This blog will broaden your horizons. You should be able to learn everything about the food delivery app that no one is sharing.
To start with, let’s discuss the benefits a restaurant owner or entrepreneur can derive from the UberEats clone.
Why developing a food delivery app like UberEats is your best investment in 2020-21?
We’re not going to talk about any number. Instead, we will talk about real on-ground scenarios.
- Larger Customer Base:
Generally, each restaurant gets customers from the fixed nearby locality. But with a mobile app, you can attract customers from multiple localities as people can explore your restaurant and order food without actually visiting your restaurant.
- A Personalized Experience:
Without a food delivery app, you would need a large workforce to ask what your customers would prefer and keep records of their preferences to provide them a personalized experience that seems infeasible.
On the other hand, a mobile app understands users’ preferences automatically based on their online behavior and provides them personalized experience i.e., food recommendations.
- Better Control Over Staff:
With an app, you can track every activity of the delivery drivers and make sure they are performing on-time deliveries. You can even add custom features to your app’s admin module to execute business operations like payroll, attendance, roster from the app itself.
- A Big Boost to Customer Retention:
In an offline restaurant business, it is a tedious and time-consuming task to keep the records of each customer and send them personalized offers to convert one-time visitors to loyal customers.
But a mobile app enables you to send automatic personalized notifications about offers to customers with an aim to increase customer retention rate.
So, now when you know about the benefits of a food delivery app, let’s talk about the script of UberEats clone and why you should not purchase a clone.
How did the concept of UberEats clone arrive?
All entrepreneurs and food business owners have been running a blind race.
It all started with an ambition to develop a food delivery app that can surpass UberEats.
But since they have been running a blind race without knowing how a marathon runs, they never reached close to UberEats, which was a ‘quality standard’ for all of them.
So they found an alternative way. They downgraded the ‘quality standard’ and came up with a ‘baby’ version of UberEats named UberEats clone!
In other words, almost everyone is selling you a food delivery app that is only 20-30% similar to the original UberEats app, yet they named it a clone of UberEats!
UberEats Clone Vs. Native App
If you are getting the clone version of UberEats, it should have all features similar to the native UberEats app. But that is not going to happen as it is not technically and financially feasible.
|UI/UX||It makes sure that a user completes the task by putting in the least effort and time. It has a goal-driven UI.||Users find it a puzzling experience to navigate the app as it does not have a goal-driven UI.|
|Delivery Fee Algorithm||It has one of the most sophisticated algorithms that consider real-time factors to decide the delivery fee.||Here, the algorithm works fixedly. It cannot decide fees based on real-time factors such as weather, traffic, demand.|
|Safety||It has dedicated features to ensure safety. For instance, the app asks the delivery driver to take a selfie to verify identity.||It lacks such dedicated safety features.|
|Job Allocation||It works on the AI-enabled job allocation algorithm that makes sure drivers do not have to wait at the restaurant, and users do not have to wait for food.||It works on a basic algorithm that assigns the driver based on just a few factors such as rating and location.|
|Multiple Driver Account Types||It supports multiple driver account types such as bicycle, scooter, car account. It also has a mechanism to identify if a bicycle account holder delivers the food in a car.||It does not have any such feature.|
|Multiple Delivery Options||Users do have two options for food delivery – no rush delivery and priority delivery. Suppose the user selects the priority delivery option. In that case, the app assigns the car account holder driver to deliver the food even if it is within 2.5 km and reserved for a bicycle account holder.||It does not have any such feature.|
Uber last month launched a newer version of UberEats
With new groundbreaking features of the UberEats, the owners of the UberEats clone now feel more empty!
The following are some of the newly launched features.
- Easy to use shortcuts:
As part of its UX strategy, UberEats now shows multiple important shortcuts on the homepage to make it easy for users to find other options.
- Pickup map:
Users who want to place an order online but pick up the prepared food by themselves now get the next level of convenience to find the nearest restaurants.
- Improved recommendation:
UberEats has improved its recommendation engine, making it easy for users to order favourite food from favourite restaurants with a single click.
- Group ordering:
A group of people from their own app can now add the food items into a single cart.
- Know what other people are ordering:
A user is now able to know what other people are ordering from restaurants near him.
So far, we’ve talked about the app. Now, let’s talk about business.
Challenges associated with food delivery app business
You will get the idea of how difficult it is to run a food delivery app business because there are 3 apps involved in this single business – driver app, user app & restaurant app.
The major challenge for you is to keep the highest level of coordination between these three stakeholders. Few other challenges are,
- Maintaining supply/demand ratio
Without drivers (supply), you cannot satisfy the demand (food orders).
Even if you have enough drivers, they should be online and ready to accept jobs in areas with high demand.
To ensure there is no shortage of delivery drivers in high demand areas, UberEats has a unique feature called Boost Zone.
In a boost zone where the demand is high at a particular time of the day, the drivers boost their earnings.
To make more money, drivers from all nearby areas go to the boost zone and satisfy the high demand.
- Being compliant with government laws
If you support multiple driver account types, you have to ensure that the driver who has registered for a bicycle account should not deliver food by car.
You also need to make sure that all car account holders have a valid driving license.
UberEats had already faced a similar challenge.
In many Australian cities where international students are allowed to drive cars without an Australian driving license, register themselves for a bicycle account to get more jobs, and perform deliveries by car.
When UberEats identified such illegal practice, they had added a mechanism in the app that measures the vehicle’s speed, and time a delivery driver takes to deliver the food.
UberEats found many drivers having a bicycle account but delivering the food by car.
After giving them 3 warnings, UberEats suspended thousands of such accounts.
A food delivery app isn’t a one-time investment. Here is its operating cost.
In case you don’t know, the operating cost is the total money you require to keep the app running. The operating cost of the food delivery app includes,
- Drivers’ Fee
For every delivery, you need to pay a delivery fee to the drivers. The amount you need to pay to the drivers depends on the type of delivery, distance, and drivers’ account type.
- API Fee
A food delivery app development company integrates many APIs to the app to achieve the functionalities easily. However, for each API, you need to pay a monthly usage-based or commission-based fee. These APIs are payment API, map API, communication API, etc.
- Drivers Onboarding
When someone registers himself to be your delivery partner, you need to verify his documents, provide a food delivery bag, and execute physical verification.
- App Marketing
You have to run active marketing campaigns to survive easily in the most competitive market. With new competitors and market landscape, you even need to increase the marketing budget.
- App Updates
To align your app with ever-changing market needs, you have to roll out several well-planned app updates.
- Customer Service
You need to hire and manage a team of customer service executives to solve delivery drivers, users, and restaurant owners.
When will you break-even or start to make a profit?
It is undeniable that no one can predict the exact time you would require to cover up the capital cost and start making a profit.
However, here is the basic calculation based on some other apps and our business expert’s experience.
- Let’s assume the capital cost is $10000.
- The revenue from each delivery is $4.
- The operating cost for each delivery is $3.
- Thus, the total profit per delivery is $1.
- Total delivery requests received per day are 500.
- Days need to cover the capital cost or reach the break-even point are 20.
We don’t sell UberEats clone. We develop a food delivery app with custom features inspired by UberEats.
In other words, we don’t make you fool by selling a clone of UberEats that is only 20-30%, similar to the native UberEats app.
Instead, we add all the crucial features of the native UberEats app in addition to your favorite features and the features that the market demands.
This way, we deliver you the most purposeful custom food delivery app and not the clone of some other app – at the clone app’s price tag!
If you still have a single doubt regarding your app idea and cost, we aim to solve it through a free consultation from our expert team.
Because we don’t want you to run the blind race!