Last Updated Date 26 March, 2025
The on-demand food delivery industry has introduced modern-age consumers to the convenience of food delivered to their doorstep without any location barrier along with added benefits of offers and discounts. The industry has witnessed an astounding shift from the traditional phone-based approach to the contemporary mobile app ordering system. The on-demand food delivery app industry aims to cater to this advancement by developing user-friendly mobile apps. New business owners ready to invest in the industry are looking at a flourishing online food delivery service marketplace growing at a CAGR of 13.4%, creating a large economy of USD 90.3 billion by 2030.
Flourishing food delivery apps like Deliveroo, DoorDash, or Grubhub lure numerous aspiring entrepreneurs towards this business venture. It is an expanding sector and a new business owner can capitalize on this high-potential industry to build a food delivery app that can provide remunerative returns.
For entering the sector business owners analyze consumer feedback, and behaviors to build a platform according to the requirements. This blog is a guide assisting businessmen build a food delivery app and entering the industry prepared with all the necessary information. Owing to this massive growth, entrepreneurs are making healthy investments in the online food industry and widely opting for on-demand food delivery app development.
The on-demand food delivery app development has numerous benefits connected to it that concern all of its stakeholders.
The on-demand food delivery app development in the modern age has made it accessible for business owners to establish their businesses online as well. This venture allows increased visibility, increases the consumer base, and, therefore, increases business visibility. It not only helps you build a robust and prominent brand presence but also enables associated restaurants to enjoy more discoverability for a larger audience.
The industry benefit of reduced location constraints helps enhance the customer experience by transcending physical boundaries. Hiring a capable on-demand food delivery app development team that understands your requirements and offers befitting solutions to trounce the location barrier would play a crucial role in luring your customers. Delivering the food items to your consumers’ doorstep within minutes and serving them beyond a particular geographical area will help your food delivery business build customers’ preference towards your food ordering app.
The customer relationship is enhanced for the better through the medium of these on-demand food delivery apps. Collecting valuable data about customers including their likes and dislikes assists in building better customer relationships. Use Firebase analytics to gain insights into your app’s performance and understand customer behavior. Analyzing consumer behavior will help promote the in-demand food items which will further improve the restaurant sales and make it easy for your food delivery business to stay afloat in this competitive era.
This point of advantage is relevant for all stakeholders involved in the ordering process- the platform owner, restaurant merchants, customers, and the delivery partner. A user-friendly interface, robust data analytics, increased revenue, operational efficiency, and the ability to adapt to evolving trends all contribute to the increased convenience of building a food delivery app.
The food delivery industry has grown manifolds in the past few years and it is going to proliferate in the advancing times. It is the right time to invest in the sector to bear the multiple benefits associated with the industry. Now, after an insight into the industry, gaining information on its key players will acquaint a new business owner with the gaps and opportunities available in the market.
Implementing the right business model can make or break an on-demand food delivery startup. The most prominent challenge every entrepreneur faces when setting up a food delivery business is properly strategizing operations and identifying the right business model for higher customer satisfaction. Below are some popular business models that efficiently cater to consumers in the industry fostered by on-demand food delivery app development.
There are several business models in the on-demand food delivery industry, each offering unique approaches to meeting consumer needs and optimizing operations.
This model allows restaurants to act as mediators connecting local eateries and restaurants with consumers on a single food platform. Restaurants fulfill the order handling and processing requirements and the platform offers a centralized business model for handling food ordering and delivery. This business model requires less investment as the platform owner does not handle deliveries and restaurants manage their own order deliveries or outsource them through third-party deliveries.
Examples: Just Eat, Delivery Hero, and more.
The delivery-only model supports kitchen-only business operations known as ghost or cloud kitchens operating on the delivery-only model. These business models provide platform owners with a lower overhead cost business type. The owner is entirely responsible for the order- cooking, packing, and delivery. This business model is beneficial for cloud kitchen owners with no physical store-front or dine-in area reducing its operational cost. The platform owner is responsible for the delivery from the kitchen to the customer’s doorstep.
Examples: Kitopi, DoorDash, and more.
The hybrid model in the food delivery industry supports both the aggregator model and delivery-only. Under this business model, the platform owner is responsible for managing the ordering and delivery of the placed orders on the food delivery website or application. The platform facilitates convenient restaurant registration and allows a seamless ordering process for customers. This business model supports cloud kitchen deliveries and order-only operations.
Examples: Uber Eats, DoorDash, and more.
