A Closure look of the case study of Food Delivery and Ordering Apps like Zomato, Swiggy, DoorDash, Deliveroo & GrubHub.If you are planning to launch your food ordering and delivery marketplace with web and app, then this case study belongs to you.
The market for online food delivery, with revenue for 2020 estimated at US$122,739 million by Statista, has become a savior in these rough times.There are many types of Business Models exist for Online Food Delivery & Ordering Business. Many researchers shows that platform-to-consumer food delivery apps are the most successful.
“Food delivery apps are a new rage, from restaurant owners, new entrepreneurs, and many business giants enter into this Industry and making their own food ordering & delivery app for you to deliver food at your place. There are many types of Business Models Exist for this Food ordering & delivery Segment. ”
Buisness Models & Challenges
The on demand food industry has disrupted traditional markets by adopting a full cycle approach to the three basic components of a meal experience at a restaurant: Ordering, Cooking and Delivering.
Ordering – Orders are customer requests to prepare and deliver food. All food on-demand businesses receive orders via an app, a website or phone. The orders could be for their own kitchen or another meal provider they have partnered with.
Cooking – Cooking is the process of preparing meals for customers. Meals could be pre-cooked or cooked after an order is received.
Delivering – Delivery i.e the transportation of goods is the backbone of any on-demand business. Businesses can have different delivery models depending on various factors.
Based on the above table, there are 3 dominant business models prevalent today:
- The Order Only Model-: This model was used by those startups who provides restaurant-based delivery services like JustEat, Grubhub, etc. These software-only marketplaces’ main selling point to restaurants is to bring a lot of new orders and replace their antiquated phone-ordering system with an optimized Web and mobile platform, that integrates with their kitchen workflow.
- The Order and Delivery Model-: The up and coming restaurant marketplaces (Doordash, Deliveroo, Zomato, Swiggy, UberEats), which developed in the previous few years, concentrate on both order and delivery of the procedure: they bring additional orders and requests to the eateries, manage the deliveries also.
- The Fully Integrated Model-: The third category of meal delivery startups, which includes Freshmenu, Box8 have opted for full integration of the process: they developed their own app through which consumers can order a limited range of meals, which cooked In their own kitchen and delivered by their own delivery team.
Challenges-: There are a few basic challenges you face when you will decide to start your own Food Ordering & Delivery Business.
- Selection of Right Business Model with full awareness and knowledge of Particular Business Model Advantages and Disadvantages.
- Find the right technology partner for you, who will help you to develop and maintain your complete app & web solution.
- Focus on Food Quality, Hygiene, Food Standardization, Pricing, Logistics.
- The freshness of food, because you will go to enter the food industry, will more focus on this. When your deliver food looks fresh and tasty this will helps you to retain your customer again and again.
Key Features of Food Ordering & Delivery App
When you develop an on-demand food ordering & delivery system, whether it’s in the mode of the restaurant to use business model or you are working around the way around how to make an app like postmates, you are not making one application but four and then combining them all together in one app. since you are working on an app that deals with three different stakeholders – Restaurants, Customers, Delivery Person, and the Admin, the list of features would also vary from one screen to another.
- Admin Panel-: This panel is the soul of your complete system. This panel dedicates to you and your team basis on roles & permissions. Here You get multiple sub-menus for instance: a) Restaurant Manager b) Payment Management c) Discount Offers and Coupons d) Technical Assistance e)Day-to-day Reports f)Internal Team Manager g) Delivery Manager h) Zone Creation & many more.
- Restaurant Panel-: This panel dedicate to your merchants, in this case, your merchant is Restaurant Owners Here you give them features like a) Menu Listing Management, b) Order History Management, c)Sales Report Generation, d) Notifications, e) Flexible/Multiple Payment Options.
- Customer Panel-: This panel dedicate to your customers, Here you give them scratch to advance level features like a) Search order by keywords like Restaurant Name, Dishes, Cuisines, etc. b) Advanced Search c) Customer Order from their favorite Restaurant d) Normal & Advance level filters e) Add to Cart & Order Processing Functionality f)Multiple Payments modes g)Delivery Address Manager h)Discount & Coupons i)Review/Rate Restaurants j)Live Tracking of Order.
