Currently, the online food delivery industry has immense potential. People have become comfortable with the idea of ordering food at home instead of going to stores, restaurants, and cafés. People are enjoying rapid food delivery services and taking full advantage of it. One of the common questions asked is ‘How do I Build a Food Delivery App.’ So, let’s dig deep into the process of developing a restaurant mobile application, similar to that of UberEats.
There are a number of effective ways to develop a food delivery app. One of the ways is using the existing APIs that fastens the food delivery app development and, at the same time, reduces the cost. Known APIs provide the much-needed building blocks to create your own delivery app.
All those mobile apps developers are required to do is to assemble the blocks that build a functioning app. Optimizing the app takes added time and cost.
How Does a Mobile App for a Restaurant Work?
• The platform charges a fixed sum of money from the owners to list their restaurants on it.
• The customers get a chance to browse through and order food online using the app.
• Once the customer places an order, the restaurant receives a notification. The online food ordering system gives the restaurants an option to either accept or reject the order.
• A notification is sent by the system to a delivery person, notifying them about the order. The delivery person can either accept or reject it.
• If the delivery person accepts the order, the customers can track the order by using the app.
Revenue Model of an Online Food Delivery App
Three revenue models that are commonly used:
1. Subscriptions
Generally, the platform charges a fixed sum of money from the restaurant owners to list their restaurant on that platform.
2. Advertisements
If the online food delivery app is gaining traction and increasing its user base, it can start earning through advertisements. Various restaurants or brands can get a space to list their banner on the platform. These listings are known as premium listings. Depending on the size and duration of the banner, the charges are fixed.
3. Commission
On every order, the platform has its cut that it takes from the restaurant. The commission ranges between 10-20% of the order value.
A Step-by-Step Guide on How to Build a Food Delivery App
Step 1. Look out for the hot trends in the food delivery industry.
To be one step ahead of the competitors, you need to know the latest trends in the industry.
Step 2. Food Delivery Model
There are multiple food delivery model options available. You need to choose one, keeping in mind the model that will work best for your business. In the food delivery market, the two main models available are:
• Order-Only Model: In this case, the companies are responsible for ordering and managing the orders. The platforms charge a commission of 10-20% of the order value. This model helps in avoiding the hassle of restaurants managing the cooking and delivering.
• Order and Delivery Model: In this case, the companies are responsible for managing the orders and delivering them. Many businesses use this model tie-up with courier services to deliver the orders. A commission of 10-20% of the order value gets charged from the restaurants and a delivery fee. The delivery fee can get charged based on the distance between the restaurant and the final delivery destination.
Step 3. Research of the Target Market
To develop a unique food delivery app, it is essential to know and understand the target audience. Once the businesses realize who will use their service, it solves 50% of the problem and helps to meet the target audience’s needs faster.
The Cost
The app development cost with companies like SDI ranges anywhere between $6,000 to $12,000. You shouldn’t wait too long to create your restaurant delivery services as a food delivery business is gaining popularity. It takes on average 2 to 4 weeks to develop this kind of app but keep in mind that it does fluctuate based on the number of features you choose to have.
Once you have all the primary steps completed, SDI can help you determine the technology stack that will be used for developing your food delivery app. Tech stacks also include the payment gateways such as PayPal, Stripe, Square API, etc. If you are on the verge of building a food delivery app, then make sure to connect with us at team@sdi.la or call us at 408.621.8481.
