Food Delivery App Development: Step-by-Step Guide
Convenience is everything in watching the world go by, and the rising need to build a food delivery app is a vouch for this trend. Now there is no need to commute to a favorite restaurant when customers can simply place an order at their preferred vendor and enjoy their meal in the comfort of their home.
On the other side of this trend business owners are turning their attention to food delivery app development since there is a lot of potential to scale operations and see sizable profits. However, there is more than meets the eye regarding this industry that may be obscure at first glance.
We put together a comprehensive guide on how to build a food delivery app to explain all the details about entering this niche. You will learn a step-by-step development process and gain valuable insights into making an app that stands firm against competition. Let’s get to it.
Why is food delivery app development in demand?
The pandemic significantly boosted a diverse range of businesses that were either only brick-and-mortar or hadn’t been in demand prior. This includes food and grocery delivery as people stayed at home, the need for such services increased exponentially bringing us to the new market reality we see today.
To prove the point, research shows that the food delivery niche’s revenues more than doubled compared to pre-pandemic levels. As of 2022, the meal delivery industry is estimated to be worth around $760 billion.
Going beyond this sector the digitalization of everyday activities and necessities has taken a staggering turn. The convenience of accessing everything you might need from your smartphone pushes various businesses to seek app development services to provide consumers with a modern experience.
Therefore, the desire to build a food delivery app completely corresponds with the recent trends. The only thing that may stop some businesses from entering this niche is vigorous competition. As with many sectors, strong brands that have been growing and expanding on the market are a serious obstacle that cannot be undermined.
Many customers have used food and meal deliveries like UberEats and Glovo in the past. Undoubtedly, they have a solid business model and offer convenient services that attract users.
For example, UberEats operates on a restaurant partnership approach, featuring a variety of vendors on their app. For partners that lack a personal delivery system, they provide their own network of couriers that handle the delivery of orders from designated places.
Talking in terms of app functionality and features provided it’s essential to let users be aware of how their order is being completed within allowing to follow real-time order tracking and driver’s location. Although a state-of-the-art recommendation system minimizes the time it takes users to pick a vendor and reduces the chances of customers closing the app downright.
Example of food delivery app development.
Overall, there are a lot of elements and details that make typical food delivery applications so valuable and popular with audiences. Your app can also be a major success if you handle the development process with the right approach.
Why you should build a food delivery app
Undoubtedly, many benefits are associated with getting started with a food delivery business. With the exception of diving into the market statistics as everyday consumers we can see the value with our eyes. Beneath we have highlighted some of the most jutting-out reasons that push business owners to build an app that will throw one’s hat in the ring in the industry.
Benefits of building a food delivery app.
- Market demand. With many consumers nowadays preferring to shop online, the demand for fast and convenient delivery only increases. The same goes for the food delivery industry. A lot of restaurants have jumped on the trend and partnered with delivery apps to provide customers with access to their products outside of brick-and-mortar cafes. There is no better time to develop a food delivery app and capitalize on a significant market opportunity.
- Growth potential. Building this type of application allows for a big room for growth. You can start on a smaller scale to test the idea, partner with selected vendors and see which third-party couriers are the best. Once you have a solid foot on the ground, you can gradually expand and cover a more extensive area, working with more niche restaurants and even developing your own network of drivers. This sector’s potential is vast, especially considering that a major food delivery company, Glovo’s, estimated annual revenue is a staggering $3.7 billion.
- Customer loyalty. While customers like to have diverse options, they also appreciate having a favorite service provider that won’t disappoint them, allowing them to shop with a vendor repeatedly. With the right approach to customer loyalty and much effort put into the quality of service, you can build a loyal community around your app. This can also stabilize your revenue streams and have foreseeable income each month.
Creating a delivery app for your business has many other personal benefits. The ones we have listed are the primary reasons people find an advantage in investing in food delivery.
Best practices for a successful food delivery app
You must follow development best practices to build a truly remarkable food delivery app that encompasses everything that customers love and appreciate about such service. As a team of professionals, we analyzed the most valuable propositions of popular delivery apps and listed the top 5 elements of a successful app you can adopt into your idea. Here is what they are:
Example of the best practices.
- User-friendly navigation.
Uninterrupted user experience is what UX design companies are aware of and proficient in including intuitive navigation so that customers can find restaurants without user-side confusion. Bookmarking vendors that are liked and speeding order placement process are another unexpected side of UX within food delivery application.
Example of the user-friendly navigation.
