What is the Cost to Develop App for Food Delivery?

An on-demand food delivery app is a kingpin for the success of the food delivery business nowadays. And, why not, when it satisfies the essential needs of the food delivery business – the comfort, convenience, and access to thousands of food products, some of which were not even accessible to the customers before. 

Have you been into the food industry and thinking of taking your food delivery business to new heights with a food delivery app? If yes, this article is just for you!

Just look at these fantastic food delivery app trends:

  • Revenue in the Online Food Delivery segment is projected to reach US$151,526m in 2021.
  • Revenue is expected to show an annual growth rate (CAGR 2021-2024) of 6.36%, resulting in a projected market volume of US$182,327m by 2024.
  • The Online Food Delivery segment is expected to show a revenue growth of 8.4% in 2022.
  • The average revenue per user (ARPU) in the Online Food Delivery segment is projected to amount to US$113.49 in 2021.
  • In the Online Food Delivery segment, the number of users is expected to amount to 1,589.3m users by 2024.
  • User penetration in the Online Food Delivery segment will be at 17.8% in 2021.

Source: Statista

The primary moto of a good food delivery app is not to restrict people to buy just one cuisine. Apart from that, the app intends to deliver comfort, flexibility, and convenience to food shoppers, irrespective of their demographic. 

Besides, the online industry is amongst the fastest growing industries nationwide. 

So, planning to build a delivery app for your food delivery business is a brilliant idea. And now is the right time to do so. 

On Demand Food Delivery App

What is the Cost To Develop App for Food Delivery?

Well, it depends on different factors like:

  1. Business models – the aggregators, cloud kitchen, or the logistics platforms
  2. The Functionality – application, ease of registration, courier tracking, and payments. 
  3. Hourly Rates – how much do the developers charge to build such a highly functional and reliable app. 

Food delivery apps are growing exponentially with the preferences and demands of the user. The market is getting competitive, and the customer focus is shifting towards convenience and ease to shop. And, you wouldn’t probably survive if your competitors are doing all of that, and you are relying on those traditional selling methods. 

The food delivery business and economics behind their business is rapidly changing – and companies will have to change with that too. 

Just see the trends: 

According to USA Today, the “Online food delivery market could grow to $24B by 2023.” They say that the online food delivery market alone in the US is expected to reach $22.332 billion with over 116.1 million users. 

Source: Statista

On Demand Food Delivery App Development

How Many Types of Food Delivery Prevail in the Market?

The present is about the mobilized food delivery economy, and there are a few business models that prevail in the market right now, which are:

  • Aggregator 

Using this model, you can quickly launch an app that conveniently connects your customers – the food shoppers and the restaurants. The restaurants (using their version of the app) give users the option to shop for numerous food items. 

  • Logistic Support 

With this business model, business owners give the restaurants complete support to deploy food delivery services to their customers in real-time. The app lets customers view and order food from the menu, make orders, and even track all orders in real-time. 

The cost to develop an app for food delivery depends on which model you choose; there is constant support that you are getting from the provider, so the cost will be on the higher end. 

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    Why Should You Be Developing a Food Delivery App for Your Business?

    The food delivery market is getting competitive day by day. Staying ahead of the competition is the first reason anyone wants to invest in a food delivery app for their business. However, there are some other prominent reasons to invest in the food delivery app development as well. Some of them are as follows:

    • Higher Profitability 

    One of the most prominent reasons for developing a food delivery app is the higher profits. You can’t just rely on your website for getting the orders. Since the competition is so fierce in this market, it is evident that you will have to do something extra to capture your customers’ attention. That’s why a premium food delivery app with all the features and functionalities keeps your customers hooked. 

    • Extraordinary Customizations

    You can see customizations as two-fold. Using the food delivery app, you can allow your customers to personalize the food and drinks as per their whims. For instance, Subway enables the customers to add toppings, sauces and do other customization. 

    The other fold is using the app for customizations in deals and offers. Based on customer’s food preferences, give them the targeted discounts to fire up your sales. For example, someone shops for a burger using the app, give him a special coupon, which he can avail or combine with the following order from your restaurant. That’s an easy way to heat the sales, right?

    • Order Tracking 

    It has become important for the customers to track their orders these days. They must know where their order has reached. To satisfy this demand of food shoppers, it is necessary to indulge a proper route tracking system that helps both the delivery agents and the customers easily track the order. 

    • Convenience and Comfort 

    Another essential aspect that we can’t ignore in the food delivery business is the comfort and convenience that both customers and businessmen demand nowadays. Customers want everything in the comfort of their homes now. Besides, the food delivery businesses also enjoy the ease of getting orders right at their place, just by logging in to their app. 

    Since it has become more convenient for both businesses and customers to do the food delivery business using the app, it is not recommended to run a food delivery business without an app. 

    The cost to develop an app for the food delivery business depends on how many features you want in your app. Also, you will reap the benefits of a successful business app only when you design it well. So, it is recommended that you invest in a good development team that helps you make profits using your food delivery app

    Online food delivery services market


    How to Earn Profits Using Food Delivery App for Your Business?

    There are different ways to earn using a food delivery app for a food delivery business. Here are the most common ones:

    • Commissions From Restaurants

    One of the most common ways to earn profits from your business is to earn commissions from the orders. 

    • Advertising Partners

    You can charge your restaurant partners a promotion fee for showing up their ads on your apps. 

    • Delivery Fee 

    Using the app, you can even charge the food delivery charges during unusual events like peak hours or surplus orders. 

    Evidently, there are different reasons how you can earn using the app for your food delivery business. So, the food delivery app seems to be a reliable option to increase productivity and business. But, how much does it cost? What goes into developing and designing a highly dedicated food delivery app?

    Let’s figure that out;

    What is the Cost to Develop an App for Food Delivery?

    Honestly, it can be a tricky task to develop a highly reliable food delivery app that satisfied the customers and the business owners. It can be easy for you to end up hiring a not-so-professional team for developing your app. The market is full of such individuals. 

    So, to ensure that you don’t end up hiring such a team, it is recommended that you keep in mind a few points, which are:

    1. Experience of the development team 
    2. Projects completed in the past
    3. Knowledge of the latest technologies
    4. Skills and Experience
    5. Communication 
    6. Management skills

    It is recommended to thoroughly focus on all these points to ensure you hire a highly trustworthy and reliable team for developing your app. 

    Coming to the price, the cost to develop an app for food delivery depends on different factors. It depends on the complexity of apps required in the app, your location, the team you are hiring, experience of the development team, expected delivery time, and multiple other factors.

    Generally, if you want to develop a premium food delivery app for your business, it ranges somewhere between $30000 to $40000. The price varies depending on the factors we mentioned above. 

    Are you Ready to Prepare for the Future in Food Delivery Business?

    Irrespective of the cost to develop an app for food delivery, it is essential to invest in it. The reasons are pretty evident – you want better productivity, performance, and profits for your business. And, these are some exceptional benefits that your business can enjoy using the app. So go ahead and prepare your food delivery business for the future now. 

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      Giandeep Singh

      I am a writer and marketing specialist who loves to explore new digital strategies to boost business growth online.