Mike: Hey, Atit, I want to create a food delivery app.
Atit: Mike, there are many popular online food delivery apps like UberEats, Deliveroo, Swiggy, Zomato. There are also dedicated apps for restaurant chains. The market is huge, with possibilities and complexities at the same time.
Mike: Yeah, that is why I have a few questions for you, such as:
- Is it still worth investing in an on-demand food delivery business?
- Which type of food delivery app should I choose for launching the business?
- Do you have any latest game-changing food delivery ideas?
- Which business model will earn me profits?
- Do I prefer a clone app, custom app, or MVP?
- Which features should my app have?
- How much money should I invest in the food app?
To answer Mike and entrepreneurs like Mike who are enthusiastic about diving into the food delivery business, I’ve written up all the answers based on my research and some of the similar apps we’ve delivered recently.
1. Is it still worth investing in the on-demand food delivery business?
The answer is yes – but not for everyone!
Online food delivery apps still have room left for innovation.
Though there is an adequate level of competition, the market still has the potential for robust growth in the future.
Of course, it is possible to establish your brand among the top food delivery apps.
However, it requires a strategy and a lot of funds to get a competitive edge over some existing players.
Thus, a user-friendly on-demand food delivery app with some advanced features is necessary for any business in this area to thrive and reach out to customers.
2. Which type of food delivery app should I choose for launching the business?
Before developing a food delivery app of your own, I would like to make you acquainted with three types of apps you can go for.
» Food Delivery Marketplace App
Food delivery marketplace apps work as a medium between customers and local restaurants.
All local restaurant owners can register their restaurants and upload menus on the app.
Using the app, the customers can browse through different restaurants and place an order swiftly.
The app passes the order to the restaurant, and the delivery is made.
The restaurant can deliver food with their own delivery drivers or the app provides drivers.
The restaurant has to pay a fixed commission on each order value to the app owner.
The example of such apps is UberEats, Zomoto, Swiggy.
» Cloud Kitchen App
A cloud kitchen is a restaurant that only accepts online orders and does not provide a dine-in facility.
Any cloud kitchen owner can develop their own app to take orders, manage the drivers’ fleet, and earn revenue without giving commission to anyone.
» App for Restaurant Chain
A restaurant chain like Subway can develop its own food delivery system that virtually brings its multiple food outlets under a single roof.
With its app, users can order food from nearby outlets.
All popular restaurant chains such as Domino’s, MacDonald’s have their own food delivery app to gain greater control over their business operations.
3. Which business model will earn me profits?
There are several business models to choose from while setting up your food business.
But the trick is to make the right choice.
This involves the validation of your business plan.
The choice of a profitable business model depends on investment, location, market research, and much more.
A personal consultation session is recommended to know the accurate business model for your particular business and develop a tailored business strategy.
4. Do you have any latest game-changing food delivery ideas?
In 2020, I have discussed with many entrepreneurs and restaurant owners who had very unique food delivery app ideas.
However, the validated ideas which I can share with you with some real data are significantly less.
One validated idea I find very promising is the app that lets users compare the price of a food and delivery fee multiple food delivery apps show.
A single dish from the same restaurant costs different on different food delivery apps, if you’ve noticed.
Many users would like to compare the prices before ordering the food.
FoodBoss is one such app that people are finding very useful. It is nick-named as an all-in-one search engine for food delivery apps.
The idea has been derived from the hotel price comparison app named Kayak.
5. Do I prefer a clone app, custom app, or MVP?
Since the concept of all these app acquisitions approaches is different, and most importantly, it affects your budget directly, you have to make a wise call.
A cloned app costs you the most affordable price tag as it does have features copied from the original app.
However, the clone food delivery apps’ problem is that it fails to provide a customized user experience.
The custom app costs you the highest as the development company develops it from scratch and addresses all of your custom requirements.
The MVP approach is the best choice for a startup as it costs less, involves less risk of failure, and lets the owner test the market.
To know more about MVP, you should consider reading our dedicated blog.
6. Which features should my app have?
The primary stakeholders involved in an online food delivery app business are delivery drivers, restaurant owners, and users.
Each of these stakeholders enjoys dedicated apps with features that can satisfy their individual needs most easily.
User App Features:
- Restaurant/Food Finder
- Placing Order
- Order Customization
- Schedule the Order
- Delivery Driver/Restaurant Contact Info
- Delivery Driver Live Tracking
- Push Notifications
Delivery Driver App Features:
- Going Online/Offline
- Delivery Job Request
- Built-in Navigation
- Built-in Communication
- Earning Dashboard
- Order History
Restaurant Owner App Features
- Order Request
- Update/Delete/Add the Menu
- Promo Code Management
- Ads Management
- Earning Dashboard
- Driver Tracking
- Driver’s Profile
- Customer Support
7. How much money should I invest in the food app?
Remember, the cost to develop a food delivery app majorly depends on the development hours, and development hours depend on the number of features and complexity.
It is advisable to divide the feature set into three different segments – standard features, nice-to-have features, and crucial features.
To save development costs, you can discard the nice-to-have features.
Based on my experience, I could say that you, as the startup, don’t have to spend more than $10000 on the food delivery app.
Generally, food delivery clone apps and MVP cost you below $10000.
I don’t just answer questions. I execute the food delivery business strategy and app development.
Do you wish to explore the food delivery market?
If yes, you can bring the idea to reality by getting your plans validated.
In our business consultation session at GED, you will understand the current market scenario and raise your business funds.
We will guide you regarding the monetization models and design an unbeatable strategy for you to become the market leader.
Our in-house resources assist you with your food delivery app development process and provide an UberEats clone script with customization scope.
We are not your choice only for your development needs, but we will be happy to talk with you about technical, UI, UX experience, company branding, localization or internationalization, security, data, performance, and scalability.