Talabat Business Model: How Does Talabat Make Money?

Talabat Business Model

Whenever we feel hungry, we want a magical wizard that can get us our favourite food. It sounds overwhelming. Yes, it may be, but it’s true! In this era, nothing seems to be impossible.

Your wish of yours is now granted. There are certain apps which can help you order your favourite food from your favourite restaurant. All of this without leaving the comfort of your place.

There are lots of apps doing the same thing all around the world. In this article, we are going to discuss one such app. Here, we are going to discuss Talabat Business Model: How Does Talabat Make Money? It is one of the on-demand food delivery apps in the MENA region. Let us start the discussion.

Talabat Facts and Figures

Talabat was established in 2004 with the vision of making food delivery a convenient experience for each consumer and restaurant owner. It revolutionized the conception of food delivery within the MENA region (the Middle East and North Africa). Talabat is regularly working on its technology to provide its customers with quick delivery without any inconvenience. It has created a great communication channel between client and delivery agent, which makes it one of the best food delivery apps in the MENA region.

According to CrunchBase, Talabat tied up with Zomato in 2019 for 172 MN, which helped them gain the bulk of the market share. As a result, UberEats closed its supply chain in this region, which was a profitable step for Talabat.

Initially, Talabat was a food delivery app, but now it is delivering groceries, prescription drugs, etc., and has been venturing into q-commerce by providing deliveries to its customers. It promises to deliver within 30 min or less to its customers.

Now, Talabat is the largest food delivery and grocery delivery platform within the MENA region. It is currently operating in seven countries through GCC, namely, Kuwait, United Arab Emirates, Qatar, Egypt, Oman, Bahrain, and Jordan.

Also Read: How are On-Demand Food Delivery Services Making The Life Easier?

Talabat Business Model

Talabat’s business model is based on hyperlocal delivery services and its majority specialises in the food delivery sector of the MENA region. Talabat uses best-in-class technology to cover up a bridge between the consumers and the restaurant owner. This model has provided a perfect purchasing experience.

  1. Talabat operates on both an internet site and a mobile application so that customers can order the food at their full convenience.
  2. Talabat also provides a full-fledged menu to the customers, so that they can easily order what they want.
  3. Let us now see the steps of ordering the food.
  4. The restaurant has a tie-up with Talabat. Talabat shows the customer about every restaurant equally.
  5. The customer goes to her favourite restaurant and orders anything she wants by seeing the menu.
  6. Once the order is placed, the restaurant receives it through the app as a push notification and starts preparing the same.
  7. While the order is preparing a delivery person reaches the restaurant to collect the order and deliver it to the mentioned address.
  8. Once the order is prepared, the delivery person takes the order and reaches the desired destination. She/He delivers the order and completes the delivery.
  9. While all these steps are being performed, the customers get an update on every step. She/he can also track the order if they want.

Why is White Label Food Delivery App Ideal for your Business?

Talabat Revenue Model

Talabat has a great revenue model. It comprises three ways through which it generates its revenue.

  1. Commissions on orders
  2. Delivery Charge
  3. Advertisements

Commissions On Orders:

Talabat takes 15 to 20% of the commission on every single order from the tie-up restaurants. If a restaurant chooses to be an exclusive member of Talabat, then they will offer a discount of 5 to 110% to the restaurants on their orders. This helps Talabat with obtaining exclusive restaurants. This step also reduces competition within the market.

Delivery Charge:

Talabat has no minimum order size. This step helps them to get small to big orders at once. The delivery charge decreases as the size of the order increases.

Advertisements:

Talabat has the best advertisement strategy for their sales. They monetize the advertisements in 2 ways:

This involves showing the ads in the form of banners on the buildings. It provides restaurants additional coverage and it also helps them to get a great level of word of mouth.

Priority Listings:

This is a feature for the restaurants to get a listing within the top 5 list. It helps them gain visibility. It also helps the restaurants to showcase their taste to the customers. Customers usually order from the uppermost listings, and thus these restaurants get a lot of advertisements.

