Food Delivery Service
Type: Service and Trading
If you’re passionate about food and want to start a business, consider food delivery services. This business focuses on delivering delicious meals right to people’s doorsteps, making it convenient for them to enjoy restaurant-quality food without leaving their homes.
Key Services:
Food delivery service is all about making food simple and accessible. From local favorites to diverse cuisines, customers can choose from a variety of meals through a user-friendly ordering system.
Technology Considerations:
Communication tools like phone and email will be crucial for order confirmations and updates.
The market for the Service:
The target market includes busy individuals, families, and anyone who craves restaurant-quality meals at home. Restaurants without delivery services can also benefit by partnering with Easy Eats.
Key Inputs into the Business:
- Partnerships with local restaurants
- Reliable delivery vehicles
- Communication tools (Phone)
- Marketing materials to promote the service
Service Delivery Process:
Customers can place an order via phone call, choose their favorite meals, and arrange for payment. The business team ensures timely pickups and deliveries, making the entire process smooth and enjoyable.
Quality Considerations:
Prioritize food safety and quality. Partnering with reputable restaurants and implementing proper handling procedures ensures that your customers receive fresh and delicious meals every time.
Cost of Investment:
Marketing Materials: KES 5,000 – KES 10,000
Delivery Vehicles (Motorbikes):
Motorbike: KES 80,000 – KES 100,000
Rider (Staff): KES 20,000 – KES 30,000 (Monthly)
Insurance: KES 5,000 – KES 10,000 (Annual)
Licenses: KES 10,000 – KES 15,000
Operational Costs: KES 10,000 – KES 20,000 (Initial Working Capital)
Total Estimated Investment: Approximately KES 130,000 – KES 195,000
Required Operational Infrastructure:
Motorbikes for delivery
Communication tools(phone)
Marketing materials
Most Suitable or Viable Location:
Food delivery services can start in urban areas with a high population density and a variety of restaurants. This ensures a broad customer base and a wide range of food options.
Potential Sources of Investment Capital:
Explore personal savings, small business loans, or partnerships with local restaurants. These options can help secure the necessary capital for starting and expanding the business.
Requirements for Effective Management:
Efficient delivery coordination, responsive customer service, and strategic partnerships with restaurants are crucial for effective management.
Role of Mobile Phones and ICT in the Business:
Mobile phones play a central role in order placement, customer communication, and overall service coordination.
Statutory Regulations and Licenses:
Compliance with local regulations, especially in the food and delivery industry, is essential. Acquiring the necessary licenses ensures a legal and trustworthy operation.
Pricing:
Competitive pricing based on market research ensures affordability for customers while maintaining profitability for the business.
Profitability:
With careful planning and efficient operations, food delivery service has the potential for profitability. For example, aiming for a monthly profit of KES 30,000 with an average delivery fee of KES 150 per order.
Next Steps to Take:
Procure reliable motorbikes and hire dedicated riders.
Establish partnerships with local restaurants.
Launch marketing campaigns to attract customers.
Provide excellent customer service for a positive reputation.
Examples of Food Delivery Apps:
Glovo: Offers on-demand delivery services for a variety of items, including food.
Bolt Food: Provides food delivery services, connecting users with their favorite local restaurants.
Uber Eats: An extension of the popular ride-sharing platform, Uber Eats delivers food from local restaurants like Galitos Kenya, CJ’s, and Pizza Inn Kenya to users’ doorsteps.