Want to transform the overall avatar of your traditional restaurant setup? Do you plan on giving it an online look? This article is for you then.
Online food delivery apps during the pandemic and after the end have observed popularity grow manifold. This has increased its valuation to a great extent too.
Hence, developing the solution for a traditional offline food delivery setup will prove wonders. This is something we will cover in detail here. Alongside this, we will give you a list of pointers that would streamline your food delivery app development journey.
Market Stats for Food Delivery App Popularity
As we stated in the lines above, the presence of the food delivery app acted as a boon in disguise for customers during the pandemic. Since it made quick meals easily accessible to them, therefore after the end of the pandemic, the valuation of the food delivery business grew to a huge extent.
Have a look at the numbers below to get a glance into the same.
- The valuation of on demand food delivery apps stands at $323.30 billion in 2022.
- The revenues in the market are expected to take place at a CAGR of 7.60% between 2022-2027.
- The profits are predicted to be $466.20 billion by 2027.
- The number of users is going to be 2613.2 million by 2027.
These numbers suggest that the app has a very strong value for traditional food delivery startups and building it will be a good idea indeed.
Now you may be wondering the reason for the app’s popularity and valuation being so high. The answer is its easy operations.
How Do the On Demand Food Delivery Apps Work?
When you plan to digitize your operations and create an online business for a startup with on demand food delivery apps, it is important you know the app operations well in advance. This is the first step in giving you an insight into how you need to develop the solution so you get a fully-functional application.
Here’s presenting the app operations below.
- The customer enters the app, adds location details, and gets a list of restaurants nearby.
- They pick one matching their food requirements choosing the meals side-by-side.
- Make payment for the food.
- The order received at the restaurant confirms it and assigns a driver.
- The driver accepts the order request and reaches the restaurant for picking the order up.
- The user is notified of pick-up and is educated about every delivery stage until the food is delivered.
So you see, the easy app operations are primarily responsible for its growing popularity among consumers and why it has thus aroused the attention of traditional food delivery startups. This is in terms of giving their operations a digital avatar.
Points to Remember before Developing On Demand Food Delivery Apps
For an online business startup especially when it is as profitable and lucrative as the food delivery one, it demands that during the development stage, the business keeps some pointers in mind. This will ensure the on demand food delivery apps they create ensures success and allows them to make maximum profits. If you are also one among them who is planning to digitize your restaurant setup, keep these tips in mind and see your revenues.
Know Business Models
First, have an idea of the different business models. Here are two that are particularly popular. Make sure to know them.
- Platform-to-consumer or aggregator model where an on demand marketplace enables customers to place meal orders via a third-party app and get the same delivered to the doorstep.
- Restaurant-to-consumer model where restaurants have their website or app developed through which they make deliveries easily accessible to customers.
Once you know about these two it is recommended you assess and examine your business requirements. This will help you to formulate an appropriate model.
Assess Revenue Models
The ultimate goal of your food delivery business is to assist you in boosting profits. Therefore, you need to have insight into the revenue models well in advance.
There are two ways through which you can generate profits-
- Charging commissions to restaurants on the total order value.
- By asking users to pay a fee on order value for the delivery services.
Make sure to know these two models, and select one that you feel will allow you to get your profits rolling.
Have a USP
It is important to keep your app as unique as possible. Before you are entering the competitive art of food delivery app development services, you should work towards having a USP. This means you need to include a few characteristic elements.
Before that, you need to remember the three main segments of the app- the customer, the delivery driver, and the restaurant.
Next, each of their respective apps should include the following features to allow it to stand out.
Keep App Robust
The app needs to work robustly so that no traces of crashes take place. Hence, it is suggested to make use of robust tech stacks. Here are some that will assist you in this endeavor.
- For incoming traffic management – Nginx
- Frameworks – Laravel
- For databases – MySQL and Redis
- For hosting – AWS and VULTR
- For cross-platform app development- React and Flutter
Get Services Outsourced
The last crucial step is to get food delivery app development services outsourced. Connect with a food delivery app development company upon researching them online.
Here are some areas you need to cover in the research-
- The company’s expertise
- Their portfolio
- Client reviews
Once you have assessed these aspects, you can connect with the support team from their organization. Check the app development strategies they follow and assess most importantly the way they develop on demand food delivery apps.
All these steps will give you a formulated view that the enterprise you are connecting with specializes in this regard and will provide you with the best-in-line services in this regard.
Having awareness of all the steps, you must focus on the cost factor.
Estimated Cost to Build Food Delivery App
Planning an online business for a startup that specializes in food delivery services? You must place focus on the financial factor. Here’s giving you the estimated cost to build a food delivery app. The total budget you have to keep aside will be somewhere between $5000 and 20,000. However, based on design, features, and different fees, the price may categorically go up and cross $30,0000.
Therefore, keep the on demand food delivery apps as simple as you can. Add only those features which are relevant to the app and meal delivery services. Last, embrace cross-platform app development. This will allow you to keep your finances intact.
Summary
The food delivery business is expected to earn revenues of $466.20 billion by 2027. This is enough to give an estimate of the significance of embracing food delivery app development services and building on demand food delivery apps. However, the app development steps are to be as meticulous as possible so that the end solution is robust thereby ensuring maximum user engagement and revenues.
To get this done in a thorough and planned manner, connect with a food delivery app development company today. Understanding your business requirements and the customer needs you want to address, they will partner by your side in creating a solution that makes user demands easy to meet so profits start pouring in like never before.
