The concept of ordering food online is not new. World Wide Waiter was the first-ever food delivery app that was launched back in the year 1995, and since then, this market flourished, and businesses working in the food and restaurant industry saw new heights with this system. Talking about today apps like UberEats, DoorDash, and GrubHub together account for at least 80 percent of the market share.
Before the arrival of the internet, there were many restaurants that do not have dine-in options and offered take-away services. With the advent of technology, these restaurants entered into the world of online food delivery by getting involved in food delivery app development or some got websites developed for this. Apps and websites have widened the reach of these businesses by facilitating users to order at any time and from any location. They do not even have to go to a restaurant to place their order and just by enjoying their favorite movie or show at home, they can get the food delivered.
This also gave a path to creative minds to create aggregated online ordering platforms, which allow users to browse through various restaurants and order their favorite food from a single app. One such example of an aggregated online food delivery platform is UberEats, which allow its users to choose their favorite food from their preferred restaurant on their app. They also provide their own drivers or delivery agents to collect the food from the restaurant and deliver it to the doorsteps of their customers. This is a great opportunity for restaurants to increase their sales, that too, without investing in their own food delivery app development solution.
Food Ordering App Development: The Market Share
As per the recent reports shared by Statista:
- The global market for online food delivery is projected to reach US$136,431m in 2020 and 96,864.4 million U.S. dollars in 2024.
- Talking about CAGR 2020-2024, this market is expected to an annual growth rate of 7.5%, which is really huge.
- Platform-to-Consumer Delivery is the largest segment covered in this market having a market volume of US$70,741m (2020).
- In the same segment, the number of users that are expected to grow by the year 2024 is approx. 965.8m, and the average revenue per user, which is ARPU, is US$100.38 in 2020.
- Also, as per the data shared in 2019, a share of 36.0% of users is 25-34 years old, which indicates that youth is more leaned towards ordering food online rather than choosing the dine-in option.
Food Delivery App Model: Types
So, there are two models available and quite popular in the market. Based on what plans and goals you have for your app, you can choose your preferred model and reach out to a proficient food delivery app development company to create an outstanding solution for your business.
If you have decided to go for on-demand food delivery app development, then this is a great model to invest in. This is just like and aggregator model, which will guide you or show you the near-by restaurants or some of the most famous restaurants for the type of dish you are ordering.
These types of food delivery apps connect users looking for any cuisine to a variety of restaurants available. Here users can have a quick glance over their menu, rates, reviews, ratings, and so many other things that can help them in making their choice.
However, these apps do not offer delivery support. The food is then delivered by the restaurant itself. This model is in great demand as it offers restaurants to expand their reach and take their business to a large number of users.
This model works in a very simplified manner wherein the user chooses the kind of food they want to order and make the payment within the app. The food is then prepared and delivered by the restaurant delivery partner. Some apps also offer cash on delivery option. Though, it is always better to ask your mobile app development company to integrate various payment options, to make things simple for your users.
The only hindrance here is that the restaurants have to find their own delivery partner, which may not be too cost-efficient for them.
Order with Delivery Model
If you are planning for on-demand food delivery app development this is a great option to invest in. The only way this model differs from the above one is that in this model, restaurants get full logistic support and they do not have to find a delivery partner for themselves. Apps like UberEats and Zomato works on this model as the food which you order is delivered by their delivery agent and not by the restaurant courier partner.
In this model, you offer end to end services to the restaurant right from food ordering to food delivery. The only work which the restaurant does is preparing the food and then your delivery agents will pick the food and deliver it to users.
Not that we have seen the type of business models, and have chosen the one for yourself, let’s move to the food delivery app development process, but here are a few things which you must know before you reach out to hire app developers for your project.
