Why Invest in Building a Food Delivery App in 2024 & How Much It Costs?

• Chirag Vaghasiya
• January 08, 2024
• 6 min read

The food delivery market is hotter than ever, and 2024 shows no signs of slowing down.

Imagine this, “you are sitting on your couch, thinking about what to eat. Someone asks you, “What do you want?” and you say, “Pizza!” Did someone perform magic to make that pizza appear at your door? Not really. It’s not like a magician pulling things out of a hat. It’s more like using food ordering apps on your phone to get your favorite food delivered fast.

But is it magic or just using technology? Let’s keep it simple. In today’s world, smart people create mobile applications that make getting food easy. They are like the chefs of the digital world, making sure a consumer gets what they want with just a few taps on their device.

Developing a food delivery app in 2024 can be a game-changer for your food and restaurant business, offering a range of benefits and a chance to tap into a rapidly growing market.

The global online food delivery market is projected to reach a whopping $1.79 trillion by 2028, making it a prime target for startups and entrepreneurs.

But before you jump in, it’s crucial to understand the reasons behind this booming market and the costs involved in building a food ordering application.

Food Delivery App Industry At a Glance

• The revenue in the online food delivery market is projected to reach $1.22 trillion in 2024.
• China dominates the food delivery industry, boasting a $42.5 billion market in 2022. Meituan and Ele.me lead with a 90% control.
• Uber Eats is the top global food delivery app, while Delivery Hero has the most users overall.
• The market is dominated by two segments: meal delivery and grocery delivery.
• In the US, DoorDash takes the crown with over 50% market share in food delivery apps.

Source: Business of Apps

Top Reasons Why Food Delivery Business Needs a Delivery App in 2024

If you are going to start a food delivery business in 2024, here are the 6 top reasons to check why your business needs a delivery application.

• Convenience and Ease of Use

Ordering food through an app is far more convenient than phone calls or website orders. Customers can browse menus, place orders, track deliveries, and manage accounts – all within a few taps.

• Streamlined Order Management

Apps automate order processing, reducing manual work and potential errors. This frees up staff for other tasks and improves overall efficiency.

• Real-Time Order Tracking

Customers can follow their food’s journey in real-time, increasing transparency and reducing anxiety about wait times.

• Boost Revenue and Watch Your Profits Rise

Every tap on your app translates to potential sales. The ease of ordering often leads to larger order sizes and increased frequency, giving your revenue a healthy bump. Delivery fees add another layer of income, making your app a powerful money-making machine.

• Data is Gold: Gain Insights and Optimize Your Business

Your app tracks valuable data – what people order, when they order, and even their location. Use this treasure trove of information to refine your menu, adjust pricing, and target marketing campaigns for maximum impact.

• Stay Ahead of the Curve

The food delivery industry is constantly evolving, and having a robust app ensures you’re keeping pace with the latest trends and technologies.

Also read: Top Mobile App Ideas For Restaurant and Food Businesses

Types of Food Delivery Applications

Food delivery apps have transformed the way we eat, offering convenience and variety at our fingertips. However, not all food delivery apps are created equal. They come in 3 main types:

1. The Platform To Consumer Apps (Order Only Business Model)

These apps act as a bridge between customers and restaurants, allowing users to browse menus, place orders, and track their delivery. The app itself doesn’t manage delivery, relying on restaurants to handle it themselves.

Examples: Zomato, Swiggy, EatStreet

2. The Delivery Service Aggregators Apps (Order With Delivery Business)

These apps take orders from customers and handle the entire delivery process, partnering with a network of independent drivers. They manage the order flow, track drivers, and provide customer support.

Examples: Uber Eats, DoorDash, Grubhub

3. The Full-Stack Food Delivery Apps

These apps handle the entire food delivery process from start to finish. They own and operate their own kitchens, prepare the food, and deliver it to customers using their own fleet of drivers.

