Creating a Successful Food Delivery App (For Food Startups and Restaurants)

Authored by chintan on March 13, 2020

Online food delivery apps are a major trend these days as plenty of people simply love to place an order for food from the comfort of their own homes. This is why you should know that creating a successful food delivery app isn’t as hard as you think and this article is for all the food delivery startups and restaurants who need a little motivation through information.

Food delivery has transitioned from dialing a number, to ordering online to opening an app on your phone. While players have come and gone over the years, these days the industry has mostly consolidated with a handful of big players left.

It can be hard to muster up the strength to leave your home, or the couch when the temperature drops lower than your motivation to cook. Luckily, there are food delivery apps that add a whole other meaning to comfort food.


Creating a Successful Food Delivery Apps in Canada

You can see the revenue of food delivery apps from 2017. It’s increment:

revenue of food delivery apps from 2017.

revenue of food delivery apps from 2017.

    • Revenue in the Online Food Delivery segment amounts to US$9,207m in 2020.
    • Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 9.5%, resulting in a market volume of US$13,233m by 2024.
    • The market’s largest segment is Restaurant-to-Consumer Delivery with a market volume of US$4,934m in 2020.
    • In global comparison, most revenue is generated in China (US$45,909m in 2020).
    • Click here for more details

How Does The Ecosystem Of Food Ordering Application Work?

Ecosystem of food order and delivery applications

The eco-system works in three steps:

Step 1: Customers order food from the restaurant via the mobile app.
Step 2: Restaurant prepares and hands over the food to the delivery partner (delivery agent).
Step 3: Delivery agent delivers the food to the customer at the provided address.

The Revenue Model – How The Food Delivery App Makes Money?
There are many ways in which you can monetize your on-demand food delivery mobile application. A few but most commonly applied monetization methods are:

    1. Delivery Charges

      Many restaurants do not provide home delivery. So when you offer them your on-demand delivery app with food delivery personnel, then the restaurant will most likely pay you delivery charges.

      The Deliveroo app made a profit of $164 million last year with this particular revenue model.

    1. Surge Pricing
      UberEats implicates a surge price when the demand is too high. In this process, the app limits the menu options and adds a surcharge (peak price) when the customer is placing the order. The rate of demand can be lower, but the per delivery amount can rise to a great extent in this type of revenue model.
    1. Commission

      The food delivery app owner can charge a commission for every order that the customer makes through the app. For generating revenue, companies prefer this revenue model.

      This model not only helps in generating high revenues but also helps in creating a long-term relationship between the food delivery app company and the restaurant.

  1. Advertisement
    Advertisements are the easiest and fail-proof way of generating huge revenue. You can show a few restaurants in the featured section, or you can run a short video clip for them on the home screen of the app, and for all this, you can charge a certain amount to the restaurant. You can also generate revenue by running Google Adsense on your food delivery app.

Challenges You’ll Face In Entering The Online Food-Delivery Market:

    1. Competition

      The competition out there is fierce; anyone who is starting to develop their online food delivery app will face a lot of competition as there are a lot of businesses who are leaders in their domain.

      In this condition, you’ll have to offer something that other players in this domain don’t provide. You must provide something different in both concerning the app’s UI/UX and the features.

      You’ll have to figure out new ways to attract restaurants that have already partnered with other existing food delivery apps in the market. Also, you can develop a mobile app for restaurants. You’ll also have to think of better and competitive offers and discounts that you’ll use to attract more customers.

    1. Finding The Right Restaurants To Partner With
      In the beginning, this might strike as a hurdle. To avoid this, you can focus on low-level restaurants that are in desperate need of promotion. At the initial stage, you should instead focus on increasing the number of restaurants than concentrating on the ones that are famous among the millennials.
  1. Steady UI/UX Among All Panels

    All four screens in the food delivery app are entirely different and peculiar to their users’ demand. It is where your hired mobile app development agency steps in to the rescue.

    The app development company will have to blend both design and movement to make sure it remains constant along with all the app screens.

