Today, while the arena goes cellular dependent, the demand for food delivery apps has surged
remarkably. If let us speak about the current situation, most of the people are scared of stepping
out of their homes, they desire to get their necessities at their doorsteps. The online marketplace
isn’t always left untouched with the aid of using the brand new online marketplace needs and
with the power of using the on-demand food delivery apps. With the developing utilization of
food delivery apps, it’s miles predicted that the next 5 years may be filled with greater worldwide
consolidation.
Do you realize the online marketplace sales improved by 204% within the last 5 years as the platforms to customers offerings like Ubereats, GrubHub, and Doordash were initiated? Business giants like them offer a much wider choice of restaurants, cafes, and lots of meal items.
A record from Statista, that the revenue growth of the online food delivery industry is anticipated to develop through USD 401,391m global and USD 41,504m within the United States by 2025. In the USA, the online food delivery marketplace is expected to grow 9.2 % in sales by 2022.
The above data has been differentiated into two categories:
Restaurant-to-Consumer Delivery, the number of users is expected to amount to 1,788.1m users by 2025, and the revenue is projected to show an annual growth rate (CAGR 2022-2025) of 9.21%, resulting in an expected market volume of USD 186,194m by 2025.
Platform-to-Consumer Delivery, the number of users is expected to amount to 1,219.1m users by 2025, and the revenue is projected to show an annual growth rate (CAGR 2022-2025) of 8.35%, resulting in an expected market volume of USD 215, 197m by 2025.
So, in case you are making plans for a food delivery app development, you’ve got landed the right place. Let’s get into the different key aspects of food delivery services from app functionalities to features.
Food Delivery Business in 2021
Despite huge growth in the food delivery industry, most of the companies had been suffering to thrive at the start of 2020. Many legendary brands like Ubereats, DoorDash, and Postmates had been all in negotiations of merging in diverse combinations. Then, there has been a disaster - a pandemic hit the globe and disrupted.
So, at the time of the pandemic, the entire food delivery service brands rise-up instantly. Everyone becomes trying to get essential products and food delivered to their doorstep. So, the covid-19 impact has unlocked a door for the on-demand food delivery business.
Business Model of On-demand Food Delivery App
Are you interested in implementing a fully-featured food delivery app? Then, you must know the business models to consider.
Here it is!
Conduct Market Research
Conducting market research for your business is the most important phase before starting food delivery app development. It helps to analyze your competitors, target audience, and current food delivery business trends.
Pick the Right Business Model
1. Order Only Model
The Order-only model has been initiated by legendary food delivery service providers like JusEat & GrubHub. Also, has the unique selling point of this model is, it notifies the new orders to restaurants. This model started out as a way to replace the phone ordering system with a fully optimized website and mobile apps.
How did it work?
Customers place orders online.
Restaurants receive and accept orders through the website or an app.
The restaurants finish the placed orders through Ubereats like Interface or drivers on their roles.
Benefits
The less share percentage of the aggregator reduces the markup for the customers.
These structures are incredibly scalable and provide a brief solution for small native restaurants and takeaways.
2. The Order and Delivery Model
This model is followed by popular brands like Ubereats, DoorDash and Postmates. It adds the delivery side to the ordering systems. Restaurants list themselves on the platform, and the restaurant platform controls the ordering and delivery side. This permits restaurants without their delivery fleets to provide takeaway and door delivery to their customers.
Ubereats and Swiggy are the perfect examples of such platforms.
Here’s how it works:
Customer places orders online.
Restaurants receive and accept orders through the website or an app.
Through a simple online interface, a driver is assigned to pick up and deliver the order at the customer’s preferred location.
Benefits
Various offerings and incorporated delivery mechanisms are unmatched through only ordering platforms.
Allows them to maintain quality and delivery timelines when ordering and delivery mechanism in their control.
3. Fully Integrated Cloud Restaurant Model
Cloud kitchens and massive restaurant chains like Domino’s frequently pick the fully integrated version. These cloud kitchens are similar to restaurants that only exist online. It must have a high-scale restaurant menu however it no longer accepts/offers dine-in or takeaway facilities.
