You are working on some important assignment at midnight and you suddenly feel hungry. You check out your refrigerator and there is nothing in it to eat. You turn on your phone, open a food delivery app and order your favourite dish from your favourite restaurant.
Well, a few years back, you might have laughed at such an idea, but today, it is the reality. You can get your favourite dish in no time with a few clicks on your phone. You don't need to move an inch from your chair or couch. Thanks to technological advancements and innovation, life is so much more convenient and comfortable, isn't it?
Users can easily find restaurants and menu cards, read reviews for restaurants and easily order their favourite cuisines while paying via online secure payment options. It is a win-win situation for customers as they don't have to visit the restaurant for order and at the same time, get the best deals and offers from the restaurants.
If you are an entrepreneur, on-demand food delivery apps have excellent business potential too. An on-demand food delivery app development cost is not as high and the profits are lucrative as millennials prefer on-demand food delivery apps rather than going to the restaurants and wait for their turn on busy weekends. The market for on-demand food delivery app is increasing with each passing day and there lies brilliant opportunities and possibilities for entrepreneurs. You should simply encash it to go big.
You might think that why one more on-demand food delivery app when there are many players such as Zomato, Swiggy, Ubereats, Local Eats, Grubhub, Foodpanda and Talabat already there capturing the huge market share.
Let's check out some facts to convince you why you should think about on-demand food delivery app development.
As per the report by McKinsey, by 2020, the market for online food delivery will grow at a rate of 14.9%.
Also, a report published by the National Restaurant Association in 2015, more than 74% millennials prefer to order food online rather than visiting restaurants.
In addition to that, the Morgan Stanley report suggests that by 2020, the US food delivery market will grow by 600%.
After the above mentioned statistics, are you still hesitating to ask for an estimation of on demand food delivery apps development? Well, the revenue models mentioned below might be some motivation to you!
A revenue model for an on-demand food delivery application
You would definitely want to know the revenue possibilities of on-demand food delivery apps. It is the bottom line for any business and there are many ways you can earn revenues from an on-demand food delivery app. When you want to know the costs to build a food delivery app like Zomato, Swiggy and Talabat, you also need to know how you will recover the costs and start earning profits.
Let's discuss each of them one by one.
3rd party advertising services
One of the best ways to earn revenues online is to allow 3rd parties to post ads on your app through Google AdSense. They can post ads and an app owner can get revenues out of it.
Commissions from restaurants
Every time a customer places an order from a particular restaurant, an app owner can earn a certain amount as a commission from the restaurant owners.
User subscription
By allowing users to subscribe to a paid account, an app can offer some excellent discount deals, offers and special coupons and services such as free delivery or 50% off on the first order, etc.
Delivery charges
It is also a method by which you can earn some revenues as delivery charges, but it might prove to be a disaster also as your competitors might be offering free delivery.
Premium Advertising Services
You can ask restaurants to buy a premium membership and in return, highlight the restaurant profile on top of the search listings.
What is the business model of an on-demand food delivery app?
Well, there are many things you can do as an on-demand food delivery app service provider. However, there are two main tasks that you need to perform.
Restaurant Finder
The first and foremost thing that the app should be able to do is to let users find restaurants easily and effortlessly. There are many categories you need to incorporate such as cuisine type, geographical location, veg or non-veg, the total distance from the restaurant and many more. Being an app owner, you need to ensure that this primary task is done without any hassles and hindrances. When a user types a certain cuisine or an area in the search bar, he/she must get an accurate and perfect list of restaurants.
Delivery services
Here, you might develop your food delivery facility or you can rely on the restaurant's food delivery services. For example, UberEats has a food delivery facility.
The estimated cost of developing an on-demand food delivery app
It is the most striking thing to know when you are planning to go for on-demand app development. If you don't have any idea about the total cost to develop an on-demand food delivery app, you might hire any company that charges way higher than the actual cost.
Well, when it comes to on-demand food delivery app development cost, there are many factors you need to consider. We will discuss all of them in this post.
Location of the developer or a development company
You might end up hiring an on-demand food delivery app developer or an on-demand food delivery app development company for your business requirements. In any case, which country you choose will affect the total cost of developing an on-demand food delivery app.
For example, if you have hired an Indian mobile app development company, you might get a good, cost-effective deal, thanks to the currency differences between India and other developed countries such as USA, UK or Canada. Indian developers are very talented, trained and highly professional when it comes to mobile app development. They will ensure that you get a superlative app that is performance oriented.
If you have hired a company located in the USA or UK, the total cost to make an app like Talabat app might go high as they charge more than Indian or Asian developers.
