A Good Time for a Start-up to Build a Food Delivery App

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In this day and age, do you find it difficult to have time making dinner alongside your busy schedule? Well you’re probably not alone. Some days can be stressful, we often skip making dinner and desire to receive a nice meal at our doorsteps. The way of life is evolving and people prefer restaurant-style food rather than to cook. Doing so in this age of smartphones is a piece of cake, the food delivery apps make it easy.

Ever since these apps surfaced they have proven to be convenient for a wide range of customers. These apps provide comfort, flexibility, and a freedom to choose from various restaurants.

This is why many business professionals and entrepreneurs are switching to food delivery startups. Moreover, due to the coronavirus pandemic accompanied by social distancing, the demand for food delivery apps has rapidly increased and this fact is acting as a catalyst for business professionals and entrepreneurs to start a venture in this industry.

Food Delivery App Pin
Image courtesy: Pinterest

But why do you make one? Especially when the market is already flooded with lots of food delivery apps. The answer is simple: it’s a time where the market needs innovation. If you have great ideas and funding, then just go ahead and innovate the way the people order their food but before you continue there are some factors that you need to consider while opting for food delivery app development.

Market Analysis

It is better to know the market first before entering into any venture. According to a recent report by Statista it is expected that the annual growth rate of online delivery apps will increase by 7.5%, with a business value of US$ 164.002 million by 2024. The food delivery market is huge and it’s a promising business to invest in, just like Uber-eats, a Sweden based food delivery startup which is a most popular application. According to Statista it secured the third spot via download in the 2018 ranking of the Best Food and Drink application in Canada.

What type of business Model can you go for?

There are two business models that you can consider when starting a food delivery startup.

Aggregator:

An application following this model allows customers to browse a wide range of restaurants and menus. After the user makes his choice and fulfills the order details, the order is processed for delivery. Thus, the main function of this third-party app is to connect the two parties. Hence the delivery part is taken care of by the restaurant.

Logistic Service:

In this model, you give logistic support to the restaurants in terms of food delivery. The delivery of the order is managed by the application itself. This model gives the benefits of tracking the order status and handing over the food to the delivery person coming from your end and getting paid for the order.

So now we’ve analyzed what different types of online food-delivery apps model are, let’s take a glance at the targeted audience.

Image courtesy: Pinterest

Know your Audience:

There is no doubt that most people want to indulge in a delicious meal, but when it comes to business it is necessary to recognize your targeted audience. Young people and middle-aged people nowadays prefer food to be delivered to their doorsteps rather than going out. Furthermore, due to coronavirus pandemic and social distancing it has become a new norm to get food delivered. Knowing your audience will help you in building the application and its functionality. It is efficient to make your application distinguish from other applications available in the market.



Key features your food delivery application require:


It’s essential to have great features in your app that help you to keep customers, therefore make sure before starting an online food delivery business your app has certain features that can contribute in the growth of application:


  • User-friendly Placing orders process
  • Scheduling deliveries
  • Tracking deliveries on a map
  • Cash on delivery and easy payment methods
  • Rating or providing feedback on deliveries
  • Chat support
  • Push notification
  • Interactive UI
  • Order history and confirmation



Pick up Technology Stack:


Based on the business model of your food delivery startup, you may need a variety of technologies. The development stack you need to develop an application is for secure payment you can use Square API, Braintree, Stripe. For adding restaurant information, you can use Grubhub API or FourSquare API.For registration and authorization using Facebook SDK login. To find user location use Core Location Framework, Google Places API. To find directions use Google Maps, Map Kit. For clouds AWS, Azure. For storage use Amazon Cloud Storage.



Be Prepared for Challenges:


Currently, the food delivery market in most countries has already matured and the projected growth forecast over the next five years has been around 3.5%. The new entrepreneurs will face competitions and it will be challenging for them to settle in the first place. The market of food delivery startups in Sweden is already crowded but you don’t need to worry, you will have to focus on new ways to attract restaurants and customers both in terms of
features and design so that you can bring something new to the table.

Other challenges you can face are customers and restaurants not being satisfied. These problems may occur with the following; incorrect orders, restaurants ignoring customer instructions, wrong prices, poorly handled food. You can handle these challenges easily; all you need is a focus. To flourish and distinguish your app from others you can offer discounts and 24 hours’
support.

Finding an app development company can also be a challenge for developing your idea into reality. The right kind of company will never play with your budget, deliver quality services, and meet the app deadlines.



Analysis of App Development Cost:


The app developing companies generally charge per hour and the cost may vary significantly. For various regions, it can be distinctive. The food delivery app development cost depends on the features that you will include in the application. The nature of a food delivery app ultimately determines by the pricing either it is native, hybrid or web. European developers charge $100 to $200. The total hours needed for the job are almost
300-400 hours. Consider the average cost of development of around $50 to $100
per hour. The cost of the App can range from $15,000 to $30,00. Furthermore,
make sure to select the right application development company for your app.



Know your Competitors:


Before you start the survey market take a look at what your competitors are doing. Stockholm based food delivery apps are very popular in the food delivery market. Foodra and Ubereats are popular and most used applications in Stockholm. Ubereats business model encouraged millions of food service startups to enter the market. Another successful Sweden based food delivery startups are favo and wolt delivering food apps that have their unique features that are quite competitive in the market.



Norgic Suggest:


Delivery business requires a stable profitable approach. To be successful in this market first start locally and then gradually scale your business. Monetize your application and earn customer trust to make your app successful. For developing your idea into a business application make sure to hire a great developing team. As a professional custom app development company we can surely help you to make your application prosperous in the market. Get in contact with us.

If you are planning on starting a food delivery app company, then the time is now. Food delivery applications are overwhelming and the market is still not saturated yet. There is plenty of room for innovation and opportunities. You can either deal with challenges or you can turn your back from the competition. You just need to believe in yourself and select the best solution to launch your application in the market.

 

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