nline Food delivery apps like GrubHub are continuously ruling over the hearts of the foodies. Now a large number of people can satisfy their hunger more easily and quickly with these food delivery apps.
According to Statista, 20% of the people in the United States use online food delivery apps to order their favorite food anytime.
The number of people who are using online food delivery apps will increase with the passage of time. Again according to Statista, it has been surveyed that In the Platform-to-Consumer Delivery segment, the number of users is expected to amount to 131 million by 2023.
Keeping into consideration this demand of the customers, Food delivery apps have become the target of all startups and entrepreneurs who want to make their business on the top in this digital world. As a huge revenue could be generated in the business of online food delivery apps.
According to stats of the online food delivery app, Revenue in the Online Food Delivery segment amounts to US$7,730m in 2019.
Total revenue is expected to show a CAGR (in 2019–2023) of 12.8%, resulting in a market volume of US$ 12,536m by the year 2023.
Have a look at the below-given image which the revenue in the Online Food Delivery
What is GrubHub?
There are various online Food delivery apps that are making the lives of foodies entertaining and GrubHub is also one of them. GrubHub is trending these days. The reason behind its popularity is that it is easy to download from the App store and its delivery service is up to the mark like it delivers your food within time.
Grubhub is an online food delivery company based in Chicago. This company is scattered in various locations and is connected with various diners and local restaurants. The company is having a more than 14 million active diners, and approximately 80,000 restaurant partners.
Well, this is a brief introduction to the Grubhub food delivery company. But let me tell you that like Grubhub, there are more food delivery companies that have gained popularity and become more client-oriented with the introduction of mobile applications. The reason behind this is that food delivery apps provide much convenience to customers. The customers can order and get their food at their doorsteps just with the help of a few clicks on the apps.
This convenience of mobile applications is the major reason why the online food industry letting the offline industry behind.
Let’s have a look at the below-given graph which clearly shows how big the online industry is going to be in comparison to the offline industry.
Well, all these stats are clearly indicating you that the online food industry is flourishing and going to be flourished more in the coming years and this is happening just with the help of Mobile applications.
Now various questions might be arising in your mind regarding the food delivery mobile applications. Don’t panic and let me tell you that here you will get quick answers to all questions related to this food delivery mobile application development.
Types of food delivery apps:
Here are two kinds of food delivery apps that are available in the present mobilized economy:
In this kind of model, you can make a kind of app that will act as a platform that can connect users and restaurants. This Aggregator model of the app helps the users to order food and helps the restaurants to view and complete the order without the help of any kind of delivery support.
Platform with Logistic Support
This kind of model helps restaurants in providing support to deliver food to a large number of users. This is the place where you can get a complete service offering of the restaurant (except for food preparation).
This kind of app helps the users with the option to choose their food items from the menu, make an order and track that particular order. For example, where it has reached and at the same time offers the restaurants the benefit of tracking the order status and handing over the food to the delivery person who is basically from your side and then get paid for that order.
Now you have seen the kinds of food delivery apps, now it’s time to see which are the best food delivery apps. Let’s have a look at them:
Thinking about how a food-delivery app makes money & what are the costs involved in getting an app developed?
How to Make Money in the Food-Delivery Business?
There are various types of ways through which you can make your on-demand restaurant app monetization. But the most common ways are as follows:
It usually happens that sometimes some restaurants do not offer the facility of home delivery. And here when you provide the facility of home delivery personnel, then, in that case, they have to pay you the delivery charges.
This kind of business model where you take the responsibility of handling on-demand home delivery is one of the sources which brought the benefit or profit of $164 Million last year. Keeping into consideration this fact, it is mandatory to mention that there are a large number of food delivery restaurant apps that are dependent on food delivery revenue as one of their main sources.
Rise in Pricing
There are various food delivery brands like UberEats which increase their prices according to the demand. Let’s take an example, in the rainy days, you might have seen the food delivery apps increase their prices on every order even if the orders are less. They limit the menu options and apply extra charges when the order is being placed. Although this whole process does not affect the rate of incoming demand but this definitely affects the per delivery to a great extent.
Look below what the city-wise per delivery income chart looks like for UberEats at time of peak pricing
This is one of the most effective ways of generating huge revenue. What do the apps do? Well, actually they offer restaurants a smaller section in their running advertisements and charge in return. Apart from that, these apps can generate revenue by running Google Adsense on the platform.
