Homer charges restaurants an undisclosed percentage of the total order, plus a flat-fee for each delivery.
Now, the company has around 200 employees, most of them delivery staffers making about 25,000 drop-offs a month.
At around the same time Price started ramping up, so did a number of other players.
For example, last year, Grub Hub, which has a platform for ordering meals online and via mobile phones available in more than 1,000 U. cities and London, introduced a delivery service for restaurants on its site, now in about 50 markets in the U. Grubhub's business model, however, is different. It makes its money by taking a commission from restaurants that list on its site — typically 10 percent to 14 percent or more for ordering and an additional amount for delivery — according to the company.
When Adam Price moved to New York City from San Diego close to three years ago, he didn't expect to see hordes of bicycle delivery folks transporting restaurant orders to customers.
Uga Creative Writing - Food Delivery Service Business Plan
Price, a former aerospace engineer on the lookout for a start-up idea, realized he'd hit pay dirt.
When you are contemplating a tasty new specialty food or beverage product to build a business around, you want to get to the feasibility of your idea—meaning how successful it might really be.
Feasibility is the first step in your food entrepreneurial journey because not all ideas are opportunities.
First, there's the basic business model of working behind-the-scenes with restaurants, instead of focusing on the consumer.
"They're not driven by reaching a lot of individuals," said Jeffrey Silverman, managing director of Laconia Capital Group, a New York City-based venture capital firm focusing on pre-Series A-stage startups that is considering investing in Homer.