On-demand food delivery apps are on the rise and the instant success of App Store and Play Store across the world. In fact, food delivery is the second most popular app-based business after online cab booking in the on-demand sector. Why shouldn’t that be? The system offers more employment, less investment, and less ownership, and works well with the tight schedule of consumers, offering them freedom of choice. Thanks to the launch of food delivery mobile apps like DoorDash, users can connect with multiple restaurants and order their favorite meals with just a few clicks. The food ordering process is simple and applications are easy to use even for tech-savvy consumers.
Considering the rapid rise of the online food delivery system, we can predict that the industry will touch over $200 billion by 2025. It is also the fastest-growing mobile application service in the eCommerce space and the advent of digital tools will give a whole new outlook to this sector. The fact that these apps are such a pleaser for consumers, there is a promising venture for entrepreneurs that is destined to be a success. Trends show that this next-gen would prefer to dine-in the luxury of their homes rather than dine-out.
This opportunity has also left an open question for startups and entrepreneurs looking forward to stepping into this field- How much does it cost to build a food delivery app like DoorDash or UberEats?
If you are going through the same concerns and doubts, then here is a detailed analysis of DoorDash, its features, tech stack, and more to help you make informed decisions. Let’s get started:
What Is DoorDash?
In 2013, Andy Fang, Evan Moore, Stanley Tang, Tony Xu leveraged the potential of an online food ordering system and introduced DoorDash in the San Francisco Bay Area, West Coast, Western US. Since then, food delivery apps have witnessed rapid growth worldwide.
This on demand application bridges the gap between consumers and restaurants by providing a common portal to order food from several local partner eateries. It started with delivery logistics and soon focused on food delivery services, enabling users to order food from preferred restaurants. The app is compatible with Android and iOS, and working in all the major cities, including Huston, New York, Chicago, Boston, and Atlanta. It is consistently spreading its wings, gradually covering all the cities in the USA to make online food delivery convenient and quick in this fast-paced world.
DoorDash also allows people to sign up to become food vendors, also known as Dashers, and lets restaurants register to sell their food via the app. It presents many advanced features to help users order seamlessly, making it the most influential app-based food delivery service in the United States.
Talking about its plan of action- DoorDash aims at benefiting clients and eateries. It empowers consumers to explore more restaurants online near them, and request sustenance while on the other hand, it allows small and big restaurants to make an entrance to a larger client base.
Analysis and Statistics of Online Food Delivery Market
Still in doubt? Here is a detailed analysis of the market and its feasibility before you make any decision. We are sure that these numbers and facts will make thighs clearer to you:
- A survey by Zion & Zion reports that 41% of consumers have used a multi-restaurant delivery website/app at least once within the past 90 days.
- 60% of the US consumers opt for takeout or food delivery once a week.
- DoorDash is a top choice in San Francisco, generating 64% sales.
- In the United States, the revenue in the online food delivery sector was more than US$22,073 million in the last year and the figure is expected to increase by a 6.5% growth rate (CAGR 2019-2023) that further results in US$ 28,398m by the end of 2023.
- 31% of users access third-party food delivery services at least twice a week and 34% of consumers spend a minimum of $50 per order while ordering food online.
- 45% of consumers agreed that mobile ordering or loyalty programs would encourage them to keep using online food ordering services more often.
- Orders placed from a smartphone using apps turn into a $38 billion industry in 2020.
In a nutshell, we can say that the online food delivery segment has a great scope in the future, and investing in the food industry would be a worthy decision.
Types of Food Delivery Apps
In the current food delivery economy, there are mainly 2 business models that you must know about when developing your food delivery app. Before you seek IT professional services for your project, it’s better to understand each of them:
Aggregator: This model is a conventional food delivery system with a common portal where both users and restaurants meet. This app offers an option to users to choose their preferred food and eateries can view and deliver the order without any support from the application’s parent company. As a third-party, the service aggregators give accessibility to restaurants and after registration, consumers can browse through various menus, and check the rating on the app as they place the order. The aggregator transfers the details to the restaurant and it takes care of the execution thereon. In this case, you can earn approx $121.29 per consumer by investing in app development.
Platform with Logistic Support: This one is a complete version of a modern food delivery application where the app owner gives logistic support to restaurants to help them deliver food to end-users in real-time. The app company deals with all the services of the restaurant except food preparation. The model allows users to choose the food item from the menu, place an order, track order status, and make payment through multiple options while restaurants can keep an eye on the order, handle the delivery, and get paid without any hassle.
