This blog is comprised information for the startups who have been looking for surefire ways to create a successful business model in the category of on-demand food delivery app like Seamless, Uber Eats, and DoorDash. Curated five factors, which you can consider during food delivery app development.
Over the last few years, the on-demand food tech industry has seen sudden unparalleled changes, in terms of offerings and customer preferences. The tendency of people dining out or ordering food from outside has seen remarkable growth over the past few years.
Well, there’s no room for doubt, FoodTech companies have completely changed people’s food habits. However, there are two primary factors i.e. lack of time and convenience, which are behind the sudden growth of any on-demand food delivery service. According to the latest report from TechCrunch, ” With the total funding amount of $678M, the on-demand food delivery app, Postmates has bagged $100M in Series F round of funding, led by Tiger Global Management, BlackRock, and Glynn Capital Management.”
On the other hand, DoorDash, on-demand food delivery app, has ranked in among the top food delivery apps by downloads worldwide for 2018, as per the report from Sensor Tower.
Furthermore, it is pivotal to look at the shape of the on-demand food delivery market as of now. Check them out.
The Shape of On-Demand Food Delivery Market
- The Growth of FoodTech Companies: As per the report, “The growth of FoodTech Companies is expected to grow over $250.43 billion globally by the year of 2022 at a single digit CAGR (Compound Annual Growth Rate) via the forecast period”.
- Revenue in Food Delivery: In the year 2018, the revenue is expected to US$121,848M.
- The Annual Growth Rate (2018-2022): It is expected to show an annual growth rate of 17.7% resulting in the market volume of US$234,206M by 2022.
Image Source: Statista
- The Largest Segment of Food Delivery: ‘Online Takeaway’ is the largest segment of food delivery with a market volume of US$110,044M in the year 2018.
Image Source: Statista
- Undeniably, the food delivery market has the potential for robust growth, which you can see in the below image.
Well, it seems the never-ending opportunities are out there if startups are planning to invest in the food ordering apps like Postmates or Uber Eats.
5 Factors That Startups Need to Look Upon Before Creating On-Demand Food Delivery Apps
1. Pain Points of On-demand Food Industry
Undoubtedly, on-demand is a competitive space. Right now, people have multiple food delivery apps to choose from. And, there are Seamless, DoorDash, Uber Eats, and GrubHub.
When it comes to the on-demand food delivery, it is all about to provide high-quality customer experience, richness in taste, and delivery food only on time to customer’s door or right timing. Therefore, affordability and accessibility have been significant pain points for the on-demand food industry. And, this is what startups need to look upon before diving into the world of food delivery industries.
Bottom Line: All you need to do as a startup is that to make food delivery service – more personalized for users as what Uber-like apps – Uber Eats do. And, currently, Uber Eats stands above the rest. Additionally, being a newbie in the food industry, it is also essential to realize the pain points of customers as well as analyzing the rivals of your niche, and providing solutions to them.
2. Customers Seek One-of-a-Kind and Consistent Experience
With more and more entrepreneurs and startups entering in online food delivery industries, the concept of ‘one gets everything under one umbrella’ no longer excites to customers. In short, the customers’ choices are leaning towards those food delivery services, which can provide them ‘one-of-a-kind’ and ‘consistent’ experience. And, this is what customers seek from an online food delivery app. If you are planning to create apps for food delivery, then this factor is important to consider during food delivery app development.
3. Technology Enhances The Delivery Orders
For startups, it requires careful planning and step-by-step approach before heading into on-demand food delivery sector. All it requires the essentials of the properly trained staff, working with the drivers, and educating customers.
Now, the question is, how can you surmount the service in the niche of on-demand food delivery? For this, startups need to have the best food delivery app along with the unique and useful features, plus it must take easy steps for ordering food. In a nutshell, technology has revolutionized the food delivery industry.
4. In-House Fleet Versus Outsourced Fleet
There’s nothing like right and wrong perspective to scaling the food delivery industries. Undeniably, it is a quite complex task to penetrate into new cities, towns, and countries. Due to the fact that, customer behavior, city infrastructure, and many things do vary from city to city or country to country.
Whereas, an in-house fleet gives opportunities to maintain and control over the entire supply chain to food delivery companies. On the other hand, it is easy for restaurants, which want to grow their delivery operations in order to choose a delivery partner, which will manage the entire process with an established platform as well as operating fleet.
Before entering into the world of on-demand food delivery sector, it is important to know that besides the direct costs related to an external partner or outsourced fleet for managing food deliveries, there are also another indirect costs, which come from when your business would rely on others to handle your food deliveries.
Therefore, you just need to go with ‘in-house fleet’ when it comes to choosing between the in-house fleet and outsourced fleet. To choose the in-house fleet, startups would not pay extra charges for delivering their own products to the customers.
5. The Customer Behavior
Generally, customers come to the very new online food delivery platform, have their different types of needs and expectations from the particular food ordering mobile apps. For startups, we’ve compiled some points on customer behavior which you can check once before heading into online food delivery industry. Have a look.
- One of The Biggest Variables is – Speed of Delivery: When it comes to customers’ satisfaction, then the ‘speed of delivery’ is recognized as one of the biggest variables. And, this is what in which entrepreneurs or startups need to work, who have been missing out so far. As per the report from McKinsey, “With an average 60% of consumers across markets referring it as a key factor. Well, the optimal wait time is 60 minutes.
- Orders are Placed From Home, in general: As per the other report, “The maximum orders i.e. 82% were placed for homes, on the other hand, 16% were placed from workplaces”. That means, people do prefer to order the food from home only.
- Orders Spike on The Weekend: Well, the highest-volume days of orders for on-demand delivery service platforms are Fridays, Saturdays, and Sundays, when 74% of orders are placed, in general.
Now, let’s check out other popular on-demand food delivery apps, which are widely used by people globally.
The Food Delivery Apps, Which Are Widely Used by People Worldwide
With a flurry of on-demand food delivery apps, we’ve rounded up some of the most popular online food ordering mobile apps, check it out.
Food ordering apps are gaining pace in recent times. Either, you as an entrepreneur still have not integrated white-label food delivery apps like Postmates in your business, or being a startup, you are still thinking how to create an app like Postmates, then it would be better to consult or hire android app developer first.
However, all top of it, if you may have queries like –
- How much does it cost to create food delivery apps like Postmates, Seamless, Uber Eats, or DoorDash?
- What does it take to develop an on-demand food delivery app?
- I have an on-demand food delivery app idea, how can I validate it from a top mobile app development company?
- What is required to design and develop an app for food ordering business?
- I need to discuss the MVP (Minimum Viable Product) of an on-demand food delivery app. And, what will be the procedure?
Then, you can get in touch with us through contact us form and one of our sales representatives will revert to you as soon as possible. The consultation is absolutely free of cost.
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- Complete Food Delivery App Development Guide for Startups in 2020
- 3 Lessons to Develop Food Delivery App Like Delivery Hero, Zomato
This page was last edited on May 12th, 2020, at 4:36.