Talabat Business Model: Guide on How to Build a Talabat-like App Share: White Label Fox Date Published 10 January 2023 Categories Blog Reading Time 8-Minute Read Know more about the Talabat business model and revenue, including how the app works, its features and information for your business. Mobility has gained immense popularity, especially in the food ordering and delivery sectors. With millennials turning online to order meals from local restaurants instead of eating at them, the focus has shifted to hyperlocal online meal delivery. Talabat is an on-demand meal delivery giant that offers a vast range of limitless cuisines from restaurants. Want to know how Talabat works? Read this article on the Talabat business model to know how it makes money. With comprehensive restaurant options, single-click payment, and limitless cuisine, food ordering and delivery apps have made life easier and faster. Instead of conveying amenities as straightforward service features, meal delivery apps convey convenience to every client at each level. The online food delivery segment is incredibly competitive, with each competitor offering something new. In spite of the Covid pandemic, online food delivery services were worth US$42.7 billion in the year 2020. The market is estimated to reach US$259.7 Billion by 2027, growing at 29.4% CAGR over the 2020-2027 period. Customers these days need everything at the click of a single button. This is the primary reason why online food delivery apps have become a part of our lives. With the emergence of online food ordering apps, food lovers can order their favorite food from the comfort of their sofas and receive immediate delivery right at their doorsteps. What is Talabat? Talabat is an online food ordering platform founded in 2004 in Kuwait. As of 2021, Talabat operates in Saudi Arabia, Oman, Bahrain, the United Arab Emirates (UAE), Iraq, Qatar, Jordan, and Egypt. Delivery Hero is the parent company of Talabat, which has raised 15 billion in convertible bond sales and has become one of the major food ordering companies in the Middle East. The Success Story of Talabat Founded by Khaled Al Otaibi and Abdulaziz Al Loughani in Kuwait, Talabat was started with the vision to make meal delivery a convenient experience for customers and restaurants. The name “Talabat” comes from the Arabic word for “order.” The online meal ordering platform has revolutionized the way meals are delivered in the Middle East and North Africa (MENA) region. From its founding, the delivery giant has provided customers with fast and easy delivery, effective communication channels, and accurate tracking facilities. Zomato sold its UAE food delivery business to Delivery Hero for US$172 million, forcing UberEats to close its operation in the region. Talabat also delivers groceries and pharmaceuticals, and has been venturing into eCommerce by providing deliveries to customers in 30 mins or less. Talabat is a food and grocery delivery platform operating in the MENA region. The delivery giant offers its services in more than 7 countries, and as a business owner who wants to invest in a multi-million dollar industry, the perfect way is to start with a deliver-anything app that functions efficiently. The Talabat Business Model: Check How Talabat Works to Offer Amazing Experiences Based on a hyperlocal business model, Talabat delivers goods with a primary focus on the meal delivery sector. The Talabat business model comprises modern techniques that ensure a smooth purchase experience for customers. The company bridges the gap between food stores and customers. Customers can use the website and app to order food or daily essentials. They can check the restaurant’s menu and choose their favorite dishes from a variety of options available—the general flow of how other on-demand hyperlocal services work is similar to the Talabat business model. Value Proposition Customers The main customers of Talabat are people who want to order ready-to-eat food. Talabat’s business model makes it easy for customers to get their favorite meal at their doorsteps. Customers who want to purchase essentials from grocery stores, eateries, and other stores can use this platform. Customers can choose to pay using various modes of payment, including cash, credit/debit card and any other online payment method. They can even track their order and check the estimated time of arrival. Once they receive an order, they can quickly provide feedback and ratings to the delivery person and restaurant. Restaurant Restaurants who want to expand their business reach can register themselves on a feature-rich delivery platform. The easy flow of Talabat helps restaurants serve more customers across different regions, opening new doors of opportunity. It allows restaurants to get a higher reach and stand out from others in the market. Delivery Partners Delivery agents who want to earn more can consider registering themselves on Talabat’s platform. They can work in a flexible time slot and at their convenience. Delivery providers’ income is no longer limited to what the company pays them; they can even earn