Last updated 20th Feb, 2025
The online food delivery platform provides customers with the choice and convenience of getting food with a few taps on their mobile phones. Earlier too, restaurants used to deliver food, but the process has undergone a rapid change in the past few years. Online food delivery platforms enable restaurants to make the most of both digital and traditional marketing mediums.
Food delivery apps allow customers to browse their favorite restaurants and food with ease. According to Statista, the revenue of the online food delivery industry is expected to show a CAGR of 12.33%, resulting in a market volume of U.S dollars 1.45 trillion by 2027.
Grubhub, Deliveroo, and Uber Eats are a few examples of these online food delivery apps that promise to deliver healthy & delicious meals right to your doorsteps. It’s no surprise that this business model has quickly become popular. FATbit Technologies conducted an in-depth analysis of various mobile apps and platforms that are popular in the online food delivery business.
Entrepreneurs looking to launch an online food ordering and delivery business can choose an existing platform like Yo!Yumm or can hire developers to build a Custom App & Platform for them. But before deep diving into the know-how of this industry, entrepreneurs must know why they need to create a food delivery app for their food delivery business.
The popularity of food delivery apps is increasing as they conveniently connect consumers and restaurants with each other. There are numerous advantages to integrating a food delivery app into your online food delivery business. Let’s explore the reasons, why you should definitely consider creating a food delivery app. The food delivery services market size is growing exponentially at a CAGR of 13.4% generating an estimated revenue of USD 90.3 billion by 2030. Moreover, the number of users on the food delivery app solution is expected to reach 2.7 billion by 2029 with the user penetration reaching 30.6% in 2025.
This is eventually creating a huge demand for food delivery apps. Hence, it has become a necessity for entrepreneurs to invest in a food delivery app in order to survive in the industry.
Opting to build a food delivery app is an ideal solution for the seamless management of operations eventually cutting down operational costs. When you choose to invest in a food delivery app, you can avail of some of the intuitive features that can help you bring down your operational costs by providing
All these functionalities can be performed with a single click and need no human assistance, hence, reducing errors and operational costs.
As per reports, there are over 3 billion people worldwide who used online food delivery apps in 2024. The numbers illustrate the fact that people are finding it more convenient to order food online and are inclined towards this trend. By creating a food delivery app entrepreneurs can efficiently cater to a larger customer base, eventually increasing their revenue.
All the factors mentioned above show that creating an online food delivery app is a necessity for food entrepreneurs. Therefore, further, in this article, we provide you the information on how you can create your own food delivery app, along with its workflow, revenue models, and must-have features. Before that, the next section acquaints a new business owner with top market competitors for quick market insight.
The food delivery industry has widely transformed with the changing lifestyles, and capitalizing on this booming industry presents a remunerative business opportunity. An aspiring entrepreneur interested to create a food delivery app should conduct thorough market research on their competitors before entering the business. Given below is a detailed analysis of the food delivery app giants aimed at assisting these new businessmen in making research-driven decisions.
1. DoorDash
DoorDash is known for having one of the largest market shares in the United States. It is a popular food delivery app founded in the year 2024 in California, USA. With a market share of 67% in the US, DoorDash has produced over USD 8.63 billion in 2023 as market revenue. Moreover, the app has registered over 550,000 restaurants for its user base all around America.
2. Food Panda
Food Panda is one of the major players in the food delivery market. It is a subsidiary of Delivery Hero and was founded in Singapore in 2014. The platform has expanded its services in more than 11 Asian markets, working with 115,000 restaurants and 80,000 riders. Food Panda has managed to generate revenue of around 3.8 billion in Thailand and has acquired 65% of the market size in Bangladesh alone.
3. Uber Eats:
Uber Eats is one of the top food delivery apps recognized globally for its online food delivery services. The delivery app was founded in the year 2014 and has secured over 85 million in the industry ever since. Today, Uber Eats is successfully delivering food and comfort to 45 countries and 11000 cities generating annual revenue of USD 12.1 billion in 2023.
These were the market competitors, a new businessman can cater to the pain points encountered by customers on these food delivery apps to launch a successful business. Next covered is the workflow on these platforms that will acquaint the platform owner with the business model of a food delivery app solution.
The workflow of an online food delivery app can be explained by categorizing the working of four main stakeholders: admin, restaurant owners or merchants, delivery agents, and customers.
The admin has complete ownership of the platform. Using the admin panel dashboard, the admin can easily manage the UI of the food delivery platform and keep track of various activities like placed orders, deliveries, newly registered users, and customer reviews.
