In the past, the town hosted a magic show. A magician asked a 10-year-old child, “What do you like to eat?” A kid mentioned chocolate. He did some magic, acquired chocolate, and offered it to the kid.
So, do you think he genuinely used magic or a trick? Is magic real? Well, I believe it is a subject for practicing hand feats. Nonetheless, we can always see it as a technique to attract customers and create a better business opportunity. Utilizing the most recent tools, apps, and technology from web and mobile app development services companies makes this possible.
Let’s consider the meal you’d want from your favorite restaurant at home and have it delivered in minutes. Your wish can become a command, and you can enjoy a pizza plate in minutes from the comfort of your own home. In today’s digital age, technology evolves and transforms every industry by adding a digital dimension to companies.
According to Statista, revenue in the online meal delivery market is predicted to increase by $449,292 million globally and $45,332 million in the United States by 2025. The online food delivery sector in the United States is expected to grow by 12.2 percent by 2022.
The data is divided into two categories:
1. The Platform-to-Consumer Delivery category is estimated to have 2,114.3 million users by 2025. Revenue is estimated to grow at a 9.37% annual rate (CAGR 2021–2025), resulting in a projected market volume of $247,428 million by 2025.
2. By 2025, the restaurant-to-consumer delivery segment is estimated to have 1,845.2 million users. Revenue is estimated to grow at a 10.82% annual rate (CAGR 2021-2025), resulting in a projected market volume of US$201,864 million by 2025.
Given the latest scenario (COVID-19), the expansion of food delivery applications is expected to continue.
So, if you’re looking to design a meal delivery app, you’ve come to the correct place. Let’s review the several main aspects of mobile meal delivery, from features to current industry developments.
But before we get started, let’s look at how the pandemic affected the industry and how the modern food delivery app method evolved in reaction to the COVID-19 outbreak.
Food Delivery Industry in 2024
Despite a significant expansion in the market, several businesses struggled to prosper at the start of 2020. Many significant firms, including DoorDash, Postmates, and Uber Eats, were in talks about merging in various combinations, but none of the verbal discussions resulted in a solid conclusion. Then, there was a catastrophe: a pandemic struck the planet, disrupting the status quo.
So, during the lockdown, food delivery services increased dramatically. Everyone wanted to get vital supplies and consumables delivered to their door. As a result, the quarantine period provided an opportunity for on-demand Make an App for Food Delivery to thrive.
Although it may appear that industrial behemoths dominate the market, this is not entirely accurate. During the pandemic, on-demand meal delivery firms emerged around the world and continued to grow in popularity.
Glovo, a Spanish firm that collaborates with brick-and-mortar businesses to deliver restaurant takeout, groceries, and other products, has raised $528 million in funding. Similarly, Gousto, a UK meal-kit delivery startup, raised $41 million during the shutdown.
Gorillas, an on-demand grocery business that aspires to deliver products in ten minutes or fewer, has received $290 million, more than its initial $1 billion value.
The Future of Food Delivery Sector
We all know that we do not live in a magical world or possess heavenly powers. However, in today’s technologically advanced society, making everything possible with a single touch is analogous to the magical realm.
Online food delivery services remain popular, but this trend may not last forever; sooner or later, the pandemic-driven development may slow. On the other hand, on-premise services will continue to expand even after the pandemic.
According to Datassential’s September 2020 data, 59% of food delivery customers said they would continue to use delivery apps after the pandemic ended.
Contactless delivery.
In this AI-driven world, contactless food delivery might be possible with the deployment of drones and robots.
During the pandemic, the industry attempted to maintain safety and sanitary norms by implementing a variety of technologies. Furthermore, clients switched from cash-on-delivery to cashless payment, which allows for contactless deliveries. Such solutions limit needless in-person touch, interactions, and associated hazards.
Business models for the on-demand food delivery app.
If you want to create a feature-rich food delivery service, you should understand the three basic business models to consider. So, let’s delve into those categories to discover their benefits.
1) Platform-to-Consumer Model
Many popular restaurant delivery apps, including Uber Eats and DoorDash, follow the platform-to-consumer concept. This strategy integrates all of the offerings of small eateries and allows clients to order from them through the app platform. Here, each restaurant partner is in charge of their own fleet of couriers.
This strategy appears to be more profitable because platforms get revenue from both clients and restaurants by charging a fixed price for each other. The model’s value proposition for restaurants allows them to bring and automate orders using an efficient mobile app or web platform, which replaces the traditional meal ordering paradigm of phone calls.
2) Delivery Service Aggregators.
The delivery service aggregator concept is theoretically a platform-to-consumer architecture component. Separation, however, is absolutely worthwhile.
In the aggregator model, the platform connects a customer (user) and a network of local restaurants. If consumers have any problems with their delivery or orders, they provide customer service on behalf of the restaurants. The platform charges a predetermined fee for each successful transaction.
GrubHub, JustEat, and Delivery Hero are meal delivery platforms that use this approach. Furthermore, some organizations have attempted to implement subscription models in which customers must pay a monthly fee in order to receive additional perks such as discounts and free home delivery.
3) Restaurant-to-Consumer Model
The restaurant model allows restaurants to serve food to clients from their own locations. McDonald’s, Burger King, and Domino’s are well-known brands that use this strategy.
Furthermore, many organizations implemented food delivery through their websites, apps, or partnerships with delivery networks to modernize the strategy. Furthermore, they can collaborate with meal delivery partners such as DoorDash to avoid serving on their own.
Domino’s proved to be a game-changer in the food delivery revolution. Some of the company’s recent innovations include:
- A voice recognition system is utilized to place orders.
- An app that allows users to track their deliveries while they are on their way.
- Drones are currently being tested for automated distribution.
Integrate these powerful features into your food delivery app.
