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Reasons Why Food Delivery Business Needs a Delivery App in 2023

Do you want to start a food delivery business in the UK? Or do you already have one?

Customers today want a convenient way to order food and get it delivered to their house without much hassle. Thus, a food delivery business presents a lucrative opportunity for you to get into and provide your customers with flawless services.

Though the market is lucrative, it hasn’t been capitalised on yet in the UK as there is plenty of space for new competitors.

The industry is flourishing and it’s not just us, but the report from Statista also shows the same:

  • The food delivery business generated around £27.7 billion in revenue in 2022.
  • Also, the industry is expected to grow with a market revenue going beyond £48.6 billion by 2027.

Apart from this exceptional growth and convenience, there are several other reasons that an app is necessary for your food delivery business. Let’s have a look at some of them:

Intelivita offers high-end food delivery app development services to startups to build successful offerings for their customers at affordable costs.

Connect with us today to select the best framework for your food-ordering app development.

Reasons Why Food Delivery Business Needs a Delivery App in 2023

1. Increased Demand for Food Delivery

Covid-19 has spurred the world around as most countries have laid strict restrictions on doing certain things including dining in restaurants.

In such times, when large restaurant chains and stores are shutting down their business, food delivery services can turn this around and bring your business to life.

Many different delivery service platforms and apps have made it possible for restaurants to sustain their business. Thus, this might be the best time to invest in a food ordering app development.

Once the app is up and running, you’ll have more to focus on growing your food business. Also, food delivery app development is viable if something similar to Covid-19 rises again.

2. Bright Future for Food Delivery Apps

Food delivery is an on-demand business that offers users the flexibility to order food any time of the day and get it delivered to their home or office.

Thanks to this flexibility, most people prefer the delivery of their favourite food. They want to avoid the hassle of going out to eat and instead choose the doorstep delivery option.

This has also rapidly changed the global food market as new models like marketplace platforms and on-demand logistic service apps have taken over.

These app platforms and apps have experienced high growth due to the better digital span and internet penetration. Thus, the future of such apps looks bright and shines as new avenues get innovated.

3. Boosts Transparency and Convenience

As we know the food delivery market will see a high growth rate thanks to technology penetration. But what can be a catalyst for the further growth of this industry is transparency and convenience.

Food delivery apps offer users and merchants much-needed flexibility, transparency, and comfort. As mentioned, most people prefer to order food than go out to eat to avoid long queues outside restaurants and food preparation time.

With just a few taps on your app, users can order anything from your or other restaurants conveniently. Depending on your food delivery business model, users get a satisfactory level of transparency.

Also, the increased usage of such doorstep delivery services enabled companies to plan for food delivery app development. Having an app for your food business is critical to not only offer convenience but also capture a significant market share.

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4. High-Probability of Profitability

The food delivery industry is en route to gaining massive profit margins in the near future. As mentioned earlier, the industry will grow with a CAGR of over 9% in the UK and record an enormous revenue as well.

Since most customers want doorstep delivery for the same amount of wait time as in the restaurant, they are ready to shell out additional money.

This is bringing a shift in customer behaviour and the way they consume food. Also, with the rapid change in the food delivery market, an app can be perfect to grow your revenue and profitability.

5. Increase Customer Retention

A bespoke mobile app for on-demand delivery services has increased returning customers, which translates to exceptional outcomes. However, doing so requires putting a considerable amount of effort into creating an intuitive app.

Also, the industry is turning out to be competitive as other players can lure your customers with special discounts and offers. Thus, you also need to run several special offers to keep customers hooked to your app.

For instance, you can offer a free drink with each meal plan to drive up loyalty to your app. Further, you can introduce loyalty points tailored to each customer’s frequency of order.

This is the most effective way to bring in new customers as well as retain the existing ones for your food delivery app. Moreover, you can integrate push notifications to get your message out.

6. Minimised Operational Costs

Minimising the operational costs while growing your income at the same time are the two most difficult tasks a food delivery business needs to deal with.

A food delivery app is what helps you manage both aspects of your business and resolve your income growth challenge. You can also blend in some customer support features that bring down your operational costs.

For instance, you can integrate Chatbot for customer support, integrate real-time mechanisms, provide live order status, cashless payment options, and many others.

7. Boosts Your Reach

Since users want convenience nowadays, a food delivery app offers just that to your target audience, which helps improve your reach. Most people today spend their time browsing on their smartphones.

Thus, it makes sense that they would turn to their phone when their belly is starving and want to eat something good. They would go on to your app and choose the finest meals to order and get them delivered to their home or office.

Moreover, creating an app helps boost the chances of your food business reaching a range of people who are searching for a good place to order food. Also, you can offer them the finest discounts and the best pricing to drive up your orders.

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How Much Does it Cost to Build a Food Delivery App?

While all these are great reasons to compel you to build a food delivery app, another factor that can widely impact your decision is the cost.

We all know that the food delivery industry has a lot of untapped potential and an app can bring forth a revolution. The average cost to create a food delivery can vary from £26,880 to £31,200.

However, the cost to develop an app depends on several factors that include:

  • The business model for the food delivery app
  1. Aggregator app model
  2. New delivery service/logistic support app
  3. Full delivery service
  • Functionality required
  1. Customer side features
  2. Restaurant side features
  3. Delivery side features
  4. Admin side features
  • Tech stack required
  • Rates of the selected region for the development

Final Thoughts

So, these were some of the reasons why you need a food delivery app in 2023. Keeping these reasons in mind while starting your business will help you get one step closer to achieving your goals.

No doubt food delivery apps are great but developing an elegant, intuitive, and scalable app requires the hands of experts such as Intelivita.

We have a large team of expert mobile app developers with ironclad proficiency and the necessary experience.

Contact our team to consult with our subject matter experts for all your food delivery app development requirements.

Build scalable food delivery solutions that guarantee great returns!

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Oliver Baker

Oliver Baker is a co-founder of Intelivita, a leading Web and Mobile App Development Company based in Leeds, UK. Oliver has been at the forefront of the business, expanding it globally and into new technologies including iOS and Android, AR, VR and Mobile Game applications. Oliver excels in Project Management, Leadership, Quality Assurance and Problem Solving and has qualifications with Prince2 and APM. He aims to develop his skills further through a shared interest with other leaders in the Software Markets and the Clients of Intelivita.

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