There has been a lot of controversy over the explosive growth in online food delivery apps. UberEats and Deliveroo are some of the most popular on-demand food delivery apps like Doordash and GrubHub. They combine both comfort and food to make it a great option.
These mobile apps for food delivery have made ordering food easy and are a huge hit with customers from all walks of life. Everyone seems to be on board, from restaurant owners who create their own food ordering apps to GrubHub and UberEats which serve as a collaboration platform between clients and restaurants.
These food delivery apps have been a huge success and are now a viable business idea. If you are interested in creating your own food delivery app, now’s the time.
Why invest in Food Delivery App Development – Market Size & Stats
Here are some statistics to help you better understand the importance of mobile food delivery apps.food delivery mobile app development.
- Online food delivery is on the rise30% fasterComparable to the rise in dine-in visitors since 2014.Source
- It is expected that the online food delivery market will grow.$20 billionIn2017 to $55 Billion in 2022 Source
- 34% of consumers order online and spend at least $50. This is a stark contrast to the $16-30 that one would spend in a full-service restaurant. (Source)
- Online food delivery will be an option for restaurants by 2020.Lose more than 70%They are their customers.Source
Bottom line:Online food delivery apps are rapidly becoming a major force in the food industry.
Worldwide Online Food Delivery Market Revenue Forecast from 2017 to 2024
Types of Mobile Apps for Food Delivery
If you are looking to build your own app for food delivery you will need to be familiar with the main food delivery models.
Aggregator Food Delivery Apps
These apps are second-platform apps and serve as a bridge between customers, restaurants, and other businesses. These apps take orders and send them to restaurants. They are not responsible for the delivery of the orders to customers. That is the responsibility of the restaurant. These apps can only be used by large restaurants that have their own delivery systems.
Apps with logistic support:
This model also offers delivery services in addition to the above features. Third-party delivery workers pick up the food from the restaurants and deliver it to the customers’ doorstep. These apps are more appealing to small-scale restaurants who do not have their own delivery service.
Aggregator apps are no longer viable. This model is the best way to focus your efforts if you want to develop a popular app for food delivery.
App for Restaurants
This app allows you to expand your restaurant’s business. This app is best for established restaurants with a delivery system. By launching their exclusive app for food delivery, these restaurant owners make it easy for their customers to order their favorite dishes. They also have the chance to reach a wider audience. This category includes apps like Dominos Pizza Hut and Pizza Hut.
How a Mobile App for Food Delivery Works
Three stages are required to use a mobile app for food delivery:
- Stage 1:Customers can browse the app to order food at restaurants via the mobile app.
- Stage 2The order is received by the restaurant and a confirmation text sent. They prepare the order and give it to the food delivery agents.
- Stage 3The delivery agent delivers the food directly to the customer’s door.
This is how an app that delivers food with logistic support works.
Revenue Model for Food Delivery Mobile Apps
You have many options for monetizing your on-demand food delivery service. Below are some of the most well-known ways to make money with your on-demand food delivery app.
1. Delivery charges
Many restaurants don’t offer delivery. These restaurants will most likely pay delivery fees in exchange for food delivery services. This is a very popular strategy for monetization that has helped many businesses.
Zomato began offering food delivery services in 2015. Zomato launched its food delivery services in 2015.
2. Peak Pricing
Another popular revenue source is the app that incriminates an increased price for high demand. When a customer orders food, the app’s menu is limited. A peak price will be charged. UberEats is a food delivery app that heavily relies on this revenue stream.
Swiggy has been trying out this new model recently. An additional INR 20 delivery fee is added to any order placed on holidays, festivals, or rainy days, when there are less delivery personnel.
3. Commission
This model allows the owner of a food delivery app to charge a fixed amount of commission for each order that is placed through their app. This model is popular as it generates high income and provides a source of revenue.
Foodpanda follows this revenue model. Foodpanda charges a pre-determined commission to the restaurants for each order placed via its mobile app and website.
4. Advertisement
Advertising is the most reliable and efficient way to generate huge amounts of revenue. The app can show a few restaurants or run a video about them on its home screen. You can also charge a set amount for this.
This is Zomato’s biggest source of income. Advertisements account for as high as 62% of Zomato’s revenue.
The Challenges of Getting into the Food Delivery Mobile App Business
Before you dive into the world of food delivery, it is important to understand the many challenges involved in developing on-demand food delivery apps.
Reduce Competition
Food industry competition is fiercer every day. Anyone who plans to be in the food industry must know this. Develop a food delivery app You might face lots of competition.
You must offer something unique to your customers in order to stand out from the rest. This must be related to the app’s UI/UX as well as its features.
You will also need to improve your ability to attract partner restaurants and offer lucrative discounts to customers.
An Interactive UI/UX Panel
This is where the need for a reputed mobile app development agency heightens. Good apps will combine design and movement to ensure the UX is consistent and interactive throughout. Customers will be drawn to your app if you have a well-designed design and easy ordering.
Finding the right restaurant to partner with
It is a good idea to focus on small-scale restaurants looking to market themselves. It’s a smart idea to focus on the quality of your first restaurant rather than the famed ones that are popular among millennials. As your app grows in popularity, you can begin to focus on acquiring major names.
Deciding on the MVP Features
The decision of which MVP features should be included in the food delivery app is another challenge. The MVPs can have a significant impact on the development cost. You can test the waters by creating a minimum viable product before you commit to the whole domain. It can be difficult to decide on the right features.
The Most Reputable Names in On-Demand Mobile Food Delivery Apps
On-demand food delivery apps are becoming more popular due to the growing popularity of urban culture. There are many prominent food delivery companies that offer customers the ability to order food anywhere and anytime. These are some of the top food delivery apps on mobile that have been leading the charge so far:
Innovative Features for Developing Outstanding Food Delivery Mobile App
Login and Sign up for Social Login
This feature allows customers to sign up quickly for your app via their existing social media accounts. It is important to have a simple and appealing sign-up page in order to build customer loyalty.
