How Much It Costs to Build a Food Delivery App like Zomato, Swiggy, UberEATS, and Eat24?

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Prep yourself to build a food delivery app like Zomato, UberEATS, Grubhub that is more of planning and less of cooking, remember home cooked meals before throwing in the towels and heading for restaurant!

Even amidst the pandemic, the food delivery market has crossed a net worth of $30 billion in the U.S. Online food deliveries have become a routine with the increasing usage of mobile phones used for food ordering, the food delivery platforms are chasing the whereabouts of their target audience, knowing their demands, knowing what they can do well and where their competitors fail.

Restaurant tables can be the next bailiwick for smartphones and social media. Attributes like cost and prospects are coordination compounds that revolve around restaurant app development. Find out how we justify this claim! Customers are always after a swift and smooth experience without being particularly concerned about the technology upon which the app is being built. The same goes for food delivery apps like Swiggy, Zomato, Ubereats, and Grubhub. A simple restaurant finder and food delivery app costs around $3500 to $9,500 in India. Research shows that this cost of development of apps like Eat24 can go up to $20,000, depending upon the scope of the project. Proficient App development agencies have to be hired to consider the right approach to those results in Restaurant App Development.

Features in Best Food Delivery App

  • An app like Grubhub has the facility of paying via various payment options like PayPal, Google Pay, cash cards, net banking, cash on delivery etc.
  • They are available all 24 hours, 7 days a week
  • Re-ordering food is easy. Food delivery can be scheduled at a later date.
  • Discount codes and coupons can be applied easily and cashback can be earned that enable future orders
  • It has appropriate filters that help in finding delivery menu items easily. Making use of good filters eases out explore popular food delivery options from restaurants near me.
  • These allow ordering food in advance
  • The online payment system is essentially a great way to open a new revenue stream. There are various methods of payment that can be used depending upon the money involved in the transaction. Payments via credit/debit cards, or automated telephone payment service

Apps like Grubhub enable us to order food near me from over multiple cuisines across different restaurants near me across multiple cities. This will further enable you to search particular dishes and browse delicious food photos before actually ordering. An app like Zomato, Ubereats, Swiggy essentially secures online payments.

The cost is directly proportional to the size of the website. Various other features also have to be considered like the choice of platform, software and hardware requirements, Restaurant App Development must be done by seasoned developers who are experienced in following all stages of the software development lifecycle to build the best food delivery app.

The idea of a restaurant near me and the food delivery app is closely connected with speeding up the process of getting the meal and paying the bills. The more the restaurants make use of the app, there are more chances of customers getting attracted to the idea and imbibe the latest technologies in the restaurant app development process.

Mobile ordering, iPad order kiosks, Facebook ordering, digital menu boards and smartphones,   tabletop e-waiter and checkouts, online coupons and games while you wait are some of the reasons that are breaking the ground and making space for tech-savvy diners.

In lure of elegant solutions that work, App development agencies have been emerging with the latest restaurant finder apps by integrating technologies that make customers happy.

Business Model of App like Zomato, Swiggy, UberEATS, Grubhub

The business model of an app like Swiggy, Zomato, UberEats and Grubhub has given rise to a large number of on-demand startups in the food delivery vertical. All these apps essentially play a dual role. They are restaurant finder as well as food delivery applications. Built on the traditional food delivery model and offers access to multiple restaurants through its online food ordering app. It maintains its own logistics network including drivers (delivery partners). Apps like UberEATS started as a standalone application which came as a diversified version of Uber rides.

Customized restaurant recommendations, tailored delivery details, advanced search filters and the ability to track the orders in the app are some of the features that a restaurant finder and food delivery app must-have. An app like UberEATS has the following components:

It allows customers to place orders in real-time. The customers can choose from the extensive list of offerings in terms of restaurants and menus and the huge fleet of delivery partners are available who can help deliver food faster than expected.

UberEATS works like any other food delivery company that also has an option to cater to specific customer need like a specific product, fixed delivery time, a particular location, availability of the courier (delivery) partners – ones who sign up to be part of the food delivery network and the restaurant partners who want to associate with the food delivery app network. The simultaneous shift in customer behavior towards the on-demand food delivery app is driving the conventional businesses to have a virtual presence on food near me app like UberEATS.

