On Customer Demand Food Delivery App Development : All You Need To Know

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December 2022

At midnight, when the brain reels due to daily labor, your customers might want a bite of the spiciest chicken wings. At lunch, they might want to skip the office’s mundane meals and order a burrito to have their taste buds flooded with flavors.

In another episode, their guests are waiting in the living room, and food is burnt. Under such eventful occurrences, home delivery is the only solution to prevent embarrassing flushes and apologies. 

Suffice it to say ordering food is more convenient at times. than dine-in and takeaways. To put it differently, around 58% of shoppers value “convenience”, according to Elluminati Inc.

These unexpected food cravings during unplanned meal hours paved the way for on demand food delivery app development. According to Statista, revenue in the online food delivery industry is expected to reach U.S. $339,257 million by the end of 2022. It is estimated to spike at an annual growth rate of 13.68%, resulting in a projected market volume of US $1.45 trillion by 2027. 

These unquestionable statistics suggest that it is time for you to make your menu available to an enormous pool of customers. Supercharge your business model by investing in an on demand food delivery app development project. Be the hunger savior for your customers with on-demand solutions for the delivery of food.

We at ARFASOFTECH, have an impressive portfolio showcasing our flashes of brilliance in the on-demand industry. Our development team leveraged cutting-edge white-label development solutions for restaurant business aggregators, restaurant ordering applications, and the on-demand delivery sector.

Which Food Delivery Apps Have Replaced Home-Cooked Meals?

If one looks at the number of downloads from both the App Store (iOS) and the Play Store (Android), one can notice that they are rising every day. Furthermore, fresh applications are being released each month in order to profit from the rising market. These applications are the hottest thing in the online world right now. Here is a list of the most popular meal delivery apps in 2022:

UberEats

uber eats on demand food delivery app

Source: UberEats

Uber, a world-renowned American technology business in San Francisco, founded its subsidiary UberEats in 2014. It is one of Uber's independent delivery applications. The app is accessible in 24 countries and 500+ cities worldwide, and it is continually expanding its global footprint. The app deducts 15% of each order's subtotal as a service fee. Smaller orders are also collected for a cost of $10.

However, the rates vary based on the location of the delivery point and the restaurant. Users may use their current Uber account to acquire amazing economic selections from neighboring meals and cafés. It is accessible for both iOS and Android devices.

DoorDash 

door dash on demand food delivery app

Source: DoorDash

DoorDash is another San Francisco-based firm on the list. Despite only being on the market for around eight years, the internet restaurant home delivery business now has a 56% market share in the United States of America (USA). As such, it is the largest food delivery company in the United States. 

The company is currently functional in the United States, Canada, and Australia. Although it is touted as a free smartphone app, restaurants charge the cost of the meal, tax, delivery fee, and a tip (which is optional). DoorDash is accessible on iOS and Android devices.

Grubhub

Grubhub on demand food delivery application

Source: GrubHub

GrubHub, a Chicago-based American firm, is one of the market's oldest home delivery applications. It began operations in 2004 and now has 19.9 million active users on its platform. According to 2019 statistics, the corporation operates in 3200 cities throughout 50 states in the United States of America. It has also formed alliances with 115,000 eateries to streamline its operations. 

Furthermore, when the Anglo-Dutch business Just Eat Takeaway purchased GrubHub in May 2020, it became the world's largest online food supply service outside China. It is accessible on both Android and iOS devices. While the app is free, some restaurants have minimum order amounts and delivery costs.

PostMates

postmates on demand food delivery app

Source: PostMates

Postmates, situated in San Francisco, is an extraordinarily unique participant on the list. According to Reuters, the corporation operates in 2940 cities across the United States. Their software may be used to deliver anything to the user's door. They deliver groceries, meals, and alcoholic beverages from over 100,000 retail locations. 

Every order placed through the app comes with a fee, and rates rise during busy hours. Its exceptional services and on-time delivery helped them earn more than $1 billion in sales in 2018. Due to its exceptional profitability, it was sold to global IT giants Uber for $2.65 billion on December 1, 2020. Even though Uber operates its UberEats services, it has not merged with Postmates.