The integrated model allows restaurants with or without the delivery fleet to register on the platform and perform business operations. This model facilitates the admin and the restaurant merchants to manage deliveries on the platform. This model is one of the most flexible business models with the restaurants managing their own pool of delivery executives. It is one of the most sought after business models that assists restaurant merchants as well as new business owners to expand their business online.
Examples: Food panda, Uber eats, and more.
If you are starting your business without a well-planned business model, then there are chances that the amount you invest in building an on-demand food delivery app may sink. Hence, it’s necessary to analyze your business requirements before selecting a business model. Here’s the business model that a food delivery startup must follow to provide a seamless experience to their customers.
Below listed are some monetization methods that can help entrepreneurs to generate revenue from their on-demand food delivery platform:
The portal owner will charge a commission to restaurants on every order placed through the food delivery platform. When a user places an order, the admin will receive the order amount and will further send it to the seller after deducting the commission amount.
It is a type of revenue model in which the admin will charge a subscription fee to the merchant on a monthly or yearly basis to list his restaurants on the food delivery platform.
The admin will charge advertising fees to the sellers for promoting their restaurants with banner ads on his app. The cost of adverts will depend on the size of the ad, estimated running time, and the position of the ad on the food ordering app.
The delivery commission is charged by the portal owner from customers. If the admin uses his logistics network to deliver the food, he can earn money by charging the delivery fee to customers.
With profit-making being one of the main alternatives behind launching a business platform, wisely choosing the revenue model of the website and the application is of vital importance.
An affluent on-demand food delivery app aims to deliver a user-centric and interactive feature list that ensures customer retention on the platform. An on-demand food delivery app purpose-built to offer intuitive and user-friendly features is the best choice for a new entrepreneur entering the business. Find the essential feature list below that is crucial to providing a satisfying app experience.
Firstly, let us cover the restaurant app feature list.
1. Order Management
It is highly advisable to discuss the features of your food-ordering app with the development team beforehand. Opting for on-demand food delivery app development allows you to incorporate features of your choice into the food ordering app. Order management is one of the key features that must be included in your app. This feature will allow restaurant owners to systematically manage multiple orders and check order histories whenever required.
2. Menu Management
Using menu management, restaurant owners will be able to alter and update the menu list on the basis of food availability and demand.
3. Push Notifications
Merchants will receive instant notifications for every activity (order placement, order delivery, payment reception, etc.) taking place on the website with this advanced feature.
4. Payments Tracking
This powerful feature will help restaurateurs to keep track of their payments. The payment tracking option will allow them to view payment histories and check any pending payments as per their requirements.
5. Track Delivery
Delivery tracking is one of the essential features that must be discussed with the team at the development stage. This feature enables restaurants to track the real-time location of the delivery staff and order status.
6. Daily Sales Updates
This feature will enable sellers to keep an eye on the overall performance of their food-ordering app. They will get daily sales updates and analyze some crucial website metrics like traffic source & total earnings of their restaurant.
The application for the customers must be user-friendly and have features that ensure customer retention on the platform. Listed are the customer app features of a modern food delivery app.
1. User Registration
Customers will register on the food ordering platform using this feature. Giving instant access to the app via social media integrations could also make the registration process more convenient and hassle-free for users.
2. Multiple Payment Options
You must discuss the various payment methods or gateways to be integrated, with the developers at the initial stages of the on-demand food delivery app development process. Adding multiple payment options like digital wallets, cash on delivery, net banking, etc. will help customers to make order payments efficiently.
3. Advanced Search
The advanced search feature will help buyers to find preferred restaurants and food items in a shorter time span with specific keywords without navigating through the entire app.
4. Ratings & Reviews
Customers can share their reviews and ratings on the website regarding the quality of services being received, restaurants’ prices, and more with this feature.
5. Self-Pickup
This customer-centric feature will allow buyers to opt for self-pickups while placing orders at their convenience.
6. Order Tracking
Using this feature, buyers will be able to track the real-time location of their orders. They will also receive the latest updates about the order status.
The third user type of the platform is the delivery staff managing multiple order deliveries through the app, therefore requiring specialized features for added convenience such as live-time updates, geolocation features, and more that are given below.
1. Secure Login
A secure login process is an essential factor that determines the reliability of the food delivery app. You must opt for a multi-layered security architecture development to provide a secure login to the delivery boys. It will enable delivery boys to safely log in to the platform by using their username & password and proceed with accepting or rejecting orders.
2. Delivery Management
This feature will enable delivery boys to manage multiple deliveries at a single time. They can view and schedule order deliveries as per the priority.
