Updated On May 15, 2024

By SaraNextGen

Food Delivery App Development Cost Estimation With Advanced Features

Food delivery isn’t a new concept. It has existed for more than half a decade. However, a very small portion of the globe has access to online food delivery services, and this is where the opportunity for a growing online food delivery market comes alive. This is backed further by the fact that more and more people are adopting smartphones and internet culture.

• It’s hard to find time to visit your favorite restaurants, especially when there is a global pandemic going on. In such situations, technology is rescuing people’s foody desires by enabling online food delivery to be powered by food delivery apps. On-demand food delivery apps have been making our lives hassle-free and convenient for a while now. These apps allow users to order food from their homes via the app and get it delivered to their doorstep very quickly. These apps offer a wide variety of restaurants to the customers, allowing them to order food, whilst also providing additional exposure to the restaurants. For this reason, the food delivery mobile apps have changed the game for the eat and dining sector. If you are looking for a partner to develop your food delivery app, then here are tips and recommendations you should be aware of before developing the food app.

• Reasons to Develop Food Delivery App

• Undoubtedly, food delivery mobile apps have made our lives more convenient and easy. According to a survey by Jackpot, there are basically 3 main reasons to how this phenomenon can bring fortunes for the food and beverage industry.

• Food apps are more practical

• Some people don’t have time to go to a restaurant

• Some don’t know how to cook

• Around 61% of users think that they would love to order food from a restaurant.

• By 2022, the online delivery industry will rise up to $55 billion.

• Due to online food delivery services, many small, as well as large-scale restaurants have increased their revenue by 25%.

• In 2019, the payments made online are around $210 billion.

• How to Generate Revenue with Online Food Delivery Business?

• There are various ways through which you can generally manage and generate profits by the online food delivery business.

• Commission

• Taking commission from restaurants is one of the ways by which you can generate profit for your online food delivery business. You can ask for a commission for each order that your partnered restaurant receives from users.

• Delivery Charge

• There are some restaurants that do not deliver food to home. Through the on-demand food delivery app, you can deliver food at the user’s doorstep. You can set delivery charges on the basis of distance.

• Surge Pricing

• Big players like UberEats make the prices higher whenever the demand is high. It restricts menu options and at the time of order placement, they add an extra charge. Due to this, the per-order delivery amount increases.

• Advertisement

• One of the best ways to generate a high amount of revenue is advertising. By asking some restaurants to get featured at the top of the list, or you offer premium video placements of some restaurants on your service to generate extra revenue. Alternatively you can also use Google AdSense on the platform to earn advertising revenue.

• Challenges While Offering Online Food Delivery Services

• Although the online food delivery business is always in trend, there are some challenges. So before entering into the market of online food delivery, you must know about all the challenges that you may face.

• Increased Competition

• The competition in the food delivery industry is increasing as many e-commerce giants and individual restaurants are entering into this business. Names like Uber and Amazon are already in this competition with services like UberEats and Amazon Restaurant.

• Customer Loyalty

• One of the most important factors to be successful in any online platform is to maintain customer loyalty. Customers are always attracted towards discounts and offers. Your online food delivery business can easily gain customer loyalty with this phenomenon. It has been evident that companies that do not focus on maintaining customer loyalty have faced bitter consequences, often resulting in losing a large share of the market.

• Searching Partner Restaurants

• Not putting a considerable focus on these factors can turn out to be a roadblock for your business. You should collaborate with restaurants of various scales. Instead of always going with bigger brands, you also shall tie-up with the small start-up restaurant who are new in the market and are looking for promotion.

• Choosing the Features of MVP

• One of the most difficult tasks while developing the app is to decide which features to include and which to exclude for your on-demand food delivery mobile app minimum viable product (MVP). It is always recommended to test the app idea before launching a fully-functional version. By building an MVP, you can easily test your idea without spending a huge amount of money.

• Reliable UX/UI

• Since the screens and the user flow of all the apps, i.e. user, admin, delivery executive, and restaurant are different from each other, it is difficult to maintain a uniform UX/UI for every app. Therefore, it is recommended to have a clearly defined strategy for your food delivery mobile app design.