Is Developing a Food Delivery Mobile Application a Good Idea?

On Demand Food Delivery App

Every single person goes through this phase of life where they think about, what they are going to make, what are they going to cook, what should they drink and above all how to do it?

Well, with the day to day changing digital scenario now every problem has a mobile app solution to it, you can look up for the app in the play store or app store, and you can download it instantly.

Now mobile apps have made ordering food a piece of cake. With offers like “no cooking December, which gives 50% off on all your orders, by Zomato and many other offers by Swiggy and other food delivery companies.

People can order their favorite dish from their house or workplace or anywhere and get it delivered.

The food industry is making it large, with the help of mobile apps. So, if you want to make billions in a business, then you should Hire Mobile App Developer from eSparkBiz for your on-demand food delivery app.

1. How Is The Food Delivering Industry Making It Large?

Let’s go through some statistics, trends, and it’s market share to see the evolution of the food delivering industry with the help of technology.

The pace at which technical advancement is bridging the gap between offline and online ordering is evidence of the growth of the online food-delivery industry. However, online ordering will surpass the physical visits to the restaurants soon.

There will be a 79% growth in the online food-delivery market as estimated by an investment firm, Cowen.

food delivery market stats

The graph above shows how much revenue will be in the online on-demand food delivery market until the year 2023 comes.

Let’s go through some stats to be more precise about the growth. 📊

  • By 2020, the online food delivery industry is expected to grow to $55 billion.
  • By the end of 2019, the online payments made on food ordering apps will reach $210 billion.
  • Online ordering has helped both big and small restaurants to increase their business by 25%.
  • Let’s stop dwelling into what’s obvious, and dig deeper into the concept of developing a food delivery app.

2. Who Are The Top Aggregators In The Food Delivery Market?

Given the pace of life, people living in urban areas don’t find time to cook meals at home. As a consequence, they look for options, and that is where food delivery apps make their way into their customer’s life.

These apps allow customers to order food from any time and anywhere. All thanks to the on-demand food delivery apps, all that the customer needs to do is, download the best food delivery application, choose their favorite dish, place the order and pay online.

Let’s see which are the top food delivery applications that have been dominating the food delivery industry.

Uber Eats

UberEats provide services in more than 1000 cities in various countries around the globe. The app lets its clients to choose their favorite dish from their favorite restaurants and then deliver it to its clients’ place in the shortest time.

It is the only food delivery app, which is presently available in many places including the United States, Japan, Brazil, India, and Mexico.

The app also has a cashless transaction and delivery time feature in it.

Swiggy

Swiggy is a startup based in Bengaluru, India and the app is No.1 food ordering mobile application in India. It has more than 10,000,000 downloads in the play store and is available in 8 cities across the country.

The app allows its users to order their favorite food from the favorite restaurant nearby. The app detects and uses the users’ location so that the delivery agent can deliver the food in the shortest possible time.

The customers can also track their delivery agent on their phone.

Zomato

Zomato was formerly known as ‘Foodiebay.’ Earlier it was just a restaurant search platform. Later the company introduced food ordering and delivery feature in the app, and now the app is available in more than 20 countries.

Along with projecting the best restaurants in the app, Zomato also works as a social networking website like Facebook and Twitter, but this one is mainly for the foodies. Users can read other users’ feedback/reviews about the food and restaurant and can also follow them.

GrubHub

GrubHub’s have offices in Chicago, London, and New York. GrubHub has partnered with more than 30,000 restaurants in the U.S.

The app users can search for their desired dish and browse through the varied list of all local restaurants and eateries. The app also has filters like working hours, coupons, customer feedback, discounts and many other. Users can also save their order details in their top picks for future orders. Company’s service team manages each request.

Domino’s Pizza

Domino’s Pizza was the first to develop a food delivery application. Domino’s offers various discounts, coupons, and multiple payment options as well.

The app allows its customers to make quick orders and get the pizza delivered in 30 minutes.

Just Eat

Just Eat works as a search tool. It allows its users to find all the local restaurants that offer food delivery services. The app users have the option to filter the menu according to their food preference, and they can pay with cash or card. Just Eat covers 82,000+ restaurants and generate revenue by charging a commission fee from all its partner restaurants.

Late in 2017, Just Eat reached 21.5 Million customers. Eleven million customers were active users, who altogether ordered more than 170 million takeaways.

