In today’s fast-paced world, on-demand food delivery apps have changed how we dine. These apps offer convenience, allowing customers to enjoy their favorite meals from the comfort of their homes. This guide provides a step-by-step approach to developing a successful food delivery app, covering essential features, market trends, technologies, and cost considerations.
Whether you’re a restaurant owner looking to expand your reach or an entrepreneur venturing into the food delivery industry, this guide will help you navigate the process of creating an efficient and profitable on-demand food delivery solution.
What is an On Demand Food Delivery App?
The on demand food delivery apps allow customers to order food online through mobile apps or websites and deliver it to their doorstep. These apps are popular due to their convenience and reliability. Also, the total revenue in on-demand meal delivery services will reach over $164.002 million by 2024.
The main purpose of on demand food delivery apps is to:
- Help customers to order food easily
- Build brand loyalty among customers
- Help customers communicate with the restaurants directly
- Help restaurants to understand the customer preferences
- Help food business owners increase their brand visibility and sales rapidly
Food Delivery App Statistics
Let’s explore some facts and figures and know why investing in a food delivery app development is profitable.
- By 2029, the food delivery industry is expected to grow to $165 billion.
- The predicted total market size of the online meal delivery sector in the US in 2023 was 287.5 billion US dollars.
- With more than half of the global market, Asia Pacific had the biggest online meal delivery market value in 2023.
- According to tradingplatforms.com, by 2023, over 2.85 billion people will order food online.
- By 2024, the food service sector is expected to generate $1 trillion in revenue.
Benefits of Developing the On Demand Food Delivery Solution
Developing an on-demand food delivery solution can offer several benefits, such as:
Convenience
On-demand food delivery provides convenience to customers. They can order food from their favorite restaurants and have it delivered to their doorstep without the need to travel or cook themselves. This convenience factor is particularly appealing in today’s fast-paced lifestyle.
Increased Customer Reach
For restaurants and food establishments, on-demand food delivery expands their customer reach beyond the constraints of their physical location. They can cater to a larger customer base, including those who prefer to dine at home or office. This can lead to increased sales and revenue opportunities.
Business Expansion
On-demand food delivery platforms provide an opportunity for restaurants to expand their business. They can serve customers in multiple areas without incurring the costs associated with opening new outlets. This scalability can be particularly beneficial for small and medium-sized restaurants.
Enhanced Customer Loyalty
On-demand food delivery platforms often include loyalty programs, discounts, and personalized recommendations based on customer preferences. These features can help build customer loyalty and encourage repeat orders.
Increased Revenue
On-demand food delivery can help restaurants tap into new revenue streams. They can generate additional income by partnering with delivery platforms and reaching a larger customer base.
Types of On Demand Food Delivery Apps
Below are the main types or models of on demand food delivery apps.
Restaurant-to-Consumer Delivery
This type has a separate app for restaurants that customers use to order food. The restaurant is responsible for preparing and delivering the food to the customers.
Example: McDonald’s, Domino’s, KFC, Starbucks, etc.
Platform-to-Consumer
This type gained huge popularity and united several restaurants on a single platform. In this type, the platform manages the delivery process. Plus, the platform charges order commissions and delivery fees from restaurant partners.
Example: UberEats, Enatega, Grubhub, Postmates, DoorDash, etc.
Food Delivery Aggregator Model
This model is a combination of the two above types. The restaurant partner only uses the app to get orders and is responsible for delivery services.
Example: Domino’s uses food delivery apps to take orders but delivers the food with their own riders, handling customer care.
Supercharge your deliveries with Enatega.
Schedule a CallRevenue Models of On Demand Food Delivery App Development
Below are some common revenue models that are used in the food delivery app development.
Commission-Based Model
This is one of the most popular revenue models for food delivery apps. The app charges a commission, typically 15-30%, on each order placed through the platform. The commission is taken from the total order value. This allows the app to generate revenue directly from facilitating the food delivery transactions.
Subscription or Membership Model
Some food delivery apps offer optional subscription or membership plans for customers. This can provide benefits like waived delivery fees, exclusive discounts, priority support, etc. in exchange for a recurring monthly or annual fee. This gives the app a steady, predictable revenue stream.
Advertising and Promotions
Food delivery apps can generate revenue by selling ad space on their platform to restaurants, food brands, and other relevant advertisers. They may also offer promotional features like highlighted listings or featured deals in exchange for a fee.
Partnerships and Collaborations
Delivery apps can form strategic partnerships with restaurants, grocery stores, or other businesses. This could involve revenue-sharing arrangements, white-label services, or bundled offerings that create new revenue streams.
Features of On-Demand Food Delivery App Development
Below are the main features of an on-demand food delivery app that can be categorized into four types of users.
- Customers
- Restaurant
- Rider
- Admin
Let’s discuss them in detail.
