
A lot of people’s eating habits have changed because of mobile apps. All you have to do is launch a mobile app on your phone. You can place an order for your preferred cuisine and have it delivered to your house in a matter of minutes.
The practice of ordering food online and having it delivered at a later time has grown ubiquitous in modern society. Consumer demand and technological advancements in the market have contributed to the online meal delivery industry’s sustained success.
There will be 483.9 billion dollars worth of online meal delivery services in the world by 2032, with a predicted CAGR of 12%. Online meal delivery is predicted to generate $353.30 billion in sales worldwide in 2024, with the United States accounting for a lion’s share of that total.
Your decision to enter this rapidly expanding market with your meal delivery app is, thus, commendable. Startups and enterprises initially face a constraint in their budget when it comes to building meal delivery apps, which makes cost a significant barrier.
There is a lot of competition in the on-demand food delivery sector, therefore it takes a lot of money to create a mobile app with unique features that make it stand out. This is why it’s so important to know what factors into the final price of a food delivery app.
Since we are a seasoned app development business for food delivery, we know how much certain components cost and what you need to think about to create a successful app while staying within your budget.
In this blog, we’ll go over all the information you need to know to calculate how much it costs to develop a food delivery app, as well as some helpful pointers on how to keep costs down.
Key Statistics Of The Global Food Delivery Market
The global food delivery market is expected to reach a revenue of $1.45 trillion by 2027, with a Compound Annual Growth Rate (CAGR) of 12.33%. In 2024, user penetration in the meal delivery market is projected to be around 63.1%, indicating a significant number of people relying on these services.
When examining different business models, order-focused food delivery apps are expected to lead the global online food delivery market. As of 2022, the Asia-Pacific region was at the forefront of the global food delivery industry, holding a 37% market share. Interestingly, the number of users utilizing food delivery apps worldwide had already reached 2.5 billion in 2022.
Why You Should Consider Buying An On-Demand Food Delivery App?
As you can see above, the food delivery app market is growing year on year. Online food delivery applications provide a plethora of advantages to businesses, ranging from enhanced customer interaction and retention rates to heightened sales and brand awareness. This is your market if you are developing an internet application for meal delivery. You may now maximize the benefits of your digital advent based on your marketing tactics. In this cutthroat industry, a comprehensive and scalable food delivery app offers restaurants a host of advantages and chances to expand into new markets. Let’s examine the main advantages you can obtain.
Virtual Presence
In the current digital world, where 3.1 billion consumers place online food orders, you need to be well-represented across all digital channels. An app for food delivery has integrated marketing components. For instance, customers can utilize your app and place online orders if you have a website and a mobile version. In addition, customers have the option to rate and review. Your dependability and reputation will increase as a result.
Savings
You provide the vendor with 30% of your entire income when you use a third-party food delivery app. Furthermore, 70% of internet shoppers would rather order food straight from the restaurant than through a third-party delivery app. Thus, you are bringing in more business in addition to saving that 30%.
Simple Ordering
Customers and restaurant operators can easily place orders with the help of a mobile app that orders and delivers meals. When needed, consumers can effortlessly place an order with the help of the convenient mobile app. Additionally, it removes all chance of error in the event of human ordering.
Reaching Out To New Clients
Expand your consumer base beyond your city or neighborhood. Become familiar with modern technology by exploring the internet.
Increase In Sales
People have several reasons for preferring to stay indoors, such as inclement weather, social isolation, etc., in addition to pure desire. If you don’t have an online meal delivery service in such a situation, you can see a decline in revenue. Increase the amount of meals you order by offering home delivery.
Customer Insights
Business owners can get to know their frequent consumers better with the on-demand app development system. They can learn more about the foods they enjoy eating the most. Which region receives the most food orders overall?
These insightful data can help owners of restaurants and other food-related businesses provide better customer service. Encourage clients to place larger orders by improving their overall experience and meal orders.
Considerations For Launching A Food Delivery App
Competition
There are many large firms in the already crowded online meal delivery
sector. You must identify and market your food delivery app’s unique selling point (USP) if you want to have any chance of success.
Technology Partner
Selecting the ideal development partner for a food delivery app is one of the biggest problems businesses have. The food delivery app development firm can handle the budget and complete the app by a certain date.
UI/UX Design
What initially draws consumers to the online meal delivery app is its UI/UX design. People download the app next if they find the design appealing. They use it on their cell phones for extended periods because of its simple features.
