Foodora 101: The Ultimate Guide

From familiar favorites to new culinary finds, Foodora connects diners to the best local restaurants while keeping things simple, sustainable, and tasty. 

With coverage reaching over 200 cities in Europe, Foodora’s growing team of more than 2,000 people is dedicated to delivering for customers in Austria, Czechia, Finland, Hungary, Norway, and Sweden.

A Brief History

Since its launch in 2014, it has grown fast, from its roots in Germany to become a go-to food delivery platform in Europe. As part of the Delivery Hero group, Foodora has gained popularity thanks to its bike couriers zipping through city streets, delivering meals in record time. Since 2014, Foodora has been all about:

1. Quick delivery: Average time is often 30 minutes or less

2. Transparency: Real-time tracking tools

3. Sustainability: Eco-friendly bike deliveries

Foodora Present Day

• Allied with numerous restaurants in each country: Foodora works with nearly 7,000 restaurants across more than 170 cities and towns.

• Czech presence: The company previously operated under Dáme jídlo, but it was rebranded in 2023. On average, it cooperates with about 6,000 businesses nationwide and delivers over 10,000 orders at peak times.

Business model

Foodora’s business model stands out in the competitive food delivery space by seamlessly connecting diners with local restaurants while handling the logistics of swift delivery and secure payment. Its approach simplifies customer and partner eateries’ experience, ensuring reliable, fast delivery and a customer-centric mobile platform.

Order and Delivery Model

Foodora manages the entire order and delivery process with a streamlined system to:

1. Explore a wide variety of restaurant menus on the app or website.

2. Customize their orders and place requests with a few taps.

3. The platform assigns the order to the courier closest to it.

4. Couriers receive notifications of new deliveries and can claim assignments immediately.

5. Their dynamic system quickly reallocates jobs if a courier declines, making the process efficient and minimizing delays.

Seamless Payment Experience

Foodora’s in-app payment process allows for quick and secure payments, making it easy for customers to place repeat orders with minimal effort. Foodora leverages Adyen’s technology to support:

1. One-click payments.

2. Popular mobile options like Apple Pay. 

3. Local payment methods are customized to different regions. 

This seamless integration increases customer satisfaction and retention by simplifying the payment flow and maintaining high-security standards. Additionally, Adyen’s global reach and real-time data allow Foodora to scale and adapt as it enters new markets, keeping the experience consistent and convenient for users worldwide.

How does it work?

Foodora’s setup is straightforward, giving users a smooth experience from browsing to delivery. Here’s a look at the process:

1. Order Up: Customers pop in their address, pick a restaurant nearby, and order through the app or website.

2. Prep Time: The restaurant gets the order, preps it, and marks it ready for pickup.

3. On the Way: A rider grabs the order and brings it to the client’s door.

4. Getting Paid: Businesses receive payments every two weeks and a breakdown of their sales.

Registering and Setup

Future partners have an easy onboarding process with Foodora; if you would be interested in working with them as a restaurant, you will have to:

• Step 1. Head to partner.foodora.se and fill in the form 

• Step 2. Complete a quick verification and order management integration and provide a Food Business license.

• Step 3. Submit Tax, VAT, and employer certificate (if applicable).

Prices, Fees, and Commissions: What to Expect

Foodora’s fee structure supports the platform’s costs while adding value for restaurant partners. 

The commission rate for Foodora can vary by country but typically ranges to around 30%, depending on regional policies and market conditions. While exact numbers may vary, these fees help maintain the platform’s functionality and fund marketing efforts that benefit all partners.

Transparent Pricing and Fair Value for Customers

Foodora requires that menu prices on the platform remain consistent with the restaurant’s direct prices. This approach ensures customers only pay additional delivery costs, preserving overall value and keeping fees straightforward. Foodora’s investment in platform improvements, marketing, and customer acquisition directly benefits partners by increasing visibility and potentially boosting orders.

Discounts, Service Fees, and Minimum Order Values

Foodora may offer discounts to customers at its own expense. Service fees and minimum order values (MOVs) apply based on delivery logistics and costs. MOVs are determined by the specific costs of providing delivery, helping to support operational sustainability without compromising service quality.

Partner Charges

Businesses are subject to a few essential fees to access and maintain services on the platform:

• Setup Fee: Covers the initial setup, including terminal and printer equipment.

• Monthly and Service Fees: A commission per order based on total order value (including VAT but excluding Foodora-funded discounts).

• Additional Costs: Charges may apply for returns, special advertising, and promotions, as agreed between Foodora and the Partner.

• Penalty Charges: To uphold service quality, Foodora may apply penalties for incorrect orders, missing items, or delivery delays. For example, penalties of EUR 2.50 may apply per incorrect order or up to EUR 10 for delays over 30 minutes.

Payment Process and Remuneration

Foodora pays partners for fulfilled orders, minus relevant fees, up to four times monthly. Payments are processed on a regular schedule, which is aligned with when orders are completed. Partners can select from one, two, or four monthly payments to match their cash flow needs.

Other Considerations

• Late payments by partners may incur 8% interest and a EUR 5 reminder fee.

• Unpaid fees may be deducted from future payments to streamline account reconciliation.

This structure helps Foodora maintain a reliable service standard for partners and customers.

- In some areas, reduced VAT rates for takeout can help balance these costs.

