Food delivery apps have revolutionized the way people order and enjoy their favorite meals. Zomato launched in India in 2008, followed by Swiggy, which launched in 2014 in India, and then Uber Eats launched in 2017 in India. With the increasing demand for convenient and quick food delivery services, businesses are turning to app development models to cater to their customers’ needs. In this blog, we will explore the features and benefits of food delivery app development models, including custom food delivery app development and on-demand food delivery app development.
The online food delivery market is forecasted to reach US$1.02 trillion in revenue in 2023.
It’s expected to have a compound annual growth rate (CAGR) of 12.78% from 2023 to 2027, reaching a projected market volume of US$1.65 trillion by 2027.
The grocery delivery market is expected to experience significant growth, with a 22.2% revenue increase anticipated in 2024. In 2023, its market volume is projected to be US$0.63 trillion.
China is expected to generate the highest revenue in 2023, amounting to US$395.9 billion.
In the grocery delivery market, the average revenue per user (ARPU) is projected to be US$449 in 2023.
The meal delivery market is expected to reach 2.5 billion users by 2027, indicating its growing popularity.
In 2023, the user penetration in the meal delivery market is estimated to be approximately 25.2%.
The United States and China lead the global online food delivery market due to their large consumer bases and robust delivery infrastructure.
Food delivery app development models refer to the various approaches and strategies that companies can use when developing a food delivery app. These models help define how the app functions and how it connects users, restaurants, and delivery drivers. Let’s explore various food delivery app development models.
Platform to Consumer (P2C) Model In this model, the app acts as an intermediary between users and restaurants. Users place orders through the app, and the app coordinates with partner restaurants to fulfill the orders. Delivery drivers may be independent contractors or employed by the app company. Examples include Uber Eats and DoorDash.
Aggregator Model This model involves aggregating various restaurants and their menus on a single platform. Users can browse and choose from multiple restaurants, and the app handles order placement and delivery coordination. Grubhub is an example of this model.
Order-Only Business Model In this model, the app focuses solely on facilitating the ordering process. Restaurants manage their deliveries or use third-party delivery services. The app’s primary role is to receive and forward orders to the restaurants. Smaller restaurants and local food delivery apps commonly use this model.
Full-Stack Model Some food app features, like Domino’s, operate their full-stack model. They not only manage the app but also have their delivery infrastructure, including drivers. This model provides full control over the delivery process.
These models can be combined or customized based on business goals and market demands. Food delivery features may also incorporate features like in-app payments, tracking, and customer reviews to enhance user experience. The choice of a custom food delivery app development model depends on factors like the app’s target audience, geographic scope, and available resources.
Features of Food Delivery App
Food delivery app advantages in models offer various features and benefits to businesses. These models help determine how the app operates and serves customers, restaurants, and delivery drivers. Let’s explore some features and benefits associated with food delivery app development models.
Platform to Consumer (P2C) Model
Ease of Use User-friendly interface for customers to browse menus, place orders, and track deliveries.
Wide Restaurant Network Access to a broad network of partner restaurants offering a wide range of cuisines.
Delivery Coordination Efficient coordination of food orders and delivery drivers for timely deliveries.
Payment Integration Secure in-app payment options for convenience.
Aggregator Model
Restaurant Variety A diverse selection of restaurants and menus in one app for users to choose from.
Increased Revenue Attracts more users and generates revenue through commissions on orders.
Convenience One-stop shop for users to explore different dining options.
Order-Only Business Model
Simplicity A streamlined approach focused on order placement without managing delivery logistics.
Lower Overhead Reduced operational costs as restaurants handle their deliveries.
Local Partnerships Opportunity for collaboration with local eateries.
Full-Stack Model
Control Complete control over the entire process from order to delivery.
Brand Loyalty Builds strong brand recognition and loyalty.
Customization Ability to tailor the delivery experience to meet specific standards.
Increased Revenue Various models offer different revenue streams, such as commissions, delivery fees, and subscription services.
Customer Convenience Convenient ordering and delivery options enhance the customer experience.
Market Expansion Allows businesses to reach a broader audience and explore new markets.
Operational Efficiency Streamlines order processing, reducing errors and enhancing efficiency.
