The popularity of food delivery apps is continuously increasing due to the convenience and features they offer. According to a report by Statista, the online food delivery market revenue is anticipated to hit $96.5 billion by 2027, with the United States and China having the most extensive consumer base.
These stats justify that you can generate a good amount of profit by investing in this industry and creating your food delivery app. However, building one isn’t easy until you read this blog post.
Here, you will learn the step-by-step procedure to create that perfect food delivery app.
The first stage in building a food delivery app starts with analyzing and researching. Gain a thorough understanding of what other brands involved in the same niche are doing to gain profits. Find their positives and weaknesses and learn from their mistakes.
In simple terms, here, you have to identify your app’s USP (Unique Selling Promotions).
The next step entails defining a business model as a food delivery app works in different ways. Below are some of the popular ones.
Order-Only Model
Have you heard about Grubhub and Justeat? These apps work on the order-only model. In this business model, your food delivery app will act as a bridge between customers and various restaurants. It works in two phases, i,e.,
For order allocations
The customer will order the food from their favorite restaurants through the app, and the restaurant will start preparing it.
For delivery
After the order is prepared, a delivery boy will deliver the order to the customer.
Order-and-delivery model
The most popular food delivery apps, including Zomato, Swiggy, Uber Eats, and DoorDash, use the order-and-delivery model. The difference between the order-only and order-and-delivery models is that the platform itself is responsible for the management rather than the retailer or restaurant.
Fully Integrated Model
In this food delivery business model, the platform owner does all the work, from preparing meals to food delivery. In simple terms, you will have complete control over the whole procedure. Typically, you have to partner with a chef for its execution.
Now, you must decide on the app functionality, including the must-have features. Here’s the breakdown.
Registration & Login: First, the app must have a sign-up and login feature that allows users to access it via different social networks, email, or mobile numbers. Do not forget to add the “Forgot Password” feature for password recovery.
Restaurant Search Filter:
This option will help your customers search nearby restaurants according to their location.
Real-time Location & Tracking:
Your app should include a map that individuals can use to monitor and track the order progress.
Payment Gateway Integration:
Consider including different payment options such as Google Wallet, Apple Pay, iOS PayPal accounts, Mastercard, Credit/Debit Cards, Internet Banking, and Cash On Delivery (COD).
Read More: List of Best Food Delivery App Development Companies
Reviews and Ratings:
Add this feature to the app so users can leave their reviews and ratings. This way, you can determine if they are happy with your services and, if not, what improvements can be made.
Push Notifications:
This feature serves different purposes, such as reminding users about delivery stages, promotional offers, discount offers, or any other aspects.
Registration and Authentication:
The app must include the functionality for restaurants to register.
Listing Management:
Through listing management, the restaurant can update its menu items and change the pricing accordingly.
Order Management:
In this section, restaurants can do the order management and review the incoming orders to ensure they are delivered timely.
Reviews & Ratings:
Reviews and ratings hold a vital role, so restaurants must have the authority to review and respond to customer reviews.
Alert and Notification: It helps drivers receive new order notifications and updates related to previous orders.
GPS for Directions:
GPS integration is necessary to ensure the drivers don’t encounter problems in reaching the restaurant or customer’s location.
Earnings Tracker:
A built-in tracker will help the drivers keep track of the profits they have made on deliveries.
Order Details & Status:
This feature will allow drivers to view the available orders and the option to claim an order. It will include the route distance, order value, and earrings.
Courier’s Communication: In the case of any queries, It will help the drivers to communicate with restaurants and customers in real-time.
You must decide on your food delivery app monetization plan. Below are some strategies that will help you get better ROI (Return On Investment).
This is one of the most popular app monetization models used by food delivery businesses worldwide. Here, you can profit by charging a commission from each order placed through the app.
The fee which is charged on placing orders is termed as “delivery service fee”. It is estimated by the distance between clients and the restaurant’s location, included in the order’s total price. Some on-demand food delivery apps like Swiggy and Zomato charge high delivery service fees during peak hours.
In-app advertising involves displaying ads on the app’s user interface in several ways, like banner advertisements, popup ads, or sponsored content. For instance, some restaurants pay extra to appear on the top searches.
The monetization model will not only help in generating revenue but also increase the user base and engagement. What exactly can you do? Collaborate with complementing platforms or services and decide on a strategy in which both parties can earn profits. Here’s an example.
Doordash, an online food delivery app, partnered with CVS, a pharmacy company, to deliver everything from food to medicine to the consumer’s doorstep. Through this collaboration, both brands earned profits and broadened their customer base.
Now, comes the most important question: what will be the cost of creating a food delivery app?
This factor depends on several factors, such as
However, the approximate costs will vary between $40,000 and $150,000.
After deciding on your budget and requirements, it’s time for the app development execution. For this, you have to partner with a mobile app development company. Discuss the whole procedure with them, ask your queries, budget considerations, and other factors for a seamless collaboration.
We suggest you start with an MVP, as it is a proven way to test any app idea before launching it to the end users.
After the app deployment, implement a marketing strategy to promote the launch.
Partner with influencers, use social media channels and offer promotions or discounts to attract the audience.
And that’s a wrap! Food delivery apps hold a lot of potential, and the stats prove this industry will continuously grow over time. So, it’s the right time to invest and be part of it by creating your food delivery app. Hire the best food delivery app developers with the top-rated food delivery app development company Octal IT Solution.
To make a successful and profitable app, partner with an app development company, as they will help you build the perfect one aligned with your vision.
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