(https://www.google.com/search?q=amazon+drones&rlz=1C5CHFA_enUS739US739&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjgo-XwsuDaAhXrsVQKHR5KCa8Q_AUIDSgE&biw=1440&bih=826#imgrc=chH_UXmPJ23SoM:)
Service:
This service solves out long waiting issues caused by long distance. Nowadays, there are many people would like to enjoy delicious food far away from home. However, the existing food delivery companies provide services mainly in a limited area through automotive vehicles. Thus, customers have to drive a few hours to another state to get the food they like.
Since many food delivery companies are existing in the current markets, to differentiate from them, flying food delivery are focusing on employing high technology, unmanned plane, to deliver foods to customers in a relative rapid velocity. For instance, a person who loves Lady M in Los Angeles but lives far away from the store in Tucson has to order the cake online. However, it takes 3-7 days to ship to customers. Even though it is not a big deal to wait, customers may still desire to receive the cakes at the same day as ordering. This is the opportunity that allows people to gain profits compared with other competitors. Unlike cars, unmanned planes usually are not trapped by serious traffic jam, which would defer customer from receiving deliveries and trigger customers’ dissatisfaction; drones are able to fly through a long distance to ensure customers to enjoy delicious foods.
Revenue:
The majority sources of revenue will be delivery fee and commissions from restaurant. The delivery fee can be up to $20 per order, which approximately equals to the price of food. Typically, restaurants pay 10-20% commissions to delivery platform. Some platform charge more to 30%. Based on our particularity, we believe that we can charge 25-30% commissions. So we are glad to see that we can earn 125-130% of the food price in an order. People are able to undertake advertisement business. The recommendation on APP and banner advertising service on drones can be a source of revenue as well. The recommendation will be in pay-per-impression mode, around $0.06-$0.09 per thousand view. The price of drone banner advertising will be from $100 to $350 according to the size of banner and the time of advertising.
This is a very interesting topic as I would of never imagined my food being delivered to my doorstep. I can see the benefit of having a service like this, but personally I have a hard time seeing myself using something like this in the future. My reason for that is because of how much they plan to charge for the delivery service. At the same time, if there was some type of food that was only available in a location far from my home, I could possibly see myself indulging every once in a while, but definitely not regularly unless the prices were somehow lowered. Great post and topic!
ReplyDeleteI really enjoyed to Tech Briefing especially the revenue section. I know that profitability is a major concern with a lot of these food delivery apps. For some time UberEats was losing money on their delivery and now a lot of these services had to book up their delivery premiums and cut deals with specific restaurants.
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