Brief Guide To Starting On-Demand Food Delivery App Development 

Did you know that the on-demand food delivery app market reached $46.6 billion in 2023 and that the entire industry is projected to reach $213 billion by 2030? 

Surprised by these numbers? That’s understandable, and there’s a reason behind it.

Let’s consider a scenario:

Imagine a food business operating traditionally versus one in the digital space. While both businesses run efficiently and profitably, online food delivery businesses tend to generate more revenue. Why? 

It’s due to multiple revenue strategies, such as in-app advertisements, and the growing preference for the convenience of ordering food from home.

These are the obvious reasons. A major factor is the shift in business dynamics toward online platforms.

Let’s dive into how you can start your on demand food delivery app by reading this article.

Why You Need To Start On-Demand Food Delivery App Development?

There is no explanation required. From hospitality to food, all industries depend on the online landscape. Let’s find out the core factors that prompt everyone to build an on-demand food delivery app. 

High-End Market Growth 

The online food delivery industry is seeing exceptional growth, leaving other businesses behind in the competition. As we have seen, the global market growth of food delivery apps was 96,864 million USD in 2024. 

On-Demand Increment Of Food Industry 

With the emergence of smartphones, convenience has become a major factor in online ordering. A recent survey showed that the number of online food delivery users is expected to reach 2.5 billion by 2027. 

The entry requirements are minimal.

The on-demand food delivery industry supports low entry barriers, encouraging startups to kick-start their business dreams easily. 

Developing on-demand food delivery requires less investment. This is different from the traditional industry, which takes a lot of upfront investment and complex infrastructure.

Global Market Opportunities 

The online food delivery market is globally recognised. With it, you can reach both local and international markets, skyrocketing your business productivity. UberEats, DoorDash, and other top platforms are great examples that shine brightly in this realm. 

Multiple Revenue Streams 

Traditional food business supports less revenue support whereas the digital realm offers multiple-revenue strategies like commission, in-app, delivery providers charges, subscription, and more. This multiple revenue source can balance your business productivity and other work. 

The High Number Of Investors

The on-demand food delivery industry prompts investors to be part of it with its lucrative factors. In 2022, the venture capital was 16,464 ventures in the US. In the competitive landscape, entrepreneurs are thriving to kick their venture in this market and also they are seeing success side only. 

Top Key Players In The On-Demand Food Delivery Industry 

The food delivery industry thrives on a cycle of continuous success. Leading examples include platforms like Uber Eats, DoorDash, Grubhub, and Postmates. Uber Eats, as a pioneer in the field, successfully introduced a novel concept to the market. Other food delivery app companies have since established their own distinct identities, each with unique features that have contributed to their rapid rise in popularity, mirroring the success of Uber Eats.

3 Popular Business Models Of An On-Demand Food Delivery App

Three major models are being followed in the on-demand food delivery industry. Let’s look at them! 

Inventory Model

This model connects users with restaurants. Restaurants list their menus on the app and manage their operations. The platform facilitates orders and delivery.

The platform earns revenue through commissions on orders and potentially other services. This helps restaurants expand their reach while maintaining control.

This version focuses on the core aspects of the model in a concise and impactful manner.

Aggregator Model

This model connects users with restaurants through a network of delivery partners.

The platform acts as an aggregator, simplifying delivery for restaurants and providing flexible work opportunities for delivery partners.

This approach enhances the platform's competitiveness by offering restaurants a choice of delivery options and enabling features like multi-location deliveries.

Peer-to-Peer Model

This model operates like a gig economy platform, enabling individuals to offer services flexibly without full-time commitments. This allows for quick and efficient access to services for customers.

This model facilitates rapid scaling of the provider base with minimal investment.

For example, a food delivery service can utilize this model by engaging everyday individuals as delivery partners. This reduces reliance on third-party logistics, minimizing operational costs and potentially lowering delivery fees for customers.

How To Start On-Demand Food Delivery App Development 

Entreprenuers thrive to develop on-demand food delivery app development because of their quality and simple approach. You just need the right resources, concepts, and ideas. Let’s find the process step-by-step!

Initiate Research 

To begin, it's essential to have industry knowledge. Focus on understanding your competitors, target audience, and current trends to build your delivery platform. To guide your research, ask yourself questions such as:

• How do your competitors operate in the market?

• What services do they offer?

• Who is your target audience?

• What features are crucial for your platform?

• What trends are emerging, and how are they performing?

Once you’ve identified the key elements, the next step is to select the right features for your app.

Selecting Features and UI/UX

Features are key to ensuring your platform is easy to navigate. Thoughtful attention to this step will help you create a high-performing platform.  You can also add additional features as per your requirements.

Key features to consider: Easy registration, advanced search functionality, real-time tracking system, scheduled orders, payment integration, and notifications.

While choosing the right features is important, equal attention should be given to the UI/UX design. When both elements are aligned, they create a seamless and effective platform. Ensure that both features and design are developed with care for the best results.

Choosing the Right Technology

The technology you select is the foundation of your app. It can be difficult to pick the right tech stacks while staying within budget. Opting for pre-built development solutions can be a cost-effective approach while ensuring your app is built on reliable technologies.

When developing an app, you focus on two main areas: front-end and back-end development. The front end is responsible for the user interface and experience, while the back end handles the data management and server-side operations.

Choose popular technologies, but they must have strong potential for continued growth in the future.

Testing  

Before launch, the platform goes through a thorough testing phase to identify any bugs or performance issues.  

Testers evaluate the platform at various stages. After all testing is complete, the final step is the official launch.

Entering the Marketplace 

In the beginning, consider targeting a specific region. With effective marketing and promotion, you can grow your customer and restaurant base.  

Social media platforms like Facebook, LinkedIn, Instagram, and others can be valuable tools for boosting your presence and reaching a wider audience.

Bottom Line 

Kudos if you've made it to the end! We hope this blog has provided valuable insights into the key aspects of on demand food delivery app development and promotion, helping you take the next step in this exciting venture. 

The food delivery industry is thriving, offering a great opportunity to grow and succeed. 

For more details, feel free to reach out to top app developers or explore more blogs on this topic.