The possibility of starting a food delivery app business can be both exciting and lucrative.
In recent years, the food delivery industry has grown tremendously thanks to technological advancements and a growing demand for convenience.
Launching your own food delivery app may be the perfect idea if you are entrepreneurial and passionate about food.
However, starting a business from scratch can be a daunting task.
From idea generation to launching and growing your food delivery app business, we will guide you through the process in this blog.
In this guide, we will provide you with the information and resources you need to succeed in the highly competitive world of food delivery apps, regardless of your level of experience or expertise.
So, let's dive in and discover how to start a food delivery app business from scratch!
Food delivery apps: A brief glimpse
The fast-paced lifestyle of today's society, with individuals working 24/7, leaves little time for cooking at home.
As a result, many people opt for convenience and comfort, which has led to the rise of on-demand food delivery apps.
These apps offer a quick and easy way to order food from your favorite restaurant and have it delivered right to your door.
Food delivery apps have become indispensable tools for busy individuals who don't have the time to cook or go out to eat.
The apps are available 24/7, making it possible to order food at any time of day or night.
With just a few taps on a smartphone, customers can choose from a wide range of restaurants and cuisines, order their favorite dishes, and have them delivered to their doorstep.
The food delivery industry has seen tremendous growth in recent years.
According to Statista, the number of people ordering food using online apps has almost doubled from 364.8 million in 2017 to 625.9 million in 2020.
This trend is expected to continue, with projections showing that the number of people using food delivery apps will reach 858 billion by 2024 and surpass one billion in 2025.
Food delivery applications offer a unique opportunity for restaurants to reach a wider audience and increase their customer base.
In today's competitive market, these apps are an excellent way for restaurants to establish themselves as leaders in the food industry and provide their customers with an easy and convenient way to order food.
Moreover, the use of food delivery apps has several advantages over traditional delivery methods.
The apps provide real-time updates on the status of your order, and they offer a secure payment method.
Additionally, the apps provide a platform for customers to rate and review their experience with the restaurant and delivery service, making it easier for other customers to make informed decisions.
Whether you're a busy professional, a student or a parent, food delivery apps make it possible to enjoy your favorite dishes without leaving your home.
How to start a food delivery app business from scratch?
Developing a food delivery app is a complex and challenging process that requires careful planning, research, and execution.
Here, we will outline 7 essential steps to help you create a top-notch food delivery app that meets the needs of your customers and stands out in the competitive market.
Let us take a look:
Step 1: Research & niche analysis
Before embarking on the development process, it's essential to conduct thorough market research and analyze your competition.
This will help you understand the needs and demands of your customers, as well as the advantages and disadvantages of your competitors.
Some important factors to consider when conducting market research include the type of food delivery services available, consumer preferences, and the challenges faced by food delivery businesses.
This information will help you tailor your app to the specific needs of your target audience and differentiate yourself from your competitors.
Step 2: Select a business model
The success of a food delivery app depends on the business model you choose.
There are three main models to consider—using personal transportation means, outsourcing to external couriers or cab services, or allowing restaurants to handle delivery themselves.
Each model has its own advantages and disadvantages, so it's important to carefully consider your options before making a decision.
For example, using personal transportation means may offer more control over the delivery process, but it may also be more expensive.
On the other hand, outsourcing to external couriers or cab services may be more cost-effective, but it may also increase the risk of delivery delays or inaccuracies.
Step 3: Monetization
In order for your food delivery app to be successful, it must be able to generate revenue.
There are several monetization options to consider, such as charging a commission fee on each transaction, offering in-app advertising, or selling premium features to customers.
The monetization strategy you choose will depend on your target audience and the goals of your business.
It's important to carefully evaluate your options and choose a strategy that will provide long-term sustainability for your business.
Step 4: Choose the app's functionality
The functionality of a food delivery app is a critical aspect that defines its success.
Before starting the development process, it's crucial to determine what features and APIs the app will include.
A top-notch meal delivery app should have the following features:
- User registration and account setup: Customers should be able to create an account and log in easily. The process should be seamless and straightforward.
- Order tracking: Customers should be able to view the status of their order in real time, including the delivery time, the delivery address, and any updates on the order's progress.
- Restaurant rating and review system: Customers should be able to rate and review restaurants they have ordered from. This information is valuable for both restaurants and future customers, as it provides insight into the quality of food and service offered by a particular establishment.
- Multiple payment options: Customers should have a variety of payment options, including credit and debit cards, mobile wallets, and other payment methods. This flexibility makes the ordering process more convenient and increases the chances of customers making a purchase.
- Cross-interface communication: The app should facilitate communication between restaurants and customers, enabling them to exchange messages and updates on an order's status.
- Push notifications: The app should send push notifications to customers to keep them informed about the status of their order, including when the food has been prepared, when it's on its way, and when it's been delivered.
- User-friendly interface: The app's interface should be user-friendly, with straightforward navigation, intuitive design, and an attractive look and feel.
