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    Food Delivery App Development for Startups 2024: Manual

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    By on Business

    The Current of Food Industry in 2024

    Despite facing challenges and negotiations among major players like DoorDash, Postmates, and Uber Eats at the beginning of 2020, the food delivery industry witnessed a dramatic transformation with the onset of the pandemic. As noted in Celadon, the global lockdown led to an unprecedented surge in demand for on-demand food delivery services as people sought essential products and meals delivered to their homes.

    While industry giants seemed to dominate, the pandemic also gave rise to a wave of on-demand food delivery startups globally, challenging the notion of complete market control by established brands. Noteworthy examples include Glovo, a Spanish startup collaborating with brick-and-mortar businesses for restaurant take-out and grocery deliveries, securing an impressive $528 million in funding.

    Similarly, Gousto, a UK-based meal-kit service, experienced a boost, raising $41 million during the lockdown period. Gorillas, an on-demand grocery startup with a unique promise of delivering goods in ten minutes or less, exceeded its initial $1 billion valuation by securing $290 million in funding. The pandemic, rather unexpectedly, opened up significant opportunities for emerging players in the on-demand food delivery app development services.

    The Future of the Food Delivery Sector

    The prevalence of online food delivery services has soared, fueled by the pandemic, but the enchantment may not be eternal; the growth driven by the pandemic is expected to diminish eventually. Conversely, on-premise services are anticipated to persist and thrive even post-pandemic.

    According to Datassential records from September 2020, 59% of food delivery consumers expressed their intent to continue using delivery apps beyond the pandemic’s conclusion.

    Enter the era of contactless delivery—a concept gaining prominence in our AI-driven world with the integration of drones and robots into the delivery landscape. During the pandemic, the industry embraced various technologies to uphold safety and hygiene protocols. Customers, too, shifted from cash-on-delivery to cashless payment methods, facilitating contactless deliveries. These methods not only minimize unnecessary in-person touch and interactions but also mitigate associated risks.

    In light of these market insights, let’s delve into some on-demand food delivery app models.

    Apps for On-Demand Food Delivery: Business Models

    If you’re considering developing a feature-rich food delivery app, it’s crucial to understand three main business models and their respective advantages. Let’s explore these categories:

    Platform to Consumer Model

    • Utilized by renowned restaurant delivery service apps like Uber Eats and DoorDash.
    • This model aggregates offerings from small restaurants, enabling customers to order through the app.
    • Restaurants manage their own fleet of couriers.
    • Profitability stems from both customers and restaurants, with platforms charging a fixed fee for each transaction.
    • The value proposition for restaurants lies in automating orders through an optimized mobile app/web platform, replacing traditional phone call-based food ordering.

    Delivery Service Aggregators

    • A subset of the Platform to Consumer model but distinct in its operation.
    • Acts as a bridge between customers and numerous local restaurants.
    • Offers customer support on behalf of restaurants in case of issues with deliveries or orders.
    • Charges a fixed fee on successful transactions.
    • Examples include GrubHub, JustEat, and Delivery Hero.
    • Some companies explore subscription models, where customers pay a monthly fee for additional benefits like discounts and free home delivery.

    Restaurant-to-Consumer Model

    • Restaurants directly serve food to customers from their own locations.
    • Examples include McDonald’s, Burger King, and Domino’s.
    • These companies modernize their approach by adopting food delivery through their websites, apps, or joining delivery platforms.
    • Collaboration with food delivery partners like DoorDash allows them to streamline the delivery process.
    • Domino’s, as a notable example, has introduced innovations such as a voice recognition system for orders, a tracking app for delivery status, and even testing drones for automated delivery.

    These business models offer distinct advantages, catering to diverse needs within the food delivery ecosystem.

    Provide a Food Delivery App with These Effective Features

     Let’s break down the essential features for each module of a food delivery app – Customer’s App, Delivery Driver’s App, and Admin Dashboard:

    1) Customer’s App Module

    • Search Filter: Enables users to explore cafes and restaurants based on location and food preferences.
    • Order Placement: Users can easily place orders, add items to their cart, and complete the order placement process.
    • Real-time Location: Allows customers to track their orders through a geolocation map, providing transparency on delivery time.
    • Payment Gateway Integration: Facilitates online payments using various methods, ensuring a seamless transaction experience.
    • Reviews and Ratings: Allows users to provide feedback and ratings, fostering competition and improvement in service quality.
    • Order History: Provides a convenient way for users to manage and review their past orders.
    • Nearby Restaurants: Displays top and nearby restaurants based on the user’s location, along with menu details and reviews.

    2) Delivery Driver’s App Module

    • Registration: Hassle-free signup/login for drivers using phone numbers, Gmail, or social media.
    • User Profile: Allows drivers to upload basic information, making it accessible to users.
    • Alert and Notification: Notifies drivers of new orders even when the app is not in use, ensuring timely responses.
    • Manage Multiple Deliveries: Enables drivers to handle multiple delivery requests simultaneously.
    • GPS Map Integration: Provides GPS-guided routes for efficient and timely deliveries.
    • Call/Chat Option: Allows communication between drivers and customers for issue resolution.
    • Order History: Let drivers view their delivery history and payment records.

    3) Admin Dashboard Module

    • Performance Analysis: Monitors user and delivery activity, order status, and driver information.
    • Manage Order Requests: Streamlines the management of food parcel pickups, deliveries, and scheduled orders.
    • Real-time Update: Tracks the availability of delivery agents and restaurants in real-time.
    • Payment and Commission Administration: Allows management of payment and commission rates for food orders.
    • Offers and Discounts: Enables the admin to provide discounts and coupon codes.
    • Push Notifications: Sends alerts to the admin when drivers accept orders and are en route for parcel collection/delivery.
    • Restaurant Management: Provides tools to add or remove restaurants from the app.
    • Campaign Management: Allows the admin to run and manage campaigns via email, SMS, and social media marketing.

    These features collectively contribute to creating a comprehensive and user-friendly food delivery app.

    In Summary

    For business owners contemplating the development of an on-demand food delivery app, a comprehensive approach is essential. This involves delving into in-depth market research, acquiring industry knowledge, and establishing a well-defined budget. To assist in this endeavor, we’ve provided insights into on-demand food delivery features, business models, revenue structures, and the relevant technologies in this guide. This information aims to guide you in making informed decisions towards creating a perfect food delivery app.