With mobility becoming more prevalent in the food industry, the popularity of food delivery apps is on the rise. Apps like Zomato, Swiggy, and Uber Eats have already established themselves in this line of business. It is estimated that by 2022, the online food delivery industry of India would become an 8-billion-dollar market, because of the growing customer base and investments.
The food delivery service has made its presence felt in more than 500 cities across India, and with the market evolving, there are new opportunities for these food delivery apps to make more profits while serving their customers with distinction. Surveys have revealed that 52% of people were drawn to food delivery apps through network and peer advocacy. You might have a great business idea that you wish to implement in the field of food delivery. But before you do it, you need to know about the basics. After that, we should discuss the cost of food delivery app development India. The features you need for the app will also be discussed.
Business Models of Food Delivery Apps
There are roughly three types of business models for food delivery apps in India. Let us discuss them in detail.
1. First Scenario
The first scenario is when you are the owner of a restaurant and you wish to hire delivery people who will deliver the food to your customers. For that, you need to build an app that lists all the food items offered by your restaurant, from where customers can place orders with their addresses.
2. Second Scenario
The second scenario is when you do not own a restaurant, but have several delivery guys in your payroll, so you wish to build a food delivery boy app where multiple food vendors can register. The food items from all these vendors will be listed in your app, from where a customer can select their favorite restaurant and place their order. Then, the delivery person working for you pick up the order form the restaurant and delivers it at the customer’s doorstep.
3. Third Scenario
The third scenario is where you neither own a restaurant nor do you have delivery guys working for you. You just want to develop an app and have multiple food vendors register on it and upload their food menus. The delivery of the orders will be arranged by the restaurants and the food vendors.
The Fast Growth of Food Delivery Apps
Food delivery apps play a dual role in the sense that they act as restaurant finders as well as food delivery mediums. Some apps maintain their own logistics network which includes delivery guys and transport. Some of the must-have features on a food delivery app are search filters, customized recommendations, personalized delivery details, and the functionality to track orders.
The revenue generated from food delivery apps are substantial, and in 2020, it is estimated to generate $9207 million. Furthermore, the annual growth rate of revenue is 9.5%, and by 2024, the market volume is estimated to rise to $13,233 million. The rising popularity of food delivery apps was made evident in a recent study which revealed that 95% of people browsed food using online delivery apps due to discounts and offers, while 84% stated that ordering food is convenient and hassle-free. The below graph shows the rising trend of food delivery by restaurants and platforms or apps.
According to an estimation by an investment firm, the Indian online food delivery market will grow by 79% in the next five shares. This fast rate of growth is an indication of the closing gap between online and offline food delivery, and soon online food delivery will surpass offline delivery, as evident in the below graph.
Cost of Making a Food Delivery App
The first question that will come to your mind while building a food delivery is, how much does it cost for online food delivery app development in India? The average cost for making such an app is around 6500 to 11,000 dollars. If you wish to incorporate advanced features into your iOS or Android app, then the cost might rise to 35,000 to 40,000 dollars. You can get in touch with several ad development companies in India to build your app, where they will charge you 25 to 49 dollars per hour. In the USA, the cost is as high as 150 to 170 dollars per hour. For this reason, many US companies get in touch with Indian organizations for developing their apps.
While looking for companies to develop the app for you, you have two options. You can go for a readymade app that will cost you around 2500 to 3500 dollars, but you might have special requirements that need to be met. The food delivery business is highly competitive and you would want your app to have some unique features that set it apart from its competitors. For this reason, you should go for the custom development option.
A food delivery app developer in India would charge you the following amounts for different activities involved in the development process:
- Documentation: This can take up to 40 hours and you’ll be charged approximately 1000-1500 dollars.
- Back-end and Front-end Development: This can take up to 400 hours and it will cost you somewhere between 7000 to 15,000 dollars.
- UI Design: The UI design process takes about 60 hours and you can get it done for 1500-3000 dollars.
- MVP Testing: This phase of the development process can 80 hours. I will cost you approximately 2000 to 4000 dollars.
- Finishing touch and bug-fixes: The end phase takes about 4 hours to complete and costs you 1000 to 2000 dollars.
Factors Affecting the Development Cost
These are some of the factors that influence the cost of on-demand food delivery app development in India:
- Development Agency: Different agencies have different pricing structures when it comes to app development. Some agencies might offer their services at lower prices, but cheap is not always good, and you need to make sure they are installing all the features you want in your app.
- Marketing: The public needs to know about your product before it hits the market. Creating anticipation among the public is a tried and tested strategy used by many businessmen. For this, you must run a marketing campaign, providing customers with a glimpse of the services they can avail of with the upcoming app. The price for app development can be calculated based on this marketing campaign.
- App Upgrade: When you first contact a developer to build your app, they will show you a food delivery app demo with some basic features. But you might need some advanced features in your app later on, so upgrades are necessary. You might want to add new features like offers and discounts to your app. The price of app development also depends on the number and type of upgrades.
- App Platform: Some apps are designed for iOS or Android, while some run on both platforms. The cost of app development also includes the fee you have to pay to Google Play Store and the Apple Store for hosting your app. Your choice of platform heavily influences the cost of development. You can opt for Hybrid app development, which allows your app to be compatible with both Android and iOS, and you can also save some money this way.
- UI Design: The UI is that part of your application with which the customers interact, so this part of the app must be simplistic so that users can easily order the food they want. The price you have to pay for app development depends on the type of UI you wish your app to have.
Key Features of a Food Delivery App
A food delivery app developer in India would present you with a list of features you want in your app. Some of these features are:
- Homepage: This is the landing page where your customers an see the list of restaurants and their ratings.
- Sign in/Register: Existing users can log in using their email id and password and new users can sign up to create an account.
- Search and Filter: Customers can search for restaurants and filter them using food type, price, location, etc.
- Cart: This displays the list of items ordered by the customer, with their prices mentioned. It has the option to apply a promo code and checkout.
- Wallet: Customers can add money to the wallet which can be used during payment.
- Payment: Here, customers an view the amount to be paid for their order, select a payment mode, and confirm it.
- Order Status: Here, the customer can view the status of the order and can track it using GPS. It also allows the restaurant to keep track of the delivery person.
- Customer Support: The customer can get assistance regarding their orders or technical issues with the app.
- Rate/Review: This option is for the customer to give ratings to the restaurant and/or write a review.
The food delivery app business is booming in India, with the growing trend of online food ordering. While building a food delivery app, you should keep in mind the expenses and what features you are getting at that price. It is important to do some market research before approaching a developer to make your app.