Business Model Canvas of Foodora

This report analyses the business model of Foodora, an online food delivery service in Australia, using the nine building blocks of the Business Model Canvas. It also discusses critical success factors, downside risks, and potential business model changes.

Running head: BUSINESS MODEL CANVAS OF FOODORA
BUSINESS MODEL CANVAS OF FOODORA
Name of the Student
Name of the University
Author Note

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BUSINESS MODEL CANVAS OF FOODORA
Executive Summary
This report is built on the study of the business model of Foodora which is an organization
that functions in Australia. The company mainly provides food delivery based services to the
customers of the country. The main aim of the firm is to create the services that are based on
providing best food to the consumers. The business model of the organization has been
analysed in report with the help of the nine building blocks which help in the successful
operations of Foodora.

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BUSINESS MODEL CANVAS OF FOODORA
Table of Contents
I. Introduction.................................................................................................................3
II. Business model..........................................................................................................3
A. Building blocks.....................................................................................................3
1. Customer segments............................................................................................3
2. Key partners.......................................................................................................3
3. Value proposition...............................................................................................4
4. Key activities......................................................................................................4
5. Channels.............................................................................................................4
6. Revenues Streams..............................................................................................4
7. Cost structure.....................................................................................................5
8. Key resources.....................................................................................................5
9. Customer relationships.......................................................................................5
B. Interrelationships...................................................................................................5
C. Critical success factors..........................................................................................6
D. Downside risks......................................................................................................7
E. Business model changes........................................................................................7
III. Conclusion................................................................................................................8
IV. Recommendations....................................................................................................8
References......................................................................................................................9
Appendices...................................................................................................................11
Appendix 1...............................................................................................................11
Appendix 2...............................................................................................................12

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BUSINESS MODEL CANVAS OF FOODORA
I. Introduction
Foodora GmbH is an organization which has its origin in Berlin and offers delivery of
food based on the orders which are received on an online basis. The organization mainly
offers meals from more than 9000 restaurants which have been selected from all over the
world. The Foodora app is used by the customers and the corporate platform so that they are
able to browse the local restaurants, place the orders and further track the orders
(Foodora.com., 2018). The organization was established in the year 2014. The food based
delivery app was founded in the year 2014. The operations of the company are mainly based
on the ways by which the app can be used in an effective manner by the customers. The nine
building blocks of Foodora will be analysed in the report. The interrelationships of the blocks
are also analysed in the report based on which the risks of business operations have been
discussed (Foodora.com., 2018).
II. Business model
A. Building blocks
1. Customer segments
The customer segments of the food delivery app mainly consist of the corporate
customers or the normal consumers. The customers of the app also include the students and
the different working professionals all over the country. The people who like the food to be
delivered at the comfort of their home have been an important part of the customer segment.
Australia
Sex 50% male and 50% female
Income £40,000
Average transaction speed 20 to 60

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BUSINESS MODEL CANVAS OF FOODORA
Other characteristics Users of credit cards and home owners
Table 1 – Source – Created by author
2. Key partners
The key partners of the Foodora food delivery app are those who are able to provide
the raw materials to the company for products that it offers to the customers. The associates
in this case are mainly, the restaurants, delivery associates and the technology vendors as
well. These associates help the organization to develop its products in an active manner
(Aversa et al., 2015).
Customer type New Customers Existing customers
Delivery partners 15% 10%
Restaurants 12% 5%
Table 2 – Source – Created by author
3. Value proposition
The main value proposition of the Foodora food delivery app is related to the taste,
quality, hygiene, speed of the services, consistency and accessibility that it offers to the
consumers. The lesser rates which are delivered for the food products and high quality of
services are an important part of the value proposition of the Foodora app (Fritscher &
Pigneur, 2014).
4. Key activities
The most important activities which are performed by the food delivery app in order
to fulfil the demands and needs of the customers include, home deliveries, marketing
activities of the company and bulk orders. These activities of Foodora food delivery app are
able to provide the services which are to be delivered to the consumers (Dudin et al., 2015).

