Food delivery is something most of us can’t go without. The pandemic and safety regulations have made apps like UberEats even more popular. Now, to taste their favorite food, restaurant customers place an order and wait for a courier to deliver it.
Furthermore, food ordering is the only way for restaurants to make money, while restaurant dining is banned in many countries, including the US.
Despite Due to the popularity of Uber Eats, many restaurant owners criticize the platform for unfair service fees that reduce the already small profit margin of restaurants.
For that reason, Savoyard restaurant owners are considering developing their food delivery marketplaces like UberEats. As the saying goes, if you can’t beat them, lead them.
Suppose you are one of the brave and optimistic food tech entrepreneurs and you are considering developing an app like Grubhub or UberEats. In this case, you need to know the business model of UberEat and the simple steps to create such an app or even better. Let’s see how food delivery marketplaces similar to UberEats work and how much it will cost you to create a food delivery aggregator.
UberEats business model
The UberEats app is both a restaurant aggregator and a delivery agent that works in two different ways:
- UberEats UberEats uses a traditional food delivery model, listing partner-restaurants in a single app.
- UberEats also handles order delivery using its own logistics network to deliver orders from restaurants that don’t have a delivery option.
The most outstanding features of this food delivery app include:
- Recommendations
- Advanced search
- Request Tracking
- Delivery Details
Now, let’s take a look at UberEats’ monetization strategies.
How does UberEats make money?
The company applies three monetization strategies:
- Shipping commission from $2 to $8 per order depending on the distance between the customers and the restaurants
- Service fees 15% to 40% for every order received through UberEats.
- Promotion: When partner restaurants pay to be ranked first in search, increasing their visibility to customers.
How to Make a Food Delivery App: 5 Steps to Follow
To develop apps like UberEats and make it popular with users, you need more than copying its features. To help you outpace UberEats, we suggest applying the following steps:
Step 1. Track Food Delivery Industry Trends
You should be aware of new delivery channels. delivery and other trends:
Social media
To make your project unique in your selected niche, consider integrating ordering functionality through delivery accounts. social networks.
The first company to use this ordering option was Domino’s Pizza, which offered orders to customers through Twitter accounts. Users of the app “tweeted” a pizza emoji to Domino’s Pizza’s Twitter account to place an order.
GUIDE TO STARTING A FOOD KIT DELIVERY SERVICE
Before To order Domino’s Pizza on Twitter, users need to:
- Create a “pizza profile” and list a favorite pizza
- Fill out the “default orders” section on Domino’s Pizza website
- Link a pizza profile to a Twitter account
Virtual assistant
Chabot allows you to order through messengers and request food with a single word:
Domino’s pizza has developed Dom, a chatbot that allows you to place orders in Twitter and Facebook messengers and find out about special offers.
Grubhub has integrated its system with Alexa, Amazon’s virtual assistant, which It allows customers to re-order any of their last three purchases.
Just Eat has decided to keep up with current trends and integrate Alexa into their ordering system. Thanks to Amazon’s new hardware, the Echo Show, Just Eat can place orders by voice and verify the location of the courier.
Smartwatch
Businesses Wearable devices are widely used by food delivery companies:
Domino’s was a pioneer, releasing a food ordering app for Android watches that makes ordering simple.
OrderUp unveiled its latest app for Apple Watch. OrderUp customers can place orders, track delivery statuses, and see when the courier will arrive.
BALANCING SUPPLY AND DEMAND WITH AN ON-DEMAND GROCERY DELIVERY APP
Step 2. Choose your food delivery model
Now, you need to select a model food delivery between two business models that will suit you best:
Order-only model
Ordering and delivery model
Companies
- Delivery.com
- Eat24
- JustEat
- Deliveroo
- Doordas
- UberEats
Description
Businesses only fulfill orders.
Start-ups from Alimentos are responsible for both order management and delivery. In some cases, these companies cooperate with courier services.
Monetization
Order-only companies charge restaurants 10-30% of the order value.
The business model includes a commission from the restaurants (25-30%) and the delivery fee. You can set a flat rate delivery fee or charge a fee based on the distance between the customer and the restaurant, like UberEats does.
Limitations
This business model has a low barrier to entry. So this niche is quite crowded with competitors.