A few things to consider before App Development
The moment you decide to get a food ordering app developed, looking out for companies hiring mobile app development services should not be your first option. Before even going to that step, here are a few things which you must do it at your end:
If you are not aware of the latest trends or what actually users want from a food delivery app, introducing a new app may turn out to be a huge failure. Users do not like to use something which is already in the market or something that has gone obsolete in the looks and technology. So, it is crucial for you to know the latest trends and technologies prevailing in your industry and what actually users are looking for. Also, you must hire dedicated developers for your app development. For example, if you are planning to have an Android app developed, always hire android app developers as they know all the intricacies related to android app development, and the same goes for iOS app development.
Unless and until you have an absolutely unique idea that no one has ever heard of or offering, seeing what your competitors are offering in this market is very much essential. This will not only give you an idea of how your app should be but also give you an insight into on-demand app development and its functioning.
Getting an app developed without working out on its marketing strategy may backfire you and instead of turning your idea into a profitable business, it may turn out to be a huge disaster. Focusing on the advertising strategy, your targeted user group, demographics, etc all are very important to analyze and finalize before beginning with the food ordering app development process.
There are certain regulations, which a restaurant has to follow, and these are set by a body known as The Food and Drug Administration (FDA). FDA is the one who watches over the quality of the food being prepared and if you are planning to have an app in this food and restaurant industry, it must comply with all the rules and regulations set by them. Especially in this pandemic situation, to make your app running perfectly your compliant score must be 100%.
If you are in this section of this article, one of the main questions you must have is how apps like UberEats do and Zomato makes money. Do not worry this is exactly what we are going to discuss next.
Food Delivery App Development: The Revenue Model
No business owner would want to venture into a plan which offers no return. On-demand food delivery app development is a profitable business and you can earn revenue in not just one way but through many different things like:
- Delivery charges
This is one of the most common methods via which you can earn profits. In apps like Zomato or UberEats, there are a couple of times when you have to pay additional charges as delivery fees. This is for the business model wherein you offer logistics support also.
While ordering food from a delivery app, you must have noticed that in case of huge demand or due to bad weather conditions, users have to pay a surcharge amount to get food delivered. This is also known as peak pricing as this surcharge is only applicable when the demand is high and the resource is limited. Brands like UberEats set a surge pricing when the demand graph is to
This is another way how you can earn your money back which you have invested in the development of an app like Zomato. You get the commission from the restaurants for the number of orders that have been placed via your app. This is the most common way to earn money from your food delivery app model. Since restaurants get orders and get more users, they are ready to give you the commission. You can either go for a long-term partnership or can get money on per order basis.
Most apps have a featured or suggested restaurant option. This is where you show the restaurant that has tied up with you for their advertisements. You can offer a whole section in your app for any restaurant to advertise their menu, upload their video, etc. and in return, you get a good amount for this.
Now that we have seen a couple of ways to earn money, let’s quickly jump on to the section where we are going to discuss how much it cost to make an app like UberEats and what are the features to be included in your app.
Food Delivery App Features
Now, this is the most important thing to consider when going for on-demand app development. It is the features of your app which makes it popular among the users. While getting your app developed here are a few things which you must keep in mind:
- Easy navigation
- Interactive UI/UX elements
- Simple functionality
- What your users want
So, you must look out for food app developers who have expertise in integrating even the most complex features in your app. Since your app would be used by different people having different interests, your app should accommodate all the features required by each of them.
Let us discuss all the features, which you must include in your app
Customer Side Features:
Allowing users to create their own profile is a must where they can store all their information like payment details, their favorite food items, etc. This will make their online ordering food experience pleasant and convenient.
This is an important feature for an app like UberEats or Zomato giving users a search bar to find and browse their favorite food items from thousands of dishes available.
Not every time we can make our choice, so users must have an option to add the food item in their cart either to make their choice or to order it later when they want to.
Integrating various payment options like e-wallet, debit card, cash on delivery makes it easy for users to order food.
Real-time Order Tracking
Ask your mobile app development company to integrate order tracking feature so that users know where their food is.
Rating and Review
Users must have an option to review and rate the food items as there are many people who order food based on these reviews.
