With the increase in the use of smartphones, the demand for ordering food online through applications has surged significantly in the past few years. Also, appealing user-friendly apps, real-time tracking, and the convenience of doorstep food delivery have unlocked the potential of online food delivery as a major popular category in the food industry.
According to reports, the food delivery industry is expected to reach $320 billion by 2029. The numbers show the huge scope and opportunities for new businesses in this domain which can be leveraged by efficiently connecting customers, restaurants, and delivery personnel.Table Of Contents
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– Step 1: Conduct In-Depth Market Research
– Step 2: Decide Your Business Model
– Step 3: Choose The Revenue Streams
– Step 4: Incorporate Popular Trends In Your App
– Step 5: Decide Features And Functionality Of Your App
– Step 6: Select Third-Party API Integrations
– Step 7: Estimation Of Your Development Cost
A food ordering and delivery app is the most dependable solution that can be used by businesses to expand quickly, reach a larger customer base, and make huge profits in less time. However, developing a user-friendly and functional food delivery app can get cumbersome.
The article below is a step-by-step guide on how to develop a food delivery app to build a successful food delivery business. But before that, let’s explore the benefits of investing in a food delivery business.
Why Invest In A Food Delivery App?
The food industry is going through rapid changes due to the emergence of technology. Fast-increasing mobile penetration and ease of use have pushed businesses to put mobile apps at the top of their priority list. Food businesses do need mobile apps to cater to the needs of the thriving online food delivery industry. Let’s explore more reasons why one should invest in a food delivery app.
- Businesses can effortlessly target the right audience and remain associated with them.
- Food delivery apps require minimal investment and operational cost.
- Food delivery apps allow you to offer deals, discounts, and coupons to your customers which eventually increase the retention rate of customers in your business.
- Businesses can streamline their operations with much ease.
- Businesses can cater to a large customer base effectively.
Now that you know the benefits of investing in a food delivery app, let’s have a look at the process to develop one. Here is a comprehensive step-by-step guide for the successful development of a food delivery app.
Step-By-Step Guide to Build Food Delivery App
Step 1: Conduct In-Depth Market Research
It is said that “Whoever gets closer to the customer wins.” Therefore, it is advised to carry out in-depth market research before starting with the app development process. Look closely at your competitors, find their strengths and weaknesses, and learn from their mistakes.
Also, take a closer look at your target audience and make an informed decision about the features and functionalities you should offer to your customers in order to gain maximum profits in the future. In addition to that, make sure to analyze the market demand gap, outreach, competition, and different options for revenue generation.
Gaining more insights into the pain points of your potential customers can help you design an app that can cater to those needs.
Common Research Methods
- Surveys
- Interviews
- Focus Groups
- Observation
- Questionnaire
Want to Gain Insights Into the Food Industry From Experts?
Step 2: Decide Your Business Model
Next you need to choose an appropriate business model on the basis of your business goals. Deciding your business model is one of the crucial steps for starting a new business. Entrepreneurs should be familiar with various business models existing in this domain to make well-informed decisions.
It is highly recommended to properly analyze the market, trends, and different business models before stepping into it. The most popular business models among online food delivery businesses are:
- Aggregator Model
- Order & Delivery Model
- Integrated Model
- Inventory Model
Learn more about these online food delivery business models in detail.
Step 3: Choose The Revenue Streams
An online food delivery app opens numerous lucrative revenue opportunities by letting businesses earn through various streams. Listed below are some of the revenue streams that businesses can consider depending on their business needs.
Commissions– Marketplace owners can cut a certain percentage out of the total order value from restaurants as a commission.
Delivery Charges– Marketplace owners can generate revenue by charging delivery fee from customers for the delivery service.
Promotional and Advertising Services- Marketplace owners can generate revenue by promoting restaurants on their platforms for more visibility in return for a fixed price.
Surge Pricing– App owners can charge delivery surcharge during peak times, such as during lunch, dinner, and festival times.
