How to Develop a Financially Rewarding Food Delivery App?

Food delivery apps are like the exclusive and predictable Santas of today, except they don’t appear just around Christmas time. When you think of dining in a restaurant, you can’t promise that your mind didn’t trace to food delivery apps as another choice. That’s how accustomed we all have got to these on-demand food delivery services.

Any app you name, be it Uber Eats, DoorDash, Grubhub or Zomato, they have shown us what convenience and luxury means. There’s no more confinement to choices. No more limited options of restaurants or cuisines, or time duration, and people get what they want at any time they crave for.

With the advent of mobile apps, the food delivery business service is booming, with stats predictions that say the sector will reach $165 billion by 2023. Out of this market share, in the US alone, the stats will equal $33 billion. This definitely gives us an idea of how popular this market is amongst all other industries. If you’ve come so far in the blog, then I guess you are aspiring to have a share in this market. 

In this blog, I’m going to provide you with good insights on what it takes to have a successful food delivery business, and obviously the app. 

Step 1: Choose the business model 

The food delivery app can be divided into three different types of business models. Like order and delivery apps, cloud restaurant models, and meal kit delivery models. 

  • Order and delivery app: The order and delivery model is the fundamental version of a food delivery app followed by popular companies like Uber, DoorDash, Zomato, etc. The service providers will be the platform for users to order dishes from their favourite eateries. They also provide their own logistics network. You can charge with commission rates, and the restaurant choices and prices you offer might give you a scaling advantage of your business. 

  • Cloud restaurant model: The restaurant that doesn’t offer in-house dining services and offers only a delivery business service. When the user orders food, the cloud kitchen will prepare the order and the app will deliver the order through its delivery service. You can gain the advantage of this model since there are many eateries evolving because of the model’s low investment option.

  • Meal delivery model: This is an unconventional market in the food delivery industry, yet it is gaining traction slowly but steadily. This is essential for customers who prefer to cook based on recommendations, but don’t have the time to purchase all ingredients. Restaurants deliver hand-picked ingredients along with their recipes, and customers can get them delivered. The business model follows a subscription-based model. Therefore, you can generate a high income instead of a one-time service. 

Step 2: Decide a revenue model

The best thing about a food delivery service is that you won’t have to wait for years to see your business generating its first turnover. There are not just but different revenue models you could tap into. 

Delivery charges: You can generate revenue for the delivery service you provide via the app by a simple calculation based on the distance travelled from the restaurants to customers’ homes. Or you can also charge a fixed percentage for delivery.

Revenue fee: A food delivery service is beneficial from any aspect. Since you will partner with many restaurants, you will get users' traction in parallel with the revenue. The restaurants you partner with will pay you a commission to get listed on your platform. 

Advertisement and promotions: This is a great source of revenue you can leverage. You can advertise the restaurant profiles on the search listings for a fixed time, and charge from them for a fixed amount of time. Many restaurants are ready to spend their budget to have an edge in this competition and gain visibility. 

Step 3: Implement the latest trends

Though all the food delivery apps are common in their essence, to stay ahead of the competition there needs to be a new concept or functionality. Your app should be able to flourish in the hyper-competitive landscape of the food industry. In this era, no new ideas can beat the power of technology. Hence, here are some suggestions on what you could include in yours. 

  • Social media ordering

  • Chatbots

  • Crypto Payment Integration

These can be quite overwhelming with regard to the budget, but promise the best future to your business. 

Step 4: Choosing the significant features

Choosing the right set of features is the most significant part of your development. Many entrepreneurs may either oversee the importance of the right features or suffocate the app with advanced features. Therefore, here is a list of features that will play a big role in your business progress. If you are a startup, you are concerned about cost-effectiveness, then this set might be enough to bring you profits. 

>> User Panel 

  • Sign Up

  • Geo-Location

  • Search & Filter

  • Add to Cart

  • Payment Mode

  • Review & Rating 

  • Push Notifications

  • Promos & Coupons

>> Restaurant Panel

  • Dashboard

  • Order Management

  • Account Management 

  • Restaurant Profile Management

  • Product Management

  • Accept/Reject Orders

  • Coupon/Special Offers Management

  • Track Payments

>> Delivery Personnel Panel

  • Registration

  • Delivery History

  • Accept/Reject Orders

  • Status Update

  • Online Support

>> Admin Panel

  • Dashboard

  • Registration & Profile Management 

  • Customer Management

  • Payment Management

  • Order Management

  • Driver Management

  • Push Notifications

  • Analytics 

Step 5: Choose the tech stack 

Depending on the business model that you are about to choose for your food delivery business, you might need different technologies. So, here are some of the essential tech stacks necessary and common for the app. 

Payment gateway- Braintree, PayPal, Square API

User location- Google Places API, Google Maps

Analytics- Firebase, Google Analytics

What is the cost to develop a food delivery app?

The cost to develop a food delivery app cannot be estimated even roughly, since it depends on factors such as:

  • Number of platforms it is going to be launched on, i.e., iOS or Android or both

  • Feature list

  • Number of integrations

  • Third-party APIs, 

  • The number of development hours, etc. 

Closing thoughts

The online food ordering business is a fast-growing trend, and it’s too valuable. When developed with strategic value, your business can also soar to its greatest potential. So, to accomplish all the elements needed for your business’s progress, discuss your ideas with experts in the space. 

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