3. What is the Business Model Of Food Delivering Apps Like Zomato, Uber Eats, and Swiggy?

The apps like Swiggy, UberEats, Zomato, Eat, Eat24 have a similar business model for app sustainability. All these apps play two significant roles; they work as both restaurant finder and as a food delivery application.

This concept is a digital approach to the traditional food delivery model; the app serves as a platform that offers access to various restaurants.

The app also maintains its logistic network (delivery partners). While UberEats is an independent application which comes with a diversified version of Uber rides.

4. How Does The Eco-system Of Food Ordering Application Work?

Related imageThe eco-system works in three steps:

Step 1: Customers order food from the restaurant via the mobile app.

Step 2: Restaurant prepares and hands over the food to the delivery partner (delivery agent).

Step 3: Delivery agent delivers the food to the customer at the provided address.

5. The Revenue Model – How The Food Delivery App Makes Money?

There are many ways in which you can monetize your on-demand food delivery mobile application. A few but most commonly applied monetization methods are:

Delivery Charges

Many restaurants do not provide home delivery. So when you offer them your on-demand delivery app with food delivery personnel, then the restaurant will most likely pay you delivery charges.

The Deliveroo app made a profit of $164 million last year with this particular revenue model.

Surge Pricing

UberEats implicates a surge price when the demand is too high. In this process, the app limits the menu options and add a surcharge (peak price) when the customer is placing the order.  The rate of demand can be lower, but the per delivery amount can rise to a great extent in this type of revenue model.

Commission

The food delivery app owner can charge a commission for every order that the customer makes through the app. For generating revenue, companies prefer this revenue model.

This model not only helps in generating high revenues but also helps in creating a long-term relationship between the food delivery app company and the restaurant.

Advertisement

Advertisements are the easiest and fail-proof way of generating huge revenue. You can show a few restaurants in the featured section, or you can run a short video clip for them on the home screen of the app, and for all this, you can charge a certain amount to the restaurant. You can also generate revenue by running Google Adsense on your food delivery app.

6. Challenges You’ll Face In Entering The Online Food-Delivery Market

Related image

Competition

The competition out there is fierce; anyone who is starting to develop their online food delivery app will face a lot of competition as there are a lot of businesses who are leaders in their domain.

In this condition, you’ll have to offer something that other players in this domain don’t provide. You must provide something different in both concerning the app’s UI/UX and the features.

You’ll have to figure out new ways to attract restaurants that have already partnered with other existing food delivery apps in the market. Also, you can develop a mobile app for restaurants.  You’ll also have to think of better and competitive offers and discounts that you’ll use to attract more customer.

Finding The Right Restaurants To Partner With

In the beginning, this might strike as a hurdle. To avoid this, you can focus on low-level restaurants who are in desperate need of promotion. At the initial stage, you should instead focus on increasing the number of restaurants than concentrating on the ones that are famous among the millennials.

Steady UI/UX Among All Panels

All four screens in the food delivery app are entirely different and peculiar to its users’ demand. It is where your hired mobile app development agency steps into the rescue.

The app development company will have to blend both design and movement to make sure it remains constant along all the app screens.

Finding the right mobile app development company that offers food-delivery app development services will transform your idea into the advantages of mobile apps over websites.

Isn’t it cool? 😎

7. Application Panels

Food Delivery App

User Panel

After downloading and installing the app, the customers will have to register on the app.

Login/Sign Up: 

The signup process is straightforward, Users can either signup with their phone number (which will require an OTP verification), or they can use their social media to login into the application.

Geo-location: 

The list of available restaurants is according to the users’ location.

Homepage: 

On the home screen, there’s a list of all the nearby restaurants. The home screen must be bright as a sophisticated home screen may confuse the user.

Menu:

The menu is the most fundamental feature of any on-demand food delivery mobile app. The screen must display the food menu of each restaurant in such a way that it is clear for the user to understand like the names, dish images, reviews, contact number, delivery time, etc.

Address:

Users can select the ‘auto-detect location’ feature, or they can type the address of delivery.

Cart Section: 

Users can select a particular dish or multiple dishes from any restaurant and add it to their cart. Users can increase or decrease the food count by tapping the plus or minus button. You should project the cost of the dishes along with tax transparently.

Payment:

After adding the dishes in the cart, the user will move to the payment section where he/she will make the payment via different payment gateways. Keeping cash on delivery option in the payment section can also be beneficial for your business.

Reviews: 

The developer can add a comment and user review section for every restaurant.

Past order: 

Users can also check out their previous orders in this section. They can even repeat any of their recent orders.