Essentials of a Successful Food Delivery App
Many applications are launched every day, every week on Play Store and App Store but only a few can stand the test of time and attract an audience. So, what makes these powerful and successful apps stand out from the rest? As you stake your first step in the industry, here are some basic yet unique selling points for an attractive and user-centric food delivery mobile application:
- Advanced Filters
- Seamless Procedure
- Real-Time Tracking
- Excellent User-Interface
- Secure and Quick Online Payments
- Attractive Offers
Revenue Model for Food Delivery Business
When you invest your hard-earned money in a business, you expect a high return soon. You want to know the ways to earn back the amount invested and make profits. The food delivery sector also comes with many ways for higher ROI and we have highlighted the common ones below:
Delivery Charges are a common amount that users have to pay when ordering food online. Some restaurants do not offer home delivery and when you take the responsibility to handle on-demand food delivery, they are ready to pay extra.
Peak Pricing is common when brands raise their prices due to the high increase in demand. They restrict the menu and add a surcharge during order placement. Yes, there may be a downfall in the demand due to this but the per delivery amount increases significantly.
Commission Charges are another way to earn the money by taking a commission from the partnered restaurants for every order they receive. This is the most time-tested way to generate revenue and also adds to a long-term partnership between the app company and the associated restaurants.
Advertising is a certain way to ensure higher revenue where you allow restaurants to be placed in a featured section or run their video on the home screen in return for an additional cost.
We are sure that by now, you have resolved your doubts about how you will generate revenue and earn profits on your investment in the food delivery business. As you are ready to move ahead and hire dedicated developers for your app, let’s get acquainted with the features and costs that are involved in an on-demand food delivery app.
Features of Food Ordering Application
An app is only as good as its features, and with an online food delivery app, it gets a bit trickier. Here, rather than making a single application, you are combining different modules together based on the user- restaurant, delivery person, customer, and admin. The list of features varies based on the screen. We have mentioned all the important features according to each of them:
- Search Menu
- Restaurant Menu
- Advanced Filter
- Place Order
- Order Scheduling
- Order Tracking
- Past orders
- Payment Options
- Rating and Review
- Customer Support
- Admin/ Merchant Panel
- Menu Management
- Order Management
- Push Notification Panel
- Update Contact Details
- Restaurant Profile Editing
- Coupon Code Generation
- Payment Tracing
- Managing Orders
- Update Order Status
- Call Customer
- In-app Navigation
- Track Payments
- Delivery Logs
- Admin login
- Restaurant Management
- Application Management
- Payment Management
- Discounts & Coupons Verification
- Technical Assistance
These are the common features that you can come across in almost most on-demand applications. Apart from this, there are some advanced features as well required to make a smart portal using cutting-edge technologies. As you opt for hybrid mobile app development, take a look at these advanced features that you can include in your application:
Chatbot feature would take your food delivery business to a new height, making it more streamlined and automated. It will speed up the entire food ordering and delivery process. It allows users to select the food of their choice from their favorite restaurants, place an order, and track the live location of the order. Rest assured that chatbots add a unique level of experience to the app and engage your customers as well.
Siri and Alexa have become ubiquitous these days, marking their presence on almost every application and platform. So, why not add Alexa skills to your online food delivery app, enabling users to voice search instantly. Many similar apps are already using this feature where customers use voice commands to find their favorite dishes.
Technology Stack Used in Food Delivery App Development
Payment- PayPal, Stripe, Razorpay, Square API, Braintree
User Location- Google Places API, Core Location Framework
Find Directions- Google Map, MapKit
Cloud- AWS, Azure
Backend Language- NodeJs, Python, PHP, Golang
Database- Cassandra, MongoDB, Hbase, cloud SQL, SQLite, firebase
Admin Panel- Laravel
Analytics- Google Analytics
Message Broker- Rabbitmq
How Much Does It Cost to Make a Food Delivery App?
Calculating and quoting the exact cost of a mobile food delivery app is quite challenging and difficult as there are many factors involved that affect the final cost. Yes, you can find many developers and mobile app development companies that claim to build apps within $10k-$15k but let us warn you that this is simply a marketing trap that you must be aware of. To estimate the total cost of the development, various stages are considered to determine the final amount, which includes:
- Setting, features, and advanced features of the app.
- Location of the development company as tax and market price may vary.
- A platform where you want to launch the app, Android or iOS.
- Overall time and size of the team involved in the development process.
- UI/UX design
- Third-party integrations and back-end development.
- Upgrades and maintenance costs after the launch.
After considering all these factors and the resources needed to transform your idea into a business app, the estimated cost to develop a successful and powerful food delivery app would be around $30,000 – $70,000.
This amount includes everything from design, development, quality testing to support and maintenance.
Are You Ready to Build Your On-Demand Food Delivery App Like DoorDash?
Now that you know the roadmap to create a DoorDash-like app, it’s time to put your idea into motion with a trusted enterprise software development partner- A3logics. Our team creates a well-defined and meticulous strategy that helps your business grow and service more profits. Our dedication and expertise to reach perfection in all our solutions come from years of experience in the field.
We have delivered hundreds of customized on-demand applications with exclusive functionality and features to global clients. We ensure transparency and agile methodology for better services. So, connect with us now and we promise to help you with the best.
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