    Finding the right mobile app development company that offers food-delivery app development services will transform your idea into the advantages of mobile apps over websites.

On-Demand Food Delivery App Features:

Before developing an on-demand food ordering app, you need to know its essential features to build an extraordinary app for your food business. Now you can also schedule your meal delivery online for the same day schedule or monthly schedule for your comfort or enabling users to plan and order their meals in advance. Here are the top essential features:

Customer panel:

  1. Restaurant Menu
  2. Nearby Restaurant
  3. Dashboard
  4. Social Media Login
  5. Promos Management
  6. Secure Payment
  7. Rating & Reviews
  8. Push Notification
  9. Track Delivery
  10. Favorite Orders
  11. Schedule Orders

Delivery boy panel:

  1. Manage Order
  2. Real-Time Tracking
  3. Check Order History
  4. Delivery Information
  5. Payment Details
  6. InApp Notifications

Admin Panel:

  1. Customers Detail Management
  2. Offer Management
  3. Message Customers/Restaurants
  4. Advertising Management
  5. Notification Alerts to Users
  6. Payment Management
  7. Reviews Management

Restaurant Panel:

  1. Manage a Restaurant Menu
  2. Manage Opening Days & Timings
  3. Customer Order Status
  4. Manage Offers
  5. Message Customers
  6. Multiple Payment Gateways
  7. Social Networking Connectivity

Technology Stack That Can Be Used For Developing Your Food Delivery App:

    • Facebook SDK Login: For Registration
    • AWS, Azure: For Cloud
    • GrubHub API or FourSquare API: For Restaurant Listing
    • Core Location Framework, Google Places API: To Find user Location
    • Square API, Braintree, Stripe, PayPal, eWallets: For Payment
    • Amazon Cloud Storage: For Storage
    • Google Analytics: For Analytics
    • Google Maps, MapKit: To Find Directions

What is the required Team Structure?

Mostly the app makes its first impression if it has a sleek and clean user interface. Hiring an experienced development team is a necessity, not a choice.

The app development team must have,

  • An experienced Project Manager
  • A skilled UX/UI Developer
  • Android/IOS developers with years of experience
  • Highly qualified and skilled backend Developers as they build the backbone of the app.
  • QA Teams to test the app and fix bugs
  • Finally, a delivery manager

Some Famous Food Delivery Apps in Canada

Just-Eat: Since it’s been around for a while, this British company has a huge selection of places to order or pick up from. In most cases, there’s a minimum order and a sliding delivery fee starting at around $3.

Uber EATS: This app is probably the most expensive option, with increased fees for certain areas during busy times and a $4.99 delivery fee on all orders. But it’s also arguably the easiest, requiring only the press of a button before your food magically appears at your door.

Foodora: After absorbing Hurrier and several smaller delivery services, this German company has amassed a wide selection of restaurants to choose from. The site and app give you a nice rundown of the many food options and includes a set delivery fee of $4.50.

DoorDash: DoorDash is big on details, letting you customize your order down to the last bit. With a flat rate of $4.99 for delivery, you can order for groups, pre-order, or if you’re feeling adventurous, try from a selection of different restaurants for free on the first order.

Skip the Dishes: This Winnipeg based company allows for smaller orders, so you can try out new food options nearby. Delivery fees vary starting from $2.45 and could even be free if the order size is big enough.

Chanmao: This Richmond Hill-based company specialized in Chinese food delivery and you’ll find a lot of restaurants that aren’t represented by the other players.

Final thoughts on a reliable team of developers for your food delivery application :

Therefore, before developing a food delivery app, it is imperative that you do thorough research about this industry and domain. Such in-depth knowledge will help you to develop a successful on-demand food delivering app that will lead your business to the top of the ladder of success.

So need a reliable team of developers for your food delivery application. Archisys brings their best men on the ground to develop any kind of delivery application or any mobile application idea for your business then we are here to change your dreams into a reality.

Read the shared article if you wish to know How and why to build a food delivery app for restaurants in 2020. Happy reading!

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