Most of us can't live without food delivery. The pandemic and safety regulations made food delivery startups like Uber Eats, Glovo, and Just-Eat even more popular. Restaurant visitors may now order their favorite dish and wait for a courier to deliver it.
Food orders are the only way restaurants make money, whereas dine-ins are still prohibited in several countries.
Even though food delivery apps are becoming increasingly popular, many restaurant owners malign the platform for unfair service fees that take away from their modest profit margin.
That is why savoy restaurant owners are considering launching food delivery marketplaces comparable to other popular food delivery applications. As the saying goes, lead them if you can't beat them.
The Challenges of a Food Delivery Market in 2022
In 2022, the food delivery business will still be growing. For the following several years, it appears that the future of a food delivery application owner has been promising. However, there are still two main issues for established businesses and startups to overcome.
While it may appear that the industry giants have a monopoly on the market, this isn't completely accurate. Companies with their food delivery platform worldwide have grown in prominence during the pandemic and continue gaining power.
The on-demand food delivery app works for all types of restaurant business models. Whether you own a single restaurant or a restaurant chain, the custom food delivery app solutions will benefit your entire business because of such a delivery model.
Gousto, a meal-kit provider from the United Kingdom, raised $41 million under restricted conditions. Gorillas, an on-demand grocery startup aiming to deliver products within ten minutes, raised $290 million and surpassed its original one billion dollar valuation.
There are a lot of similarities, though. Customers choose the services they are already familiar with, such as UberEats. That is why your food delivery app must provide a unique service or features to pique the interest of your target audience.
The company ConverseNow made headlines when it launched an AI-powered voice ordering assistant. Its ground-breaking technology allows restaurants to automate order taking and processing via numerous channels, freeing staff for other activities.
Appliance and Convenience
Lowering prices is another effective approach to attracting consumers and growing a large restaurant network wanting your food delivery service. Third-party delivery services such as Uber Eats, DoorDash, and Seamless are prohibitively costly, with fees reaching up to 30% per order. These costs are a significant financial strain on restaurants trying to overcome the pandemic's problems.
Restaurant owners might be attracted to a model with low or no costs, which will undoubtedly make your restaurant app popular. However, it also has a disadvantage if you don't charge restaurants, how can you make your app profitable? Ad-based monetization or cross-selling may be beneficial.
Food Delivery App Features
Regardless of the business model you pick, it's clear that you'll need to provide clear pricing and excellent service. Apart from fundamental features, your software should consider current industry patterns to satisfy users' demands and expectations. Let's look at what should go into your food delivery app's essential features, from the bottom to the top.
App for Customer
Users should be able to discover nearby restaurants and their menus simply in this app. The customer app should include the ability to make ordering food easy and search with filters and order tracking capabilities for greater convenience. Consider adding the following features.
It's one of the basic features of many food delivery apps. Personalizing a user's account is crucial to building a bond with them. An application that has already saved your data, favorite restaurants, or types of dishes is much more likely to be used.
It's self-explanatory, but it is worth adding that filters such as cuisine, the country of the dish, or price ranges are the most common issues when choosing where to order food. It makes the ordering process a lot easier and more convenient.
Menu and Payment
During food delivery app development, remember that everyone appreciates convenience, so it is worth considering the option of ordering directly from the restaurant's menu and selecting your favorite dishes on your food delivery application. Choosing the most convenient payment method should also be part of the application.
Real-time Delivery Tracking
It's a familiar feature of the app, and many top food delivery apps have live tracking of your order. We said we wanted to go beyond the scheme and stand out from the crowd. However, this is not the case here. The popularity of this feature shows that users are demanding to be able to see where their order is. Customers want to check where their delivery is. You can use a tech stack based on popular Google Maps, just like Uber Eats.
They can sometimes be annoying, but instead of anger, they will certainly bring you joy by letting you know that your meal delivery is on its way.
Assessment and Support
Each restaurant's offer looks more or less promising and attractive, but it is worth learning about specific services. Are they worth the money? Are the dishes not spicy? Do they include vegan dishes? You can get answers to these questions through ratings and reviews from other users. In addition, be sure to enable users to contact someone from the support team from your app.
App for Courier
Delivery personnel should also use the customer's app to get their food. It should enable food delivery service providers to access pending orders quickly and must include a built-in GPS navigation system for pickups and drop-offs. It is a person responsible for delivery time and making a delivery process smooth. Because of that, he deserves a great working app. The following are some of the most critical food delivery app characteristics.
Login and Verification
This feature is intended for devices not assigned to a single provider. Someone often completes the shift and transfers the device to another supplier. It is where the multiple profiles and verification feature comes in handy.
The courier should be able to, inter alia, check order details and accept or reject a delivery order. The application is to facilitate his work and make contact with the employee or client clear.
The courier himself should confirm the acceptance of the order and its delivery. He is the first person that is responsible for order status change. It can be solved even with push notifications.