You need to hire and train the carriers etc. Increased admin work can affect business scalability.
Benefits
By using this business model, you don’t have to worry about cooking and delivery.
Once such food delivery is in place, you will develop a business and receive a profit.
Step 3. Research the target market
To To develop a great food delivery app, you need to know your target audience. Once you understand who will be using your food delivery app, it’s easy to create an app that ideally meets the needs of your target audience.
The target audience could be narrow, like gluten-free raw vegans, or broad, like pizza lovers.
To draw a clear picture of the target audience, use demographic criteria and create a target customer profile clarifying the following information:
- Social characteristics, including income, gender, nationality and age
- What potential customer problem can your project solve?
- How customers will feel about your app?
- Why should customers use the platform instead of competitors?
By clarifying all these points, you will have a good idea of your target customers.
HOW MUCH IT COSTS TO DEVELOP AN APP: DETAILED BREAKDOWN OF FEATURES
Step 4. Choose the main features of food delivery services similar to UberEats
When developing For a mobile app like Uber for food delivery, consider the following features:
Login allows you to sign in to the app via email or social media profile.
Search allows you to search by food, filters and food category. This section should include pictures of the dishes, the process, and a description of the food.
Ordering allows you to add meals to your cart.
Checkout includes all the selected dishes and the order total.
Payment allows users to pay for the order through the integrated payment gateway. Our advice is to integrate several payment systems, such as PayPal, Stripe, MangoPay. We apply this strategy to the development of a personalized market. You can find the full case study at the link.
Notifications inform users about order status via push notifications and SMS.
Order Tracking shows real-time order tracking using the CoreLocation framework for iOS apps and the Google Location API for Android apps. In addition, Mapkits and Google Maps will help couriers find the best route to the customer’s location.
User Reviews allows app users to share their experience and rate restaurants.
Step 5. Select Food Delivery App Development Technology Stack
Depending on the business model of a food delivery startup food delivery, you may need different technologies.Still, we’ve put together an essential tech stack for Uber-like apps in the table below:
Restaurant List
- Grubhub API
- FourSquare API
Payment Gateway
- Square API
- Braintree
- Stripe
- PayPal
Find User Location
- Primary Location Framework
- Google Places API
- Google Maps
Push Notifications
- Amazon SNS
- Urban Airship
- Firebase Cloud Messaging
HOW TO CREATE A LOCATION-BASED APP FOR ANDROID AND IOS
How much does it cost to develop a food delivery app?
The cost from the mobile application l consists of many elements, including the number of platforms, list of features, the number of integrations, etc.
The mobile development team will create a detailed estimate of the app only after the discovery (initiation) phase.
What does this mean?
The discovery (startup) phase is the first step you and the development team take to build a solid foundation for application development. This stage includes several components, such as:
- Functional specification
- UX/UI design
- Visual prototypes
The product discovery phase can help you:
- Define scope of work
- Develop project roadmap
- Establish a realistic MVP budget
- Resource planning
- Test the app MVP with a target audience
- Develop a strong investment case
So how much will the food delivery app cost?
We need 50 hours to create the UI/UX design, 66 hours to build the back-end of the app, while the development stage Development can take 120 hours per platform.
To make your app like UberEats stand out, keep an eye on current trends in the food ordering industry and don’t forget to give your customers added value that your competitors don’t.
p>For a food delivery application, you can apply an order only or order and delivery model. With App MVP, you can collect target audience information and add other features during the second stage of development.
Our success story
CASE STUDY: Alfredo Ibiza’s food delivery app
Alfred Ibiza is a home delivery service mobile application that connects restaurants, shops, couriers and customers in Ibiza. The app allows customers to place orders at restaurants, pharmacies, and supermarkets listed on the platform. APP Solutions went to work!
We managed to develop the Alfred Ibiza platform in just three months, with a total cost of $70,000 project, 50-60% cheaper than the average food delivery app development cost.
The platform includes a customer app, messengers, a restaurant admin panel with only the necessary functions. In addition to this, we also developed a marketing landing page to promote the Alfred Ibiza platform.
Our technology stack
- Node.js
- React.js
- React Native
- Stripe
Team Composition
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What our customers say
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