Customers
| Features | Description |
| Registration | Registration helps customers to create their profile with their name, password, email, and phone number. Another way is to link your social media accounts like Facebook, Google, Instagram, and Twitter for registration. |
| Restaurant Search | It is the vital feature of the on demand food delivery app. Customers can select the restaurant and view the menu of different categories with visually appealing images, user reviews, and other information. |
| Payment Modes | Customers can pay with various payment methods, such as credit/debit cards, cash on delivery, or digital wallets. |
| Pickup Location | Customers can manually add their address, use GPS for automatic recognition, and directly set their pickup location. |
| Customization | Customers can customize their menu according to their needs. For example, some people are allergic to meat or have digestion problems, so they add special instructions. |
| Feedback and Reviews | The users can provide access to feedback and reviews to make an informed decision. Also, they can give positive or negative feedback based on their overall experience to help future customers know which restaurant is more reliable for placing an order. |
| Deals and Discounts | The users receive notifications and emails regarding discounts and new offers. |
| Order Tracking | The order tracking feature allows users to observe the delivery progress in real-time, from meal preparation to delivery. The rider route can also be tracked through Google Maps integration and the smartphone’s GPS. |
| Loyalty and Reward Program | The loyalty and reward programs have shown a significant impact on the users. They encourage people to become regular customers. |
| In-app Chat | The in-app chat feature allows customers to communicate with riders about their orders. |
Restaurant
| Features | Description |
| Dashboard | The dashboard allows restaurant owners to access the order details and track the number of received, pending, and completed orders. |
| Content Management | The content management feature helps restaurant owners add or edit information, including the restaurant name, contact information, menus, photos, etc. |
| Order Management | This feature of on demand food delivery app development is essential. It provides restaurants with detailed information about current orders and allows them to send notifications to customers. |
| Receive Payments | The payment option in restaurant on-demand apps provides an extra layer of transaction fairness protection since restaurants typically receive payment after customers receive their orders. |
Rider
| Features | Description |
| Registration | The rider creates an account or receives the credentials to use the dashboard. |
| Profile Management | On the rider app, riders add their general information like name, photo, and working hours. |
| Order Status | The rider can update their delivery status (approved, disapproved, picked, and delivered) |
| Order History | The rider can review their delivery history, like which orders are completed and pending. |
| Route Optimization | Route optimization can help the rider find the shortest route by considering the traffic congestion and transport type. It helps riders to deliver the food on time. |
| Notification | With push notifications, the riders get a notification from the restaurant when the order is ready to pick up. The rider informs customers about their food being on the way. |
| Contact Restaurant/User | The rider can directly contact the restaurant and customers in an emergency. |
Admin
| Features | Description |
| Control all the Data | The admin can control all the data in the application. They have the right to add, edit, or remove users. |
| Add/Block | With this feature, the admin can add/edit/delete/block features. |
| Usage Analytics | The admin can review real-time user search journeys. Data collection, analysis, presentation, and visualization help admins improve user engagement, product life-cycle, and more. |
Technology Stack for On-Demand Food Delivery App Development
You must know the technologies to create a successful food delivery app like Grubhub, Uber Eats, and DoorDash.
The table below helps you select the right technology for your app.
| Front-end Technologies | |
| Category | Technologies |
| User Interface | HTML5, CSS3, JavaScript |
| Framework | React Native or Flutter |
| Programming Languages | Swift (for iOS) and Kotlin/Java (for Android) |
| Back-end Technologies | |
| Category | Technologies |
| APIs | RESTful APIs |
| Database | MongoDB, MySQL, or PostgreSQL |
| Programming Languages | Python (Django or Flask), Node.js, Java, or Ruby (Ruby on Rails) |
| Third-party Integrations | |
| Category | Technologies |
| Payment Gateway Integration | PayPal, Stripe, Brainrtee |
| Geolocation | Google Maps API, Mapbox |
| Analytics | Google Analytics, Mixpanel |
How Does On Demand Delivery Work?
Here is a general overview of how on-demand delivery works:
Ordering
Customers use a mobile app or website to browse available products or services and place an order. They may need to create an account and provide relevant details such as their location, payment information, and contact details.
Notification
Once the order is confirmed, the customer receives a notification containing information about the order, estimated delivery time, and other relevant details. The notification is typically sent via email, SMS, or through the mobile app.
Business Receives the Order Details
The delivery service provider or the business offering the service receives the order information
Pickup
The assigned delivery person arrives at the pickup location and collects the order. They may verify the order details and ensure that everything is in order before proceeding with the delivery.
Delivery
The delivery person transports the order to the customer’s specified location.
Tracking
Many on-demand delivery services provide real-time tracking features that allow customers to monitor the progress of their delivery. Customers can often track the location of the delivery person and receive updates on the estimated time of arrival.
Feedback
Customers have the option to provide feedback or rate the delivery experience.
How to Develop an On-Demand Food Delivery App?
Building the on-demand food delivery app can be complex, but by following the steps below, you can easily create the best online food delivery app.
1. Understand your Business Idea
First, you must understand your business idea and vision. You have to brainstorm and write your ideas on paper for your online food delivery app. This includes the user interface, features, business model, and more.
