Technology August 21, 2020 Last updated August 21st, 2020 1,630 Reads share

How to Develop an App and Business Model Like Ubereats

Image Credit: DepositPhotos

“Your order arrives in just 30 minutes, or complete refund.” The catchy tagline of many online food delivery companies is enough to grab the attention of the foodies. Now, it’s just so convenient to sit back at home and order food in only a few clicks, and before you can imagine, your food is at your doorstep. Sounds pretty amazing!! Right. Yes, the world is revolving around the convenient and easy online food delivery app.

With more technology advancing, people becoming more comfort lovers, food ordering software are becoming a necessity.

It is estimated that restaurants that will not offer online food ordering service will lose 70%of their customers.

Food ordering and delivery apps account for almost 90% of the online food market share. And three – quarters of these orders are placed by mobile.

Current Market Statistics of Online Food Ordering and Delivery Industry and What It Indicates

  • The food ordering and delivery industry is booming for sure. The facts and figures speak volumes of growth.  In 2019, the revenue from the food delivery industry was $94.385 billion, which is expected to grow to $ 134.49 billion by 2023, good 9.3%growth annually.
  • According to a recent report, the mobile food delivery app market will record a high of 27.9%growth and will reach a $16.6 billion market by 2023. The online food delivery industry is expected to reach $365 billion in markets by 2030.
  • Due to the COVID-19 pandemic, there is a 169% increase in the restaurants actively using online ordering and delivery. There was a massive 840% increase in sales volume by the online order of the restaurants.

It’s clear from figures and statistics that the online food delivery industry has high earning and growth opportunities for restaurant owners, delivery boys, and the owner of the food delivery app, of course. So take a plunge into the sea of possibilities and grow by leaps and bounds.

Top 3 Food Ordering Delivery Business Models to Generate Revenue

If you are a newbie in the online food delivery industry, then analyze these three business models before building a food delivery app. Depending on the requirements and investment, the three business models have something unique in each one.

Let’s Explore the Business Model:

  • The Order Only Food Delivery App: the name of the model itself tells the story. However, let’s expand it more. The model allows the user to connect with nearby restaurants and order food. The owner has no headache of delivery. The restaurants take care of the delivery aspects. The restaurants pay 7%to 15% as commission for each received order to the owner of the food ordering software.  Zomato is one example of the business model.
  • The Order And Delivery Model: the marketplaces like Caviar, Deliveroo use this model. This is an integrated food ordering and delivery app. The users can order and get their food delivered directly. The app owner ties up with restaurants and delivery boys and earns a commission. The delivery charges are nominal, and the delivery is fast. Ubereats app uses this model, and customer satisfaction is 60%.
  • The Fully Integrated Model: in this model, the company prepares meals, delivers to the customers. The company builds food ordering software. There are no restaurants involved in the process. Corporate clients are the main customers of such food ordering apps. They aim to prepare tasty and healthy meal plans for corporate clients at their offices. The project, however, needs substantial investment and the right resources. Metabolic meals are one good example of such a plan.

Benefits of Building a Food Ordering and Delivery App

Apart from earning huge income by unleashing the potential of the online food delivery industry, there are several other benefits that you enjoy by floating in your food ordering software.

  • The online food delivery has revolutionized the whole food industry, providing ample scope to earn millions.
  • Online marketing strategies allow a bigger and better reach to the targeted customer base.
  • Less human resources are required to operate your business as it’s an entirely automated process.
  • The food ordering app stores data and provides insights for future analysis. It helps to take future actions.
  • The admin of the food delivery app need not go anywhere. Just by a few clicks, you can coherently manage the orders and the restaurants.
  • Not only for the owner, but the online food delivery app is also creating thousands of new job opportunities every day for the delivery boy.
  • The tiny local eateries and the restaurants are earning handsome income through these apps, which might be otherwise shut down completely.
  • The workaholics, the singles, all don’t starve anymore. The online food ordering and delivery does the job for them, serving tasty meals at their doorstep.
  • Makes the party fun. With sumptuous food at your doorstep, the party is all fun and no kitchen work for the ladies especially.
  • Even the remote foodies can enjoy the food app with the urban restaurant food at the comfort of their home.

Steps to Build an Ubereats-Like App

With technology advancing in leaps and bounds, the food delivery industry is not left untouched. With the amalgamation of technology in the food delivery sector, now ordering food and enjoying dishes are more convenient and relish-able.

Following Are Few Important Steps To Build Ubereats Like App:

1. Determine Important Features to Be Incorporated in the Food Delivery App

This is the most crucial step of building a food delivery app. Below are the basic features for the customer panel, restaurant app, and admin panel.

