Complete Guide To Start Online Food Delivery Business in 2024

ByAnnie Walker
online food delivery business-min

During the pandemic, the demand for on-demand food delivery apps grew drastically. Albeit this is coming to an end, the popularity of this market remains. Hence, taking advantage of the market’s untapped opportunities to boost returns and revenues is a good idea. This is, in particular, if you plan to digitize the operations of your restaurant setup. It will ascertain that these two areas become easily achievable.

Do you want to know how to perform this action? This comprehensive article will articulate this with precision. It will provide you with a series of steps to streamline the process while keeping costs in check.

How Does the Food Delivery App Work?

The food ordering system has easy operations. This allows a seamless connection between the customer, the restaurant, and the delivery driver until the final delivery gets done.

• Customer enters the app and adds their location details to get a list of restaurants nearby.
• Makes a selection of the restaurant serving their favorite meal/meals and places an order on choosing items.
• The restaurant receives the order request, accepts it, and assigns a delivery driver.
• The delivery driver reaches the restaurant and picks order, with the customer notified of the same.
• Customer and delivery driver can track each other in real-time until the final delivery.
• Food delivery gets done, and the customer provides a review.

Revenue Model – Food Delivery App

There are four ways through which the on demand food app generates revenues. Want to know about them? Check the pointers below to get introduced to them-

1. Delivery charges– Restaurants get charged extra for the deliveries they make possible through the app.
2. Surge pricing – When demand and orders are in a higher percentage, the option is worth using. This food business model helps businesses to earn extra on orders.
3. Commission – This gets charged for each order customer makes via the app to the restaurant.
4. Advertisements – These fees have to be paid by restaurants for promotions they perform on the food ordering system platform.

How to Develop an Online Food Delivery App?

You know the basics of the food delivery app. You are ready now to enter this competitive market. There is a catch- you must follow some steps during the development stage. This will allow your app to function effectively without any problems. It is equally important to keep costs in check. Remember these steps to accomplish.

1. Study Your Target Market & Assess Competitors

This will help you to ascertain if your app strategy will bring desired results. Make sure you know your competitors well next. In short, know what they are doing.

• Are customers happy with what they get? Yes/no?
• If not, what is missing in my competitor’s solution, and can their addition add value to my app?
• What kind of app design have they implemented? Is it user-friendly? Yes/no?
• If not, what is required to create a user-friendly design?

2. Add Relevant Features

Add relevant features to your app next. This will allow the customer, the restaurant, and the delivery driver to engage with the solution seamlessly.

Customer App:

  • Advanced search filter
  • Real-Time Order Monitoring
  • Multiple payment methods
  • Order Status
  • Customize Menu

Delivery Boy App:

  • Earning History
  • Update Delivery Status
  • Take Order Photo
  • Invoice Generation
  • Set Availability

Restaurant Owner App:

  • Restaurant Management
  • Menu Mangement
  • Order Mangement
  • Revenue Mangement
  • Location Mangement
3. Use Robust Tech Stack

It is vital next to use robust tech stacks while performing food ordering app development services so that the end solution works well.

Here are the ones you can utilize-
1. Real-time analytics – Storm, Flink
2. Database – Postgress, HBase, MongoDB, and Cassandra
3. Payments – e-Wallets, Stripe, PayPal
4. Voice, SMS, and phone verification – Twilio, Nexmo
5. Cloud environment – Azure, Google, AWS
6. Navigation – Google Map

4. Keep Costs in Check

Probably a vital step while performing on demand food delivery app development services is to keep costs in check. This demands you get the readymade food delivery clone to their restaurant’s advantage.

The solution will allow quick branding to take place. It will also ensure your visibility goes up in a reasonably short time. Providing the flexibility to modify the solution independently; will help the business scale in a way that suits them best based on their customer demands.

Wrapping Up

Current revenues in the online food delivery segment is $0.77 trillion in 2022 projected to expect growth at a CAGR of 13.68% between 2022 to 2027. This will result in market volume becoming $1.45 trillion around the same year. Therefore, its inclusion into your restaurant setup will do wonders, to say the least. So if you have not done it yet, do it now.

Get the readymade food delivery clone to your advantage; so the development does not cost much. Outsource the task of food ordering app development services to a company offshore competent in food delivery clone app development. This will streamline your food delivery app development journey and ensure your returns on investments go up in a revolutionary way.

Annie Walker, Enthusiastic Digital Marketer & Writer. Work at XL Products - a readymade product of XongoLab Technologies. Like to write articles and blogs about new technology, mobile apps, and trends.