The arrival of food delivery apps such as Deliveroo, Uber Eats, DoorDash, and more has made it easy for people to order their favourite food from the comfort of their homes. The increased usage of food delivery apps has also made startups think of creating their food delivery apps. However, entrepreneurs must have detailed knowledge of various aspects surfacing the food industry before starting with the development process. In order to help entrepreneurs make a wise decision, this blog unveils some prominent steps that must be followed for developing an app like Deliveroo. But before moving further, let’s understand the current position of Deliveroo in the food delivery market, its business model, and revenue model.
Deliveroo operates in over 800 cities across 12 countries worldwide with 140000 restaurants.
There are more than 7.1 million Deliveroo users across the world.
The company generated £1.2 billion revenue in 2020, a 54 percent increase year-on-year.
Deliveroo added 1000 riders in April 2020 to take its total rider fleet to 7000 from 6000.
Business Model of Deliveroo
Deliveroo operates on a dual partnership model: logistics model and aggregator business model. The company partners with local restaurants in countries and also handles delivery operations.
Customers register on the Deliveroo app and search for restaurants available in their locality.
After selecting their favorite food items, customers confirm the order by paying the order amount from the payment method of their choice.
Restaurants accept the request and prepare the food ordered by the customer.
After receiving order requests, delivery boys reach the restaurant’s location to collect the order.
Once the food is prepared, the delivery boys pickup the order and deliver it to the customer’s location.
Revenue Model of Deliveroo
Below listed are some primary sources of revenue generation of Deliveroo:
Delivery Fee: Customers have to pay at least £2.50 delivery fee on every order placed through the platform. The amount charged may vary depending on the distance of the customer’s location from the restaurant.
Commission fee: Deliveroo charges a commission fee of 10-20% per order from its partner restaurants.
Onboarding fee: Restaurants pay approximately $300 as an onboarding fee while joining the platform.
Advertising fee: Deliveroo also charges an advertising fee to restaurants in order to improve their visibility and sales.
Steps to Build an Online Food Delivery App like Deliveroo
Entrepreneurs must follow the below-listed steps for developing an app like Deliveroo:
Step 1: Conduct market research
Developing a food delivery app as successful as Deliveroo requires you to conduct a thorough market research regarding your target customers, primary competitors, the latest trends, and challenges faced by users in the food industry. To get detailed information, it is recommended to visit social media platforms, attend seminars & tech events, and read blogs & articles on recent food industry trends.
Step 2: Select key features for your food delivery app
Below-listed are some prominent features you must include in your food delivery app like Deliveroo:
Step 3: Start with the design and development phase
Once you’ve conducted the market research and identified prominent features, the next step is to work on the design and development of your application.
The design phase of an app development process is all about creating wireframe, style guide, mockup, and prototype for your application. The conceptual layout that clearly defines the visual structure of an application is called a wireframe. A style guide will help you determine how UI elements of your application will be visually represented. Mockups are designed by applying style guides on the wireframe. Both visual and structural elements of an app are included in a mockup. A prototype is like a demo version of an application that could be used to inspect the effectiveness of basic functionalities.
Step 4: Test and Launch Your App
After the development is finished, the next step is to test the basic app functionalities and the internal app structure for bugs before its official market release. Once you’ve checked the app for errors, the last step is to deploy your app on app stores. It is recommended to check submission guidelines of a particular store to which you’re willing to deploy your app.
Step 5: Prepare a Marketing Plan
You must also prepare a marketing plan for the successful promotion of your app. In order to improve your app’s visibility, you must select the right social media platform. Moreover, you can also run digital marketing campaigns to improve your app’s rankings on search engines.
Launch a Feature-rich Food Delivery App with Yo!Yumm
How Much Does it Cost to Build an App like Deliveroo?
Determining the final cost for developing an app like Deliveroo in the early stages of the development process is a challenging task. However, one could make a rough estimate about the cost by taking into account some significant factors and processes involved in the app development. Below-listed are some noteworthy factors that could help entrepreneurs determine the approximate cost for building an app like Deliveroo:
The size of an application is one of the biggest cost drivers in finding the app development cost. App intricacy depends heavily on the size of the application which further relies on the number and type of features you may integrate into your app. To decide the size of the application before starting with the development process and to prevent cost overrun, it is recommended to prepare a list of key app features. For better understanding, you must also check features offered by some popular food ordering apps available on the Play Store and the App Store.
Type of Application
Another significant factor that affects the app development cost is the type of application you’re looking to build for your business. There are basically three types of applications: Native apps, Cross-Platform/Hybrid apps, and Web apps. Native apps are developed for a specific platform using a specific programming language. Windows, Android, and iOS are major app development platforms and the tech stack may vary as per the choice of the platform. Web apps are designed to run on web browsers. Hybrid apps are a combination of both web and native apps and compatible with multiple platforms.
Location of the Development Agency
If you’re planning to hire a software development company for building a food delivery app like Deliveroo, then the app budget will also depend on the location of the agency. The development fee charged by the company could vary from country to country or region to region. For instance, the US-based companies will charge the amount as per the basic pricing plans followed in the U.S. whereas UK-based companies will follow the standard pricing plans followed in their country.
Size of the Development Team
Developing a feature-packed food delivery app like Deliveroo from scratch requires a complete mobile app development team that includes programmers, UI/UX designers, software testers, QA engineers, and more. So the cost may also vary based on the size of the team. Greater the size of your team, the more the cost will be.
How a Food Ordering Solution Could Help You Launch Your Food Delivery App?
While following the detailed mobile app development process, there may arise a situation in the future where you’ve to take professional assistance from the app development experts. In such a case, it is advisable to get in touch with experts at FATbit Technologies. The professional team of developers at FATbit Technologies has also created a multi-restaurant delivery software named Yo!Yumm for businesses looking to start their food delivery business conveniently.
Yo!Yumm is a fully customizable multi-restaurant delivery software that enables entrepreneurs to launch their online food delivery app like Deliveroo in no time. It provides an intuitively-designed admin panel to help business owners manage their restaurants’ operations conveniently. With mobile apps and web portals for buyers, sellers, & delivery staff, along with an affiliate web panel, Yo!Yumm makes it easy for startups to start their food ordering business.
Developing an online food delivery app like Deliveroo from scratch could be a challenging yet time consuming task. From conducting thorough market research to preparing a marketing plan, entrepreneurs must follow all steps explained in this blog post for creating a food delivery app like Deliveroo. The online food delivery market is going through a massive transformation in the current scenario and is estimated to amount to $192.16 billion in 2025 at a CAGR of 11%, according to a report by Business Wire. So it is the right time for entrepreneurs to enter the online food delivery market by creating a mobile app.
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Develop a User-Friendly Food Delivery App like Deliveroo