3. Push Notifications
The delivery agents will receive push notifications for the deliveries being assigned with this feature. They will also accept or reject the orders as per their convenience.
4. Delivery Routing
With delivery routing, delivery staff can get a detailed view of the route and experience easy navigation to the customer’s location in a shorter time span.
5. Delivery Status
This unique feature allows the delivery boys to mark their availability as active or inactive. Only the active personnel will receive the notification for new orders.
Admin is the managing stakeholder of the platform with all controls of the app. Therefore, investing in building a platform with a robust infrastructure is ideal, in the same light given below is the essential feature list of the admin panel.
1. Delivery Management
Adding this option will help the admin to view and streamline the deliveries in one place and manage the influx of orders smoothly.
2. Restaurant Management
Admin will manage and list multiple restaurants on the food delivery platform. He will also have the authority to add and remove restaurants from the app as per his requirements.
3. Report Management
With this robust feature, the marketplace owner can analyze the overall performance of the food delivery platform and draft future strategies for business growth.
4. Notifications Management
This feature updates the admin about the activities taking place on the platform. He will receive notifications regarding new restaurant registrations, affiliate requests, latest user sign-ups, etc.
5. Review Management
Including this feature in your food ordering app could play a significant role in building customer loyalty. This feature will permit the admin to moderate review in accordance to his discretion.
Entering the lucrative food ordering and delivery industry may appear cumbersome with the search for a software solution with advanced features, and a user-friendly interface with high remunerative capabilities. However, it can be accomplished seamlessly by following the right steps and with the right on-demand food delivery software. Given below is a thoroughly researched walkthrough to assist potential business enthusiasts in building a food delivery app.
To successfully build a food delivery app an aspiring entrepreneur should conduct a detailed examination of the industry and market, deeply research the potential competitors, and gather constructive feedback from the target audience to formulate a state-of-the-art platform catering to the consumer pain points. Entrepreneurs must identify the industry trends to invest in a profitable niche-based business. This will help them establish a unique value proposition, choose the required business model, and stand out in the food delivery app industry. Along with analyzing consumer eating patterns impacted by the economy, emerging food trends, and other factors. This is the first step towards building a profitable platform.
This industry has evolved to incorporate multiple business models catering to different requirements of today’s consumers- some models to name are delivery-only, order-and-delivery, scheduled delivery, reservation booking, and more. The aggregator mode, delivery-only, and hybrid model were discussed in the previous section. Before entering the industry and finalizing the business model, explore consumer behaviors and establish their share of stomach for determining the menu, marketing methods, and pricing before starting their platform. Businessmen select a business model that aligns with their business goals to produce multiple remunerative returns. This is one crucial decision to take before entering the industry.
After conducting detailed market research and determining the business model, the next step is finalizing the features and functionalities of the platform to ensure a smooth, seamless, and user-friendly app experience. These features should comply with the business requirements along with supporting fully customizable software that does not burn a hole in the pocket of business owners. The blog has covered this feature list differentiated on the stakeholders basis in the previous section and some more added features according to the latest trends are given below.
The developmental approach selected by the business defines the monetary investment, and platform functionality, that goes into launching the platform. Elaborated below are the main two development approaches.
The custom development approach requires hiring a dedicated team of developers and designers to develop the platform from scratch. Though it may seem like a good option it also demands high business investment and outsider involvement. The custom development approach all-in-all is a high time and financial investment.
A turnkey and readymade software solution on the alternative assists in the quick launch of a cutting-edge food delivery platform at a comparatively lower financial investment. These solutions are pre-built with industry-specific feature integrations that advocate the software to be a great choice and quickly enter this profitable industry.
After finalizing the developmental approach, selecting a reliable solution is the next step in the agenda. A new businessman should determine the requirements of the business and its cost-effectiveness to enter the food delivery industry while also being equipped with the latest and cutting-edge features. This step assists businesses in seamlessly entering this lucrative industry and leveraging the untapped underlying opportunities.
After the launch of the food delivery platform, the next essential step is to determine the success of the business platform. Following the right marketing strategies to promote the website and inviting numerous users to the platform helps reach the target audience and establish the business on a large scale. There are multiple ways to promote a food ordering and delivery business, some to mention.
These are the main steps of consideration for gathering information and using it to create a booming food delivery app, platform, and website. This blog was aimed at assisting entrepreneurs and helping them launch a profitable business.
Powered by FATbit- Yo!Yumm is a reliable software solution backed by a client-centric and industry-specific feature list that entrepreneurs can utilize to launch their cutting-edge on-demand food delivery app. It is the best readymade software solution available in the market for aspiring entrepreneurs to build a food delivery app. It is a cost-effective solution with no hidden costs that is fully customizable and scalable and assists in the quick launch of the platform to enter the food delivery industry.