Why Are Delivery Apps So Popular Among Customers?

As the demand for online meal delivery develops, the market potential to offer more competitive costs while providing personal convenience expands. About 55% of consumers who order meals or takeaway prefer digital services over face-to-face interactions. In simple words, ordering food has become as natural as taking a bite. 

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Time-saving 

Food ordering applications have the world at their feet because ordering a meal via smartphones saves time. You may effortlessly juggle between tasks while having your lunch delivered to your office. It saves you the time you would have spent traveling to the restaurant. As a result, more professionals are increasingly using food delivery software to receive their meals.

Diversity in payment options 

Even if it is not going away anytime soon, purchasing with cash is getting less common. Many clients already utilize a preferred payment option when placing orders for delivery services. For example, it may take the shape of Apple Pay or Google Pay.

Ghost restaurants 

The emergence of ghost eateries has also spurred an increase in meal delivery applications. As a result of the fierce rivalry in the meal delivery sector, these eateries arose. Ghost restaurants operate in commercial spaces as opposed to restaurants with physical outlets. The main goal of these restaurants is to provide food to their target customers regardless of their location. 

Wallet-friendly alterations 

To stay afloat in a competitive market, numerous businesses in the food-tech industry are coming up with improved solutions. While some apps charge a modest delivery fee, several increasingly provide free delivery.

Furthermore, cheap deals and vouchers are some factors that make the meal delivery sector appealing to many people.

Types Of Food Supply Applications That Made A Difference

types of on demand food delivery apps

Two major types of on-demand food ordering apps or models are quite popular nowadays. They are classed as follows:

  • Platform-to-consumer delivery (Aggregator)

The platform-to-consumer approach of food supply app development has already established a strong foothold in the food delivery business by providing more diverse options at a lower cost. Initially, aggregators brought together multiple regional eateries on one platform, allowing consumers to view menus from several locations. 

However, the aggregator service did not provide logistics, whereas restaurants had to supply it. Modern aggregator platforms now offer logistical help, so restaurants can focus on cooking food while the platform's drivers guarantee it is delivered on time.

UberEats, DoorDash, Grubhub, Deliveroo, and Postmates are major online meal delivery aggregators.

  • Restaurant-to-consumer delivery

The strategy is typically employed by branded meal delivery applications that digitally represent a distinct restaurant or restaurant chain. The restaurant-to-consumer approach assumes that customers obtain their meals from a specific restaurant via its own delivery service rather than utilizing outsourced logistics-focused platforms.

Examples vary by industrial sector and location: For example, Jimmy John's Franchise is well-known throughout the United States for its “sandwich cuisine”, whilst Domino's Pizza is regarded as one of the top pizza delivery services in the world.

Step-by-Step Process To Create Your App for Food Delivery

Proper industry expertise is essential to build a meal-ordering app. Thus before developing a startup firm, the owner should evaluate the following key prerequisites for creating your own app:

Evaluate Market Trends And Opportunities

To begin, examine the market, its trends, and prospects. You should be aware of what is currently popular among frequent meal delivery app customers. Learn about the methods used to create an on-demand delivery app. Examine which popular technologies, functionality, and design elements are most frequently used in food delivery systems.

Select Strategy & Track Trends

Before developing a food delivery app, you must devise a good plan. To make the platform competitive in the future, the business owner should select one of the food delivery methods (platform-to-consumer or restaurant-to-consumer), and decide on the target demographic and industrial sector (fast food, vegetarian cuisine, exclusive cuisine, etc.).

Examine popular trends such as artificial intelligence, wristwatch support, and social media integration to find a niche for your own business.

Determine UI/UX Guidelines

Proper design is essential for engaging and keeping people. According to modern UI/UX requirements, decent mobile food delivery software should rely on simplicity, i.e., simple colors, and a highly engaging interface devoid of unnecessary features. Placing appealing food images in the application influences users' decisions to utilize the platform's services.

Choose an Appropriate Logistic System

Productive logistics service is a critical component of on-demand food delivery apps. It is heavily dependent on planning and hiring personnel. If your logistics are more comprehensive and optimized, customers are more likely to be happier with their meals being delivered on time. It is also vital to have established courier personnel (particularly for restaurant-to-customer apps) so that there is no need to invest time and money in newbie training.