The merchants register on the platform and add information about their restaurants and offerings. The merchants can either register as a single restaurant or multiple restaurants depending upon the subscription package selected by them. Using the merchant dashboard, restaurant owners can manage and customize menus, accept or reject orders, create offers and discounts for customers, and keep track of their sales and profit.
The delivery agents can register on the food delivery platform by creating their accounts on the mobile app. Once the order is accepted, it is broadcasted to the delivery agents present near the restaurant location on the delivery staff app. The delivery agents can accept or reject the order as per their availability.
If the order is not accepted by any delivery agent, the admin then reserves the right to assign the delivery to any delivery partner.
Customers can either create their accounts on the food delivery platform or place orders as guest users using the food delivery app. The customers can choose to place an order from the number of restaurants delivering to their location. Once the customers select the food items to be ordered, they can place their orders with a few clicks on their mobile phones.
After placing the order, the customers select one of the many payment options available to make payment. The payment is directly transferred to the admin’s account which is later credited to the merchant’s wallet after deducting the commission amount. Customers can track their orders and delivery. Once the order is delivered and marked completed, the customers can give their reviews and ratings for the restaurant.
One of the most important factors to consider before starting an online food delivery business is the possible revenue streams. As an entrepreneur, you must set up efficient revenue channels in your food delivery system.
The four major ways of revenue generation for the admin of the food delivery platform can be:
1. Commission From Restaurants
The admin sets a specified percentage of commission on every order placed through the platform. The payment made by the customer is received by the admin. The admin credits the amount to the restaurant’s wallet after deducting the commission.
2. On-site Restaurant Promotions
The admin can charge additional fees from registered merchants who wish to run on-site advertisements/promotions on the platform for their restaurant promotion.
3. Subscription model for the merchants
The admin may set up various subscription packages (individual & corporate) for merchants to register their restaurants on the platform. When a merchant creates an account on the food delivery platform, he/she can choose the subscription package as per his requirement.
If the merchant wants to register a single restaurant on the portal, he can select the individual package whereas to register multiple restaurants, the merchant can subscribe to the corporate package. To subscribe to these packages, merchants would pay pre-decided fees to the admin.
4. Third-Party Advertisements
Another effective way for the admin to generate revenue from the food ordering and delivery app is to run third-party advertisements on the platform and mobile app. The admin can charge from the third party for displaying their ads on the food delivery platform.
5. Delivery Fee
The admin can also generate additional revenue from the orders whose delivery is managed by him/her. The platform owner can charge the delivery fee from the customers. The amount charged as the delivery fee is decided by the admin, therefore, he/she can charge an added fee to generate revenue from it.
To drive exponential business growth and provide exceptional user experience, a delivery platform must be equipped with trending food delivery app features. Below mentioned are some of the features of a food delivery app categorized on the user types.
1. Registration and Managing Profile: The admin should easily be able to register and manage restaurants, customers, and delivery staff on their platform. A dedicated dashboard can help in achieving this goal.
2. Offers/Deals Management: This feature is very important to stay connected with your customers and also improves engagement rate. You can notify your customers about loyalty programs, offers, deals, discounts, etc.
3. Geo-Fencing: Geo-fencing allows the admin to define the area they want to serve. If they are serving in a specific area, they can review the demographics of that local population and can customize and promote their services accordingly.
4. Restaurant Management: The admin has to manage multiple restaurants listed on the food delivery platform. With this feature, the admin can seamlessly add or remove restaurants.
1. Loyalty Program for Customers: The restaurants can offer lucrative discounts, offers, and deals for the customers and can improve their user engagement and retention. It is a wonderful approach to earning revenue and bringing new customers to your platform
2. Order and Menu Management: With dedicated dashboards, restaurants can easily manage orders and can update their menus with just a click. It also streamlines all the operations for restaurants.
3. Instant Updates and Alerts: This feature allows restaurants to instantly receive alerts and notifications regarding orders and other important information.
4. Delivery Tracking: With real-time tracking, restaurants can easily track the delivery staff and the status of the order.
1. Search Filter: The search filter helps customers in finding their preferred restaurants and dishes easily and quickly with specific keywords without having to navigate through the entire app.
2. Multi-Payment Options: Customers must be offered multiple payment options so that transaction is quick and easy. You may choose to incorporate popular payment APIs such as PayPal, Stripe, and other options like eWallets, internet banking, etc. In addition to that, it is very important to ensure that the payment procedure is secure.