- Delivery Panel-: This panel dedicate to your delivery boys, Features for this panel are as follows : a) New Order Alerts b) Assigned Orders c) Updating the order status.
Apart from this Some very important features that We mentioned below :
- Search and menus-: Aggregating restaurant data is one of the key features of many food ordering platforms. How can we provide access to all the necessary information about restaurants – addresses, hours, menus, etc. – so customers can place orders? Luckily for entrepreneurs who want to launch a food delivery system, there are a number of proven solutions such as the GrubHub API.
- Estimated delivery time-: It would be lovely if you could give your customers an idea of when their orders will arrive. Big giants of this industry like Pizza Hut, Zomato, Swiggy for example, have already started providing this feature since customers care about their time and put a premium on promptness and accuracy. You might be wondering How is this possible? Well… we can accurately predict delivery times thanks to machine learning. Machine learning algorithms take into account many factors such as order volume, delivery location, and availability of drivers to calculate an order’s precise arrival time.
- Payments-: You can integrate multiple payment modes to make including UPI payments, for better customer experience.
- GPS tracking-: Depending on the type of devices you build for, you can use CoreLocation framework (iOS) or Google’s Geolocation API (Android) to determine a general geographic region, precisely locate a user’s device, and monitor its movements. After Uber set new standards for on-demand delivery services, companies that offer food delivery – including Deliveroo, Postmates, and Doordash – started to adopt Uber-esque delivery tracking technology.After determining a user’s location, the next step is to provide driving directions, which is extremely useful for both delivery drivers and customers. If you build an app for iOS, you’ll most likely use MapKit for directions. For Android, you’ll need to use the Google Directions API.The final component is to integrate mapping software into your app for customers. Just as Uber does, you can integrate Google Maps into both the iOS and Android versions of your app.Google’s and Apple’s geolocation libraries aren’t the only solutions for GPS tracking, however. You can also use TomTom’s NavApp or rely on the Waze Transport SDK, which will be useful if you want to build for both web and mobile. Mapbox is a good alternative to Google Maps for a lower price.“The DoorDash Tracking API allows developers to easily embed order tracking functionality into their software solutions. “
- Chat with delivery couriers and the help center-: What can you do in case a customer isn’t able to pick up the order at the agreed time? Or in case a courier has problems delivering to the chosen location? For these cases, let users chat with couriers directly in the customer application. To make this possible, enable in-chat messaging functionality.Also, include in-app chat with your help center. In case of an emergency, users need a response as quickly as possible. They’ll be annoyed if they need to search for contact information on your website or on social media.That’s why you should embed customer support chat directly into your application. Also, add a page with frequently asked questions directly in the app so users can find possible solutions without contacting your support team.
- Contactless delivery-: The current situation in the world due to COVID-19 dictates new rules for businesses, including in the food delivery sector. Contactless delivery has become a vital feature for every delivery application, protecting couriers, users, and restaurant workers.This feature is easy to implement — just enable a contactless delivery checkbox in the customer app and add a field where users can leave comments on where to drop off the order.For instance, Deliveroo drivers can now leave an order near a user’s door. Then they step back at least one meter and wait for the customer to come and collect their food. Deliveroo has stopped accepting cash. Domino’s Pizza also accepts only mobile prepayment and pre-tipping to eliminate hand-to-hand contact.
- Subscriptions-: In 2018, DoorDash introduced DashPass, a subscription service that allows regular customers to save on delivery. For $9.99 a month, DoorDash offers users unlimited free food delivery for orders starting from $15. Once a user has signed up, they can look for a checkmark to discover restaurants available on DashPass.Postmates has a similar membership service called Postmates Unlimited. Uber Eats goes further, offering a 5% discount for Eat Pass members.