Talabat Features

Features of the Talabat app constitute 3 categories:

  1. Customer App/Panel
  2. Restaurant App/Panel
  3. Delivery Agent App/Panel

Features Of Talabat’s Client App/Panel

  • Login: Talabat provides customers with a choice to log in or register with their social logins, email, phone number, and OTP.
  • Location: Talabat Customers have a choice to choose their location to ascertain all the restaurants in their location.
  • Homepage: This is the feature in the client’s app which allows to see the current open hotel and restaurants easily.
  • Selecting the Cart: This is one of the best features that can help a consumer to select the favourite items and add them to a single cart. It allows the customer to aggregate the items of her/his choice.
  • Menu: Once the consumer selects a building to get the order, they can hover through the menus of each restaurant and select whatever they want to order.
  • Online Payment: Talabat provides its customers with the choice of online payment via UPI, credit/debit cards, etc.
  • Reviews Slide: Ability for purchasers to write down a review for restaurants.
  • History Of the Orders: It provides customers with their order history, which enables them to reorder.
  • Product Search: It becomes difficult if you don’t know which restaurant delivers what you want. Here’s where Talabat comes to help. It filters the merchants who deliver the same product you searched for and shows them up in the search.
  • Tracking Delivery Person: Through Talabat’s client app/panel, customers can easily track the delivery agent delivering their order.
  • Contact Information: This app also has a section to contact the restaurant and also delivery person. It helps her/him to know about their delivery, etc.
  • Online Support: Customer gets an online support from the staff of the app, whenever they need.

Features Of Talabat’s Building App/Panel

  • Dashboard: The merchandiser dashboard permits them to line up their profile, keep track of their revenue, order standing, etc.
  • Accepting Or Rejecting Orders: One of the most common difficulties in on-demand businesses is keeping a check on the deliverables. There can be certain times when the restaurant doesn’t have the order that has been placed. To resolve this issue, Talabat provides its merchants with a handy choice to either settle for or reject the orders.
  • Managing Restaurant’s Profile: It provides the restaurants with the power to line up their menus, promotional offers, banners, etc. It permits the building to perform specifically with full potency.
  • Online Payments And Commission: Talabat’s merchants get their payment at regular intervals once deducting the commission. They can watch their daily revenue report on the app/panel.

Features Of Talabat’s Delivery Agent App/Panel

  • Login: The drivers will log in through social channels, email, and phone numbers victimization OTP.
  • Calls/Chat with The Customer: There may be times when the delivery agent sometimes needs to call the customers or the other way around. To assist with this, Talabat provides its delivery agents with 2-way communication so that they can have a word with the customers whenever they want while the process of delivery.
  •  Personal Account Wallet: This feature helps the agents store their daily revenue that will be transferred to their accounts.
  • Accepting/ Rejecting Deliveries: Delivery agents have the power to just accept or reject the delivery task based mostly on their preference.
  • GPS Tracking: This is the feature that is inbuilt in the delivery person’s app. Through this feature the person can be tracked. It also helps the technical support and the customer to track the person.
  • Online Support: Whenever the delivery person faces any kind difficulty while delivering the order, she/he can call or message the support bots. The bots help them with their queries all the time.  

Talabat Business Model Canvas

Talabat operates a robust online platform for food and grocery delivery, serving a wide range of customers including individuals, families, office workers, and restaurants/grocery stores. Its business model focuses on providing convenience, reliability, and variety through a user-friendly app and website. Revenue comes from delivery fees, restaurant/store commissions, and subscription services, supported by key resources like technology infrastructure and a delivery fleet. Talabat maintains customer relationships through efficient service and partnerships, while managing costs through strategic investments in technology, operations, and marketing.

Talabat Business Model Canvas
Talabat Business Model Canvas

Wrapping It Up

We have discussed Talabat Business Model: How Does Talabat Make Money? It is one of the most successful on-demand food delivery apps in the MENA region. You will get all the important knowledge about the app in this article. If you also want to Create an App like Talabat, we can help you with the same.

We have a great team of developers who can help you from scratch to the top in building an Food Delivery Software Solutions. You can contact us through email or call us on the given numbers. We are happy to help.

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