Step 5: Food delivery app development
Once the features and functionality of the app have been determined, it's time to start the development process.
The following are the general phases involved in creating a food delivery app:
- Prototype: An experienced team will develop the user flow logic and application screens based on client specifications. This phase involves creating a rough, low-fidelity version of the app to ensure that all the desired features and functionalities are included.
- UI/UX design: The app's interface is designed, and its functionality is incorporated. This stage involves creating an attractive and user-friendly design, including visual elements, and creating an overall look and feel for the app.
- Development: The next phase is where programmers put everything together and build the final product. This involves writing code, integrating APIs, and ensuring that the app meets all requirements and specifications.
- Test runs and publication: After the product has been created, it must be tested and reviewed to ensure that it functions correctly and is of high quality. The quality assurance team will run tests to check the app's fault tolerance and identify any bugs or issues that need to be addressed. Once everything has been tested and any necessary improvements made, the app is ready to be published and made available to the public.
Step 6: Selecting the right tech stack
Choosing the right tech stack is crucial for the development and success of the food delivery app.
There are a lot of options available in the market, and the right one can be selected based on the features the app requires.
The tech stack comprises the programming languages, databases, software tools, and frameworks used to build the application.
Some popular options for building a food delivery app are React Native, AngularJS, Ruby on Rails, and Laravel.
It is vital to choose a tech stack that has a large community, as this means that there will be a lot of resources available for development and debugging.
Additionally, the tech stack should be easy to scale and maintain so that it can grow with the business.
Step 7: Estimating development costs
Estimating the development costs of a food delivery app is a challenging task as it depends on several factors.
The cost of the app depends on the features it requires, the complexity of the app, and the location of the development team.
If the app is being built in-house, the cost of hiring a team of developers, designers, and testers should be considered.
However, outsourcing the development to a vendor can be more economical, as the vendor would have a dedicated team of experts who have experience in developing food delivery apps.
Additionally, the cost of hosting and maintaining the app should also be considered. This includes the cost of servers, databases, and other infrastructure required to run the app.
By following the 7 steps outlined above, businesses can ensure the success of their app and make the most of the rapidly growing food delivery market.
Whether you're a startup or a well-established business, a food delivery app can help you reach new customers and expand your business.
Advantages of building a food delivery application
The exponential growth and demand for on-demand food delivery services are proof enough that this industry is not something that can be overlooked.
Whether you're a restaurant owner or a customer looking for the convenience of ordering food from the comfort of your home, food delivery apps have numerous benefits to offer.
1. Increased Visibility
A food delivery app can serve as a platform for restaurants to reach out to new customers beyond their regular clientele. By enhancing their online presence, restaurants can boost their sales and reach a larger audience.
2. Business Expansion
Food delivery services allow restaurants to cater to a broader customer base and reach customers who prefer to have their meals delivered to their doorsteps.
3. Wider Reach
Even if a restaurant has a limited seating capacity, it can still reach thousands of customers through a food delivery app. All that's required is a streamlined ordering system, and the restaurant is good to go.
4. Improved Customer Engagement
By using analytics from the food delivery app, restaurant owners can understand their regular customers and the most popular dishes. They can use this information to enhance customer interaction and increase sales.
1. Effortless Ordering
Food delivery apps are fast, easy to use, and eliminate the frustration and confusion that can arise from ordering over the phone. The app's user-friendly interface makes it convenient for customers to place orders with just a few taps.
Customers can order food from their mobile devices at any time, from anywhere. The food delivery app provides the convenience of ordering food without having to call the restaurant.
3. Diverse Payment Options
Food delivery apps offer customers a variety of payment options, including cash on delivery, net banking, debit/credit cards, wallets, and even loyalty points. This offers customers the flexibility to choose the payment method that suits them best.
Cost of developing a food delivery application
Developing an on-demand food delivery app is a complex process that requires careful planning, expert execution, and a detailed understanding of the industry.
The success of a food delivery app depends on various factors, such as the design, user experience, features, and integrations.
One of the critical aspects of creating a food delivery app is determining its cost.
The cost of developing a food delivery app can vary significantly based on several factors, such as the type of platform (iOS or Android), the number of features, third-party APIs, and other integrations.
In terms of design, the average UI/UX design for a food delivery app typically takes 50 hours to complete.
The back end of the app will require an additional 60-70 hours of development, while the front-end development can take 120 hours per platform.
This is an essential part of the process as it involves creating a visually appealing, easy-to-use interface that will attract and retain customers.
Once the development process is complete, the next step is testing and bug-fixing, which can take up to 100 hours.
This step is crucial as it ensures that the app is free of any bugs and glitches that could affect its functionality and user experience.
Based on these estimates, it's possible to calculate that the entire development process of a food delivery app can take between 300 and 400 hours.
The cost of development is, thus, typically calculated on an hourly basis, and the prices can vary depending on the location.
For example, developers in the US usually charge between $200 and $300 per hour, while developers in Europe charge between $100 and $200 per hour.
