Last Updated: 3rd March, 2021
One of the rippling effects of COVID-19 pandemic is the surge in demand for online food delivery services. According to internal data from Google, searches for “food delivery services” have increased by 300% as compared to the last year since the Coronavirus began. With a massive increase in the number of food ordering app downloads, many food tech biggies are currently dominating the online food industry. Uber Eats is one of them.
Below-listed are some noteworthy strategies adopted by the Uber-Eats since the COVID-19 began:
The food delivery giant launched a COVID-19 awareness campaign to make people aware of contactless delivery options. The company also provided CDC guidance to restaurants to ensure that the food is properly sealed in tamper-evident packaging.
Uber Eats launched an Opt-in program for all registered restaurants in the U.S. and Canada so that restaurant owners can receive payouts on a daily basis instead of the company’s standard weekly payouts.
Uber Eats provided no-contact delivery and order pickup options to ensure their drivers’ and customers’ safety. The customers have the option to select the “Leave at Door” delivery during the checkout.
In an effort to support independent restaurant owners, the food delivery giant waived off delivery fees for more than 1,00,000 restaurants across the U.S. and Canada in March 2020.
The company strictly followed safety measures to ensure greater safety for their merchants, employees, and delivery staff. Uber Eats provided their drivers with sanitation materials like gloves, masks, sanitizers, etc.
Uber Eats delivered free meals to more than 3,00,000 healthcare workers and first responders in the U.S. and Canada.
Since its inception, the technology-driven business model of Uber Eats has inspired budding entrepreneurs to start their online food delivery business. The Uber Eats app plays dual roles: it’s a restaurant aggregator as well as a delivery agent.
Uber Eats is a three-way marketplace that connects restaurants, customers and delivery agents. Multiple restaurants list their brand and menu on the app. The customers search for the restaurants located in their area and place the order. The delivery boy picks up the order from the restaurant and delivers it at the customer’s doorstep.
Restaurants: Restaurants manage food orders and update menus on the app by marking food items available/unavailable. They can change the restaurant name, contact information and opening & closing hours as per their availability. They can also decide the price of each item displayed on the menu.
Customers: Uber Eats provides the following ordering options to its customers:
Delivery Agents: Uber Eats delivery boys are independent individuals who pick up food from the restaurants and deliver it to the customers’ address. They can accept or reject the order request and manage multiple deliveries at a single time. They get the delivery tasks on the basis of their location and proximity to the customer as well as the restaurant.
Uber Eats generate revenue through the following monetization methods:
Delivery Fees from Customers
The delivery charges are divided into three categories:
Optional Subscription Fees from Customers
The company has an optional subscription model to earn money. Customers have the option to pay a monthly subscription fee of $9.99 to avail the “Eats Pass”. It allows subscribers to get 5% off on the orders over 15%, with no delivery fee.
Commission Fees from Restaurants
Uber Eats cuts 15 to 40% of the total value on each order fulfilled from the restaurant partners. The cutoff percentage is decided based on maturity and hold of the restaurant in the market.
Advertising Fees from Restaurants
The restaurant pays an advertisement fee to the company to come up at top searches on the app and to get more traction & sales. The company earns money by giving restaurants a place in the featured section of the app.
Now that you’ve got a deep understanding of Uber Eats’ statistics, business model, and how does the food delivery company generate revenue. Let’s gain insights into how you can develop a food delivery app that can surpass Uber Eats.
Building a food delivery app like Uber Eats is a challenging task that involves putting together a lot of components. Therefore, having a clear roadmap on coming up with your food delivery app is necessary to make a mark in the online food industry. Taking Uber Eats as an example, we have explained some vital steps that restaurateurs must follow to start similar online ventures.