Discounts & Offers: 

The app should always be jacked up with offers and discounts to keep the users engaged. The app owners can alert users about new offers and discounts via push notifications.

Contact Details:

Contact details of both the delivery boy/girl and the restaurant must be available on the screen.

Track Your Delivery Personnel:

The app should have a GPS location identifier feature; with this, the user can track the delivery personnel in real time. The tracking screen should also have an arrival time display and a calling icon to contact the delivery boy/girl.

Search Bar: 

The search bar should always be kept in the upper section of the app screen, to make it accessible at all times. With the help of the search bar, users can search the particular restaurant or dish just by typing the name, and the meal or restaurant will turn up instantly.

Filter/Refine Search:

A filtering option must be there within the app so that users can apply filters like reviews, delivery time, price- (high to low)/(low to high), etc.

Restaurant Panel

Related image

Even the restaurant owners go through the same registration and login process, but besides, they have to submit extra documents for verification purposes.

Dashboard: 

After the signup and verification process is complete, the app users will redirect to their dashboard.

The dashboard helps restaurant owners to track and monitor their completed orders, pending orders and also the ones that are under processing. All and all the dashboard panel provides a summary to the restaurant owners.

Accept or Reject Orders: 

It is the most crucial part of the food delivery application, Users can cancel the order anytime, for instance, if the request is taking too long then the user can cancel it, and it will count as a loss, the restaurant can also reject any order from the customer with this feature.

Manage Restaurant Account: 

Every restaurant owner can manage their profile; they can upload images, the logo of the restaurant, minimum and maximum order quantity, the menu, expected time of delivery, etc. The restaurant admin/owners can also mention discounts and offers. All of this comes under the restaurant’s profile section.

Payment: 

The restaurant owners can directly transfer the money from the app to their bank accounts or any other platform such as PayPal, or eWallets according to their preference and need.

Delivery Personnel Panel

Delivering Food

Login: 

The admin provides the login credentials to the delivery boy/girl to log into the application.

Order Request: 

After a customer has placed an order, the order will be auto-assigned to the delivery personnel who is nearest to the pre-defined restaurant. Each placed order will have a customer name, a unique order ID, and the delivery address.

The delivery boy can either accept or reject the order request and only if he accepts the order request, then his profile will be shared with the customer.

Order Delivery: 

After accepting the order, the delivery boy will deliver the request to the customer’s location. Then after delivering the food, the delivery personnel will mark the order as completed.

Meanwhile, the app will project each step and the order status as placed, packed, on the way, etc.

Order History:

The delivery personnel can browse through the previous orders completed by him/her in the order history. He/she can find all the relevant information related to any particular order, and you can also filter the search by the order ID, date range and status.

Call/ Chat: 

After the delivery boy/girl have accepted the order, the customer can contact him/her and vice versa. Both can either call or text each other.

COD:

If the app has a Cash On Delivery option then, the delivery boy will have to collect the cash from the customer and submit it to the admin.

Push Notifications: A push notification helps in notifying the delivery personnel about an update from the customer concerning the placed order and from the admin panel as well.

Wallet/Get Paid Offline: 

The delivery personnel usually get paid weekly or monthly by the admin. If the app has an in-built wallet, then the delivery boy/girl can receive money in his/her purse.

Payment Withdrawal: 

Considering the payments has been made in the wallet; the delivery personnel can transfer the amount from the wallet to his/her bank account at any given time.

Transaction History:

All the payments made will be stored in the app; the delivery boy/girl can check all the transactions in the transaction history.

GPS tracking: 

GPS tracking helps to locate the delivery personnel in real time.

Online Support: The delivery personnel can communicate with the support team for any issue at any time.

Read also: Know The Best Food Delivery Apps For Your Business

8. Advance Features Of The Food Delivery App

Food Delivery App Features

The app owner can only give the best service if the app is prompt and the company provides on-time service. Machine learning can help in estimating the delivery time though.

There are a few other advanced features of the mobile app that must be there if you want your food delivery app to be on the top:

The Queue Algorithm

All the orders will process through the queue algorithm; the auto-detect feature will find the nearest delivery boy and assign the delivery task to him.

Real-time Location Tracking

It is the feature that all food-delivery app must have. This feature helps the users to track their order in real-time when the delivery boy is on its way. Even the restaurant owners can also check the delivery status using the real-time location tracking.