Therefore, the cost of developing a food delivery app ranges from $15,000 to $30,000, with a median development cost of $50 to $100 per hour. If a user chooses to integrate unique features into their app, the cost can go up, and the overall cost can range from $15,000 to $40,000.
It's important to note that the cost of developing a food delivery app is not just limited to the development process.
There are other factors to consider, such as ongoing maintenance, server costs, and marketing expenses.
These expenses can quickly add up, and it's essential to have a clear understanding of them before embarking on the development process.
In a nutshell, the cost of developing a food delivery app is an essential aspect that must be considered before starting the development process.
The cost can vary significantly based on the platform, features, and integrations, but it's possible to get a rough estimate of the cost by considering the development time and hourly rates.
With careful planning and expert execution, it's possible to create a high-quality food delivery app that will be successful in the market.
The future of food delivery apps
The food delivery industry is on the brink of a revolution, with the advent of new needs in the modern world and the increased demand for efficient online delivery services.
The convenience of online food delivery has enticed customers to spend a little extra for the privilege, leading to the growth of the food delivery market.
According to recent projections, by 2023, online food delivery sales will reach a staggering $220 billion, accounting for 40% of all restaurant sales.
This rapid growth has been propelled by the introduction of same-hour, same-day, and next-day delivery services.
However, the impact of the Covid-19 pandemic has accelerated this growth even further, making food delivery an indispensable part of modern life.
As the food delivery industry continues to evolve, several trends are expected to dominate and shape its future. The first trend is the intensification of third-party delivery services.
Third-party delivery services are becoming increasingly popular due to their convenience and reliability, and they are expected to continue to grow in the future.
Another trend that is taking center stage is the priority given to track delivery.
With the increasing popularity of food delivery, customers want to know exactly when their food will arrive and how it is being handled.
To meet these needs, many food delivery services are implementing new tracking technologies to ensure that customers can follow the delivery process in real time.
Tech companies are also taking control of the food delivery market, leveraging their expertise in technology and customer experience to provide innovative and seamless delivery solutions.
As a result, the food delivery industry is becoming more technologically advanced, leading to better service and higher customer satisfaction.
Hence, the food delivery industry is on the cusp of a major transformation, driven by the increasing demand for convenience and efficiency.
With the growth of third-party delivery services, the priority given to tracking delivery, the influence of tech companies, the rapid growth of online food and grocery shopping, and the popularity of food delivery memberships, the future of food delivery looks bright and promising!
Which is the #1 app builder platform for on-demand apps?
The food delivery industry is experiencing tremendous growth, with an increasing number of consumers opting for the convenience of having their meals delivered to their doorstep.
This has resulted in a surge of food delivery apps in the market, making it challenging for entrepreneurs to stand out from the crowd.
However, with the right app builder, you can create an outstanding food delivery app that will provide an amazing experience for both your customers and employees.
AppsRhino is one of the best app builders in the market that offers top-notch service to help you achieve your goals.
Whether you're a startup looking to launch your first food delivery app or an established business looking to expand your offerings, AppsRhino has everything you need to make it happen.
With no coding required, the app builder is user-friendly, and the intuitive interface makes it easy to create an exceptional food delivery app.
AppsRhino is equipped with the latest technological features and offers several unique aspects that set it apart from the competition, such as:
- Flexible pricing options allow customers to choose a solution that strikes the perfect balance between innovation and investment.
- Diverse market expertise, with years of experience in facilitating the growth of businesses and sectors, from startups to enterprises.
- Unmatched support, providing users with the assistance and guidance they need before and after launch.
- Scalability, with solutions tailored to meet the needs of businesses at every level of development, from SaaS to fully customized solutions.
The app builder offers a comprehensive development process, including planning for development and architecture, UI/UX design, bug fixing and testing, quality control, beta go-live, and maintenance.
With AppsRhino, you'll be able to bring your vision to life and create an outstanding food delivery app that will set you apart from the competition.
Therefore, if you're looking for an app builder to help you launch a food delivery app that will provide an amazing experience for your customers, look no further than AppsRhino.
So, why wait? Get started with AppsRhino today and take your food delivery business to the next level!
In conclusion, starting a food delivery app business can be a lucrative opportunity for those who have a passion for the food industry and a desire to innovate.
By following the steps outlined in this blog, you can build a successful food delivery app from scratch.
However, developing a robust and user-friendly app requires a high level of technical expertise and resources.
That's where AppsRhino comes in. Our team of experienced app developers is dedicated to building unique and engaging on-demand apps for businesses of all sizes.
We understand the importance of having a seamless user experience and offer a range of features that make ordering food as easy as a few taps on a smartphone.
Our team is committed to helping businesses succeed and will work with you every step of the way to ensure that your app meets all your requirements.
Therefore, if you're looking to start a food delivery app business, it's time to take the first step and choose AppsRhino.
Our team will help you build a robust and user-friendly app that will set you apart from the competition.
Get in touch with us today to learn more about how we can help you start a successful food delivery app business!