3. Real-Time Order Tracking: The order tracking feature updates the customers about the current location of their food and the estimated delivery time of their orders.
4. Ratings and Reviews: This feature lets customers give their ratings and reviews for the food and restaurants they order from. Furthermore, this feedback can be efficiently implemented by business owners and restaurants to improve their services.
1. Easy Registration for Delivery Person: With an easy registration process, the delivery personnel can conveniently register themselves on the platform, customize their profile, and begin accepting and delivering orders. However, the verification can be completed by the admins.
2. Order Management: This feature lets delivery personnel efficiently manage and check out their order requests. Delivery personnel can streamline multiple orders and manage them better.
3. GPS Tracking and Route Optimization: With the help of this feature, delivery personnel can work more efficiently. They can deliver more orders in less time with route optimization.
4. Status Update: The delivery person can provide information on whether an order is in progress, delayed, or completed and on the way to delivery.
These are some of the important food delivery app features that must be integrated to build a food delivery app that promotes business growth with its user-friendly features and functionalities.
Businesses are changing their approach and becoming increasingly mobile-driven. Due to the increasing rate of mobile usage by customers and ease of use, most companies have launched their mobile apps. These mobile apps allow customers to order from a wide array of restaurants on the go and track delivery.
With easy access, fast ordering, and secure online payments, online food ordering mobile apps offer many advantages and are definitely worth an investment. Follow these easy and comprehensive steps to develop your online food delivery app effortlessly.
The first step is to conduct research and analyze your market. You should thoroughly examine your competitors, determine their strengths and weaknesses, and learn from their mistakes. Along with a look into the potential competitors, identifying the pain points determined thoroughly by detailed user feedback is also crucial. This analysis presents emerging trends in the industry that can be catered to by developing a niche and a unique value proposition. All these measures assist a business owner in identifying your target audience when you decide to make a food delivery app. Also, this in-depth research would help you make an app that can cater to the demand of the market.
After you have researched your competitors and have a sufficient understanding of the market, the next step is to choose a reliable business model to build a food delivery app. It is very crucial to make a well-informed decision regarding your business model. Your business model should meet your business requirements and must help you in achieving your business goals. The food ordering and delivery industry can accommodate diverse business models such as order only, scheduled delivery, reservation booking, order and delivery business models, and more. Create a food delivery app that caters to the latest demand of the industry and makes remunerative returns for you.
Read this blog to gain more information on various business models for a food delivery business.
Once you have decided on a reliable business model, the next important step is to finalize your revenue streams. Profit-making is one of the essential factors for investing in any business venture. Therefore by choosing the right means for entering the industry a new businessman aspiring to build a food delivery app can leverage multiple revenue streams. Some to name are the commission model, subscription model, delivery fees, restaurant promotion, and more. These revenue models ensure a constant flow of income for the platform owner. Multiple revenue streams can help you generate financial gains, hence, you should know all potential sources of revenue for your platform.
The next step after finalizing your revenue streams is to select the platform’s functionality. Selecting the right set of features and functionality for your food delivery app will help you create an app that is user-intuitive, efficient, and easy to use. Choosing industry-specific functionalities to ensure an unmatched user experience shall help the platform owner retain customers on the food delivery app solution. Furthermore, the credibility of your platform can be amplified through the reviews and ratings feature on the platform. A feature-rich website will help you achieve your business requirements and meet the needs of your target market.
The final step is to choose a development process to create a food delivery app. There are several solutions available in the market and each offers unique features and functionalities. Entrepreneurs can either go for custom development or can opt for a ready-made solution. To elaborate further on the two development methods.
You can choose a solution depending on your business requirements and budget to build a food delivery app. These were the primary steps involved in entering the food delivery industry. Now, that you are informed about the essential features and steps it is ideal to cover the cost involved to create your own food delivery app.
The cost involved in creating a food delivery app majorly depends on the developmental approach chosen by an aspiring entrepreneur. Along with that, the cost of building a food delivery app also depends on the feature requirements, design complexity, customization requirements, API integrations, and more.
The two developmental approaches as discussed in the previous section are- custom development and readymade software solutions.
Respectively, selecting a resonant developmental approach that is ideal for your business requirements is essential. A well-planned investment strategy is ideal for developing a sustainable as well as successful business model. Now, that you have a conception of the development cost it is the right time to delve into the promotion factor of your online food delivery platform.
After the launch of your food delivery app, a business must promote the platform for a higher return on investment. These tips if duly implemented can ideally deliver propelling results. So, a businessman investing in the industry should execute it to ensure business growth.