If anything goes wrong, there must be a point of contact for users. You could either integrate chat or call option or even both.
Restaurant Side Features:
Just like users, you should give restaurants a feature to create their own profile where they can manage everything related to their business like name, address, contact details, etc.
This is a must-have feature where the restaurant can display their menu, add the items that are their top-selling, and also dishes that have been rated the best by previous users.
This is an important feature to integrate into your app as via this, restaurants can be notified about all the orders placed, the payment received, or any other important notification.
Checking Rating and Review
Adding an option to see their reviews and ratings is good as it facilitates restaurant to see what went wrong with their food item, or which of their food items are being loved by users.
Deals and Discounts
Generally, users are always attracted to offers. To generate special deals and discounts for their users, restaurants need this feature.
Delivery Side Features:
Just like restaurants and customers, even delivery agents need to have a separate profile where they can keep a track of their activities.
Giving a dashboard to the delivery agents where they can keep a track of everything related to their activity, number of orders, payments, other’s activity, etc.
The order management feature is important for delivery agents, where they can see the details related to orders.
Updating the Order Status
When the order is delivered or even canceled, delivery agents must have an option to update the status related to it.
It is quite difficult for an agent to know all the places. Hence, integrating this feature will help them to find the location of the user via Google maps.
Same as the restaurant, even delivery agents must have this feature so that they can timely get notified about the latest updates related to orders and payments.
Technology Stack Used
Each food delivery app development company selects the technology based on the project’s requirement; however, here is a list of some of the most used technology and frameworks that are common for food delivery app development. Also, this technology varies when you opt for iOS app development services or for android app development services.
For iOS app development: Swift and Objective-C
For Android app development: Java and Kotlin
For Cross-platform app development: React Native and Flutter
Back-end development: Node.js
Push notifications: Twilio, Push.io, FCM
Social media integration: Facebook SDK
Maps: Google Maps
How much does Food Ordering App Development Cost
The cost to create an app like UberEats depends upon the features you tend to include in it. So considering the various factors like app complexity, time is taken to develop an app, team size, and many more we are going to quote an estimated cost, which you will have to incur when you plan to have an app as UberEats developed. Also, this cost is dependent on the mobile app development company and the mobile app developers you hire.
So, the overall cost (from designing to testing and launching of an app) for a food delivery app maybe somewhere around $30,000 to $40,000, depending upon the features you want. And if you are planning to have a highly-functional app with unique features the price may go beyond this. And also, if you are also planning to have a web app developed for your project, it may cost you approx $20,000 to $40,000, depending upon the types of app you want.
Frequently Asked Questions
What are the latest trends in the food delivery app development?
The world of mobile app development is drastically changing. With the advent of technology, people are more and more moving towards automation, and the food and restaurant industry is no exception. Technologies like Augmented Reality are being used by many companies to create a virtual food menu. Big data solutions are quite high in demand to manage the data, and to solve the problem of data storage, cloud computing solutions are quite popular. You must hire mobile app developers who have expertise in integrating the latest technologies into your food app.
What are the major challenges to create an app like Zomato?
Every app development comes with some challenges. Talking about on-demand food delivery app development, one of the major challenges is competition. There are many apps in the market with a similar kind of idea, so there is a lot of pressure to introduce something new and unique. Another hindrance which most people face is to find the right development partner.
Not many companies offer proficient mobile app development services. Also, deciding the features is a daunting task. You need experts to integrate every feature efficiently into your app. So, it is important for you to pick the right food delivery app development company for your project, to make it a success.
Which platform should I first launch my mobile app?
The platform on which you plan to launch your app depends majorly on the demographics and the users you want to target. For example, if you are planning to target users living in the USA, you must consider launching your app on the iOS platform first. You must iOS developers, as the number of iOS users, in the USA is more than that of Android. There are many more reasons to launch your app on iOS first. However, if you are targeting any Asian country, launching your app on the Android platform is a more feasible option. As here, there are more Android users as compared to the iOS ones.