Key Features And Functionalities For Your Food Delivery App
A food delivery app typically caters to three primary users:
- The end-user (customers)
- The admin (managing platform and restaurants)
- The delivery personnel
Each user type requires a tailored set of features and design elements. Let’s break down the essential features for each category.
For The End Users
The end users (customers) are the primary focus, so the app’s design must be intuitive and user-friendly. Here are the critical features to include:
1. Profile Creation, Access, And Editing
The app’s first screen should facilitate a smooth registration process. Allow users to sign up with social media accounts to make the process fast, convenient, and secure. Also, ensure that users can easily edit their profiles whenever needed.
2. Food & Restaurant Search And Filtering
A robust search feature is vital. Users should be able to find restaurants or food items quickly and conveniently. Display the nearest restaurants based on the user’s location to minimize delivery time. Implement filters that reduce the number of taps required, enhancing the overall user experience.
3. Cart & Payment
Allow users to add or remove items from their cart effortlessly. Implement a streamlined payment process with multiple payment options (credit/debit cards, digital wallets, cash on delivery, etc.) and ensure secure transactions to build user trust.
4. Order History And Ratings
Providing an accessible order history allows users to track their past orders. Include an option for users to rate and review restaurants, helping others make informed choices.
For The Admin
Admins manage profiles, orders, and restaurant listings, making their role pivotal in the app’s functioning. Here are the features that an admin panel should offer:
1. Registration And Profile Management
Admins are responsible for verifying and managing restaurant profiles. They should have access to tools for listing new restaurants, verifying details, and managing user profiles efficiently.
2. Order Assignment
The admin panel should facilitate smooth order management for restaurants. Implementing an easy-to-use interface for order allocation helps keep the order processing time to a minimum.
3. Dashboard
A comprehensive dashboard acts as the control center for the app. It should provide a real-time overview of all ongoing activities, including order statuses, restaurant performance, and customer interactions.
For The Delivery Agents
Delivery personnel are the backbone of any food delivery app, ensuring timely delivery to customers. Here are the features to include for them:
1. Profile Creation And Customization
The delivery personnel’s registration process may require more detailed checks, as they will use their vehicles for deliveries. Ensure the process is straightforward but secure to avoid fraudulent registrations.
2. Order Handling
Incorporate push notifications for new delivery requests, allowing agents to accept or reject orders promptly. Displaying payment details and order highlights can also facilitate informed decision-making.
3. GPS And Navigation
Accurate GPS tracking and navigation are essential for delivery agents. Embedding an effective navigation system enables agents to locate customer addresses quickly, ensuring timely deliveries.
4. Payment And Order History
Delivery agents should be able to view their order history to keep track of completed deliveries. Including a wallet system can streamline payment processing, making it easier for agents to receive their earnings.
Additional Considerations
While these features are crucial for developing a successful food delivery app, you should also focus on revenue and engagement strategies. A well-thought-out plan for user engagement can enhance customer loyalty and retention.
By incorporating these key features for each user type, you can create a comprehensive and user-friendly food delivery app.
Estimated Cost To Develop A Food Delivery App
1. Cost Of Developing An MVP
Minimum Viable Product (MVP) focuses on core functionalities, allowing businesses to test the market with essential features like user registration, menu display, order placement, payment gateway, order tracking, and basic admin control.
Estimated Cost: The cost to develop an MVP for a food delivery app ranges between $15,000 to $30,000. This cost covers basic UI/UX design, backend development, and integration of standard features. The development duration can vary from 3 to 5 months, depending on the complexity and design requirements.
2. Cost To Develop A Mid-Range App
A mid-range app includes more features beyond the basics, such as customer reviews, ratings, push notifications, multiple payment options, real-time tracking, advanced analytics, and user profile management.
Estimated Cost: The cost to develop food delivery apps that are mid-range can go from $30,000 to $70,000. This includes design, development, testing, and integration of more advanced functionalities, typically requiring 6 to 9 months to complete.
3. Cost To Develop A Feature-Enriched App
Feature-enriched apps include all the bells and whistles, such as AI-powered recommendations, multi-language support, loyalty programs, wallet systems, custom delivery scheduling, integration with external APIs (like Google Maps), and advanced admin panels with in-depth analytics.