an additional amount from customers’ tips. Revenue Model of Talabat: How Does This Delivery Giant Make Money? Talabat has become a market leader globally. The company has found cost-effective ways to grow its customer base across the globe. Talabat’s effective business model has helped the company build a strong presence in the market, but do you know how the delivery giant makes money? If you don’t, check the Talabat revenue model to find the answer. Like all other food delivery businesses, Talabat relies on effective revenue streams like: Commissions Delivery charges Let’s check each one in detail to understand how Talabat makes money. Commissions Talabat charges restaurants a 15-20% commission on every order that customers make using the platform. This helps them get exclusive business and decreases completion at the same time. The platform focuses on exclusivity, assisting restaurants to pay a 5-10% lower commission rate. Delivery Charges Talabat has no minimum order size, which helps customers get orders of all sizes. Delivery charges drop as an order’s size increases. The delivery charge for meal delivery is not fixed, and depends on various factors such as the distance to be covered, order size, and other factors. The delivery rate is comparatively high during peak hours, late-night delivery and other times. Advertising Costs Talabat mainly offers two types of advertising opportunities to food stores: Banner ads: restaurants get more coverage by showing their ads on the banner. Priority listing: restaurants can get a chance to appear on top listings. Talabat follows an impressive revenue model to generate great revenue. You can implement the same strategy to generate money for your food ordering and delivery business. Must-Include Features to Include in a Talabat-like App There are lots of features and modules that make an app like Talabat functional and working. These modules fall into the following categories, which include: User app/ panel Restaurant app/ panel Delivery provider app Admin panel User App/Panel Customers can use apps and panels to register, search restaurants and browse menus, among other functions. Some of the exclusive features you can consider using in the customer app and panel are: Filter & sort Add ingredients Track orders Easy payments Schedule orders Customer takeaways Add favorites Get notifications Delivery Partner App The easy-to-use delivery provider app has many features that make it functional. These include: Quick login Manage request Profile status Manage document Earning history In-app map navigation Manage multiple deliveries Customer feedback Restaurant App Advanced features included in the restaurant app help to manage everything efficiently. The app’s essential features include: Manage order status Order history Manage profile Store settings View order details View feedback Admin Panel The Admin panel has exclusive features that make it easier for the admin to have complete control over a business’s activities. The admin panel has the following features: Manage food categories Manage promo code Pickup/take away orders Set surge price Contactless delivery There are lots of features that you can consider including in your Talabat like-app. Have a look at the complete food delivery features list to know which features you can include in your app. Why Invest in Talabat-like App Development? Whether you are a solo entrepreneur or a business owner, investing in Talabat-like app development can lead to a lot of opportunities. Here are a few of the top reasons why you must invest in food delivery app development. Guaranteed growth Easy-to-get investment Endless possibilities Seamlessly target Gen Z and Millennials Operate a customer-friendly business Global opportunities Cost of Developing a Talabat-like App: Find Out Here! If you are looking for a perfect figure for developing a Talabat-like app, then you will fail to find it. The development costs of a Talabat-like app depend on many factors such as: App type and size Device and platform selection Features and functionality included Platform complexity There are many other factors that affect the development costs of a Talabat-like app. If you want to launch your delivery business online, get in touch with us at sales@whitelabelfox.com and get a quote right away. White Label Fox promises you a Talabat-like app with all the essential features to help you grow your business exponentially at a pocket-friendly price. End Note Talabat’s business model helps companies cover a long way and gain popularity as business giants in their respective markets. It is the most prominent delivery leader in the Middle East, where the meal delivery sector is growing fast. There is plenty of room for food delivery businesses to grow in different regions and earn millions of dollars in sales. Customers’ growing demand for hot meal delivery has opened new opportunities for delivery brands. Many delivery brands are using the support of app development companies to launch their business online. If you’re also looking to join the competitive market, then White Label Fox can help you.