Guide to Favor Business Model: How Does the Favor App Work?

• Ashka Panchal
• August 02, 2023
• 5 min read

Gone are the days of lengthy phone calls or waiting in queues to buy your favorite food. How we access food has changed, and the need for convenience and speed has driven businesses to develop food delivery app specifically tailored to their business. Food lovers can enjoy the app’s fast and effective ordering and delivery service that guarantees the meal will arrive hot and fresh, improving the overall eating experience.

A closer look at Favor’s business model is essential for those interested in food delivery app development services, and this article provides insights into what Favor is, how it operates, its revenue generation strategies, and the associated costs.

About Favor

Culinary enthusiasts can now indulge in their favorite dishes without any restrictions on space or time, thanks to online food delivery apps like Favor. This app has quickly gained popularity in Texas due to its high-quality food delivery service. Established in 2013, Favor is an on-demand delivery system that operates similarly to other popular online delivery apps such as Postmates and Uber. Its delivery agents, known as runners, pick up and distribute parcels to their destinations. One unique feature of Favor is the ability to purchase items from any store within an hour, either by browsing the featured item list or entering specific requirements and having the product delivered by runners.

Key Features Of Favor App

Favor demonstrates its commitment to delivering food and a delightful customer experience. These features cater to users’ diverse needs, preferences, and safety concerns, making Favor a top choice among food delivery apps.

• Personal Assistance

It is one of the unique features that have won the heart of million food lovers. A personal assistant is assigned for the delivery as soon as the order is placed. Including personal assistants ensures that users receive dedicated support, making their ordering process seamless and enjoyable.

• User-Friendly Interface

The app’s user-friendly interface guarantees a straightforward navigation process. Order placement, delivery tracking, and preference management can be done in the blink of an eye.

• Filter Restaurant

Favor has a sizable network of partner restaurants, offering users a diverse selection of cuisines and eating alternatives that ensure something for everyone. Users can filter out new and popular restaurants and explore new cuisines quickly.

• Real-Time Order Tracking

Transparency in delivery progress keeps users informed and eliminates uncertainty. Knowing when their food will arrive allows users to plan their schedules better.

• Customizable Orders

Allowing users to customize their orders ensures their individual preferences are met. Whether it’s dietary restrictions or specific cravings, this feature lets users tailor their meals to perfection, creating a truly personalized dining experience.

• Scheduled Deliveries

The ability to schedule deliveries in advance offers convenience, especially for busy individuals with tight schedules. Customers are assured that their food will arrive when needed, eliminating last-minute rush or uncertainty.

• In-App Chat Support

Instant communication with personal assistants resolves issues promptly and efficiently. Users can use the in-app chat support feature to chat with their assigned personal assistants in case of any doubt.

• Seamless Payment Options

Users are offered various payment methods, whether it’s credit/debit cards, mobile wallets, or other digital payment platforms, to ensure convenience. This flexibility eliminates barriers or restrictions, making the checkout process smooth and efficient.

• Loyalty Programs and Rewards

Loyalty programs let users remain loyal to the platform, earning them exclusive rewards and benefits. It encourages repeat business and strengthens the bond between users and the app.

How Favor App Works: Step-by-Step Guide

• App Download and Registration: Getting started with the Favor app is easy. Users need to download it from either iOS or Android platform. Once downloaded, users can quickly sign up by providing their contact number and email ID. After successful registration, users can access the app’s dashboard to explore various products and services offered.
• Customized Dashboards for Users and Runners: Upon logging in, runners and users are greeted with personalized dashboards, each catering to their specific needs.



• Runner’s Dashboard: The runner’s dashboard provides delivery agents valuable information about different delivery zones. It allows runners to view and manage their current orders, locate restaurants for pickups and deliveries, and check estimated times for collecting and delivering orders.
• User Dashboard: The user dashboard serves as the core business interface. Users can browse products, add items to their cart, and specify any specific requirements they may have. The app ensures quick and efficient fulfillment of these requests.
• Order Acceptance and Updates: Once a user places an order, the partnered restaurant is notified and expected to acknowledge the order within seconds. Users receive real-time updates as soon as the restaurant accepts the order. At the same time, runners are also informed to pick up the order from the restaurant. The app’s administrative panel keeps track of order submissions and their acceptance by delivery agents.
• Real-Time Order Tracking: Favor app allows users to track their delivery partners (runners) in real time as they dispatch their orders. Users can monitor the distance the delivery agent covers and estimate the total time required for delivery.
• Checkout and Payment: The app offers multiple digital payment options to enhance convenience and safety, including Net Banking, Credit or Debit Cards, etc. Additionally, users can apply Sodexo coupons on the app, availing fantastic discounts and deals on their orders. Furthermore, users can provide tips to the respective runner as a gesture of appreciation for timely and efficient delivery. These tips contribute to the performance and bonuses of the delivery agents.

Favor App – How it Makes Money

Favor App was conceived by Ben Doherty, inspired by his background as a former pizza delivery boy and his friend’s habit of requesting food deliveries from Albertsons. Together with Zac Maurais, they developed a food delivery business model that offers instant deliveries with a few taps. The app was developed in Ben’s parents’ basement, underwent beta testing in San Luis Obispo, and was successfully launched in Austin, targeting university students and food enthusiasts.

• Revenue Generation Methods

Revenue Source	Description
Customer Delivery Charges	Customers are charged between $5 to $10 per order depending on the size.
Restaurant Sales Percentage Share	Favor takes a percentage share from the sales made through partnered restaurants.

Cost to Create a Food Delivery App like Favor

To thrive in the competitive food app market, building quality comes at a price. The cost to build a favor like food app includes server hosting, UI/UX design, and software development. Investing in skilled designers, developers, security, and testing raises the budget. Marketing and user acquisition are crucial. Regular updates and maintenance are needed. The expense varies based on app complexity, but quality spending is vital for lasting success. Developing a single-platform app with a single-layer approach typically requires a substantial budget, around 20,000 USD.

Businesses are choosing favor clone app development to take advantage of the popular on-demand food delivery model and offer their consumers seamless and effective services. Additionally, it enables companies to swiftly establish their distribution platform without incurring high development expenses while tailoring the app to their demands.

Final Words!

Favor and other competitors may have monopolized the online meal delivery market. Even so, new companies have plenty of chances to establish themselves in the market by using applications to target particular demographics. For this reason, finding the right food delivery app development company is essential to turn your app idea successfully. To ensure a smooth user experience, it’s critical to ask questions and take the time to find the perfect team for the job. Our team of experts is dedicated to helping you create a food delivery app like Favor that stands out in a highly competitive market. Let’s work together to bring your app idea to life!