2. Research
Conduct thorough research and understand the food delivery industry. In this phase, you know these things clearly:
- The target audience
- Analyze the latest market trends
- Know about your competitors (their strengths and weaknesses)
- Identify your business model
Keep in mind that proper research can help you make a reliable and robust food delivery app.
3. Decide the Features
After the research, decide the features that you want to add to your food delivery app. To make your app stand out from the competitors, you must add those features that are not included in the app. You can easily build a successful food delivery platform when you understand your features.
4. Know the Monetization Strategies
Many well-known food delivery apps like DoorDash and Uber Eats are built using multiple monetization strategies. Here, we list the most popular ones for an online food delivery platform.
Commission fee: Platform owners can charge restaurants a percentage of the total order value through their on-demand food delivery service.
Delivery fee: The platform can charge customers the delivery fee for orders.
Featured listing: The platform offers sponsored listings to restaurants.
Advertising fee: Platform owners can make money via advertising.
Paid Passes: It is a new monetization strategy implemented by some online food delivery apps. For example, DoorDash offers DashPass for a monthly or annual price, which includes free delivery and unique discounts.
5. Develop the App
When the app design is finalized, start developing the app. Code the main app functionality and integrate all the required features. Keep in mind that the app should be optimized and run smoothly.
Another option is to select a ready-made food delivery management software and customize it according to your needs.
6. Testing the App
When the app is developed, it should be tested and remove all the bugs and errors. Testing should be done on different devices to ensure the app is accessible to all customers.
7. Launch the App
When the app is developed and tested, the next step is to launch the app. Follow all the guidelines and make sure the app is well-executed.
8. Maintenance and Update
The app should be regularly monitored and updated to meet all the customer’s needs. Update the app according to the customer’s needs and improve the app functionality for better performance.
On Demand Food Delivery App Development Cost
An on-demand food delivery app can range anywhere from $50,000 to over $250,000 to develop, depending on the specific requirements and choices made. Working with an experienced development partner can help optimize the costs.
However, the cost of an on-demand food delivery app development solution can depend on these factors:
Development Approach
- Custom development provides more flexibility but can be more expensive upfront.
- Using an existing platform or solution can be more cost-effective.
Features
- More features and functionality will generally increase development costs.
Platforms
- Building for both iOS and Android platforms will cost more than a single platform.
- Developing a web app in addition to mobile apps also adds to the costs.
Technology Stack
- Using newer and more complex technologies vs tried-and-true standard stacks will cost more.
Complexity
- More complex backend systems, integrations, and algorithms increase development time and costs.
- Simpler apps focused on core functionality can be more cost-effective.
UI/UX Design
- Custom, high-quality app designs will be more expensive than basic templates.
Project Scope
- Clearly defining the MVP and phased development can help control initial costs.
- Larger, more ambitious projects will naturally cost more.
Examples of Successful Food App Development Projects
Here are some case studies and examples of successful food app development projects.
UberEats
UberEats is one of the most successful food delivery apps, with over 66 million monthly active users worldwide. It allows users to order food from local restaurants and have it delivered to their location. Key to UberEats’ success has been its large network of restaurant partners, efficient delivery logistics, and seamless user experience.
DoorDash
DoorDash is another major player in the food delivery market, with over 20 million active users. It has grown rapidly by focusing on suburbs and smaller cities underserved by competitors. DoorDash’s use of gig workers for deliveries and data-driven optimization of routes have been critical to its business model. DoorDash alternatives are also available for business owners.
Grubhub
Grubhub was an early pioneer in the online food ordering industry, launching in 2004. It has maintained its leadership position by continually improving its app, expanding its restaurant partnerships, and providing valuable data and analytics to restaurant owners.
Instacart
Instacart is best known as a grocery delivery service, but it also allows users to order prepared meals and grocery items from local stores. Its strength lies in its ability to efficiently fulfill orders through a network of personal shoppers. Instacart has seen rapid growth, with over 75 million users as of 2023.
Enatega as Your On Demand Food Delivery App Development Company
Enatega is a food delivery app solution provider that builds custom-made food delivery apps. We have a team of experts who can create the app by using the latest technologies.
The Enatega team will help you create the single vendor and multi vendor app for your food business. So, contact us now and create the food delivery app that will take your business to new heights.
Frequently Asked Questions
- Who offers the best food delivery app development services?
Enatega provides the best food delivery app development services. They have experience serving several clients in the food delivery industry.
2. What are the top 3 food delivery apps?
The top 3 food delivery apps are:
- Enatega
- Caviar
- Seamless
3. How to create a food app?
Below are some steps to help you create a food app.
- Validate the food delivery app idea
- Select the food delivery app method
- Determine the food delivery business model
- Identify the app features
- Design and development
- Marketing and launch
4. What should be included in a food app?
Here are some key features that could be included in a useful food app:
- Offline functionality
- Order tracking
- Social features
- Order customization
