to 2020, they’ve transformed the food delivery industry in the MENA region. It is now much easier for customers – a few taps on the app, and bravo, your delivery is on its way – with incredible tracking, super-fast delivery, and the ability to communicate with the in-app rider.

They have expanded their services in several middle east countries such as Kuwait, the Kingdom of Saudi Arabia, UAE, Oman, Bahrain, Egypt, Jordan, and Qatar as we talk.

What led to this rapid expansion of Talabat? How Talabat makes money? Let’s study them in detail.

Talabat Business Model – Why Talabat Prospered?

After its recent announcement, Talabat now serves people who want to purchase items from eateries, groceries, gift shops, and flower shops.

Talabat Revenue Model – How Talabat Makes Money?

Just as Talabat is known for delivering unique products on its platform, it is also known for a unique revenue model. Talabat’s revenue model encompasses the following:

1. Commissions: It charges 15% – 25% on the restaurant’s order bill. Apart from that, it receives 5% – 10% on the Talabat Exclusive restaurant’s order list. The commission percentages depend on various factors, such as order frequency, restaurant location, restaurant’s reliance on Talabat, penetration into the new town, and so on.
2. Delivery Charge: Talabat has no minimum order delivery requirement, which implies that orders under all caps can be received frequently. It increases the cost of logistics per order and sometimes charges high delivery rates in the period of high demand like storms, special occasions, or midnight delivery. It also helps drive customers to order above the threshold for delivery charges.
3. Advertisement: The two models that help Talabat generates advertising revenue: banner ads and priority listing of restaurants. The higher they want to appear on the list, the higher the cost the restaurant has to pay.

What were the Challenges Ahead?

Great, Talabat now has become a market leader in the Middle East. But can they maintain that position across a variety of delivery categories? This was a challenge they catered quite well.

To maintain this leadership position in a variety of delivery verticals against the increasing competition, Talabat had to find more cost-effective ways to grow its customer base across the Middle East. What did they do?

• Maximized their reach to local customers
• Exploited intent of the customers ordering online
• Constant analysis of performance in the competitive market

In December 2020, Talabat and Huawei signed a partnership to list Talabat App in the Huawei marketplace.

Source: Wikipedia

And this is how they rose among the competitors ahead.

Want to build a Successful Delivering Vertical around?

• Dream Big
• Have the Urge to Solve a Problem
• Choose your Advisory Board Carefully
• Always Strive to Improve
• Stay Updated with Market

Why the Need for Talabat like App?

In the UAE region, the on-demand food delivery industry is growing at a rapid pace. There is plenty of room for any new food delivery app to get lots of customers in this region and become successful. You can earn good profits if you build and launch your Tabalat like app in the UAE. Get your Talabat clone app here.

What is the Cost Of Building An Application Like Talabat?

Well, the cost of developing a food delivery app like Talabat depends largely on what kind of feature you want to incorporate in your app. Nonetheless, a basic food delivery app can cost around $15,000-$25,000, while a more complex solution can cost more than $45,000.

Why Choose CodeBrew?

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. CodeBrew helps you do that for you in no time.

Inspired by the success story of Talabat (How Talabat Makes Money)?

Willing to build one of your own or thinking to invest in a similar firm?

Don’t forget to Get In Touch with Code Brew Labs because we don’t just ‘Work’, we ‘Brew Success’!