How Does An App Like Deliveroo Work | Food Delivery App Development

Benefits of Food Delivery App

If you are planning to have your food delivery app then let us help you to see the food delivery industry. We are mentioning a few points which will explain to you, why you must invest in food delivery app development:

1. The online food delivery services are more active as compared to dine-in options. People are more comfortable while having food at their homes rather than going to restaurants. 
2. It is expected that by 2025 the food delivery market will generate a revenue of $449, 292 million and will have more than 2,897. 1 Million users. (Source Statista)
3. It is also said that if restaurants will not offer online food delivery services to their customers then they will lose their popularity and customers.

Types of Food Delivery Apps

Now to make you understand the different models of food delivery apps. Here we have discussed a few basic food delivery start-up models for your help.

• Aggregator Food Delivery App

These are second-platform apps that function as a communicator between a customer and a restaurant. Their main feature is to take orders from the customer and pass it to the restaurants. 

However, they do not take any responsibility for the orders. The quality of service and food is dependent on the restaurant. 

Such models are suitable for big restaurants, which can cater to their delivery system.

• Apps With Logistic Support

This type of model demands third-party delivery personnel. Where a person picks- up the food from the restaurant and delivers it to the customers. Such types of online food delivery apps hold a better market because it is also suitable for small-scale restaurants who do not have their delivery system.

If you are seriously looking for a business in the food delivery industry then you can think of this model.

• Dedicated Restaurant App

As the name suggests that it is a dedicated app for your particular restaurant. It is especially for the restaurants that already have a delivery system. 

The apps like Dominos, Burger King, and Pizza hut fall into this category. By allowing customers to order through the exclusive apps, restaurants make things easy for their customers and it also helps restaurants to create a better user-base across nations or worldwide. 

Working of A Food Delivery App

There are three stages in which a food delivery app works. Let us study that in this paragraph:

Stage 1:

Customers go through the app and later place the order from the restaurant with the help of the online food delivery app.

Stage 2:

As the restaurant receives the order from the customer or user, they immediately send a confirmation text or notification to the customer. Simultaneously the chefs work with order-making and packing. Make it completely ready for the delivery agent to pick.

Stage 3:

Lastly, delivery agents track the route to the customer’s location with the help of GPS and drop the delivery safely.

Monetization Strategy of Food Delivery Apps

There are many ways in which you can earn money from your on-demand food delivery app. But, some of the useful monetization strategies are listed below:

1. Delivery Charges

Many restaurants are there do not offer delivery services. Such restaurants have to pay some charges in exchange for delivery services. 

One of the popular monetization strategies that have provided benefits to many businesses. To understand this in more detail let us take the example of Zomato, which was launched in 2015. And the food delivery services take around 30% of Zomato’s overall revenue. This is proven as the second biggest source of income for the organization.

2. Peak Pricing

Again, one of the best revenue-generating sources, where apps increase the price or rates as per the demand. When a food delivery app has high demand but the availability of the product is less. In that case, this strategy works. 

Ubereats uses this monetization strategy. Now, Swiggy is also trying this and applies extra delivery charges of Rs 20 on every order placed during festivals, rainy days, or holidays when there is a limited delivery staff.

3. Commission

In this type of strategy, the owner of the food delivery app charges a definite amount of commission for every order placed by using the app. This monetization strategy is adopted by many companies because it helps in making high revenues. 

4. Advertisement

Advertisement is something we all are aware of. You can run various ads on your app or website and charge some amount later for the platform you have provided.

You can advertise a few restaurants on the top of your app or you can run a short video on your home screen on the behalf of others and in return, you can ask them for some commission or adv. charges.

Some of The Prominent Food Delivery Apps

We are here mentioning a few examples of online food delivery apps. If you want to develop a clone of any app that is mentioned below. You can hire a mobile app development company today.

Food delivery apps have a very promising future and it will be a good app development idea if you are ready to invest your money in something good. 

Advanced Features of Deliveroo App

Now, let us understand what are the relevant features of food delivery apps. Here we have mentioned the advanced features which will make your online food delivery app future-ready to fulfill the demand of the users easily.

• Social Sign Up

Allowing users to easily register through their social media accounts or simple login by using their phone number. Do not complicate the registration or login process, this may irritate the users. 

• Book For Others

Allow users to place orders for their loved ones or known ones. With the help of this feature, a person can place an order for another person by sitting far away from them. This will make your app user-friendly. 

• Custom Packages

With the help of this feature, customers can customize their food requests as and when they want them. 

• Order History

This feature enables the user to look into his past order or previous order deliveries and details. 

• Floating Windows

When a customer places the order, immediately after the order is confirmed, a window appears on their phone screen that indicates every step taken by the delivery agent. From picking up the order to delivering it to the right location. Everything can be traced with the help of this feature.

• Customer Reviews

Allow customers to provide reviews on every order they receive. It helps you to understand your user and their demand. And it also allows you to know what services are offered by the delivery agent and restaurants.  

• Push Notifications

With the help of this feature, your user can be notified easily with any latest updates or discounts. This makes the connection between the app and users smooth and simple.

• Multiple Payment Options

Allow users to pay through different payment modes of their choice. Make it easy to pay through credit card, debit card, e-wallet, or cash. Open all the payment options for the customers so that they can use the app at their convenience.

• Marketing Tools ( Discounts, offers, and vouchers)

Offering discounts and special vouchers on occasion is nothing but a smart marketing strategy that is adopted by many apps nowadays. 

Allowing customers to pay less on their order by offering them attractive coupons. This is the advantage of this feature.

• In-App Chatting

In case of any doubt or query, users can chat with the service provider through this in-app chatting feature. It is just like a chatbot that is available on different websites nowadays.

The Cost Required To Build An App Like Deliveroo

The cost required to develop an app depends on many factors like the type of the app, features of the app, and the location of the app development company. 

The basic food delivery app development will cost you somewhere around $10,000 – $18,000. While the app with advanced features will cost you $40, 000. With the advanced feature and app here, we mean that the online food delivery app is ready to fulfill the needs of the future generation and users. 

App development cost as per the location:

In the US the cost of the developers is $70 – $250 per hour.

Cost of developers in East Europe: $50 – $170 per hour

Charges asked by the Indian developers: $20 – $70 per hour

Now, you have a wider picture in front of you. Kindly check here and as per your budget and requirement decide the app developers.

Summary

The on-demand food delivery app market is growing very fast. People are so fond of good food that they are always keen to use different food delivery apps as per the availability. There are very high chances of progress in this business. If you own a restaurant or you are in any food delivery business. You must have your food delivery app which will make you move ahead just like Deliveroo, Zomato, and other popular on-demand food mailing apps.