Benefits
The completed process of food ordering, preparing and delivering it all sets with a single entity.
Makes it easy to find and fix the quality issues and service gaps.
Revenue Model of On-demand Food Delivery App
Well, there are numerous revenue models you may combine to make a contemporary food delivery app development. When you hire the best mobile app developer for app development, definitely they’ll assist you to pick the perfect revenue models to accelerate more ROI for your business.
Here are some revenue models, that most of the food delivery businesses can have:
Commissions - You can consider the commission-based model for your food delivery business. The app admin will receive a commission from the restaurants for each order they placed through the app. When customers place an order from their favorite restaurant, the restaurant will pay a commission to the aggregators.
App Subscription - The admin costs the merchandiser a monthly or yearly subscription charge to list their restaurants on food delivery apps.
Paid Ads - Paid advertisements are one of the pleasant approaches to generate revenue by top listing their restaurants and food items in the app. Some charges will be applicable for promoting restaurant ads in the app.
Additionally, the restaurants will pay for banner advertisements with their
unique meal recommendations.
Delivery Fee & Other Charges - Delivery fees will be charged from the customers by the app owner. In some cases, when the admin makes use of his own logistics network to deliver the food, the commission will be charged from the clients.
One fine way to generate revenue is to apply surge pricing during rush hours. Restaurants should pay a higher amount for the app to proceed with their request sooner.
Influential Features Of Food Delivery App
As a prominent food delivery app development concern, we’re curating all essential features and functionalities that an on-demand food delivery app must-have for customers, restaurants, and drivers.
1. User App
The user has to sign in after installing the restaurant’s online ordering app. Generally, the subsequent section wants to be there in the app:
Social media login
Advanced Search and Filter Option
Restaurant listing based on Geolocation
Add to cart and Check out
Wish list
Rating and review
Order real-time tracking
Address book
Order history
Profile page
2. Restaurant App
The restaurants wish to register too and need to go through the login process. The food service provider panel must have the choice of filing files that want to be proven through the owner of the app. Furthermore, the following divisions want to be there:
Dashboard
Accept/Reject order
Shift on/off
Manage categories
Manage orders
Manage delivery area
Manage delivery fees
View reviews
Manage revenue
Reports module
Coupon management
3. Driver App
The driver needs to install the app, carry out registration and additional verifications which will be carried out by the restaurants and service providers. Including those, the drive panel has to function the following:
Registration
Shift on/off
Push notifications and alerts
Accept/reject an order
Pick up order
Track delivery location
Deliver the order
Earn commission
4. Admin Panel
Dashboard
Restaurant management
Commission management
Campaign Management
Manage payment methods
Commission setup
Customers management
Manage customers and drivers
Delivery management
Detailed report module
Estimated Cost to Implement an On-Demand Food Delivery App
Apart from features and functionalities, a vital thing that comes to a decision the fee of food delivery app is the hourly rate of developers. Broadly, there is a massive variation within the hourly rate of app developers.
If you come to the cost that is charged for an app, to give approximate numbers, an average app may cost around the US $10000 - US $20000. In case one opts for a sophisticated app this is additionally a bit of of the online ordering system, the developer is in all likelihood to rate approximately the US $35000.
Before consulting a reputed mobile app development agency, it’s far really helpful to make a blueprint with the must-have features and functionalities. Based on the blueprint, the agency can provide you with a specific quote about the fee of your food delivery app. Ideally, if we recollect a majority of these factors, a painless on-demand food delivery app with the maximum essential features will cost the approx US $15000. Although, the cost may differ significantly with the increasing number of features.
Final Say!
As an enterprise owner, in case you’re making plans to implement an on-demand food delivery app, it calls for in-depth market research, industry-related knowledge, and the right budget. Hereby we shared the app features and functionalities, business model, revenue model, and technologies in this article, which can also additionally clean up your thoughts making an absolute food delivery app.
So, in the span of building a feature-rich app, it’s vital to understand which food delivery marketplace you’re making plans to target, the problems/challenges to handle, and your goal.
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