If there is one thing that almost everyone enjoys, it is binging on delicious meals. And, in today’s online world, ordering meals from our favorite restaurants has never been easier.
A number of on demand food delivery apps development are causing a stir in the market. For example, there is a segment of apps created by restaurant owners; they prepare the food and then deliver it to app users at predetermined locations.
On the other hand, there is another type of app that functions as a service provider for both restaurants and customers, such as Swiggy, Foodpanda, and Zomato.
In terms of speed and convenience, these well-known on-demand food delivery app development platforms have set some really high standards.
Needless to say, these two factors are critical for any customer in any business category. As a result, businesses are looking to capitalize on the popularity and potential of this type of service.
If you want to learn about the process of developing a food delivery app for your company, this blog can be a good place to start. It discusses various aspects of developing a food delivery app, such as its types, basic features required, team structure, cost, and much more.
Online Food Order Market Size and Statistics
To help you understand the significance of food delivery mobile apps, we’ve compiled a list of statistics that show how technology is affecting the food industry. These statistics demonstrate how technological advancement has significantly contributed to closing the gap between offline and online food ordering.
Furthermore, it is expected that the online food ordering market will soon outnumber physical restaurant visits.
According to a report by the investment firm Cowen, the online food delivery market will grow by 79% in the coming years.
Not only that, but other statistics show that the online food delivery industry will reach $55 billion by 2020, and online payments made on food ordering apps will reach $210 billion by the end of 2019.
Food Delivery App Types
So, if you are thinking about developing a food delivery mobile app, you should know that in the current online food delivery scenario, there are primarily two types of apps that dominate the market. They are as follows:
Model of Aggregator:
These apps are essentially third-party platforms that connect customers and restaurants. They are primarily in charge of accepting orders and delivering them to restaurants. However, they are not in charge of delivering the food to the customers. The restaurants must manage the delivery process.
Logistic Support Model: In this model, a third party provides assistance to the delivery system. The delivery personnel are the third party in this case. These delivery people are responsible for picking up ready-to-eat food orders from restaurants and delivering them to app customers.
This model has enormous market potential, benefiting both small restaurants (who cannot afford to deliver orders on their own) and large restaurants.
The aggregator model is rarely used nowadays, as the logistic model is preferred due to the convenience it provides to both restaurants and consumers. In fact, the majority of well-known food delivery app platforms follow the latter model.
Food Delivery Mobile App Revenue Model
There are several ways to monetize your online food delivery mobile app, but the following are the most common:
Delivery Fees: Many restaurants do not provide home delivery. So, by offering them your food delivery app with delivery personnel, you can ask them to pay the delivery charges.
For example, using this monetization model, the popular on-demand food delivery app platform Deliveroo generated a whopping $164 million in revenue in the previous year.
Surge Pricing: On days when demand is particularly high, the popular food delivery app UberEats imposes a surcharge. In this case, the app restricts menu options and adds a surcharge when a customer places an order.
Thus, in this model, the demand rate can be reduced while the delivery amount per order increases significantly.
The cost of developing a Food Delivery Mobile App
The cost of a mobile app is typically determined by four factors, which are:
The number of features in an app determines its complexity. More features imply a higher price.
Number of Platforms, in this case, the cost is determined by the number of platforms on which the app is built, whether iOS, Android, or both.
This is the most important deciding factor in the App Development industry. Because the cost of mobile app development per hour in the United States and Europe is significantly higher than in India.
Integration of third-party APIs; more API integration means more development effort.
For example, a basic food delivery app in the United States or the United Kingdom based on the Android or iOS platform will cost you approximately
$1,000 to $1,500 / 40 hours for technical documentation
$1,500 to $3,000 / 50-60 hours UI/UX design
$8,000 to $15,000 / 400 hours for front-end and back-end development
MVP testing costs between $2,000 and $4,500 and takes 75-80 hours.
Bug fixing costs $1,000 to $3,000 per 40-hour shift.
If you decide to hire an Indian app development company or developers for your food delivery app development, the cost for a basic app created on a single platform can range between $20000 and $25000. If more features are added, as well as more than one platform, the price may rise to $35000-45000.