Features
If you want to develop an on-demand food delivery app with simple, general features, the total general service app development cost would be pocket-friendly. However, if you want to add special and exclusive features such as Geo Location facility, CRM and CMS integration, real-time tracking, loyalty program facility, multi-currency, language support and others, the total cost might increase.
Platforms
For example, you just want to start with an android platform, for now, the total cost would be accordingly. However, if you want to go for Android and iOS simultaneously, the total cost will be higher.
The total cost of a general on-demand food delivery app might range from $12,000 to $25,000. With additional exclusive features, the total cost might go up to $50,000 to $60,000.
Choosing the right team of experts
To develop a robust, highly-functional, user-friendly, creative and comprehensive on-demand food delivery app you need to have a team of best professionals who leave no stone unturned to deliver the best outcome for your business. Hire a mobile app development company that has a proven track record and sheer expertise.
Mobile app development companies have the resources and infrastructure to accommodate your business requirements and needs. They will assign a team of developers, project managers, QA analysts and designers who will solely work on your project until it is accomplished.
Furthermore, they will keep you in the loop during the development stages and you would be able to provide your valuable inputs and suggestions to them to make a better product.
Features of an on-demand food delivery app
When it comes to features and functionalities of the on-demand food delivery app, there will be a total of four panels you need to develop. Let’s discuss some of them here!
Customer panel features
Sign-up/ Sign in - Here, once a customer downloads the app, he will be able to sign up for the app with some personal details. You can also facilitate customers by allowing them to sign up with social media accounts such as Google or Facebook.
Location - Customers can add details of the location either manually or by automatically detecting the delivery location through geolocation.
Homepage - The homepage is where the user can see all the restaurants nearby them with ratings and reviews of each restaurant.
Search and filter facility - Users would be able to search for cuisines, restaurant names and location with the search and filter facility.
Food ordering - Customers can order food from the menu, food selection, and place an order easily.
Shopping cart - Users can easily find all the selected food items in one cart including price and promo code option.
Payment - Users can pay online through various payment options such as credit card, debit card, bank transfer and other payment channels.
Wallet facility - A facility by which users can store virtual balance and use as and when required.
Order delivery tracking - Once the order is made, users can track the delivery status of the order right from the kitchen to delivery at the preferred location.
Call and chat - Users can call drivers for the update and status of the order and restaurants for queries and complaints.
Rate and reviews - Users can rate and review the restaurant and the driver for food quality and services after the delivery.
Order history - Users can check out his order history in the app.
Restaurant Admin Panel features
Dashboard - Restaurant owners can check the status of orders such as pending status, delivered status, cancelled status and upcoming ones.
Menu management - Food category management and adding and deleting food items from the menu.
Restaurant Profile - Restaurant owners can create a profile with all the details about the restaurant.
Food order management - Owners can check the status of the food orders and update them accordingly.
Order cancellation - Restaurant owners can cancel any orders when they are not operating or closed.
Chat facility - Owners can chat with users for any queries and complaints.
Order history - A complete order summary with records of orders.
Delivery driver panel features
Sign-up/ Sign-in - Drivers can sign-up and sign-in with their credentials such as username and password or mobile number or email address.
Dashboard - Comprehensive details of all the orders including pending, delivered and cancelled orders.
Status - This facility shows the availability of the driver for picking the order. If it is on, it means that the driver is ready to take orders. If it is off, it means the driver is unavailable for the moment to take any orders.
GPS Navigation - This feature helps drivers to locate the delivery location of the customer and the restaurant.
Call and chat - Drivers can call or chat with the restaurant and customers in case of any issues.
Super Admin Panel
The super admin panel is for the app owner where he can manage and track everything.
Dashboard - The super admin can view all the orders and additional information for a particular restaurant.
Analytics - It gives a comprehensive overview of the app including revenue reports, data analytics, area wise app popularity, usage and other crucial details.
Payment - Payment management with the restaurant owners.
Transaction history - It shows the entire transaction history for each restaurant.
Food order management - A super admin can view all the orders and update the status of any order.
Chat - A super admin receives chat requests from the users about the app functionalities, issues and complaints.
Push Notifications - A super admin can send push notifications to the users, restaurants and drivers related to any issues, offers and news.
Offers & Coupons - A super admin can generate different offers and coupons for restaurants, users and drivers.
Conclusion:
On-demand food delivery apps bring more comfort, convenience and luxury into the lives of users and this is the sole reason they are popular across the globe. From the business point of view, there is a lot of potential to look forward to and you should grab the opportunity to earn superlative profits and revenues. All you need to do is hire a mobile app development company and get started!
Sanjay kidecha
CMO
by Sagar Bagasariya
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