Customer App:

  • Easy sign-up
  • Easy ordering
  • User-friendly interface
  • GPS tools like live tracking of the order
  • Find nearby restaurants and its details
  • Easy access to the menu and its items.
  • Current offers, discounts, etc
  • Address book
  • Filter restaurants by cuisine and location

Restaurant App:

  • Convenient sign-up
  • Easy management the menu like adding or removing an item
  • Status settings
  • Order status and tracking
  • Earning records
  • Help and support

Admin Panel:

  • Admin log in
  • Payment management
  • Restaurant management
  • Website management
  • Technical payment

These are the must-have features of the online food delivery app.

2. Define the Food Ordering Process

The success of the food delivery app will depend upon how smoothly the user places the order and how effectively and quickly it’s being processed.

The food order process generally goes the following way:

  • With the user ordering the food by comparing the menu and price starts the first step.
  • It’s followed by an order confirmation, and then the user login and creates a new account and provides the bank account details.
  • Payment is made, and the order is confirmed.
  • The user gets notified that the order is confirmed.
  • The other offline process goes like preparing the order and delivery.

This process should be smooth and convenient for the user.

3. Create a Detailed Database of the Restaurants in the Targeted Location

An extensive and detailed study of the restaurants in the targeted location with their specialty cuisines and price, delivery areas, etc. is essential before jumping to app development for restaurants. Additionally, there must be prior discussion regarding the commission and subscription charges to avoid future conflicts.

4. Launch Minimum Viable Product (MVP)

Initially launch a minimum viable product that is a food delivery app with basic but all-important features to allow the user to order quickly. Follow the user’s feedback to enhance the features of the app in the future.

5. Target a Specific Location and Cater to the Local Needs

To be successful in the online food delivery business, try and focus on specific areas. In doing so, you can efficiently deliver the order timely and cater to the local taste of the people as well. Tie up with local restaurants is essential, keeping in view the local flavor.

6. Integrate The Food Delivery App With Seamless Payment Options

It’s one critical criterion to be met for the success of the food delivery app. Gone are days when payments were made in hard cash. Now, in the digital era, online payment options are buzzing. Encourage contactless payment options through your app.

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

Multiple factors together decide how much it costs to build a food delivery app.

  • Firstly, the density of the features in your food delivery app will decide the cost. There is a directly proportional relationship between the features and the cost. More the features, the higher the cost.
  • Secondly, the hired experts of on-demand food delivery app development will also determine the cost. The availability of the experts and the size or number of experts in the team will constitute the cost.
  • Thirdly, the platform you chose to build the food ordering software will also play a determining factor in the cost. Generally, today the food delivery app is made to be compatible both in android and IOS.
  • Approximately, you have to invest around $30,000 to $ 40,000 to build Ubereats-like apps.
  • The budget can further shoot up to $50,000 if there is app development for restaurants.

Scope of the Food Delivery App in Future

The food delivery industry undoubtedly has great potential to grow and earn. Technological advancements are all set to hit a new high in the industry in the coming future.

Delivery Trends That Will Become the New Normal in Years Ahead:

  • Expansion of the business model: today, people prefer online food ordering business models, and the success of many online food ordering businesses is proof. There are also many regional-based online food delivery startups in this race that are doing good.
  • New Ordering Channels: apart from the general websites and app, in future food will be easily ordered through the wearables, virtual assistants, and even by car dashboard.
  • New Delivery Options:, the Chinese food delivery app, uses drones to deliver at least 70% of its order. Delivery boys will soon be replaced by the drones, parachutes, and robots.
  • Big Data: the advent of new technology like Hadoop and Spark will change the face of the food industry in the coming years.
  • Crypto Food Ordering: to ensure more security and safety, the food industry will slowly incorporate the Blockchain technology to cater to a new crypto food ordering service, wherein the foodies can order and pay for online delivery in cryptocurrency all over the world.
  • Diversification in less explored sections: like pet food section, recycled food area, health targeted special foods. While restaurant menus are being served at the doorstep, the sections mentioned above are still unexplored, and in future budding entrepreneurs will tread on this path and earn millions.

Wrapping Up

The online services have gone viral among the consumer, and the food delivery app is not an exception. It’s a real blessing when your hunger pangs are satisfied effortlessly by the online food delivery app. If you wish to start your first entrepreneur journey with online food delivery business, then go ahead with creating a food ordering app and shine among the competitors.

DepositPhotos – ubereats