How do apps like Eat24 (Grubhub) make money?

By following these 3 tricks:

  • Charging delivery fee from customers

    Most of the food delivery apps are based upon the pricing model of base price plus surcharges. It happens that restaurants restrict the menu during peak lunch and dinner hours.
  • Sharing revenue from restaurants

    Recurring revenue is earned by sharing for orders fulfilled by delivery partners like UberEATS.
  • Advertising the income (marketing fee) from restaurant partners

    Restaurant partners are charged a marketing fee as soon as the customer looks at the listed restaurants. With the increase in restaurants, it becomes important for restaurants to gain some visibility on the app.

How does the eatery ecosystem work?

Eatery system works in three steps:

  • Step 1: Consumer orders food from the restaurant
  • Step 2: Restaurant delivers the food to the delivery partner
  • Step 3: Delivery partner delivers the food to the consumer

How UberEats Ecosystem works
Image source: jungleworks.com

Factors Upon Which The Cost Of Apps Like Eat24 (Grubhub) Depend

If the design is complex or custom then the app will take more time than a normal one. Normally these 5 factors affect the cost of the app like Eat24:

  • Project requirements
  • Complexity of UI
  • Concept of Project
  • Designing of UI
  • App Testing

How much it costs to develop an iPhone app like UberEATS?

The cost to develop an iPhone app like UberEATS is around $4500 to $12000.

Few of the most basic expenses that must be included in developing a Food Delivery App for IOS and Android are :

Developer’s Expenses

If the cost to hire an engineer is considered, it ranges from $10-$35 per hour or $100 per month in general. [This cost may vary according to the specialization and expertise of the engineer]

Gathering Cost

This part involves investing a lot of money into social affairs, conferences and overviews, collecting requirements including the staffing team who will be involved in carrying out employment strategies.

Design and Development

The cost of application configuration and its development is the total the business will spend on its developers and test engineers. This will essentially include the cost of the different licenses required to hire additional staff for projecting out the development process.

Testing and Publication

It is important to test the application before deployment. A lot of costs has to be incurred in case the application does not go well after deployment. To avoid this application has to make through bug fixes prior to release. One time charge to distribute the app is $20.

Features of A Food Delivery App

Customer

  • Navigation Menu
  • Registration
  • Sign up
  • Place order
  • Restaurant details
  • Filter restaurants by cuisines
  • Current offers
  • Address book
  • Rewards, loyalty, and coupons

Admin

  • Admin Log-in
  • Restaurant Management
  • Application Management
  • Order Management
  • Technical Payment
  • Payment Management

Owner’s App

  • Sign-in
  • Search by Food Category
  • Checkout Process
  • Choose Payment Method
  • Order Status and Tracking
  • Help & Support

Arriving at a Proposition

Filing an order online via kiosks can be easier than waiting in line to place it. Cost of a restaurant finder and food delivery app depends upon various factors like instant notifications soon after placing the order and sufficient lead time. The cost of these applications goes as high up as $5,000- $30,000, similar to a food delivery app that is similar to a food panda. Cost of a normal iPhone food delivery app can be divided as follows:

  • License fee: $300
  • App hosting fee: $99/app
  • Developer fees: $7000 (developer with average skills)
  • This places your overall cost of development at $7500.
  • On average, a native food delivery app might cost around $26000 for an iOS app and $27000 for an Android one.

Facing difficulty in deciding whether investing in a restaurant app is a prudent decision or not? If you don’t have a dedicated mobile app for your food delivery and restaurant finder app, chances are that you are losing on at least 20% of the sales. A consumer-facing mobile app can be one of the solutions to resolve this problem but this is not the holistic mobile solution. There are many other features that make a restaurant finder app comprehensive like push notifications (if managed properly), how well the app handles customer’s convenience, the efficiency of handling orders, the presence of loyalty programs, rewards points and discounts and presence of location-based services (GPS).

