The online food ordering trend has gained immense popularity over the last few years across the globe. The hectic schedule of working people, longer commuting hours, and increasing penetration of smartphones paved the way for digital ordering and delivery apps to emerge. In Egypt, the same reasons imply. Let’s uncover some interesting facts about Egypt’s food delivery market and how an Akelni works.
The online food delivery market has seen massive growth from the last couple of years and generated revenue of $122.740 billion across the globe. It is estimated to rise with a CAGR of 32% annually by 2021. Such figures reveal how the online food delivery market is growing and how more and more entrepreneurs are jumping on the bandwagon.
One such popular player that has gained popularity in Egypt’s delivery market is Akelni. It is one of the best and largest food delivery companies in Cairo in terms of revenue generated. So how does it work and manage its business operations with ease? How it connects restaurants and retail stores to provide products at the user’s doorstep.
Let’s discuss its business model and revenue streams for better understanding.
A Close Look At Egypt’s Online Food Delivery Sector
Akelni is a leading Egypt-based food and grocery delivery platform that allows users a seamless way to order food and grocery online and get it delivered at their doorstep in no time. Akelni is an online delivery marketplace that connects restaurants and shops with users.
In the above image, you can see how the online food delivery sector in Egypt has reached $74 million and is projected to grow to $131 million by 2024. (source)
Especially if we talk about the middle-east food delivery market, they have seen noticeable growth over the years, and more than 85% of restaurants are already taking advantage of leading food delivery apps.
Approx.35% of restaurants located in Egypt reported more than half of their income earned from online delivery. Major industry players active in the Middle East are Zomato, Talabat, Akelni, and many more.
More than 6 million people across the middle east use online delivery applications, making it the largest food delivery market
Another well-known food delivery app, “Carriage,” has quickly gained attention across the Gulf region and is thinking of expanding its services to other nations.
You won’t believe it, but Egypt’s food delivery market is continually growing and generated $81m in 2019. This is why more and more restaurant business owners want to develop an online delivery app that makes a strong customer base and allows them to earn huge profit in no time.
Akelni’s Success Story – Overview and History
Akelni is an online delivery application that serves people by delivering food and essential products to their doorsteps and helping restaurants and store owners increase their revenue. Akelni began its journey in 2017 in Egypt.
Akelni has been the leader in the Egyptian market since 2017 and operates in more than 12 cities and working with more than 1800 restaurants and retail store owners. It allows unique food and grocery delivery experience to its users.
Name: Akelni
Headquarters: Cairo
Type: Public Company
Founded: 2017
Founders: El Sayed Kassem, Mohamed Samy
Partners: More than 1800 restaurants and store owners
Company Size: 51-200 Employees
Speciality: Food and grocery delivery
Area Served: 11 Egyptian cities.
Funding Type: Angel Investors ( Raised $1.2M)
Employees: Around 70
Akelni’s journey is quite exciting, but how does it work, and what is its business model? Let’s analyze it in detail.
How Akelni Works?
The Akelni app is easy to use. Customers can easily avail of food or grocery at their doorsteps in no time. If you are familiar with ordering food with other delivery applications, this would be easy for you. Here we have mentioned four easy steps so that you will get a better idea of how an Akelni works.
Search: Users can browse restaurants and stores for their food and grocery requirements.
Place Order: Users can place orders and make payments from the options given.
Food Preparations: The restaurants confirm the order, start preparing food, and it will be out for delivery.
Delivery by Akelni Person: Order will be picked up by the delivery provider and delivered to users.
Akelni Business Model – Let’s Take A Glimpse
Intending to make food and grocery delivery a seamless experience, Akelni connects local restaurants and stores in the city with the consumers.
Therefore, they serve three segments:
- Customers
- Stores
- Restaurants
Value Proposition for Restaurants
By offering a value proposition to restaurants, Akelni has grabbed a decent chunk of Egypt’s delivery market. Following are some of the values offered by Akelni to restaurants owners,
- Restaurants can reach out to more customers without spending huge money on advertising.
- Risk-free publicity and a strong consumer base
- Offers advanced delivery platform to manage orders and delivery providers
Value Proposition for Customers
Customers mean end-users who can either place orders from websites or applications or can pick them up from nearby restaurants. If users don’t want to pay delivery charges, they can opt for this option. It makes the online order process faster by eliminating unnecessary complications. The following are some of the values offered to consumers by Akelni,
- Connects diners to restaurants through the personalized platform
- Offers digital menu for the easy online order process
- Serves customers food at their preferred location
- Offers modern features such as in-app chat support, real-time tracking, etc.
- Makes the repeat order process easy by saving consumers data. (address and payment details)
Akelni’s Revenue Streams- How Does it Make Money
Today, the online food delivery market is quite competitive, but if we talk about food delivery market, then Akelni has been able to create its unique space in the region. Akelni has three major sources of revenue. These are-
Delivery Fees
Akelni charges a delivery fee on each order placed by customers. Usually, a 20-40% amount is paid to the delivery providers for their services.
Commission from Restaurants
This is the primary revenue source of income from Akelni as they charge a certain percentage of commission from restaurants on each order.
Advertisements
Akelni is quite popular in Egypt; hence its brand reputation is good. Thus restaurants also gain visibility and start paid advertising. This is another important revenue source of income.
Apart from the revenue sources, have a look at some important parameters.
Akelni’s Active Users: More than one lac
Ratings: 4.5/5
Akelni Corporate: Exclusive benefits for employees
The above parameters clearly show how successful Akelni is and continued its expansion across Egypt.
Conclusion
We know that the food delivery market is growing, and apps similar UberEats, Zomato, Doordash, etc. have already established their reputation in the market. If you want to sail on the same boat, getting Akelni clone for your conventional food delivery business won’t cost you more while opening up doors to progress. contact us today and get a free consultation on the delivery app and how it will expand your business from the bottom line.