Data Insights Collect valuable data on customer preferences and behavior for targeted marketing.
Scalability The flexibility to scale operations based on demand and market growth.
These features and benefits vary depending on the chosen custom food delivery app development model. Businesses can select the model that aligns with their goals, resources, and target audience to succeed in the competitive food delivery industry.
Benefits of Custom Food Delivery App Development
Custom food delivery app development offers several benefits for businesses. Firstly, it allows for complete customization, ensuring that the app aligns with the brand’s identity and unique features. Secondly, businesses have full control over the app’s functionality, user experience, and integration with other systems. Additionally, custom app development provides scalability and flexibility, allowing businesses to adapt and grow as per their needs.
On-Demand Food Delivery App Development
On-demand food delivery app development is a cost-effective and time-efficient approach for businesses. It involves utilizing pre-built solutions and customizing them to match specific requirements. This model offers quick deployment and reduces the development time significantly. It is ideal for businesses looking to enter the market quickly and test their concept before investing in a fully customized app.
Key Features of a Food Delivery App
Key features of a food delivery app play a vital role in enhancing the user experience and ensuring the smooth operation of these platforms. Let’s explore some essential features commonly found in food delivery apps.
User Registration and Profiles It allows users to create accounts, manage personal information, and track order history.
Restaurant Listings Displays a variety of restaurants, their menus, and ratings for users to choose from.
Menu Customization It enables users to customize their food orders, specify preferences, and add special instructions.
Real-Time Order Tracking It provides live tracking of orders, allowing users to monitor their delivery in real-time.
Payment Integration You’ll get support and secure in-app payment options, including credit/debit cards, digital wallets, and cash on delivery.
Reviews and Ratings You can allow users to leave reviews and ratings for restaurants and delivery drivers, helping others make informed choices.
Promotions and Discounts Users will also get offers, discounts, promo codes, and loyalty programs to attract and retain customers.
Push Notifications The user will get notifications about order status, delivery updates, and special offers.
Geolocation Services It uses GPS to determine the user’s location for accurate delivery and restaurant recommendations.
Delivery Scheduling This lets users schedule food deliveries for a specific date and time.
Driver Tracking This feature allows restaurant staff to track delivery drivers’ locations and manage their assignments.
Customer Support You can provide access to customer support through chat, email, or phone for assistance with orders and issues.
Order History You can store a record of previous orders, making it convenient for users to reorder favorite dishes.
Multi-Platform Availability You’ll get support for both mobile apps (iOS and Android) and web platforms for accessibility.
Social Media Integration It’ll enable users to share their dining experiences and recommendations on social media.
Benefits of Online Food Delivery App For Customers
Food delivery apps offer numerous benefits to customers, enhancing their dining experiences and convenience.
Convenience Customers can browse menus, place orders, and schedule deliveries from the comfort of their homes or workplaces, eliminating the need to visit restaurants.
Variety Access to a wide range of restaurants and cuisines, allows customers to explore different dining options and discover new flavors.
Real-Time Tracking Customers can track the status of their orders in real-time, providing transparency and peace of mind.
Reviews and Rating Access to reviews and ratings helps customers make informed choices about the quality of food and service.
Exclusive Offers Many food delivery apps offer exclusive discounts, promotions, and loyalty programs, allowing customers to save money.
Contactless Payments Secure in-app payment options, including digital wallets and credit/debit cards, offer a contactless and convenient payment experience.
Order History Customers can easily reorder their favorite dishes, as order history is stored within the app.
Feedback Customers can provide feedback on their orders, helping restaurants improve their services.
No Language Barrier Visual menus and digital ordering eliminate language barriers, making it easier for international travelers to order.
Safety Especially during the COVID-19 pandemic, food delivery apps offered a safer alternative to dining out by minimizing physical contact.
Benefits of Food Delivery App for Restaurants
Building a food ordering app offers several advantages to restaurants, helping them boost business and improve customer satisfaction.
These are some of the key benefits for restaurants.
Increased Visibility You can list food delivery apps that provide restaurants with increased online visibility, making it easier for potential customers to discover their menus and offerings.
Expanded Customer Base Restaurants can reach a broader customer base, including those who prefer dining at home or the office, leading to increased orders and revenue.