Maximize the Revenue of Your Food Delivery Business With Potential Revenue Streams
Step 4: Incorporate Popular Trends In Your App
Online food delivery is a highly competitive space. To stay ahead of the competition, you need to be on top of the market trends as well as technological advancements. Before starting with building your food delivery app, it is important to study current market trends so that you can decide on features and functionality keeping those trends in mind.
Virtual Assistant
The use of chatbots for food ordering is trending these days. It lets user order food using a single word through messenger. Virtual assistants can also be used to inform customers about the different vouchers and deals.
Multi-Delivery Channels
Latest trend that is emerging is to simplify the food ordering process to reduce the app abandonment rate. Providing new delivery channels to customers also helps in improving the user experience. Food delivery platforms are required to ease the process by letting users order food through various channels like smart TV, smartwatch, etc.
Keeping up with these industry trends and incorporating them on the platform can help business owners in increasing profit margins and customer satisfaction.
Step 5: Decide Features And Functionality Of Your App
Features play an important role in the success of a food delivery platform. Below are some of the features essential for an online food delivery app. Features are distinguished based on users(customers, restaurants, admin, and delivery staff).
Features For Admin
- Restaurant management
- Order management
- Registration and profile management
- Creating offers and discounts
- Content management
- Push Notifications and alerts
- Reports and Analytics
Features For Restaurants
- Menu Management
- Push Notification
- Checking rating and review
- Loyalty program
- Tracking delivery
Suggested Read: An insight into the essential features of a food delivery app
Features For Delivery Staff
- List of available orders
- Delivery Management
- GPS and Navigation Tracking
- Delivery route optimization
- Status Update
Features For Customers
- User-friendly interface
- Simple registration system
- Easy food searching and filtering
- Real-time order tracking
- Secure payment system
- Multiple payment options
- Ratings and reviews
- Order history
Step 6: Select Third-Party API Integrations
Third-party API integrations enhance the features of the app and offer better user experience. Such integrations benefit business owners as it helps them speed up the development process and reduce costs. Let’s take a look at some of the popular third-party APIs that should be pre-integrated into a food delivery app.
Looking For A Food Delivery App Solution Pre-Integrated With Essential APIs?
Payment Gateway
- PayPal
- CC Avenue
- Authorize.net
- Stripe
User Location
- GoogleMaps
- Google Places API
- MapKit
Analytics
- Google Analytics
- FireBase
Marketing API
- Mailchimp
SMS API
- Clickatell
These, in the end, will allow the food delivery app to function properly and keep all stakeholders engaged effectively on the app.
Step 7: Estimation Of Your Development Cost
We have discussed all the important steps required for the successful development of a food delivery app. By now, one question must be coming up in your mind, how much does it cost to develop your own food delivery app?
Well, the cost of developing an online food delivery app may vary depending on several factors including the types of platforms, the number of integrations, third-party APIs, and additional features you want on your platform. Cost also depends on whether you want to develop an android or an iOS version of your app.
How To Develop Your Own Food Ordering App?
Developing an online food delivery app can be a tough task in the beginning. However, following the above-mentioned steps can help you in building a perfect food delivery application with much ease. With the right solution, you can develop your food delivery application successfully and can gain an edge over your competitors.
Yo!Yumm is one such software solution that can fit best your food business needs. It is a 100% white-label ready-made software solution. This solution comes pre-integrated with 12+ popular APIs to run your platform efficiently. Yo!Yumm is fully customizable and is power packed with all essential features like geo-fencing, GPS tracking, etc. required for an online food delivery app.
All-in-all, Yo!Yumm helps business owners in streamlining their food ordering and delivery operations. With the right food delivery solution like Yo!Yumm, you can develop your own food delivery marketplace quickly and can efficiently cater to the needs of all stakeholders on your online platform.
Yo!Yumm’s team of experts can help you create a growing online food delivery app with all necessary and exclusive features hassle-free.