Progress never stops, and the food delivery industry is changing rapidly. First, the industry shifted from phone calls to online ordering. Soon, we’ll see drones delivering food instead of drivers. Food industry giants are constantly integrating new technologies to delight their customers, and mobile and web apps with new features are being introduced almost daily. Don’t worry, though – we’ll monitor the latest trends and keep you up to date!
How much does it cost to build a beautiful & functional Food Ordering & Delivery App
Pricing is a very important factor when we will enter into any new industry or experience industry. You can add as many features to your app. But we suggest you, when we will launch something new, we will start from basic. Analyzing all features we create three sections Basic, Intermediate Functional, and Fully Functional.
If you need a Basic App or you call as MVP, it costs you around $10,000 USD. It includes a Beautiful UI, Basic Food Ordering & Restaurant listing system, overall its good for those who enter the first time in this Industry.
If you go for Intermediate app with more advanced feature lists and functions integration, custom UX/UI, tables support added, payment gateway integration, social media integration, navigator, push notifications, etc can range anything in between $10,000 to $20,000.
If you go for a fully-functional app like Postmates, UberEats, Zomato, Swiggy, DoorDash then it costs around $30,000 to $40,000* The cost range which would most likely be charged by the food delivery app development company, comprises of all – Mobile app design, development of both Android and iOS version of the app, testing, and app launch in the market.
If there is a need for making a web app for restaurants, the range would extend to $50k to $60k for Fully Functional, $15k to $25K for Intermediate App.
Apart from the above costing, this cost may vary at a global level & according to agency experience. At an average, costs can be approximated at $10,000 for app development and $10-15 per hour with the time for development ranging around 3-4 months.
For Development, you go for two ways either you hire a dedicated team for this or you can go for a Fixed Cost Fixed Time Model.
Launching of Your Product in form of App & Web: At initial stage or you can say when you will launch your app first time, launch in Beta Stage. Why Beta stage, because it helps you to understand your customer’s taste, Beta stage app is the cost-effective solution for new StartUps and you will understand what features you missed in the Initial stage or Beta Stage App. After when you will launch your Final App as a complete product that is ready to generate revenue.
And most benefit point of launch your idea in Beta Stage that you will check your idea feasibility and sustainability. Secondly, for launch your app in the Beta stage you just need basic UI/UX, and basic level functionalities or you can Your App is ready as an MVP (Minimum Viable Product). This helps in identifying weak and strong spots and gives time and scope for the improvements before launch.
After you got your first feedback from your customers, just fix them, add those features & release your app as Final Product. Also, add these analytics tools to track and monitor consumer behavior for further improvement prospects.
Now that you have gone through all the above stuff, and you know almost each and every information about “Cost and Development of Food Delivery Apps like UberEats, Swiggy, Freshmenu, Zomato, Deliveroo, Doordash”. Now its a time that you will hire professional developers, Agency or Building a Dedicated Team who will help you to convert your idea into reality. There are a lot of agencies and developers available who helps you in your app development process, but we suggest before hiring anyone for your idea, check a few parameters :
- Before you hire any developer or agency, you must check their previous work.
- Talk to them deeply, discuss your idea in detail, and know their views on your idea.
- If you building or hire a dedicated team, see team experience and most important their capacity of learning and capacity of challenge that they will face at the time of development.
- Search Agency at Google, Read their reviews, discuss with Senior Managers of Company.
- Share complete work of scope, it not only helps your team, agency it will help you also.
If still not satisfied, then have a detailed look at some of the apps for Food Delivery & Ordering (DoorDash, Deliveroo, BiryanibyKg, Chitpole and many more) that we have built for our other clients and use them and test them to your satisfaction until you feel we are the utmost choice when it comes to the development of apps for ordering food.
We would love to hear from you or suggest to drop your valuable feedback for this article. You can also comment on this blog and talk and discuss your needs with our experts and get to know them. Hopefully, we have covered all that you needed to know about building a food ordering app, in case you have any doubts/queries/suggestions. Let us know in comments or shoot us an email at firstname.lastname@example.org and we will get back to you. You can even chat with our experts or drop your inquiry.