Marketing efforts and benefits

• Unmatched Reach to a Broader Customer Base: Foodora connects you to a vast community of eager customers seeking fresh dining options. After joining, your restaurant can tap into a large audience that might have yet to be discovered.

• Marketing Campaigns Expertise: As a partner, you benefit from their extensive marketing campaigns at no extra cost. Their experienced marketing team tirelessly promotes your restaurant, drives more orders, and enhances brand recognition.

• Promotions and Discounts: create and manage exclusive offers, discounts, and promotions that attract new customers while keeping existing ones returning for more inside the platform.

• Online Visibility: With Foodora’s powerful marketing strategies, your restaurant will gain the attention it deserves. From SEO-optimized listings to targeted ads and social media promotions, they will help you attract food enthusiasts and boost your visibility online.

• Data-Driven Insights for Smarter Decisions: All their partners have access to a user-friendly dashboard filled with detailed analytics. You can track performance, customer preferences, and peak ordering times to make informed decisions that optimize your business operations and foster growth.

• Customer Feedback: They provide real-time responses to see what’s working and what’s not. foodora’s platform offers a seamless way to collect and respond to reviews, helping you maintain high standards and continuously improve your service.

Streamlined Operations and Partner Support

• Efficient Order Management: The platform simplifies the order process, allowing you to receive, manage, and track orders in real-time, ensuring a smooth experience for your team and your customers.

• Dedicated Partner Support: Foodora is committed to your success. Whether you need technical assistance or business advice, their dedicated support team is available 24/7 to help your restaurant excel in the competitive food delivery market.

• Training and Resources: You would have access to training materials to help your staff manage orders and use the platform effectively, ensuring a smooth transition into the Foodora ecosystem.

How do Foodoras’s search results rank?

Foodora ranks search results using algorithms and paid placements, ensuring customers see the most relevant options based on their preferences. This ranking system blends the following user-driven factors:

• The content of your search: The search results that most closely reflect the wording of your search query, e.g., Partners’ name, the Products, and a specific offer, will be listed higher. If your search query consists of special characteristics related to Products (e.g., a certain type of dish) or Partners (e.g., a specific kind of restaurant), the search results that most closely reflect such characteristics will be listed higher. 

• Opening hours, distance, and delivery time: The order of the search results is also based on the opening hours, distance, and delivery time of the relevant Partner to Your specified delivery address. For example, a shorter delivery time means a higher ranking. Should there be more than one Partner under the same brand group in the same delivery area, the search results can be limited to show only the Partner within that brand group with the shortest delivery time. 

• Popularity: Partnerpopularity Partner’s popularity can affect the ranking of the search results. Popularity is measured, for example, by views or orders placed within a specific time frame. The greater the popularity, the higher the listing.

• PaidPlacement: Paid placement, marketing, and campaigns can also influence search results ranking. A Partner with paid placement will be ranked highest if that Partner has the products you searched for. 

Generally, the restaurant that best matches your search query or has the most searched products will be at the top. However, a partner may get a higher ranking if it has high ratings (high popularity) or can deliver quickly.

Pro Tips to Stand Out on Foodora

To attract and keep customers on the platform, try these tips:

1. Make Your Menu Shine: Clear, mouth-watering photos and descriptions make a difference. Updating with seasonal items or specials can help, too.

2. Use Promotions: Foodora’s in-app promos and discounts help restaurants boost visibility and encourage orders.

3. Prep Efficiently: Faster prep means happier customers and better reviews, which can lead to more orders.

4. Add Something Special: Consider exclusive or signature dishes only available through Foodora to catch people’s attention.

POS integrations

Foodora and Deliverect have partnered to enable restaurants to automate their processing methods by integrating with their point-of-sale (POS) systems. 

Some benefits of this integration for your restaurants include real-time updates on delivery status, an automated dispatch system, and easy menu management—especially with a platform like Deliverect Restaurants, which allows you to sync your POS menus with Foodora. It’s important to note that a subscription to Foodora and Deliverect is necessary to integrate this solution into your business.

The Pros and Cons

Pros

• New Customers, No Dine-In Required: Foodora helps restaurants reach a broader customer base without needing additional space or staff by connecting them to its large, active user community. This allows restaurants to expose themselves to potential diners who might not have discovered them otherwise. Targeted advertising features, including in-app promotions and highlighted listings, enable partners to boost visibility, attract new customers, and drive repeat orders from Foodora’s loyal audience.

• Eco-Friendly Approach: Customers appreciate Foodora’s bike delivery model, which minimizes environmental impact.

• Real-time Tracking: Restaurants and customers can track deliveries, making the process smoother and more transparent.

Cons

• Limited Delivery Areas: Foodora’s small delivery zones (typically about 1.1 miles) might limit reach in less densely populated areas.

• Penalty Charges: To ensure a high-quality service, Foodora may apply penalties for incorrect orders, missing items, or delivery delays. 

Closing Thoughts

Foodora has worked hard to establish itself as a leader in the food delivery industry, emphasizing speed, transparency, and sustainability. The platform offers visibility and reliable restaurant support, though commission costs are worth considering. By maintaining fast service, eco-friendly delivery, and creative marketing, Foodora remains a favorite among people looking for a good meal with care.

Partnering with Foodora is not just about expanding your delivery options; it’s about embracing a modern approach to reaching customers. We hope this guide will assist you in deciding how to leverage and optimize your restaurant’s presence on the platform.