Pick the Best Database for A Food Ordering App

Another factor that went sky-high to increase the popularity of food ordering apps is sophisticated databases. On demand food delivery startups tend to grow in a short period of time. To accommodate this rapid scaling, their database should be flexible and error-tolerant. They are very important to prevent performance issues that might put your app in a detrimental position.

To store and process order data, ARFASOFTECH utilizes different databases depending on your project’s requirements. We provide the best databases for food ordering apps such as Amazon AWS, Google Firebase, or Microsoft Azure. These databases provide additional agility for proper functioning and to stabilize performance under any circumstances. 

Hire A Software Development Team

Hiring the right software development team is critical to your future success. When selecting partners for an on-demand meal ordering service, consider the company's portfolio and the technology it primarily employs in projects.

Check that your needs are suitable with the services provided, and look for organizations that offer full-stack development assistance, from business analytics through post-release platform maintenance.

hire on demand food delivery app development team

ARFASOFTECH, a reputable software development company with a 5-star Clutch review, has a team of top-notch developers who deliver the diverse objectives of food delivery application development projects.

Along with the ordering mechanism, our on-demand food supply app development process creates an integrated solution for owners to reach out to their target audience. It also aids in revenue growth. A well-designed delivery food app built under ARFASOFTECH's roof demonstrates its ability to traverse user actions, minimize interruptions, and remove obstacles to purchasing. 

How Can You Monetize?

When developing an on-demand food supply service, one must consider how to profit from it. For food delivery service startups, there are three primary income models to consider:

Delivery fee

If you do not have your own delivery staff, this type of monetization model can handle the delivery process for a charge. Depending on the distance, delivery fees might be a percentage of the purchase price or a flat amount.

Deliveroo used this method of monetization. According to the research, Deliveroo made £129 million by delivering restaurant meals to clients' homes. The firm makes money by charging clients £2.50 for each delivery and charging restaurant owners commission (generally 10 percent of the order price). Deliveroo drivers may often earn £16.50 per hour.

Peak hours 

Let's take a look at another option to generate money using meal delivery apps. This method of monetization includes a delivery cost during busy hours. For instance, UberEats implements surge pricing throughout lunch and evening. UberEats restricts menus and locations during busy hours and charges an additional cost to make them available. 

Advertising

Marketing and promotion fees are another efficient monetization strategy. In competing with industry titans, restaurants cooperating with meal delivery services frequently struggle to increase their own awareness and acquire new consumers. As a result, companies pay for a platform for marketing in order to hold first positions on the app's restaurant search page and enhance their chances of engaging consumers.

Swiggy relies heavily on this revenue stream. It charges restaurants money to list their establishments in the app. Restaurants that appear on a highlighted list appear above others in search results, perhaps attracting more consumers.

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What Are The Key Features of A Food Ordering App?

Before developing an on-demand supply of food service, you should understand what features and APIs it will utilize. Initiate the food delivery mobile app development process with the basics, i.e., ask yourself what three things you want to see on Glovo, Uber, or Postmate. Then, go into even more detail by considering three major agents engaged in the process:

  • CLIENT places an order; 
  • RESTAURANT prepares the order
  • COURIER delivers the delivery

Consumer app

The consumer version of your application is the most critical component of your business model. With most millennials and GenZ as your consumers, you need to prioritize your app's UI/UX design interface. They are reluctant to use an application that is unpleasant to the eye.

In addition, the user-friendly features also boost the conversion rate. Give your users a clean and seamless buying experience from exploring the menus to checkout. Although each app will have its distinguishing features, a few MVP features are almost pivotal for every app. 

  • Begin using the sign-up function. Customers should be able to establish an account, follow the status of their orders, and leave feedback. Don't forget to include permission via email or social media platforms.
  • Define restaurant lists, ratings, and reviews layout to ease your customer’s decision-making process.
  • Introduce chat and calls within the app. Allow your customers to communicate with restaurants and couriers as well as check on the status of their orders.
  • Integrate the app payment system. The simpler it is to pay, the better. Include as many payment methods as possible, such as PayPal, Google Wallet, Apple Pay, and credit cards.
  • Provide the functionality to place orders directly from the restaurant menu. It is a small element, yet it is critical to provide customer-friendly service.