A great practice to build your own food delivery app is allowing customers to create an account or log in using their email address and third-party services like Google or Facebook. This minimizes the effort for users to start using your service.
- Order management.
Being able to place an order quickly is a must-have. In addition, you should add the ability to track the order’s progress, such as the time required to prepare the meal and the time to deliver.
- Various payment integrations.
Nowadays, consumers use a variety of payment methods to purchase goods online. Besides supporting credit and debit cards, consider adding digital wallets like Google Pay, Apple Pay, and PayPal. Being represented by a robust online service provider we can say that it’s crucial to represent functionality that covers supporting diverse payment gateways.
Minimize the amount of clicks needed to make preferred payment method so that checkout is a walk in the park with additional coupon validation system that drives users engagement.
- Information from a software application.
Delivering such notifications is a perfect way to trip down memory lane since you can create a food delivery app with the implementation of AI into data collection about users’ preferences and behaviors, enabling you to send personalized messages with offerings that consumers will be interested in.
Push notifications can also alert customers that their driver will soon be at their destination point, giving them time to prepare to receive their meal.
- Frequent flyer program.
To talk in simple terms you would like to get your users back for additional service so retention rate is one of the essential KPIs you have to focus on — developing a customer loyalty strategy.
How to conduct this practice? — there are a few key methods like coupons, additional deals and discounts that allow to spread the word about your business.
How much does it cost to build a food delivery app?
The question of cost is always lingering in the minds of business owners and stakeholders. In reality, calculating the exact price for food delivery application development is much trickier. Many factors come into play when determining the cost of services. As a long-standing development company we advise businesses to contact providers with experience building similar solutions and ask for a direct quote on the project.
Factors that influence the cost of a food delivery app.
Regardless, the price for food app development heavily depends on the project’s scope. That includes the number and complexity of features, the level of customization during the app design process, associated branding efforts the platform on which you build an application and much more.
Overall, a medium-complexity food delivery application can cost you upwards of $25,000 to $50,000 or more. Hence, setting realistic expectations regarding your budget and getting several quotes from different vendors is a good practice to keep you on the right track.
How do you monetize a food delivery app?
Monetizing a food delivery app is different from other types of apps as your business will be operating on a distinct system. Looking at the monetization strategies of apps like UberEats and Glovo there are three main types of revenue-generating methods.
Types of the monetization strategies.
You should combine all methods for the most productive strategy to get the most out of your application. Let’s take a closer look at what they are:
- Service fees. To make a food delivery app profitable you must charge your customers service fees. These are commissions similar apps take for connecting the user with the restaurant, placing an order, and delivering it. Most food delivery apps keep their service fees hidden. However users tend to pay a higher fee when placing an order for a smaller amount of total cost and a lesser fee when ordering for a more considerable sum. This discrepancy is done to cover the expenditures on services. Usually, this fee can be up to 15% of the total cost of the order.
- Delivery fees. When a customer orders food to their doorstep, the fee for delivery is calculated based on the distance between them and the restaurant they order from. Usually, an average delivery fee in the US is around $2 to $5. Keep in mind that you also have to pay third-party drivers to deliver the orders. Partnering with reliable service providers is essential to the success rate of your app.
- Promotions and advertisements. When a delivery application becomes popular, restaurants will want to compete to get the attention of customers. Therefore, you can run a promotion campaign, allowing vendors to pay a price for ranking higher in the list of restaurants and search results. That makes them more visible to consumers increasing their chances of receiving an order. In addition you can also charge a subscription-based fee to vendors to let them be featured on your app.
It is discernible that the more recognized and widespread your application becomes on the market the more your revenue streams become predictable and significant. Of course you must set up an efficient and comprehensive marketing strategy to get yourself in the spotlight in the first place. Still running a profitable food delivery business is possible with the right approach.
Limeup can help you create a food delivery app
Now that you have a better insight into how to operate a successful food delivery business, many burning questions should be answered. While the nuances of developing an application can differ from other niches appropriately addressing users’ needs with a suitable partner by your side is entirely achievable.
The soaring popularity of food delivery and convenient access to goods is too great to ignore. Hence, we took our time outlining five fundamental steps on how to make a food delivery app. Leveraging our industry knowledge we also shared valuable tips and advice about starting your online delivery service.
If you’re looking for adequate help with building an app, our team at Limeup is ready to consult you on ways we can create a profitable and thriving solution. Contact us anytime and we will schedule a preliminary call to discuss all of your project ideas.