Yo!Yumm is one of the esteemed software solutions that has assisted numerous business owners build their well-performing website and mobile app. Given below are two of the multiple websites that are powered by Yo!Yumm.
Fresh Eats is one of the noteworthy clients from the United Kingdom of the software solution. The platform has a website and a mobile app for all its user types for increased convenience and premium food delivery service to their local community. The platform has industry-specific features integrated into the app an intuitive mobile app. This state-of-the-art software assisted the platform owner with features offering a competitive edge. Fresh Eats now has 100+ registered restaurants facilitating from the high scalability and customizable capabilities.
Jetfood is another thriving client from The United States with easy restaurant management functionality for the admin and the restaurant merchant registered on the platform. Numerous features are integrated into the platform according to the business requirements of the platform owner such as reviews & ratings, location-based search, multipayment method, geolocation, and more. Jetfood benefits from a user-friendly interface that allows the website to accommodate growing numbers of customers without compromising the platform’s performance.
Launching an on-demand food delivery app requires a detailed study of every aspect surfacing the food industry. This blog has covered all the important aspects that go into building a food delivery app from the basic key player analysis, to the business and revenue model of an advanced food delivery app, along with the must-have features and detailed steps to build a food delivery app. As part of our initiative to help startups set up their online food delivery business, our astute team of developers works with the goal of providing the best mobile app development services to businesses of all sizes. Yo!Yumm is a turnkey software solution that checks all the boxes to offer a seamless launch and onboarding experience. The blog presents a glimpse into the industry and how to leverage the benefits of this lucrative industry. To know more, get a walkthrough of the software-developed platform features and capabilities from experts through a free personalized demo.
Q 1. How long does it take to build a food delivery app like Uber Eats or Grubhub?
Ans. To build a food delivery app like UberEats or Grubhub, the launch time highly depends on the developmental method. The two methods as discussed in the blog are- readymade software solutions and custom development. While custom development may take up to several months or a year to build a robust food delivery app, choosing a readymade software like Yo!Yumm will help in rapid deployment, allowing you to build and launch a food delivery app in a few days or merely a week.
Q 2. How much does it cost to develop an on-demand food delivery app?
Ans. The cost of an on-demand food delivery app development depends on the method opted to build a food delivery app. The two main developmental approaches are- custom-made and readymade software solutions. Both methods are fully customizable but the cost of development differs manifolds. The turnkey software is a cost-efficient solution available at a one-time cost and facilitates the quick launch of the website as well as the mobile app. Whereas, the custom development approach requires a dedicated team of developers including large financial investments ranging from USD 15,000 to USD 200,000 along with longer time allocation.
Q 3. Is Yumm the best choice for an on-demand food delivery app development?
Ans. Upgrading and evolving along with the latest technological advancements- Yo!Yumm is one of the best software solutions for on-demand food delivery app development, available in the market. The software is purpose-made with industry-specific and advanced features and functionalities supporting a website and mobile application for all of its user types. It is the best turnkey software supporting SMBs and large-scale businesses with its high scalability and customization capabilities.
All innovation starts with an idea to solve real-world problems. At FATbit Technologies we are passionate about driving digital transformation to prepare businesses for a digital-first tomorrow. Let’s discuss your BIG idea NOW.
Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date. We advise - the readers should not take decisions completely based on the information and views shared by FATbit on its blog, readers should do their own research to further assure themselves before taking any commercial decision. The 3rd party trademarks, logos and screenshots of the websites and mobile applications are property of their respective owners, we are not directly associated with most of them.
Abhishek Kataria is a business consultant at FATbit Technologies. He assists entrepreneurs and business owners in developing viable digital touchpoints and marketplaces. Abhishek is curious about exploring and analyzing new business trends and has a keen eye for the latest developments in the eCommerce sector. Apart from consulting, you can find him practicing French and exploring his creativity in Photoshop.
Comments (5)
SEO Clearwater, FL
FATbit Chef
Christoper John
FATbit Chef
Vedant Darji
A very detailed and informative guide. Learned a lot of new things.
Keep it up!
Hello,
Thank you so much for your appreciation!
Regards,
Team FATbit
Great Insight!
Hello Christopher,
Thank you so much for your appreciation.
Regards,
Team FATbit
Detailed article, but what I’m actually concerned about is handling logistics, including not only deliveries to my customers but also the management of chain supply. Can you people help?