Today, it’s common for most people worldwide to order tasty dishes from a favorite restaurant using a food delivery app while chilling at home. But before the pandemic, many companies had trouble finding customers. This affected the industry immensely, and to meet the growing demand, a number of new startups have popped up.
Digital orders have grown 300% faster than traditional restaurant sales since 2014. In 2020, more than 111 million people used apps for meal delivery. This means that when choosing between ordering meals online and eating out or cooking at home, more and more customers opt for the first option.
Besides, digitalization has affected every aspect of our lives and changed how we shop. As people increasingly need or want to stay at home, they prefer online orders. Now, they can easily order their favorite food and pay for it with just a few clicks using their credit card or e-wallet.
If you have an idea of building a food delivery app similar to UberEats, this article covers the development process, trends, and pricing. Thus, it will help you understand the common ins and outs.
Brief Overview Of the Food Delivery App Market
UberEats became the most popular food delivery mobile app globally, with 66 million downloads in 2022. Because of the pandemic, the demand for these products has grown exponentially, and if you consider developing such software, now is the perfect time.
Why did UberEats stand out? During COVID-19, the company used hygienic safety protocols for food delivery. It also made it easy for customers to order their favorite meals online right to their door. At the start of the lockdown, UberEats saw a 30% increase in signups for its meal delivery service. The number of restaurant contracts signed with UberEats increased by 20% in April compared to the previous month.
Smaller companies that build apps like UberEats also took advantage of the lockdown. Although big players like DoorDash and others dominated the food delivery sector, smaller startups like Glovo successfully raised millions in funding, securing $528 million. Meanwhile, Gorilla received $290 million in investment, even though the company was originally valued at $1 billion.
The online food delivery market is expected to reach $1 trillion in 2023, up from $18.9 billion in 2020. Given this success, the future of the delivery sector seems to be promising. Despite a seemingly crowded market, the numbers speak for themselves:
- 60% of people in the US order a delivery service or takeout at least once a week.
- Around 20% of consumers say they spend more on non-restaurant orders than on regular restaurant visits.
- 57% of millennials say they get restaurant food delivered to watch movies and TV series at home.
How Does UberEats Make Money?
Before moving to the food delivery app development process, let’s dive in now and explore UberEats’ main revenue streams. There are four key avenues through which the company generates profits.
Commission on orders. Restaurants and cafes pay UberEats a commission for each order, which can be as high as 30%. This is one of UberEats’ main sources of income.
Delivery partner fees. UberEats charges up to 25% of the total delivery partner fee, which is broken down into three components: the delivery, the distance-based per mile, and the pickup. For orders under $12, UberEats also takes a “small order fee” of $2.
Promotions. Well-known restaurants such as McDonald’s often enter into exclusive advertising agreements with UberEats and pay commissions and fees for the deal. UberEats actively promotes these partner restaurants, boosting their sales.
Surge pricing. During peak hours, UberEats charges a “busy fee.” This fee is determined by a dynamic pricing algorithm that takes into account factors such as the availability of delivery partners and simultaneous orders at a given location.
5 Key Steps of Food Delivery Application Development
If you want to succeed in the competitive realm of food delivery, it won’t be enough to copy the features of UberEats or other industry giants. Offer a solution that brings something unique to your target audience and helps you stand out from the crowd.
Now, let’s look through the key steps in food delivery app development to create robust software.
Step 1: Conduct In-Depth Market Research
First things first, kick off with research of your competitors to find out the prevailing trends in the industry and the optimal locations for your online food delivery service. Besides, don’t bypass defining the standout features of your future app.
Step 2: Choose the Right Food Delivery Model
Once the basics are clear, you need to choose the appropriate model when developing apps like UberEats. There are two options: the order-only model and the order-and-deliver model. Both enable taking and managing orders but differ in logistical support. In the order-only model, revenue is generated through restaurant commissions, while in the order-and-deliver one, delivery fees are incurred.
Step 3: Integrate Key Features Inspired by UberEats
Next, include popular features similar to successful apps like UberEats into your food delivery platform. These features fall into four categories:
- Admin panel. It offers comprehensive delivery and restaurant management, various features, payment alternatives, notifications, and statistical reports.
- Restaurant app. This software gives restaurants and other food and beverage providers with tools to manage orders and menus, track payments and deliveries, provide customer support, get push notifications, and monitor transactions.
- Customer app. This application offers user registration, real-time order tracking, an extensive restaurant listing, ratings and reviews, versatile payment options, loyalty rewards, takeaway options, advanced search functionality, and more.
- Delivery driver app. It enables secure logins, efficient delivery management, real-time order tracking, simultaneous handling of multiple deliveries, and timely push notifications.
Step 4: Harness the Potential of the Right Technology Stack
During food delivery application development, seamlessly integrate a thoughtfully chosen combination of front-end and back-end technologies, frameworks, and libraries. This is critical to build an app that not only runs smoothly but also delivers an unparalleled user experience.
From using intuitive frameworks like React or Flutter for the frontend to robust backend technologies like Node.js or Django. For efficient order management and real-time tracking, every component plays a vital role. You’ll also need to integrate third-party APIs for geolocation, payment processing, and notifications. This is how you can increase the convenience and value of your app.
Step 5: Choose a Viable App Development Route
During this step, opt for the most suitable food delivery app development approach. Various options include ready-made app solutions or assembling a competent, dedicated team.
As the market is throat-cutting, innovation and strategic planning are vital for standing out from your competitors. Going beyond your limits and using your creativity will be the cornerstone of your app’s success.
How Much Does It Cost To Make An App Like UberEats?
Food delivery app development is a tricky process that requires many resources, expertise, and creativity to make it intuitive, sleek, and unique. The total cost depends on several factors, such as functionality, size, design, platforms chosen, number of people working on the project, etc.
As a rule, the price becomes notably clear during the initial product discovery phase. When you share your idea and vision of your future mobile app with the team of engineers and designers, they help you fine-tune some aspects of the software and introduce the development process.
If you want to find out an approximate price for your future food delivery app, you can use our cost calculator. Just answer a few simple questions and get a free estimate.
Wrapping Up
Nowadays, when many people work and study from home, it has become very important to have everything delivered to your home. Everyone wants delicious meals, an easy way to order, and the ability to pay online. This means new food delivery businesses can succeed with a smart plan and quick action, as the market is still growing.
To attract customers, a user-friendly mobile application is key. That’s why finding a software development team that knows how to create food delivery apps is a good idea. This way, you can build software that works well, looks good, and makes it easy for customers to order food and enjoy it without any hassle.
LITSLINK’s team has a proven track record of similar apps and will be happy to help you create an outstanding product. Contact us for more information!