App for Restaurant
A restaurant app's primary purpose is to notify partner restaurants about incoming orders. Restaurant managers may utilize the app to assign delivery to a free courier when an order is complete.
The same application should be available to the customer and the courier. To make your offer as attractive as possible, you should think about creating an order management system. It is here, in the restaurant, that the restaurant staff should receive, accept, change order status and confirm orders placed on the website and mobile application. A manager should be designed to be convenient for multiple restaurant types.
History of Orders and Notifications
Looking at the order history, dealing with the problems that will surely arise when providing this delivery service is much easier. The right software can save a difficult situation so that both the customer and the seller will be satisfied.
It is where it should be possible to settle orders and grant coupons and discounts. The application should be complete and allow for comprehensive handling of a cash register, online payment, and settlement of employees' salaries.
Difficulties when Developing a Food Delivery App
As we mentioned before, creating a new, well-functioning, and favorite food delivery app is not easy. It is mainly due to well-developed competition and the fact that they have been on the market for some time.
However, Glovo or Wolt had a less financial and technical background. Yet, they are used daily, so do not lose hope; if you put into your exciting idea, you can succeed. However, experienced competition is not the only obstacle that appears on the road during food delivery app development.
- Adapting to the Client - Customers are spoiled for choice, with marketing firms in the food delivery industry raising their game to such a degree that consumers have a hard time choosing. It is hard to predict what customers will need in the future.
- Unstable Market Prices - Food costs are also highly unpredictable. A variety of factors influence the prices of food products. Food delivery businesses frequently struggle to keep up with market rates and discover the best pricing method.
- Adhering to the Food Quality Standards - Due to a significant need for on-demand orders, food delivery from a restaurant far away from the consumer's home is extremely difficult for delivery partners. The distinction between the cuisine served at the restaurant and the one that is delivered to one's doorstep creates a significant gap for food delivery businesses to overcome.
- Poor Food Handling - One of the most common problems that delivery personnel confront is incorrectly handling purchases due to a lack of training. Many consumers are concerned about uncleanliness, which is one of the critical reasons restaurants must give adequate training to improve food delivery and retain control over delivery times.
- The Logistics - Food delivery serv confronts enormous challenges in the logistics department. Whether to keep the delivery range limited to a few locations or serve areas with wider geography, manage higher orders from one location, arrange the correct number of vehicles, and ensure food quality are only some of the issues that must be solved.
- Food Delivery App Cost - It's no secret that a comprehensive application that everyone can and wants to use requires a lot of work, quality, and effort. Hiring a good development team is associated with a considerable fee.
How to Make Money via Food Delivery App
The application costs are high, but it is worth remembering that its profits can be equally high. Providing your application is an excellent way to earn money, apart from using it yourself. Here are some ways to monetize this app.
If a restaurant doesn't have its delivery team, an application like this may be used to deliver meals for a fee. Delivery fees are determined by the time it takes to get the food from one location to another.
Another approach to food delivery applications makes money is through advertising. A delivery service may charge extra for sponsored advertising. Advertising in a delivery application might mean placing a business at the top of search results for some time.
A commission percentage is another method to profit from a food delivery app. Depending on the order amount, online food delivery apps may work with restaurants on pre-negotiated commission fees. Just Eat, for example, makes money by charging restaurants a fee for each transaction.
An alternative method for monetizing your product is to add a delivery surcharge during busy periods. UberEats, for example, utilizes surge pricing during lunch and dinner hours. During peak hours, UberEats restricts menus and locations to offer them later.
Tips For Food Delivery App Development
A simple app isn't enough to compete in the world of giants of ordering systems. It is advisable to include complicated and contemporary elements in your program. Here are a few samples of cutting-edge solutions utilized by food delivery apps:
- Ordering via Social Media Accounts - Over 13,000 restaurants may now take orders through the "Order Food" button on their Instagram profile or within stickers in their stories.
- Smartwatch with Tracker - Users can order pizza from their wrists by using this function, which shows information about the status of the order on the user's smartwatch.
- Virtual Assistant - Why not utilize technologies like Alexa and Siri as our digital pals when they quickly became our digital companions, assisting us with various simple activities?
With the COVID-19 catastrophe, food delivery via mobile has emerged as one of the previous decade's fast-growing industries. With the COVID-19 crisis, it has swiftly become a must-have service. There are many investment possibilities in the industry and fierce competition. However, the prospects for success are excellent with a solid business plan and a flexible approach to product development.
A well-performing, attractive mobile app is critical to the success of a food delivery company. Hiring an experienced software development company like mDevelopers is the most effective approach to creating such software. You may anticipate a high-quality final product and a trustworthy partner willing to share knowledge and advice if you work with us.
About the author
Milo Miszewski - Chief Executive Officer
Milo founded mDevelopers in 2010, bringing his over 10 years of sales management, B2B solutions, and business relations. Milo acts as the general director, as well as a mentor and advisor. In everyday work besides managing the company, he supports the sales department in networking and building relationships.