Do you think of getting into the most popular food delivery business category?
Have you planned to create an app but are sceptical about the cost of the food delivery app?
The food delivery industry presents a huge untapped potential even though there’s cutthroat competition from Uber Eats and many others. Apps like these have brought forth a revolution in the industry.
It’s currently one of the fastest-growing industries to open your own delivery business with the help of a food delivery app development company.
But why should one consider building an app like Uber Eats?
According to the report on Statista, the online food delivery segment is expected to generate $323.30 billion in 2022. It also mentions that the industry will grow at a CAGR of 7.6% between 2022 to 2027.
Food delivery apps like Uber Eats enable users to browse through the menu of hundreds of restaurants, place orders for desired food items, and get them delivered to their homes.
Since these apps provide users convenience and a platform for restaurants, it’s a win-win for both. Also, the Pandemic has proved to be a boon as most of us are working and adjusting to the WFH situation.
And ordering food from our favourite restaurants after a tiring and stressful day is just what any would want. It has become an inseparable part of our day-to-day life and it isn’t showing any signs of slowing down.
Develop a futuristic, data-driven, and secure food delivery app by partnering with us for food ordering mobile app development services.
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Here are some compelling statistics to convince you why you should create a food delivery app:
The statistics shown above are enough to gauge what direction the food industry market will take. If you are still not sure, you can have a look at some best app ideas for restaurant businesses to find a perfect match.
However, if you have already decided to venture into the market, then you’d want to know the food delivery app development cost and whether it’s in your budget. For the same, let’s first get to know the factors contributing to the cost of food delivery apps:
Primarily, there are two business models defined by Mckinsey that have risen to fill the void. Also, there has been a new model increasingly taking the market by storm. So, let’s glance over them and understand each:
Aggregator food ordering and delivery apps act as an intermediary between restaurants and users. Here, restaurants can specify their menus, prices, and specials for users to check, compare, and place orders.
Once the order is placed, the restaurant then prepares and delivers it to the designated consumer. The aggregator platforms will collect the payment on behalf of restaurants and transfer it to them after keeping a fixed margin.
GrubHub, FoodPanda, and Just Eat are some examples of the aggregator apps used by most UK consumers. This model requires only developing two user roles i.e. buyers and restaurants.
Thus, the apps based on this business model will comparatively cost you less than the other models.
In this business model, the aggregator apps also provide the logistic support to deliver the ordered food items. The new delivery players like UberEats allow consumers to compare different offerings from different groups of restaurants before ordering food.
Then they select the item to order and place an order for restaurants to prepare. The logistic partner then assigns the courier valet just before the restaurant finishes preparation to pick and deliver the food to the consumer's doorstep.
This new delivery business model opened a new segment to benefit restaurants that did not offer home delivery services. These logistic service providers charge restaurants a fixed margin per order as well as a small flat fee from consumers too.
Also, the new entrants in the restaurant industry can partner with new delivery service platforms to simplify food ordering and delivery workflow. Since this model includes several development facets the food delivery app development cost is a little higher.
The business model involves establishing a complete online or cloud kitchen exclusively for food deliveries. Here, you’d set up a kitchen only and not lounges, counters, or a window to serve customers at the place.
The app or web platform will notify you of any food orders so you start the preparation and deliver it to the customer. You may set up your own logistic requirement or can also partner with delivery service providers.
Your cloud kitchen’s mobile app will act as an online menu and also display the map to track the order status. Since this will be a full-fledged app, the food delivery app development cost will be the same as the previous model.
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On-demand food delivery applications require the development of several facets such as customer side, restaurant side, delivery side, and admin side features.
Let’s get to know the functionality required by each facet that impacts the cost of food delivery app:
Customer side application will include features to allow users to check, compare, and select items to order.
Here are some functionalities the customer side app will have:
Restaurants will need basic features like adding food items, managing their offering, and tracking incoming orders. Here are some essential features to include in restaurant side apps:
Delivery side app allows couriers to receive, view, accept, and deliver orders to designated customers. Here are some necessary functionalities to include:
Admin panel is the brain of your food delivery system and it should connect every facet of your delivery app. Thus, it’s important to include vital features as listed below:
Now that we know the features that affect the food delivery app development cost, it’s now time to glance over the technology stack that brings your app to life. The tech stack also contributes to finding how much does it costs to build a food delivery app.
Here’s the required tech stack to create a food delivery app like UberEats:
The country or region you select also greatly influences the food delivery app development costs. Here we present a list of different regions with their average hourly rates for app development:
|Region||Average Hourly Rate (in £)||Max Hourly Rate (in £)|
|the Asia Pacific||20-35||40-50|
So, as you can see from the above table, the cost to develop an app can vary significantly based on the region or country you choose. The Asia Pacific and Africa regions are the most affordable choice out of all.
Intelivita is a UK-based app development company with offices in the Asia Pacific region like India. Thus, choosing the Intelivita team to create a food delivery app like Uber Eats is going to be a cost-effective option.
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Food delivery app development is a complex process as it involves building several workflows, UI/UX, geolocation features, integration of financial instruments, and others.
To create a food delivery application similar to Uber Eats, the cost would range from £15,000 to £45,000 can also exceed £50,000 in case of customized complex app.
Here’s a detailed breakdown with hours for estimating the cost of a food delivery app:
|Description||Time frame||Average Rate (in £)||Total Cost (in £)|
|UI/UX design||50-60 Hours||£40||2000-2400|
|Registration & other workflow creation||100-120 Hours||£40||4000-4800|
|Geolocation service development||120-130 Hours||£40||4800-5200|
|Financial Instruments||100-120 Hours||£40||4000-4800|
|Analytics Integration||8-10 Hours||£40||320-400|
|Communication & Notification||70-80 Hours||£40||2800-3200|
|Grand Total (£)||£17,920-£20,800|
|Description||Hours Required||Average Rate||Total Cost|
|UI/UX design||50-60 Hours||£60||£3,000-£3,600|
|Registration & other workflow creation||100-120 Hours||£60||£6,000-£7,200|
|Geolocation service development||120-130 Hours||£60||£7,200-£7,800|
|Financial Instruments||100-120 Hours||£60||£6,000-£7,200|
|Analytics Integration||8-10 Hours||£60||£480-£600|
|Communication & Notification||70-80 Hours||£60||£4,200-£4,800|
Note: This is just for the reference. Actual hours might vary depending on the app development complexity and functionalities required.
Thus, the cost of food delivery apps may differ based on factors like average hourly rate, functionalities, and app development complexity. Also, there are certain hidden costs of app development that you should be aware of.
Even though there are big players like Uber Eats that occupy the biggest market share, the food delivery industry still has a lot of potential. It presents several opportunities for new entrants to challenge the status quo and lead the market with innovation.
If you plan to get into the food delivery industry and take the market by storm, this is the right time to do so. However, one question that bugs the most is how much does it cost to build a food delivery app.
We have aptly answered this question through this article to help you create a food delivery app like UberEats. Also, we explained why Intelivita is best for the development of your food delivery app.
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