Examples: HelloFresh, Blue Apron, Home Chef

Top 10 Online Food Delivery Applications in the World

• DoorDash
• Deliveroo
• Zomato
• Uber Eats
• Talabat
• FoodPanda
• Swiggy
• Grubhub
• Postmates
• Delivery Hero

Also read: Postmates vs DoorDash – Unraveling the Food Delivery Rivalry

Must-have Features of Food Delivery Apps

Hunger strikes at unexpected moments and a reliable food delivery app can become the culinary companion of your customers. Let’s explore the key features that make this app a game-changer, not just for customers but also for the restaurant industry.

Ways to Make Money with Your Food Delivery App

When going for food ordering and delivery app development, making money with your app is equally important, and there are different ways to do it. Some of the best ways to make money are as follows:

• Commissions: With the commission model, the app owner gets money from restaurants each time someone orders through the app.
• Subscription: In the subscription model, the app owner charges restaurants a fee every month or year to be on the app and show their food.
• Paid Advertisements: Another way to earn money is by showing ads in the app. Restaurants can pay to have their ads displayed, making their food stand out.
• Delivery and Other Charges: The app can charge customers a fee if they use its delivery service. During busy times, the app can also use surge pricing, which means it charges restaurants more money to process orders faster. Customers might also pay more for faster delivery.

Also read: Cost to Develop Food Delivery App Like Deliveroo

How to Develop a Food Delivery App in 2024?

If you are confused about how to develop a food delivery application in 2024 then you must check the following steps to have better clarity.

Step 1: Market Research

Identify gaps or unique features that can set your app apart. This knowledge will be the foundation for creating a successful food delivery app.

Step 2: Define Key Features and Functionality

Clearly outline the features your app will offer. Consider user-friendly interfaces for customers, drivers, and administrators. Prioritize essential features like real-time order tracking, secure payment options, and a diverse restaurant selection.

Step 3: Choose the Right Technology Stack

Select a robust technology stack for your app. Opt for scalable and reliable solutions to handle user traffic and ensure smooth operations. Consider features like geolocation for real-time tracking, secure payment gateways, and push notifications for updates. Collaborate with experienced developers who are familiar with the latest technologies to bring your app to life.

Step 4: Develop and Test

Work with a skilled development team to bring your vision to reality. Develop a prototype and conduct extensive testing to identify and resolve any glitches or issues. Prioritize user feedback during testing to refine and enhance the app before its official launch.

How Much Will It Cost To Develop a Food Delivery App in 2024?

Imagine building a food delivery app is a bit like picking out a car. You wouldn’t expect a sports car and a family sedan to have the same price, right? Similarly, the cost of building a food delivery app in 2024 depends on several factors.

If you are eyeing a basic food delivery app development cost with just the essential features, it may range from $15,000 to $25,000. However, if you are dreaming of a more sophisticated application with advanced functionalities, be prepared for a budget in the range of $25,000 to $50,000 or potentially even more.

These figures are ballpark estimates, though, as the overall cost hinges on various factors such as the chosen platforms (Android, iOS, or both), the intricacy of UI/UX design, included features, third-party API integrations, app complexity, and the location of the food delivery app development company you opt for. Therefore, it’s crucial to carefully match your unique requirements with your budget constraints before diving into the exciting journey of creating a food ordering app.

Wrapping Up

Thinking about making an app like Uber Eats or DoorDash for food delivery? It’s a smart move because the online food ordering market is still growing a lot. But, making such an app comes with rules you must follow, tough competition, and high costs. To overcome these challenges, you need to know the market well and plan carefully.

Whether you are a small business or an individual looking for on-demand food delivery app development services, PeppyOcean can assist you with the best services. We are well-versed with current trends and can help you develop a clone app at an affordable price. So why wait, hire us today and serve your customer’s delicious food in no time.

About: Chirag Vaghasiya

Chirag Vaghasiya is a Sr. SEO Executive at XongoLab Technologies LLP and PeppyOcean having skills in on-page optimization, off-page optimization, website promotion on major search engines, competitor research, internet marketing, quality link building, content optimization, and SMO.

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