Explicit Guide on How to Start with Food Delivery App Development

What does the future hold for food delivery companies?

In 2020, COVID-19 has disrupted the world and many industries have fallen under the pressure of the crisis.

Food delivery, on the other hand, is experiencing an unprecedented surge.

If you want to create a food delivery app, this article will tell you how to do it right.

Let’s dive right into the technical and business details.

Market Potential & Reasons to Invest in Delivery Apps

On-Demand Food Delivery Market Leaders

Food-Delivery App Players on the Map

Therefore, the main market players are as follows:

  • UberEats
Uber Eats App Screens
  • goPuff

Check out the goPuff Case Study

goPuff, On-demand Delivery App
  • GrabFood
  • Zomato
  • Otlob
  • YandexEda
  • Glovo
  • Postmates
  • DoorDash
  • GrubHub
  • Domino’s Pizza

The listed applications help to get a grip on the main trends on the market and identify the features these apps consist of.

Business Models for Food Ordering App Development

How does the aggregator model in a food delivery business work?

The platform acts as an intermediate between customers and restaurants, and can either provide delivery services or not.

Work of Food-delivery Platform via Aggregator without Logistics

Aggregators without logistics work this way:

  1. A user chooses food and places an order
  2. The payment is placed within the system
  3. The restaurant receives the order and prepares it for delivery
  4. The food is delivered by the restaurant’s courier
  5. The payment is deducted

Almost all famous, big names in the industry started as food delivery aggregators without delivery, including Just Eat in the UK, Grubhub in the USA, and Delivery Hero in Germany.

Process of Placing a Food Order via Third-Party Service with Courier Service

Aggregators with logistics work the following way:

  1. A user chooses food and places an order
  2. The payment is placed within the system
  3. The restaurant receives the order and prepares it for pick-up by the platform’s courier
  4. The food is delivered by the platform’s courier
  5. The payment is deducted

A great example of this sort of app is UberEats, which uses its own couriers to deliver orders to customers.

Hybrid platforms

Here is how a hybrid system works:

  1. A user chooses food and places an order
  2. The payment is placed within the system
  3. The restaurant receives and packages the order
  4. The app’s admin sees the order and sends it to a third-party courier for pick-up
  5. The food is delivered by the third-party courier
  6. The payment is deducted

Some great examples of this kind of application are Panera Bread, Carrabba’s Italian Grill, and Outback Steakhouse, which use their own branded apps and third-party delivery companies. Panera Bread cooperates with GrubHub, DoorDash, and Uber Eats for food delivery.

Why Restaurants Should Invest in App Development

  • High dependency on the delivery partner & fee payment
  • Inability to control the quality of delivery services
  • Lose a chance to build customer loyalty

Revenue Streams for Food Delivery Apps

  • Commissions
  • Subscription
  • Fees during busy hours
  • Paid advertising

In case you are wondering whether investments will pay off or not, just take a look at the below table showing some of the top examples.

How to Start a Food Delivery App

General Process of Developing a Food Delivery App

Analyze the Market & Define Your TA

  • select the market where you want to launch the solution
  • identify the most promising project concept (including app type, features, business model, etc.)
  • find niches in the market that still have a place for new apps
  • study the demographics and test your idea among the defined target audience
  • decide on the best way to build a food delivery app based on the collected data

Finalize Your Value Proposition

Example of a Business Model Canvas for Food Delivery App

Select a Reliable and Capable Software Development Company

Why to Outsource App Development to Ukraine

The average price for food delivery app developers’ work is about $40 per hour, which allows you to hire the best team to work on your project and spend less on the development process. When compared to other countries, Ukraine has a great time zone.

Develop an Appealing Food Delivery Product

Custom Full Product Development Process at MLSDev

Apply Top Design Practices

Example of Food-delivery App Concept

Ensure Flawless App Performance

Take Care of Proper Product Testing

Promote Your Food Delivery App

  • Marketing campaign
  • Influencer marketing
  • SMM
  • Partners

Food Delivery App Features

  1. Features for clients
  2. Features for couriers
  3. Features for admins
Food Delivery App Modules

Client-Related Functionality to Develop Food Delivery App

  • Registration
  • Profile management
  • Search
  • Order placement
  • Payments
  • Receipts
  • Ratings & Reviews
  • Notifications
On-demand Food App Development for a Client

Here are a few advanced features that will help it stand out:

  • Bookmarks
  • Order history
  • Delivery time estimation
  • Loyalty programs
  • Social network integration

Functionality for Courier

  • Registration
  • Profile management
  • Order management
  • Status update
Functionality for Couriers to Include in Food Ordering App Development

Extra features to develop for a food delivery app:

  • Navigation
  • Delivery history
  • Earnings

Features for Admin

  • Registration
  • Profile management
  • Content management
  • Order management
  • Payments

Admin Panel in On-Demand Food Delivery App Development

Tech Components & Elements

These APIs allow you to obtain information about food chains and restaurants listings.

Challenges in Developing a Food Delivery App

1. Sustainability and scalability of food delivery app

2. High competition

3. Features for the first working app version

4. Searching for partners

5. Searching for couriers

6. Retaining users

Concluding Thoughts on How to Build an On-Demand Delivery Service

Step 1: Conduct thorough market research and identify your customer segments — users, restaurants, and couriers that will use your app.
Step 2: Define your unique proposition — what value you can offer to all segments of users and how you can solve their problems.
Step 3: Identify key food delivery app features — for end-users, restaurants, and couriers.
Step 4: Analyze and allocate resources to app development — including expenses on development, promotion, etc.
Step 5: Find a reliable company providing app development services — a company with experience in the building of this type of apps.
Step 6: Create a financial plan — how you will generate revenue, measure achievement, and how long will it take to pay off initial investments.

Note: This is a summary of a guide.

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