Efficient Order Management Food delivery apps streamline order management, reducing the likelihood of errors and ensuring that orders are processed promptly and accurately.
Customer Feedback Apps allow customers to leave reviews and ratings, providing valuable feedback for restaurants to improve their food quality and service.
Cost-Efficiency Using food delivery apps can be more cost-effective than maintaining an in-house delivery team, as restaurants can partner with delivery services offered by the apps.
Online Ordering Your customers can place orders online, reducing the need for phone orders and allowing restaurants to focus on food preparation.
Reduced No-Shows Prepaid orders through apps can reduce the incidence of no-shows and cancellations, ensuring that restaurants are compensated for their efforts.
Flexibility Your restaurants can easily update their menus, pricing, and operating hours on the app to reflect changes in their offerings.
Direct Communication Food delivery apps enable direct communication with customers through notifications, special promotions, and order status updates.
Brand Building Consistent positive experiences on food delivery apps can contribute to brand building and loyalty among customers.
Monetization Opportunities in Food Delivery Apps
Monetization in food delivery apps involves various strategies to generate revenue. These are some ways through which you can monetize your app.
Delivery Fees Charging customers a fee for the delivery of their orders is a common revenue source for food delivery apps. This fee can vary based on factors like distance and order value.
Commission from Restaurants Food delivery apps often charge restaurants a commission on each order placed through the platform. This commission can be a percentage of the order value.
Subscription Models Offering premium subscription plans to customers can provide a steady stream of income. These plans may include benefits like free delivery, exclusive discounts, or priority service.
Advertising and Promotions: Partnering with restaurants and brands for advertising and promotions within the app can generate advertising revenue. It includes featured listings, sponsored content, and banner ads.
In-App Purchases Some apps offer in-app purchases of additional features or content. For example, customers might pay for access to special menus or customization options.
Loyalty Programs Implementing a loyalty program where customers earn points or rewards for frequent orders can encourage repeat business and customer retention.
White-Label Solutions Providing restaurants with white-label solutions for their own branded delivery apps can be a lucrative revenue stream.
Online Marketplaces Expanding beyond food delivery to include additional services like grocery delivery, meal kits, or kitchen equipment sales can diversify revenue streams.
Franchise Models Allowing entrepreneurs to operate under the app’s brand as franchisees can generate franchise fees and expand the app’s reach.
Cost of Food Delivery App Development
Food delivery app development costs vary based on factors such as features, complexity, platform choice, and development team location. Food delivery app cost for a basic app with essential features starts at a minimum of $20,000 at Artoon Solutions Pvt Ltd, while costs for intermediate and advanced apps, cross-platform development, maintenance, location, and third-party integrations can vary. These estimates are approximate, and the final cost depends on specific project requirements and the chosen development team. Clear feature definition is crucial before requesting quotes from development companies.
Popular Food Delivery Apps in the Market
Some of the most popular food delivery apps in the market include Uber Eats, DoorDash, Grubhub, Postmates, and Deliveroo. These apps have gained popularity due to their extensive restaurant partnerships, user-friendly interfaces, and efficient delivery services.
Conclusion
Food delivery app development models focus on enhancing the user experience through user-friendly interfaces, efficient ordering processes, and convenient features. These apps benefit both users and restaurants by providing cost-effective and efficient solutions for food delivery, ultimately contributing to the growth of the online food delivery industry.
Q1. How much does it cost to develop a food delivery app? The minimum cost to develop a food delivery app at Artoon Solutions starts from USD 20,000 and the price may vary depending on the scope of work & client requirements.
Q2. What are the must-have features of a food delivery app? Must-have features of a food delivery app include GPS tracking, a user-friendly interface, multiple payment options, reviews and ratings, and order customization.
Q3. How can food delivery apps benefit restaurants? Food delivery apps benefit restaurants by expanding their customer base, increasing revenue, and streamlining order management.
Q4. What are the popular food delivery apps in the market? Popular food delivery apps in the market include Uber Eats, DoorDash, Grubhub, and Postmates.
Q5. How can I monetize my food delivery app? Monetize your food delivery app through delivery fees, subscription models, partnerships with restaurants, and in-app advertising.