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BUSINESS MODEL CANVAS OF FOODORA
5. Channels
The diverse channels of Foodora app which play a significant part in services of the
company include, the mobile app, call centres, mobile devices, internet services, print media
and word mouth based advertising channels. The channels are essential to provide
appropriate services to the customers (Ghezzi et al., 2015).
6. Revenues Streams
The most significant revenue streams that plan an important part in the proper
operations of Foodora food delivery app are related to the methods by which the company
can progress in a sustainable manner. The main revenue of the firm is gained from the
deliveries of food that are provided to the consumers. The fees that are paid by the restaurants
based on various services is also a portion of the revenue streams (Gonçalves & da Silva,
2017).
7. Cost structure
The cost structure of the company is thereby built on the salary that is provided to the
delivery staff, the license based fees and the transportation based activities. The costs of the
corporation based on the channel costs are an important part of the cost structure that is
created by the Foodora food delivery app (Joyce & Paquin, 2016).
8. Key resources
The major resources of Foodora food delivery app are thereby related to the physical
infrastructure and IT infrastructure of the company. The restaurants which are a part of the
partnership based activities of the company act as an important resource which helps in
providing the orders to the customers (Plenter et al., 2017).

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BUSINESS MODEL CANVAS OF FOODORA
9. Customer relationships
The relations which are developed with the consumers play an important part in the
successful operations of the companies. Foodora food delivery app is able to function in the
food industry in an active way with the personal help which is delivered to them. The
computerization related activities of the company are also significant for efficient services
that can be delivered to the consumers with great speed (Toro-Jarrín, Ponce-Jaramillo &
Güemes-Castorena, 2016). Social media plays an important role in the ways by which the
firm is able to maintain relationships with the customers.
B. Interrelationships
The building blocks of the business model canvas are interconnected with each other
which is supportive for effective services and products that are provided to the customers.
The partners of Foodora food delivery app are helpful in providing the suitable services and
products to the consumers. The actions which are executed by the company are significant
aspects which affect diverse consumer segments of the firm. Value proposition of the
organization is important for Foodora food delivery app to assist the consumers in an active
manner. The distribution channels of Foodora are able to create customer relationships which
prove to be effective in nature (Vargas, Calva & Camacho, 2015). The cost based structure of
Foodora helps in determining the products and services that can provided to the customers.
The costs can be helpful in determining volume of incomes which need to be grown by the
organization in order to function in the food industry in a sustainable way.
C. Critical success factors
The aspects which have been cooperative for Foodora for gaining success in the
industry are based on the formation of an active delivery model which is essential across
diverse channels. The dependable experience which has been delivered by the app to the
consumers have played a significant in providing appropriate food products to consumers of

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BUSINESS MODEL CANVAS OF FOODORA
Foodora. The company has become capable of gaining various capabilities of shaping the
market which has been helpful for Foodora so that the company can lead the food delivery
industry. The company has developed new and inventive ways of delighting the consumers
and providing effortless experiences (Zolnowski & Böhmann, 2014).
The accomplishment of Foodora is built on the ways by which the organization is able
to interrupt the industry with the help of its inventive services. The application of
technologies has been the most significant action that has been a reason behind the
achievement of Foodora food delivery app. The company has created effective partnerships
with different restaurants all over the world so that the best quality food can be provided to
the customers in an effective manner. Innovation and technology has been able to act as a
critical success factor for the Foodora food delivery app (Vargas, Calva & Camacho, 2015).
D. Downside risks
The main danger that can be confronted by Foodora is built on the methods by which
the organization is able to increase the trust of the consumers in the area of its processes. The
food delivery based services that are delivered to the consumers are entirely based on the
efficiency related issues. The information of the consumers need to be kept safe by the
organization so that they are able to assist them in an active way. The low efficiency related
threats which are faced by the company can lead to a lack of consumers for the company in
the industry of food delivery (Zolnowski & Böhmann, 2014). The consumers can be safe
from the problems which can be confronted by them in the diverse procedures. The service
based value requires to be maintained successfully by Foodora in order to preserve its
successful place in the food industry. The food delivery industry has faced many issues due to
the entry of new organizations within the market and the similar services that are provided by
them. The company will thereby need to lessen these threats in order to function in the food
delivery industry.