Restaurant app

This interface facilitates restaurants to manage their incoming orders. It is better to create a web application rather than a mobile app as it involves the detailed logistics involved in order processing and fulfillment. Once the order is ready, the restaurant owners can notify the couriers. 

You can integrate the following features into your application: 

  • Sign up page for registering. Create the meal delivery app capability so that food companies may participate. The profile of a restaurant should include its name, location, menu, business hours, and contact information.
  • Tracking the next available courier to deliver orders. Also, ensure that your app's functionality covers courier tracking at all delivery steps.
  • Information exchange between the restaurant, the courier, and the client.
  • Track order status. Restaurants should be able to view incoming orders, orders in process, and orders that have already been delivered.
  • Option to update restaurant profiles' content.
  • Special order functionality

Courier app

We recommend developing a mobile app for courier service providers as they have to use it on the go. You can request your dedicated software development team to include the following features in your application:

  • Create a sign-up page. Personal information (location, language, vehicle) as well as rating and feedback elements, should be included in the courier's profile.
  • Order management and order status updates once delivery is complete.
  • Allow couriers to communicate with restaurants and customers in order to resolve some real-time concerns and deliver order progress updates.
  • Account history may be used to highlight the courier's experience.

Admin Portal

It is a management tool essential for businesses to evaluate their performance. Typically, it caters to your needs through the following features: 

  • A login doorway. A secure login keeps your sensitive information confidential. 
  • Restaurant management. Admin businesses can either add or delete restaurants to the portal.
  • Analytics. You can evaluate your business KPIs such as the number of orders, average delivery time, customer demographics, revenue, and more through this function.
  • Payment management. This feature allows the admin to charge fees from restaurants and customers. 

How to Estimate On-Demand Food Delivery App Development Cost?

It is difficult to anticipate the exact on-demand food delivery application development cost. To begin, the cost is generally determined by the firm that undertakes development. You could also consider outsourcing your product development because it is more cost-effective and less expensive in terms of vendor services.

Furthermore, the functionality of your software will have a big impact on its pricing. The arithmetic is straightforward: the more complicated the program, the more expensive it will be. You can book a free consultation with us to gain clarity on how much your meal-ordering app would cost.

Turn Your Idea Into Reality Today! 

Despite the fact that the food supply business is saturated with several world-famous services, there is always room for fresh creative startup ideas. Don't be afraid of the difficult competition you'll face! Consider your abilities, select the best plan, and unleash your invention on the industry. 

Above all, avoid wasting time by contacting us to collaborate on on-demand food delivery app development that will take off and gain consumer affection straight now.

Frequently Asked Questions

How do I make an app for food delivery?

You can make an on-demand food delivery app in 5 simple steps:

  • Identify your target audience 
  • Conduct a competitor analysis
  • Hire the best developers for an on-demand food delivery app
  • Integrate powerful features into your app
  • Monetize your application

How much does it cost to create a delivery app?

The cost of developing an on-demand food delivery app varies from project to project. There are various factors involved in the process. These factors include project scope, complexity, budget, timeline, features, and functionality, target audience, geographic location, number of software developers, tech stack, and more.

Are food delivery apps profitable?

According to the figures and facts shared by Statista, it is evident that food delivery apps are profitable. You should remember these points to gain profits:

  • UI should be user friendly
  • The customer loved the online experience because of the easy convenience
  • Greater range of offerings
  • Attractive features
  • Analyzing customer behavior & delivering personalized offers
  • Enhancing Customer Loyalty by offering Loyalty Program

What makes a food delivery app successful?

A decent meal delivery app should have a search bar that allows users to look for specific restaurants or food products. Additionally, adding multiple categories, such as 'last ordered,' 'often ordered,' 'best-selling,' and so on, improves the search experience.

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author

Fahad Ali, Author

Fahad is PM at ARFASOFTECH but has a knack for writing. He enjoys writing about the latest technologies and evolving trends. Most of his writings revolve around trending technologies and their integration into operations.

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