Book for others:
This feature allows app owners to book food and make payments in advance.
Special Packages
This allows you to make custom packages by mentioning specific instructions or placing special requests.
Order History
This feature allows users to review their orders and to even repeat orders from the past to save time.
Floating Window
A floating window appears when the customer books an order. It provides real-time GPS tracking and enhances customer experience.
Customer Reviews:
This simple feature allows users to review the service and food quality. This is a great feature for new users, as it allows them to compare the quality and services offered by different restaurants and then make a decision.
Push Notification
This feature is essential for all food delivery apps. This functionality can be used to send helpful notifications to customers, delivery personnel and restaurants. The app can notify customers about special offers or happy hours by sending them notifications. Push notifications drive greater engagement.
Catering request:
This feature allows users to create a unique food platter that can be shared with their guests, at home or at parties. You can place the order either on a platter or by setting a budget per person. Customers are served hot and delicious food.
Franchise Management:
This feature is available to restaurants who wish to manage their franchises more effectively.
Analytics in real-time:
The admin has access to all operational data in real-time, which provides insight into the business. The app provides real-time revenue projections and revenue reports that allow the admin to monitor both the app’s performance as well as the overall business.
Role-Based Dashboard
Role-based dashboards are a great way of simplifying things. This feature allows you to track the progress of each business unit in detail.
Multiple payments:
This is an essential feature for on-demand food delivery apps. You can integrate multiple payment options in the app to allow users to make fast and easy payments using their preferred mode of payment.
GPS Tracking in Real Time:
This feature allows customers to keep track of the status of their orders. Customers can see when their order has been placed, processed and on its way. This is a great way to keep customers interested.
In-App Navigation:
A GPS location identifier should be used to integrate food delivery apps. This allows users to track the delivery agents of their orders in real time. The tracking screen records and displays their tentative arrival time.
Heat map generation:
This function allows customers to know when the restaurant is busiest so they can plan their orders accordingly. This feature can also be helpful to delivery agents, as they can gather near restaurants that have the highest number of orders at a particular time to avoid delivery delays.
Loyalty programs:
Customers are encouraged to place orders online by a robust loyalty program. This feature allows loyal customers to receive special offers and discount vouchers. This feature allows restaurant owners to demonstrate to customers how much they value their loyalty and helps them retain more customers over time.
Marketing Tools (Discounts, Coupons, Mail, Text, and Call)
Marketing is still the most important component of any business. Restaurant owners can integrate marketing tools into their food delivery app to send customers special discounts, coupons, and first-order rebates. To attract customers, you can send special discounts, coupons, first-order rebates, etc. You can also keep them updated via email, text, or phone about special promotions.
Every mobile app needs a Content Management System. Restaurants can easily manage the content on their app by integrating a CMS. Restaurant owners can update details about their restaurant such as the name, phone number, and address. You can update or add photos and make changes to your menu, prices, delivery charges and food items.
CRM Integration
It is essential to have a solid relationship with customers. This software can help you manage your customer relationships.
In-App Phone Calling
Customers can call their delivery agent free of charge once the order has been placed. The mobile app allows you to make calls directly from the app.
Chat in-app
Customers and delivery staff can also communicate in-app via chats. In-app chats allow users to communicate with the admin or restaurant staff regarding any questions about food customization, delivery, and so forth.
Phone number masking:
This feature allows for seamless communication between delivery personnel and customers, without having to give out their real numbers.
Mobile Wallet Integration:
All food delivery apps should offer different mobile wallet options in today’s digitally-advanced world. These include Apple Pay, Google Pay, Apple Pay, Paytm and Venmo. Customers will have an easier way to pay.
ChatBot Integration
Chatbots are essential for all websites. An AI-powered chatbot can be integrated into the food delivery app to greatly streamline customer interactions.
Artificial Intelligence:
Ai-driven features such as Voice Search, Behavior Tracking and Visual Search offer a user-friendly experience that allows for personalization.
Gamification
Small gaming tasks, such as the daily spinning wheels, can be integrated into your day. Customers can be kept engaged by offering points or other rewards in exchange for their participation.
Bill Splitting:
This amazing feature allows bill splitting between multiple users to be quick and simple. Different users can pay their part of the food bill using different payment methods.
Development of a Mobile Food Delivery App
The cost of developing an app for food delivery depends on many factors such as the type of app, its type and number of functionalities and features, labor costs, technology used, and so forth.
The cost to develop a basic food delivery app for mobile devices is approximately $80010,000 to $18,000A high-end app that offers top functionality might cost as much as $20,000$40,000.
The cost of labor is a key factor in determining the development cost. There are many factors that affect the labor costs in different countries. Developers based in the United States or UK charge between $70 and $250 an hour. Eastern Europe-based developers charge between $50 and $170 an hour. This hourly rate is very affordable in India where experienced mobile app developers can be found at rates between $20 and $70 an hour. India is the best option for labor costs.
Moving on, the cost of development also depends upon the type of mobile app development company you choose. An agency that is reliable will provide you with a breakdown on the cost estimate to help you assess the feasibility of your project.
A basic food delivery app for India, which is based on Android platform, will cost approximately:
- Technical documentation 20,000 to 15,000
- UI/ UX designing:15,000 to 30,000
- Development of the front-end and back end: 800,00 to 15,000
- MVP: 20,000 to 45,500
- Bug fixing 10,000 to 30,000
The platform for development is another thing to keep in mind. It costs less to develop an iOS app than it does to develop the one based on Android. It is important to thoroughly research the market and the industry. This will allow you to create a successful app in the most efficient way.