Push Notifications

Push notification is a crucial feature for all on-demand food delivery apps, and no app developer should skip this feature. The push notification helps each user. When you place an order, the app will send a notification to the restaurant and the delivery boy, after the delivery boy has accepted the order the customer will receive notifications after that like order place, preparing, the driver is on the way, etc.

Real-time Analytics

Real-time analytics provide the admins with all operational data and help them to make important decisions. The app generates real-time revenue reports, revenue projections and more for the admin to monitor and track the performance of the app as well as the business.

Payment System

The app developers can integrate various third-party apps and services for making payments to ensure that the customer can pay via whichever mode is feasible for him/her. The app owner should also add a Cash on Delivery option in the payment method, as many users prefer to pay after they have received the order.

CMS For News & Updates

The admin manages all the publishing of the partner restaurants.

The possibilities of features are endless; the app developer can add many other features like:

  • Lock Screen Widgets
  • Smartwatch extension
  • Schedule delivery and pick up
  • Coupon and Vouchers for more discount
  • Check out what nearby friends are ordering
  • Option to share the food order on Social Media

9. Technology Stack That Can Be Used For Developing Your Food Delivery App

  • Facebook SDK Login: For Registration
  • AWS, Azure: For Cloud
  • GrubHub API or FourSquare API: For Restaurant Listing
  • Core Location Framework, Google Places API: To Find user Location
  • Square API, Braintree, Stripe, PayPal, eWallets: For Payment
  • Amazon Cloud Storage: For Storage
  • Google Analytics: For Analytics
  • Google Maps, MapKit: To Find Directions

10. What Team Structure is Required?

Mostly the app makes its first impression if it has a sleek and clean user interface. Hiring an experienced development team is a necessity, not a choice.

The app development team must have,
  • An experienced Project Manager
  • A skilled UX/UI Developer
  • Android/IOS developers with years of experience
  • Highly qualified and skilled backend Developers as they build the backbone of the app.
  • QA Teams to test the app and fix bugs
  • Finally, a delivery manager

11. Cost To Develop A Food Delivery Mobile App

Well, the cost of developing a food delivery app entirely depends on the features and type of functionality you choose for the app.

The approximate figure for a basic food delivery app may cost somewhere around $12,000 to $20,000, whereas a high-end food delivery app may cost you more than $40,000.

Another factor that affects the delivery charge is the country or region because the U.S/U.K based developers charge around $70-$250 per hour, Eastern Europe based developers cost around $50 to $150 per hour, but the companies and developers in India provides the most reasonable cost which is $20-$70 per hour.

The right Mobile App Development Company will provide you with a detailed breakdown of the estimate.

For instance, below is a breakdown of the estimate for developing a basic food delivery app with Android coding in India.

  • Technical documentation (40 hours and $1000-$1500)
  • Front-end and Back-end development (400 Hours and $7,000-$ 15,000)
  • UI/UX design (60 Hours and $1500-$3000)
  • MVP testing (80 Hours and $2000-$4000)
  • Bug fixing and finishing (40 hours and $1000-$2000)

Another crucial thing you should know about app development is that iOS app development costs less than it costs to develop an Android app.

Therefore, before developing a food delivery app, it is imperative that you do thorough research about this industry and domain. Such in-depth knowledge will help you to develop a successful on-demand food delivering app which will lead your business to the top of the ladder of success.

hire-mobile-app-developer

Disclaimer: We at eSparkBiz Technologies have created this blog with all the consideration and utmost care. We always strive for excellence in each of our blog posts and for that purpose, we ensure that all the information written in the blog is complete, correct, comprehensible, accurate and up-to-date. However, we can’t always guarantee that the information written in the blog correct, accurate or up-to-date. Therefore, we always advise our valuable readers not to take any kind of decisions based on the information as well as the views shared by our authors. The readers should always conduct an in-depth research before making the final decision. In addition to these, all the logos, 3rd part trademarks and screenshots of websites & mobile apps are the property of the individual owners. We’re not associated with any of them.

Piyali Sarkar

Piyali Sarkar

Piyali, an M.Tech in CSE, has experience ranging from an assistant professor to creative writing in the local newspapers, she has stepped fully into the domain of mobile application development. Her writing can be said to be a combo of crazy thought process, efficacious vocab & sublime modus operandi. She pens down her thought for eSparkBiz @Mobile App Development Company where you can Hire Mobile App Developer. In an app-centric world, having a hot app-o-lava in her mind, she loves sharing her diegesis.

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