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BUSINESS MODEL CANVAS OF FOODORA
E. Business model changes
The variations that are required to be implemented in the business model largely
contains, the variations in the number of associates of the company and expand its channels
as well. The associations which are formed by Foodora food delivery app requires to be
adequately active so that the new customers can be attracted towards the company in an
operative way. The app based services of the company requires to be developed so that the
consumers are capable to receive extra services and their demands can be satisfied as well.
The evaluations which are delivered by the consumers on the app of Foodora can act as an
active basis of data for the company in order to develop the service and the product that are
offered as well (Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016). The marketing
related activities of Foodora food delivery app need to be developed so that the organization
is able to create more awareness about its services and products among the consumers.
III. Conclusion
The analysis in the report can thereby be settled by asserting that building blocks of
the business model of Foodora food delivery able was able to portray that the company
requires to enhance its processes which can help the app to maintain its position in the food
industry. The organization has to moderate the threats which are being confronted in the
market so that it is able to operate in a lucrative manner in the food market. The organization
can thereby develop the business model in a way which will be helpful in giving tough
competition to other organizations which provide delivery related services in the Australian
industry.
IV. Recommendations
 Enhancement of the facilities which delivered to consumers.
 Trying to understand the changes that have taken place in the external
environment.

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BUSINESS MODEL CANVAS OF FOODORA
 The development the food delivery industry of Australia can be helpful for the
organization to rise its productivity.
 Aiming to offer finest facilities to the consumers so that they can be attracted
towards the app in an effective manner. The creation of loyal customer base is
important for the ways by which the company remains in the topmost position.

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BUSINESS MODEL CANVAS OF FOODORA
References
Aversa, P., Haefliger, S., Rossi, A., & Baden-Fuller, C. (2015). From business model to
business modelling: Modularity and manipulation. In Business models and
modelling (pp. 151-185). Emerald Group Publishing Limited.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting.
Foodora.com. (2018). foodora delivery service | We deliver, you enjoy!. [online] Available at:
https://www.foodora.com/ [Accessed 31 Jul. 2018].
Fritscher, B., & Pigneur, Y. (2014, July). Visualizing business model evolution with the
business model canvas: Concept and tool. In Business Informatics (CBI), 2014 IEEE
16th Conference on (Vol. 1, pp. 151-158). IEEE.
Fritscher, B., & Pigneur, Y. (2015, July). Extending the Business Model Canvas: A Dynamic
Perspective. In Proc. International Symposium on Business Modeling and Software
Design (Vol. 5, pp. 86-96).
Ghezzi, A., Cavallaro, A., Rangone, A., & Balocco, R. (2015, April). A Comparative Study
on the Impact of Business Model Design & Lean Startup Approach versus Traditional
Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).
Gonçalves, R. F., & da Silva, M. T. (2017, March). System Thinking and Business Model
Canvas for Collaborative Business Models Design. In Advances in Production
Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International
Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised
Selected Papers(Vol. 488, p. 461). Springer.

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BUSINESS MODEL CANVAS OF FOODORA
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to
design more sustainable business models. Journal of Cleaner Production, 135, 1474-
1486.
Plenter, F., Fielt, E., Hoffen, M., Chasin, F., & Rosemann, M. (2017). Repainting the
business model canvas for peer-to-peer sharing and collaborative consumption.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., & Güemes-Castorena, D. (2016). Methodology
for the of building process integration of Business Model Canvas and Technological
Roadmap. Technological Forecasting and Social Change, 110, 213-225.
Vargas, I. S., Calva, A. L. G., & Camacho, J. H. (2015). Business model canvas. Ciencia
Huasteca Boletín Científico de la Escuela Superior de Huejutla, 3(5).
Zolnowski, A., & Böhmann, T. (2014). Formative evaluation of business model
representations-The service business model canvas.

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BUSINESS MODEL CANVAS OF FOODORA
Appendices
Appendix 1
Key Partners
 Partners in
delivery.
 Vendors
providing
technology.
 Social
media.
 Restaurants
.
Key Activities
 Providing
delivery to
the
customers.
 Providing
bulk
corporate
orders.
Value Proposition
 Price
 Taste
 Quality
 Convenience
 Consistency
 Accessibility
Customer
Relationships
 Service
provided to
customers.
 Connectivit
y through
social
media.
Customer
Segments
 Corporate
customers.
 Students.
 Working
professional
.
Key Resources
 Delivery
staff.
 Restaurant
owners.
Channels
 Mobile
applications
 Social
media
based
activities.
Cost Structure
 Costs related on the channels of the organization.
 Expenses based on salary provided to the delivery
staff.
Revenue Streams
 Income related to the orders provided.
 Income gained from the restaurants.

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Appendix 2