You restaurant finder app can be both customer-facing or business facing depending upon whether you are a restaurant owner looking to improve your sales, finding new customers and retaining them, or if you are an entrepreneur and wish to invest in your next restaurant finder app and the cost of the app, all these features must be included necessarily.  Both consumer-facing and business-facing applications can be a comprehensive solution to manage a fast-food delivery app.


Frequently Asked Questions


What are the shifts in the revenue of the Food Delivery Market?

  • Revenue in the Online Food Delivery segment has reached close to US$136,431m in 2020.
  • From an annual growth rate (CAGR 2020-2024) of 7.5%, revenue is expected to reach a market volume of US$182,327m by 2024.
  • Statista predicted that the revenue in the online food delivery segment is projected to reach US$136,431m in 2020. The food delivery market is close, but couldn’t reach there due to the current COVID-19.
  • This revenue is expected to show an annual growth rate (CAGR 2020-2024) of 7.5%, resulting in a projected market volume of US$182,327m by 2024.
  • The food delivery market’s largest segment is Platform-to-Consumer Delivery with a projected market volume of US$70,741m in 2020.
  • In global comparison, most revenue will be generated in China (US$51,514m in 2020).

What are the hidden costs of food delivery?

Even if the food eating stations are near-by, the current pandemic has caused all restaurants to fall backwards and cater to their customers via on-demand food delivery as the only option. As consumers self-isolate, there has been an evident spike in the food-delivery industry during the peak of the crisis. The food delivery sector is about to sky-rocket with the emerging needs – where pleasure has turned into a necessity. Most of the people who cannot access raw food and process it due to shortage of time or other underlying responsibilities will surely give it a much-needed boost all set to go beyond $365 billion by the end of this decade. When almost every business has directed their maximum efforts to deliver online/on-demand, the implicit trade-off made by consumers suggests that they are not shying off from paying a little extra for the convenience of having things delivered to their doorstep.

As consumers sign to pay a premium for convenience, the food delivery ecosystem suffers from a lack of differentiation, compounded by a diagonally crossing and often confusing mark-ups and fees. Therefore instead of differentiating products and services, food delivery apps have adopted some innovative new ways to charge customers for the same things.  Partnerships with the few freemium restaurants,  consumers are instead faced with a delivery market where the services are virtually indistinguishable, yet the price they pay for the same item from the same restaurant can vary from 20-40% depending on the app they use.


Did the big food delivery platforms make any changes to their marketing strategy during the COVID-19 pandemic?

The biggest names in the food delivery apps like Uber Eats, Doordash, Postmates, Grubhub, Caviar and they have been strategic in dividing their core pricing components across their food delivery app, to make it happen: Menu Items, Service Fee, Taxes, Delivery Fee, Gratuity(optional)

Food Delivery Services have made adequate changes to their marketing channels for their food delivery strategies. Their overall strategy combines the content strategy, social media, user acquisition and branding campaigns along with some marketing channels like – the landing page, blog, App store optimization (Using keywords, Detailing app features, key benefits and your USP within your description, Including useful and engaging screenshots and videos, Localization, Using primary and secondary app categories), social media marketing (influencer marketing, customer service, promotional offers and contests), email marketing (Reward users with promotional deals, Newsletter updates) and paid user acquisition to moderate their food delivery app development platform.


What practices should food delivery services adopt to become a smart food delivery app during a pandemic?

Online food ordering trends suggest that businesses in on-demand food ordering should have a keen business focus, review visibility, provide enticing discounts, must keep it simple, innovate and explore, promote their brand effectively, must interact with their customers periodically or as and when required, must target their pitch and most importantly create a unique selling proposition.

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About Author
Neeti Kotia

Neeti Kotia

Neeti got her master's degree in software engineering in 2009 and has been working since for software companies of all sizes as a technical writer. What started as a high school passion has now been converted into a serious profession. She has a special knack of learning from all verticals and imbibing the extracts into her writing. She enjoys learning technical aspects of writing from her tasks where her experience and understanding are most impactful.

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4 responses to “How Much It Costs to Build a Food Delivery App like Zomato, Swiggy, UberEATS, and Eat24?”

  1. Edmund O'Connell says:

    UberEats for 26k?

  2. ready UberEats for 10k+ need?

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