The first step when creating a food delivery app is to research deeply about your competitors, target audience and the latest food industry trends. To get a solid grasp of the current market situation, you must find answers to the following questions:
After conducting thorough market research, the next step is to choose a food delivery model that can meet your business goals as well as customer’s demands. There are two types of food delivery model:
|Order-only model||Order & Delivery Model|
|Functionality||Food delivery platforms are responsible for accepting and managing the order.||Delivery platforms are responsible for managing and delivering orders.|
|Logistics Support||No logistics support as the delivery is handled by the restaurant itself.||Comes with logistics support. The delivery is handled by the food delivery platform.|
|Monetization Methods||Order only platforms generate revenue by charging commission fee to the partnered restaurants.||Order and delivery model earn money by charging commission fees to the restaurants and delivery fee to the customers.|
|Examples||Deivery.com, Just Eat||Deliveroo, DoorDash|
Here are some must-have features you should include in your food delivery app to get an edge over your competitors:
|Admin Panel||Restaurant app||Customer app||Delivery boy app|
|Restaurant Management||Order Management||User Registration||Secure Login|
|Delivery management||Menu Management||Restaurant Listing||Push Notifications|
|Multilingual Capabilities||Push Notification||Order Tracking||Delivery Management|
|Multi-Store||Tracking Payments||Multiple Payment Options||Real-Time Tracking|
|Multi-Payment Option||Ratings & Reviews Management||Takeaway Options||Multiple Deliveries Management|
|Statistical Report||Support and Assistance||Discounts & Offers|
|Notifications||Track Delivery||Advanced Search|
|Reviews & Ratings|
When it comes to building an app like Uber Eats, selecting the right technology stack is very crucial as it forms the foundation for providing seamless user experience. You might need different technologies depending on the business model of your food delivery startup. Below listed are some essential technologies to build a food delivery app similar to Uber Eats:
Web App Development
AngularJS or React
Mobile App Development|
Kotlin (Android) and Swift (iOS)
Once you decide the features and powerful technology stack, you must finalize the viable option to build your food delivery app as per your requirements. There are two options:
Hire an App Development Team
You might need the following members to build a successful food delivery solution:
Use a Ready-Made Solution
If you want to build your food delivery app in a shorter time period, then picking a ready-made solution could turn out to be the best option to get your food delivery business started.
The final cost of developing a food delivery app like Uber Eats may vary depending on the following factors:
It is one of the major factors that play a crucial role in depicting the cost of your food delivery app. The size of an app depends on app complexity and the number of features you want to incorporate your app. The more the features you will include, the higher the price will be.
Another factor that influences the development cost is app design. Your food delivery app will not garner enough eyeballs without an attractive user interface. Therefore, the cost will highly depend on the app theme and eye-catchy graphics.
The choice of platform for building a food delivery app also decides the development time and cost. Android and iOS are two major platforms available in the app development market. The price could vary based on the platform you select to create your app.
App Development Team
Be it a freelancer, mobile app development agency or in-house developers, your app development cost will rely heavily on your app development team you hire to develop your food delivery app.
Here are some unique features that make Uber Eats an interesting variant of online food delivery businesses:
Shorter Delivery Time
The ability to provide quicker deliveries is something that sets apart Uber Eats from its competitors. The company keeps a track on the preparation time taken by the restaurant which helps them provide faster delivery service.
A general concern that many customers face while placing an order is location eligibility. Uber Eats has taken care of it. The company delivers at places like hospitals, parks, homes, offices, etc. where a consumer may face delivery issues.
Uber Eats has an in-built feature of Self-Pickup. The company allows users to place an order and schedule an in-store pick-up as per their comfort.
This Uber Eats feature enables users to schedule an order in advance. Customers can also track their orders throughout the delivery process to get it delivered at their preferred location and time.
The Coronavirus outbreak has skyrocketed the demand for Uber Eats like food delivery services. This is a crunch time for restaurateurs to make a mark in the online food industry. Building a food delivery app considering the business model, revenue model, features, tech stack and other essential factors in this blog post will definitely give you a perfect start in the online food industry.
Rest, if you are thinking of launching your online food delivery app within a shorter time span, then you can opt for a custom mobile app development company like FATbit Technologies.
If you have any queries regarding the information shared in this blog post or need expert advice to build a food delivery app, please feel free to drop a message in the comments section below.
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