The business of delivering food from diverse restaurants to the homes or offices is undergoing dramatic growth across America, Asia, and the Middle East. With a rapid rise in the on-demand food delivery niche, there are new Internet platforms, which are attracting considerable investments and high-value investments. Talking about the Indian food delivery startup, “Swiggy has secured $100M in its latest round of funding”, as per the TechCrunch report. Furthermore, according to the report from TechCrunch, “GrubHub has acquired payment and loyalty company LevelUp for $390M on 25th July, 2018″
Additionally, as per a report from TechCrunch, “The on-demand delivery app, Postmates has secured $300M in Series E round of funding valued at $1.2 billion.” The round was led by Tiger Global Management. Postmates has already launched its food delivery service in 134 additional US cities.
Two Tiers of Online Food Delivery
When it comes to talking online platforms, there are two types in the niche of on-demand food delivery i.e.
1. Type: Aggregators
2. Type: New Delivery platform with logistic support
The very first type is – aggregators, which has been emerged a few years ago.
The second one is “new delivery” players that are appeared in the year 2013. However, both types allow customers to compare menus, place orders, and post reviews from a range of restaurants by accessing only a single food delivery app.
On the other hand, “aggregators”, which is the part of the traditional-delivery category. In simple terms, it takes orders from customers and routes them to restaurants, in which they handle deliveries themselves. In contrast, the providers under the label of new delivery build their own logistics networks and offering delivery for restaurants, which don’t have their own drivers.
Let’s elaborate on these two terms – Aggregators and New delivery.
When it comes to food delivery, aggregators is built on the traditional model. Simply, it offers access to multiple restaurants via a single online portal.
How Does It Work?
It simply works by logging into the app or website, and users can quickly compare menus, prices, and reviews of other users. However, the category ‘aggregators’ collects only a fixed margin of orders, which are paid by the restaurants only. Plus, restaurants handle the actual delivery by themselves. And, there are no additional charges to user/consumer.
2. New Delivery
Alike aggregators, the second type – New Delivery allows users or consumers to compare offerings, plus order meals from a group of restaurants via a mobile app or website. In this category, the providers also offer logistics for the restaurants. In addition, it allows providers to open a new segment of the restaurant market to home delivery.
Moving ahead and let’s have a look at the most common yet essential features, which any on-demand food delivery app possess.
Must-have Features of Successful On-demand Food Delivery App
In order to create an app like GrubHub, Swiggy or Postmate, there are some significant features to make your app stand-out. With the experience of developing 20+ startup apps in the same niche, we’ve compiled a list of essential features along with the technologies in the niche of on-demand delivery solutions. Have a look!
1. Search and Menus
The first and foremost thing, for any on-demand food delivery startup, it is essential to take the first step to collect and display the right data only. In this way, you can provide your users with the right information about the particular restaurants and cuisines.
Now, the question is – how can you provide all the necessary information about the localized restaurants, addresses, and menus? So, your users can easily place the order within the local food delivery app. Fortunately, for all startups and entrepreneurs, who are looking for food ordering and delivery solution, there are GrubHub’s API and Foursquare’s API.
Technologies We Use:
- GrubHub’s API
- FourSquare’s API
The GrubHub’s semi-public API is used to get back the entire information related to the menu of the restaurants from the databases, and it can be 10,000+ restaurants. On the other side, FourSquare’s API connects customers with restaurant listings. However, this technology – FourSquare is used by Postmates food delivery app.
2. Secure Payment Integration
Another must-have feature is ‘in-app payments’. You must notice that it is pretty hard to find an app that does not have an in-app payment option.
Technologies We Use:
For developing an on-demand app with secure payment integration, our mobile app developers use:
- Square’s API
Food for Thought: To provide a seamless user experience, it is highly recommended that you must provide different payment options.
3. Accurate Time of Food Delivery
It would be great if you can provide your users with an accurate time of food delivery. Because nobody would like to wait. Therefore, in order to cut this, our restaurant mobile app developers make use of ‘machine learning algorithm. Machine learning algorithm includes many factors such as delivery location, order volume, and availability of drivers.
4. GPS Tracking
Planning to build an online food delivery system, it is pivotal to aware of the integration of GPS tracking. From determining user’s location to check driver’s real-time location, we have mentioned technologies for GPS tracking that we used while creating on-demand food delivery app:
To determine the app user’s location:
- Core Location Framework (for iOS)
- Google’s Places API (for Android)
For providing driving directions:
- MapKit (for iOS)
- Google Maps API (for Android)
5. Ratings and Reviews
The concept of feedback plays an important role when it comes to providing excellent customer services as well as to grow your business after knowing your customers’ genuine feedback.
However, behind the app under the tag of food ordering and delivery solution, there are many factors as It includes restaurants and delivery persons. Therefore, you would not let your service down due to some issues like bad taste or late delivery of food because of freelance delivery drivers.
That’s why, it is important to provide your app users with the feature, which is usually named as ‘ratings and reviews’. In addition to this, within the app, you can also provide your users to rate individual chefs and their dishes.
The Shape of Current On-Demand Food Delivery Market
Across the globe, the revenue of food delivery segment amounts to US$121,848M in the year 2018, according to Statista report.
However, there’s one another report, “The market’s largest segment is the segment “online takeaway” with a volume of US$110,004M in 2018”.
The market for on-demand food delivery has already matured enough. However, for upcoming years, the data is also worth mentioning here. Let’s have a look!
Expected Revenue of On-Demand Food Delivery Market: According to the latest data from Statista, it’s predicted an annual growth rate (CAGR 2018-22) of 17.77%, resulting in a market volume of US$110,044M in 2018.
Talking about the three on-demand food delivery apps or giant startups i.e. GrubHub, Swiggy, and Postmates, then its Google Trends reflects like this:
The above-given data from Google Trends shows that it is quite hard to beat these on-demand food delivery startups as they are strong competitors. Moreover, these platforms have been growing rapidly. It would be worthy to look upon the individual growth of particular platforms – GrubHub, Postmates, and Swiggy.
- GrubHub: In the below-given image, you can see the average order volume of GrubHub.
- Postmates: As per the below image of Postmates growth, you can see how sharply deliveries has grown.
Image Source: venturecapnews
- Swiggy: According to the latest report of Swiggy app, the growth in daily transaction is growing upward.
After going through the overall data of on-demand food delivery providers, you must have got the idea, it’s not easily going to end the era.
Wrapping It Up
So, the aforementioned features are essentials for creating Swiggy food delivery app. Here, we as a mobile app development company provided the technologies, which are used by our mobile app developers to create on-demand food delivery apps like GrubHub and Postmates. Moreover, it will also ensure our future customers that their project is in safe hands.
Still, if you have any questions like:
- How much does it cost to create an app like Swiggy, GrubHub, or Postmates
- How should I validate my on-demand food delivery app idea?
- What’s the importance of creating an MVP (Minimum Viable Product) of food delivery/ordering app?
- How long does it take to make an app like Postmates?
- How to make money with an app idea?
All you just need to drop your query into below given form. And, we’ll get back to you as soon as possible with the optimal solutions. The consulation is absolutely free of cost.
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This page was last edited on May 19th, 2020, at 5:31.