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How To Build A Successful Online Food Delivery Business?

How To Build A Successful Online Food Delivery Business?
16/04/2020 57

When it comes to promising businesses for start-ups, food delivery business is something that entrepreneurs find it evident with the success stories of companies like Zomato and Uber Eats. Considering the user's point of view, the benefits of such food delivery applications are quite evident: the delivery is fast, less interaction with humans, your favourite food at your comfort timing. But the major question is what is in it for the entrepreneurs when starting a food delivery business? Considering the economic perspective: this type of business is gaining momentum increasing the great movement in the economy.

Before you dive into this endeavour, it is important to consider certain factors that you must keep handy while you plan to build a food delivery application. This blog will help you with how to successfully build the application for better revenue growth. Not just that we will also help you understand the market, how it can help you grow your business while making your business a brand in the market.

What is the Business Model of Food Delivery Application?

Uber Eats, which is one of the best and top used application in terms of food delivery model, has inspired millions of startups to join a similar ball game. The food delivery application like Uber or Zomato performs two different features:

Before you question how to start a food delivery business, one must be aware of the model. Traditional food delivery model that will list all the restaurants near the user in a single application.

Handling the order delivery where the company serves its logistics network to help with the delivery of the food.

Besides the mentioned features, the application offers various functions that conclude to smooth delivery and ordering the food online. Some of the interesting features also include:

  • A tailored restaurant that is recommended
  • Advanced featured search filters for the users
  • Tracking of the orders
  • Delivery details customized for the user

We can help you develop a similar app like ubereats or zomato. Our team of skilled professionals can help you with the advance technologies and make the best of application considering market trends. We acknowledge the market needs and understand the trend to offer you the best food delivery application which can offer incredible user experience.

How Food Delivery Application and Business Make Money?

Well, this is a major question that comes in mind of most of the entrepreneurs. Considering the market share of UberEats in the United States market from 2016 to 2022, the share is predicted to increase by 27% by 2022 as compared to 3% in 2016. This also raises the same numbers when you question as to how to start a food delivery business from home?

Following is the list of monetization strategies:

  • Delivery Fee: The company Uber Eats use the pricing calculator to check the delivery fee across different regions. The delivery fee varies from INR 30 to INR 80 depending on the route for the delivery.
  • Revenue sharing: Restaurants also pay a cut to the food delivery systems. It is estimated that the platform charges 15% to 40% fee for each order received by the application.
  • Advertising: Another source of revenue for food delivery application is the advertisement of the application. Depending on the visibility of the application, major companies advertise their services on the platform.

Food Delivery App Highlights for Clients

When you choose to assemble a food delivery app, your subsequent stage is to settle on the highlights it ought to have. When you plan to start a food delivery business from home, the client-centred app or interface of a food delivery administration should offer these fundamental highlights:

  • A sign-up page: a basic, proficient, and alluring sign-up page are significant for winning a client's loyalty. Your sign-up page should let a user make another record utilizing a login/secret key or sign up by means of an outsider help, for example, Facebook or Google for included comfort.
  • A profile/account page: when a client has made another record in an internet requesting framework, they ought to have the option to get to their profile. This profile can incorporate spared payment choices for simple access, a request history alongside the capacity to reorder, and the capacity to spare most loved cafés/menu things.
  • Eatery search/locator: in either rundown or guide design, a café locator shows which eateries clients can arrange from utilizing the app. Pursuit usefulness (by separation, time, or food) is important to assist users with sifting through decisions.

Subtleties of every eatery, for example, its area, menu contributions (in a perfect world, with pictures), costs, unique offers or advancements, and remarks or user surveys ought to be effectively available.

  • Request position: when a client has thought about cafés and settled on their decision, they ought to have the option to effectively and rapidly submit their request through the web-based requesting framework.

Clients ought to have the option to include or erase things from orders if important, and a requested synopsis ought to be introduced before the client finishes payment so they can take a minute ago changes. Having the option to indicate a delivery time (as quickly as time permits or at a particular time) could be an incredible extra component.

  • Payment handling: Having the option to pay for a request through web-based requesting programming is perfect. Payment handling ought to be quick and secure, and your app ought to take into account different alternatives for payment (coupons, Visas, money upon delivery, PayPal, Apple Pay/Android Pay, and so on.).

An essential food delivery app ought to incorporate these highlights. Some extra pleasant to-have highlights include:

  • Notification or constant tracking: Keeping clients educated regarding their request's status (set, being readied, on its way) through warnings or an ongoing tracker is an incredible extra component.
  • Social media visibility: Letting users interface their social media life records to share photographs of their food is a simple method to help loyalty while expanding the presentation of both your café and app.
  • A loyalty program: Offering users rewards (either through the app or through a specific café) is another incredible method to support loyalty. For instance, offering free delivery on each fifth request will urge users to return to your app or request from a similar spot.

Joining different limits, enrolment alternatives, and referral programs can urge users to continue utilizing your app. You can even allure users to get their companions to join by remunerating them for their loyalty as brand diplomats.

The objective of a food delivery app is to pull in new users and hold old ones. It's critical to make it simple for users to think about ideas from different cafés, place requests, pay, and get their food. Giving extra highlights or rewards is a simple method to help loyalty to a specific app, administration, or eatery.

How Much Does It Cost to Develop a Food Delivery App?

When it comes to the cost of the application, there are various elements to be considered before you question how to start a food delivery service. It also includes featured list, platforms, a number of integrations and the list go on. Owebest Technologies can help you with precise application estimation after the inception phase is discussed.

The discovery/inception phase is the first step that the development team builds for a solid foundation of the application development. This stage will include:

  • UX/UI designs
  • Functional specifications
  • Visual prototypes

After the inception phase is over, the entrepreneur will be clear with the vision as well as the end solution for the application. In our experience, it takes around 4 -6 weeks with the development of the application. The product discovery phase includes the following:

  • Defining the scope of work
  • Developing project roadmap
  • Setting the realistic MVP budget
  • Planning the perfect resources
  • Testing the MVP application with the target audience
  • Developing a convincing and appealing investment pitch


As per the statistics, revenue in the online food delivery segments amounts to USD122,739 in 2020.

In a nutshell, the ubiquity of food requesting administrations makes on-request food apps a forthcoming specialty for ventures. All things considered, to stand apart from the group, you ought to embrace current food requesting industry patterns. For your future food delivery app development, you can apply either an Order-Only or Order and Delivery Model. With the app MVP, you can assemble bits of knowledge from your intended interest group and include different highlights during the subsequent advancement organize.

Presently, you know nearly everything to begin your food delivery versatile app. The exact opposite thing remaining is to enlist a food delivery app advancement group. So, when do you plan on starting a food delivery service?

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