1. Promote on Social Media
The impact of social media is huge in the present times. A successful app promotion can be initiated through media platforms. A robust social media strategy to create a food delivery app solution drives proliferating business growth. Business owners must market the menu items, cuisines, and listed restaurants on their social media handles. Another way to promote the platform through social media and increase downloads is by running contests to interact with a large consumer base. DoorDash has used social media successfully, attracting several consumers to its food delivery platform.
2. Referral Programs
To successfully promote the platform referral programs are also a tested market strategy that employs current customers by incentivizing them in the form of discounts, reward points, coupons, and more to promote the platform to their references or acquaintances. This strategy creates a mutually advantageous system for the referring individual, the referred party as well as the restaurant to secure a new customer.
3. Affiliate Marketing
Affiliate marketing involves referral sale generation by an external affiliate member. A newly launched online food delivery platform can benefit from affiliate marketing that enables members to earn revenue using links that are used by the referrals to register on the platform. It is a widely used marketing approach that helps in increasing the traffic on a website.
4. Discounts and Offers
Increase traffic on the website using in-app discounts and offers. Strategies such as free featured listings, lower service platform fees, delivery fees, commission rates, and more all help in increasing website traffic. A new business must introduce high discount rates and offers to its customers to retain and provide users with an unmatched platform experience.
These are a few measures to ensure a positive market response to a budding food delivery app solution. Marketing a new platform is an essential step towards a flourishing business. An increase in restaurant numbers leads to a rising user base ensuring extensive impact of these promoting tips.
In recent years, the food ordering market has grown rapidly. Rather than going to an eatery, people prefer to order food online. This has resulted in huge demand for online food delivery and the outcome is the rise of platforms like Grubhub, Deliveroo, and Uber Eats.
Although there are many startups that have launched in different markets, most of them are making decent progress. That’s because this niche relies on locality, which makes it easy for a new startup to generate income from an untapped area. If you want accelerated growth for your online food-delivering business, your solution should be equipped with exclusive functionalities and impressive features.
This would surely help you in capturing the bulk of the market share and driving exponential business growth.
Q 1: How can I create a food delivery app in the USA?
Ans: There are majorly two ways to make a food delivery app. One is to build it from scratch with the help of a team of developers and designers which takes a huge amount of effort, time, and money. On the other hand, you can consider a ready-made software solution that is cost-effective, affordable, and less time-consuming. Yo!Yumm is one such ready-made software solution that saves entrepreneurs from all the development pains and builds a food delivery app hassle-free.
Q 2: Can Yo!Yumm create your own food delivery apps like DoorDash, JustEats, Grubhub, Uber Eats, and Deliveroo ?
Ans: Yes, food delivery apps like Doordash, JustEats, Grubhub, Uber Eats, and Deliveroo can be built by customizing Yo!Yumm. The software solution is feature-packed with in-built industry-specific functionalities that fit the requirements to create food delivery app like DoorDash, JustEats, Grubhub, Uber Eats, and Deliveroo. The software is a self-hosted fully customizable and scalable solution that can be modified according to the business requirements along with accommodating a large number of users without compromising on the platform performance.
Q 3: Can Yo!Yumm build android, iOS, and web apps?
Ans: Yes, Yo!Yumm can build Android, iOS, and web apps for the online food delivery platform. It offers readymade mobile apps to business owners with mobile apps for all its user types- restaurant merchants, delivery personnel, and customers on both android as well as iOS.
Q 4: How much does it cost to create a food delivery app?
Ans: The cost to create a food delivery app depends on several factors like budget, the development process, and the number of integrations. The cost of the development increases with increasing customization, features, and complexity. However, a ready-made software solution like Yo!Yumm is a cost-effective and affordable way to build a food delivery app. To know about the pricing of Yo!Yumm, visit here.
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Comments (5)
MANACHARI
FATbit Chef Post author
TwinPeaks Online
Ayushi Mishra
FATbit Chef Post author
I am decided to start own pick and delivery business, let us know, what I needs to be prepare and how much cost required, kindly explain in details?
Hi,
Thanks for connecting with us.
We would be glad to help you.
Our expert will get in touch with you to discuss the same. Meanwhile, you can share your queries with us (if any) via https://www.fatbit.com/website-design-company/enquiry.html
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FATbit Team.
Good Blog! great work i love it thanks for sharing this awesome blog keep posting like this.
Thanks for giving us this information I really like your blog.
Hi Ayushi,
Thanks for the appreciation.
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Team FATbit