Estimated Cost: A fully-featured food delivery app can cost $70,000 to $150,000+, depending on the scope of features, third-party integrations, and design sophistication. The development timeframe may span 9 to 15 months or more, given the intricate functionalities.
Factors That Influence The Cost Of Developing A Food Delivery App
- App Complexity: The number of features, their complexity, and whether they require advanced technologies like machine learning or artificial intelligence can significantly impact the overall cost.
- Design Requirements: A custom, user-friendly UI/UX design that stands out can be more expensive but essential for attracting and retaining users.
- Platform Selection: Developing a native app for iOS or Android will differ in cost. Cross-platform development with frameworks like Flutter can save costs but may have limitations in some cases.
- Third-Party Integrations: Integration of third-party services like payment gateways, map services, and social media logins can add to the cost to develop a food delivery app.
- Backend Infrastructure: The complexity of the server, database management, and admin panel influences costs. A scalable backend is essential for handling high traffic and large data volumes.
- Location of the Development Team: Offshore development rates (e.g., Eastern Europe, South Asia) are generally lower than those in Western Europe or North America. Hiring developers from countries with lower hourly rates can reduce overall costs.
- Testing and Maintenance: Regular testing, updates, and maintenance are crucial for app stability and user satisfaction, requiring a continuous investment post-launch.
Development Process To Develop A Food Delivery App
- Market Research and Planning: Start by conducting market research to understand the target audience, competition, and desired features. Create a product roadmap that outlines the app’s primary objectives and features.
- Design (UI/UX): Focus on developing an intuitive, user-friendly interface that simplifies the food ordering process. Use wireframes and prototypes to map out the user journey.
- Backend Development: Set up the server, database, and APIs to handle data management, order processing, and user authentication.
- Frontend Development: Develop the user-facing components of the app, including the customer app, delivery partner app, and restaurant admin panel.
- Testing: Conduct extensive testing, including functional, usability, performance, and security tests, to ensure the app runs smoothly across various devices and scenarios.
- Deployment: Once the app is thoroughly tested, deploy it to the respective app stores (Google Play, Apple App Store) and configure the backend server for production use.
- Post-Launch Support and Maintenance: Regularly update the app with new features, performance enhancements, and bug fixes to ensure continued user satisfaction and security.
Tips For Reducing The Cost To Develop A Food Delivery App
We are aware that developing food delivery software may seem expensive. It can be difficult for food tech startups or businesses to develop a complete meal delivery service on a tight budget. As a leading food delivery app development firm, we are aware of the best techniques that enable you to significantly reduce the cost of developing a meal delivery app.
Set Feature Priorities
Pay attention to the essential elements that customers require to get going, such as menu browsing, food ordering, and delivery tracking. Aim to develop a minimally viable product during the initial stage. Then, depending on user input, fancier features could be added later. Using this development methodology will enable you to create your app at a low cost.
Make Use Of Open-Source Tools
There are numerous trustworthy and cost-free open-source development frameworks and libraries accessible for the creation of food delivery apps. When compared to proprietary software, these can save you money on licensing payments.
Target A Single Platform (at first)
Developing for both iOS and Android can be pricey. Think about starting up on just one platform, then expanding to the other subsequently if necessary. Selecting cross-platform might also be useful if you wish to develop for both platforms.
Developer’s Location
Different locations can have different developer rates. Australian mobile app developers may charge differently from their American counterparts. Therefore, you ought to look into outsourcing to areas with cheaper hourly wages. But you shouldn’t forgo communication and quality.
Accept Cloud Solutions
Serverless architecture and cloud-based services can help you scale your app effectively without incurring significant upfront infrastructure costs. Aim to incorporate cloud-based solutions into your application for food delivery.
Design For Future Growth
Create your food delivery app with scalability in mind. With this method, you won’t need to do a total redesign in order to add features and support additional customers in the future.
Conclusion
Developing a food delivery app in 2024 involves various factors that influence the cost, including app complexity, design, platform selection, and backend infrastructure. By prioritizing features and choosing the right technology partner, businesses can create an app tailored to their needs while managing costs effectively. As the food delivery market continues to grow, investing in a comprehensive and user-friendly app can provide long-term benefits and a competitive edge.
Looking to develop a food delivery app? Appic Softwares can help you build a high-quality, customized app that fits your budget. Reach out to us today to get a detailed cost estimate and take the first step toward launching your food delivery business!