Time to market a food delivery app
Here is an example of food delivery services like UberEats, Seamless, GrubHub. All these food delivery apps are really popular so the competition is seriously difficult here. All the above-mentioned services are basically aggregators of the menus from many places. Well, there are many food delivery apps available these days. Among so many apps, we will discuss a little on how long it takes to develop an app for one restaurant to provide the delivery services to potential clients.
Well, almost all restaurants these days offer the service of delivery but everyone has different ways of ordering. For example, customers do not like to order from the app where they have to go through extra clicks and steps to order their food. They want easy and simple steps to order their food.
Now, we will discuss how long does it take to create an app which can satisfy customer needs in a very simple way and improve the business.
Let’s have a quick look at each development stage and give their average timeline using the example of such an application:
Planning Stage (2 – 3 weeks)
This is one of the most unique and initial stages of app development. Planning should be done keeping in consideration the benefit of both the customer and the development team. This stage involves the time period of usually 2-3 weeks.
Business Analysis (2 – 3 weeks)
This stage of development usually takes a time period of 2-3 weeks. Here the business analysis specialists, app developers, and even the project manager sit together with the customers and discuss for better solutions. For example, in the food delivery app, they discuss a catalog of the goods, the ability to make an order, enter the address for the delivery, pay for it, and track the order.
Design and Pre-Development Stage (5 – 7 weeks)
This stage of development involves multiple stages on which the actual time of app development is based on:
- UX Design (2 – 3 weeks)
In this stage of development, the UX designers decide how the user interface will work, and which screens and buttons should be added as long as user experience is determined by simple and clear app navigation.
In a good UX design, customers can easily interact with the application, which actions they should complete some goals. This stage of development requires 2-3 weeks.
- UI Design (3 – 4 weeks)
This stage of development is all about the presentation. Where UX designers are working on how the app will work, on the other hand, UI designer works on how the app will look like. This UI stage of development takes 3-4 weeks because designers are required to create a unique and attractive interface of your application.
Development Stage (8 – 10 weeks)
This stage of development also involves multiple stages. Let’s discuss:
- Back-end development (6 – 8 weeks)
This Back-end stage of development takes 6-8 weeks as it works with the app server and the database. For any kind of service application, all data is stored in the back-end server. Whenever the user launches the application, the data is automatically coming from the back-end service and is reflected on a mobile phone screen managed by the app installed on the phone. And this is very crucial for a food delivery app as food delivery apps don’t need offline functionality.
- Front-end development (6 – 8 weeks)
Testing (2 weeks)
When the development of an app is almost done, then the app will be tested for the next 1-2 weeks and developers will be working on the bugs that the testers will find out. Having good testing & quality analysis team is a must.
Finalization and Launch (1 week)
After the testing part of an app, the stage of final preparation comes which is indeed really important as this time when we have to finalize the details, fix the last bugs and publish the application to the App Store and Google Play. This stage takes the time of 1 week.
Post-Launch Support and Maintenance Stage (2 weeks)
After the app is being launched, it becomes the duty of the development team to observe the performance for about 2 weeks to ensure it works properly and corresponds to all set needs.
How Much Does it Cost to Develop a Food Delivery App?
Well, there are various factors that involve the total cost estimation of mobile app development. But still, it could be said that you will get a clear idea of this question.
The estimated cost of an app also depends on the number of features you are required in your on-demand food delivery mobile as well as the resources that it would need to get your app developed from the beginning phase till the active phase. So it could be said that the cost of developing a food delivery app like Grubhub or uberEats will involve the approximate amount of around $30,000 to $40,000.
The estimated cost of one food delivery mobile app involves the delivery charges of all like Mobile app design, development of both Android and iOS versions of the app, app testing, and app launch in the market.
If you are desiring to make a web app for restaurants, this may cost around $50k to $60k.
With this, we have now attended to everything you need to know in the present day for entering into the on-demand food delivery app market and the probable online food delivery app cost. And now it is now time to prepare you for the future.
Well, we have tried our best to provide you with all the accurate information you were looking for regarding the on-demand food delivery app development and market. Now it’s your turn to follow these tips and to build an app like these.
As you are properly aware of the facts that lie in the building one app, now it could be said that by following these tips, you can surely hire mobile app developer in order to scale your app in such a way that will add flavors to food and to your future too.