Are you currently running a restaurant business using a food delivery app? If not, then you can seriously consider this question. According to Business Insider, the mobile food delivery business was one of the fastest-growing industries in 2020. If you want a piece of this market, then it’s time to go into a trend and to think about food delivery app development.
In this article, we are going to discuss the concept of online food ordering, the main types of food delivery applications, their features, recommended technical stack, etc. So, let’s move on to the details.
Why you should create your food delivery app
With dozens of successful examples of food delivery applications, the market seems to be crowded. Nevertheless, there is enough space for new promising names, especially during the COVID-19 pandemic. Statistics only confirm it. Here is a list of interesting numbers:
- 60% of U.S. consumers order delivery or takeout once a week;
- 23% of people say they will only order for pickup or delivery for the rest of 2020, rather than dining on-premise;
- research predicts that there will be a 3.3% dip in online ordering in 2021 after indoor dining picks back up at full capacity;
- three in 10 restaurateurs predict that off-premise demand will remain at pandemic levels even after the pandemic ends;
- order sizes on third-party delivery platforms increased during the pandemic. Grubhub saw a 20% rise in average order size compared to 2019.
Are you interested? So, let’s move on to discussing the biggest players in the market.
Who are the biggest players in the market?
Several leaders share the largest market segment. If you decide to invest in developing a food ordering app, you will have to compete with these companies.
Therefore, let’s take a look at the main market players.
When it comes to the most popular food delivery apps, UberEats should be mentioned. This globally renowned app holds 27% of the US food delivery app market and offers services in over 500 cities in 24 countries.
UberEats Revenue in 2020 — $2,19 billion.
Postmates is an American company that offers delivery of meals and other goods prepared from restaurants. As of February 2019, Postmates operates in 2,940 US cities.
Postmates Revenue in 2020 — $1.2 billion.
Instacart is an American company that operates a grocery delivery and pick-up service in the United States and Canada.
Instacart Revenue in 2019 — $3,000 million.
What are the main types of food delivery apps?
Currently, there are three basic business models of food delivery. Let us get into the details of each one of them.
- Order Only Model
In this type, the food delivery application acts as a platform between customers and restaurants. The app allows users or customers to place orders at a restaurant of their choice. Restaurants benefit from these platforms as they can reach a wider audience without having to run promotions or advertisements for their restaurant anywhere. After that, customers or users of the application can easily place an order from their favorite restaurant or a new restaurant that they see on the platform.
- Order delivery model
This model offers great ease and support for food startups that don’t have the resources or bandwidth to have their delivery system. From a restaurant standpoint, this model brings many benefits. The adaptation of this model eliminates the need to maintain personnel, vehicles, or manage and deliver deliveries.
- Fully integrated model
It’s a new type of food delivery model. The app owner will take care of everything here, from preparation to delivery. Most of these establishments have limited menus but offer customers the convenience of preparing and delivering all their food on their doorstep without having to worry about a thing. These businesses have their kitchens, or they partner with a chef to deliver food hot or frozen, ready to be heated and served.
According to your needs, you may choose the most suitable model.
Features of food delivery app
It’s not enough to create a food delivery app. You have to develop an entire ecosystem for the platform to work for all parties.
A typical food delivery application has four parts:
- Client application
Users can browse menus and place orders via iOS or Android apps.
- Restaurant application
Restaurants can view and manage orders.
- Courier application
Couriers can see the order status and shipping address.
- Admin panel
The product owner and team can manage the entire platform. They can add and remove restaurants, process payments, and more.