As a well-known mobile app development firm, we have curated a list of all the essential features that a food delivery app should include for users, restaurant owners, and drivers.
1) Customer’s Application Module
- Search Filter.
The search filter allows visitors to find and explore cafes and restaurants based on their location and food.
- Order Placement
Customers can place orders for great food from their favorite restaurants with only a few clicks. Customers can select their preferred food and add it to their cart. Then, they can place the final order.
- Real-Time Location
Customers can follow the location of their ordered food using a geolocation map after placing it. Isn’t it a terrific feature for developing the greatest and most current food delivery apps?
It allows clients to see how long a delivery boy will take to deliver. This helps to build confidence and faith in food delivery service companies.
- Payment Gateway Integration
Payment gateway integration enables users to pay for their food orders online using debit or credit cards, internet banking, and other methods. Conversely, restaurants can easily accept payments through payment gateway integrations such as PayPal, Stripe, and so on.
- Reviews and Ratings
Feedback and consumer ratings are vital to creating strong market competition. You should include this function for your users to rate and review your app or services so that you can overcome problems and win over customers’ hearts.
- Order History.
Order history has proven to be a time-saving service for users. It helps them to maintain and review previous orders. Furthermore, they can repeat past orders whenever necessary.
- Nearby Restaurants
It allows visitors to see all the top and closest restaurants based on location. Users can also examine the menu, prices, and reviews and order meals from there.
2) Delivery Drivers App Module
- Registration
This enables drivers to log in or sign up for the app using their phone numbers, Gmail, or other social media networks. The entire signup or login process should be simple, so new members can quickly enroll.
- User Profile.
This user profile allows a driver to upload information such as their name, email address, contact information, photo, and other facts. As a result, consumers can more easily access their basic information.
- Alerts and Notifications
How will drivers learn about their new food order?
This notification feature, on the other hand, notifies drivers of new orders that have been assigned. When drivers are not using the delivery app, they should hear a sound alert for any orders that have been requested.
- Manage multiple deliveries.
At the same time, drivers may handle and respond to a variety of food delivery orders. They can accept any request that is near another delivery location.
- GPS-Map Integration
GPS map integration is one of the most useful and outstanding capabilities for delivery drivers. GPS assists the food delivery worker by recommending the most convenient path. A delivery worker may be compelled to add a last-minute order, in which case he must take a shorter route to arrive at the destination on time.
- Call/Chat Option
The delivery person can contact the consumer via chat or phone if the consumer has a problem.
- Order History.
This feature lets the delivery agent view their meal delivery order history and payment details.
3) Administration Dashboard Module
- Performance Analysis
An administrator can monitor all activities conducted by users or delivery personnel on the food delivery app. The admin dashboard allows them to keep track of food delivery, drivers, and scheduled or canceled orders, as well as view driver details.
- Manage order requests.
You may manage everything from food parcel pick-ups to deliveries and scheduled orders. You are accountable for streamlining orders and delivering them to clients on schedule.
- Real-Time Update
The administration must monitor the availability of delivery agencies and restaurants. This tool allows you to receive real-time updates and notifications about drivers and restaurant owners, such as revisions to their profiles, restaurant hours, and availability.
- Payment and Commission Administration
The admin interface allows food delivery agents and restaurants to control payment and commission rates for each meal order.
- Offers and Discounts
It enables the administrator to provide various discounts and promo codes within the app.
- Push Notifications
Admin receives alerts and updates after the driver accepts the order requests and is on his way to collect or deliver the parcel.
- Restaurant Management
It allows the administrator to add and delete eateries from the app.
- Campaign Management
The administrator can launch and manage several email, SMS, and social media marketing campaigns.
Revenue Models for the Modern Food Delivery App
You may integrate a variety of revenue models into modern meal delivery applications. Once you’ve hired the best mobile app developer for your app, they’ll help you determine the best revenue model to create more income.
1) Commissions.
You can design an on-demand food delivery app using a commission-based business model. Under this technique, restaurants will pay a commission to the portal owner for every order placed through their portal. When customers order food from a restaurant, the establishment pays a commission to the aggregation platform.
2) Subscription.
In the subscription model, the admin charges the merchant a monthly or annual subscription fee to list his restaurants on the food delivery platform.
3) Paid advertisements.
Offering sponsored ads in the app that showcase certain restaurants and their food is one of the most effective ways to generate cash. The administrator will charge restaurants to promote their ads in the app.
Furthermore, food companies can pay for banner ads featuring their particular meal ideas. This income model is strongly suggested for reputable services; therefore, consider it once your program has a large user base.
4) Delivery and other charges.
The portal owner charges a delivery commission to customers. If the administrator uses his logistics network to deliver the meal, he may charge the client a delivery fee.
One method for generating revenue is to implement surge pricing during peak hours. Restaurants will have to pay a higher commission to the app in order for it to process their orders more quickly. Charging customers a greater commission for speedier order fulfillment is also possible.
How much does it cost to create an on-demand food delivery app?
Multiple features, the complexity of mobile app development, third-party integrations, the appropriate mobile app development process, and many other factors all play a role in determining the overall cost of developing an on-demand food delivery app.
Now, let’s look at some of the other factors:
- App Features and Functionalities
- Project Analysis and Scope Statement
- UI/UX Development
- App Platforms
- App Deployment
- App Maintenance
- App Security
- App Development Team
Conclusion
As a business owner, developing on-demand food delivery software necessitates extensive market research, industry understanding, and a suitable budget. As a result, we’ve included on-demand food delivery features, business models, revenue methods, and technologies in this guide to help you figure out how to build the best meal delivery app.
So, before you start food delivery app development services, you should consider which food delivery industry you want to target, the problems/challenges you’ll face, and your end goal.