The food industry has recently witnessed a sudden rise in startups as consumer demand increased. People prefer online food ordering to enjoy their favorite meals at home instead of dining out.
So, it fueled the exponential growth of food delivery services. Today, emerging food delivery apps like UberEats, Grubhub, DoorDash and FoodPanda have a deep-down effect on the industry, especially after a recent pandemic.
An analysis of the online food delivery sector reveals that the projected growth will be $343.80 billion in 2022.
Furthermore, It’s also expected that the total worth of the food delivery market segment will be $474.30 billion by the end of 2026 at a CAGR of 8.38%. Therefore, startups are constantly investing in the food market to meet consumers’ needs with emerging embedded technologies.
Food delivery app development is an extensive and time rendering process. It requires a team of requirements engineers, software designers, software developers and software testers to bring state-of-the-art food delivery apps. Moreover, a full-fledged food delivery app requires a huge development budget that ranges from $10,0000 to $300,000.
Below, we have some market statistics on food delivery app development costs. Later in this blog, we will also discuss some problems that can be confronted by startups or business owners during their dream food delivery app development.
Market Insights – Food Delivery App Development
Our habits and daily routines are changing gradually. People prefer staying at home and love to order meals online through food delivery apps.
As a result, using a food delivery management system to get food from outside has become part of our lives.
If you are thinking about food delivery app development. Here, we have some market trends on these mobile applications.
- The development cost of an application depends upon the app type and its features. So, if we talk about the average food delivery application costs in the US, it outlays between $46,300 to $52,000.
- The worth of the global food delivery application market is predicted to reach $343.80 billion in 2022.
- The average revenue per user is predicted to reach $177 by the end of 2022.
- User interest in the food ordering mobile application segment will be at 25% in 2022.
- China will be the leading country in food delivery revenue generation of about $61.4 billion in 2022.
- DoorDash will be the leading online US food ordering company after the fourth quarter of 2022. Currently, it keeps almost 56% of the local market share.
Now, keep an eye on views and statistics. Let’s elaborate on some famous food ordering applications in the United States.
These gigantic applications hold nearly 90% market share of the online food delivery category.
Famous Food Delivery Apps
The popularity of an online application depends on the services they provide, its value to customers and its market share.
These companies are promoting their food delivery apps to both businesses and consumers to yield high gains in the United States.
This B2B2C (business to business to consumer) business strategy is not only B2B or B2C. It targets B2B companies keeping in mind their consumer base to optimize revenue streams.
Moreover, Let’s shed some light on five famous food delivery services in the US:
- GrubHub: This food ordering app was developed in 2004 to connect restaurants to consumers. It is a subsidiary company of the Just Eat Takeaway group focusing on online and mobile food delivery and ordering platforms. According to the statistical survey, GrubHub earned $1.8 billion in the United States in 2020. Therefore, GrubHub is one of the leading online food apps with 31.4 million active users.
- Uber Eats: This food delivery application was developed in 2014 by Uber – a transport company with an ambition to service restaurants to a restaurant to consumers model. Uber eats is a multinational company hence, it’s one of the exponentially growing startups with 66 million users and generating revenue at the rate of $17.46 billion/annum.
- DoorDash: DoorDash is one of the largest food delivery networks in the United States founded in 2013, and has a 56% food ordering market share. According to the statistical survey, DoorDash earned $4.8 billion in the United States in 2021. Therefore, it is one of the leading online food apps with 25 million active users.
- Postmates: It was founded in 2011 and acquired by Uber in 2020 for $2.65 billion. It enables local restaurants to deliver their prepared food online through their application after a business partner.
- Seamless: It’s one of the biggest online food delivery companies founded in 1999 in North America. In 2019, it was acquired by GrubHub and shares combined revenue and monthly active users statistics. These applications were working in the same business model. Therefore, business acquisition results in cost reduction, huge market share and more.
Although, these applications have an enormous influence on the online food ordering business. But it still has room to compete and develop a food delivery app.
The development cost of these applications is somewhere around $250,000 to $300,000 but hiring a skilled software development company results in cost reduction.
To facilitate customers and get market leads, an application would be ideal. In the meantime, we will elaborate on significant issues with food delivery app development that can be avoided to make it successful.
Major Problems In Food Delivery App Development
1. Unreliable Requirement Analysis
Inadequate system requirements in terms of unclear, unprioritized, incomplete, and unreflective business goals have a 98% chance of failure.
The requirement analysis is more influential as it equips customers’ requirements and problem definition.
Besides, inaccurate requirements for your food ordering app may result in the wrong business niche, and ultimately your business ideal can collapse.
2. Fail To Come Up With New Ideas
Innovative ideas are the backbone of a startup in terms of business success. If you are going to introduce an innovative idea in a market it will be rewarding.
In system requirement analysis expert designers invariably propose some ingenious ideas that can promote your business on a large scale.
For instance, if you are preparing to launch a ordering app instead of including a conventional food ordering strategy you can opt for kitchen services, home chef services, foreig supply and more.
3. Failing To Design An Interactive App
Interactive design is merely a dialogue between the product/service and person. This dialogue lets the buyer know your services have some potential to go.
Hence, interactive design engages the audience with floating sections, app menus, and more.
4. Integration With Payment Systems
Limited integrated payment options may increase the chances to lose a loyal customer. One of the common issues with online food delivery apps is restricted payment options.
Development companies always have numerous options, but stakeholders endeavor to keep payments secured from counterfeit fraud or data breaches for their ERP, and CRM systems.
5. Reliable Navigation API
Apps designed over hiring a software company at fixed development cost may encounter reliability issues.
To make smoother and more accurate maps, try to include paid navigation APIs – investing hundreds of dollars to deliver accurate but well-managed service instead of losing customers.
We have some notable navigation APIs that you can prefer for your project.
- Geocoding API
- Google Maps API
- Mapbox API
6. Security – Insecure System And Authentication
Vulnerability in any system reins it more when it comes to your dream delivery app.
System loopholes act as a backdoor to steal sensitive information like credit cards, and customer data, and easily.
Therefore, it’s mandatory to test your app before deployment.
When we talk about the security of apps it means we are going to welcome more potential customers.
7. Testimonials and Experiences of Customers
When we talk about food or eatables, people are curious about hygiene measures.
So, when your business model falls under the food domain, customers trust weights.
To keep it intact with your food app venture, go for a trending way to capture maximum customers feedback about their experience, besides conventional five-star ratings.
How To Solve These Problems (Fixes)
Finding a flaw in a system is frankly hard but proposing a fix requires talent that brings out of a box solution.
The solution should recuperate the above-mentioned problems a software development company or agent can face during food delivery app development.
Successively, we have compiled some resources to tackle these problems. Moreover, elaborate on them one by one.
Skim Through Case Studies
It’s not that simple hiring a software developer or agency won’t magically make your app appear. To avoid and succeed in your product, it’s suggested to take care of accurate requirement analysis, and responsive and robust design.
Hence, go for their recently completed projects and case studies to apprehend their expertise.
Customers And Market Demand Survey
Business market studies reveal that 90% of startups get successful in their first year when they know about their market demand.
Therefore, conduct an extensive survey before you go.
Design Cross-Platform Applications
Instead of designing separate Android as well as Apple apps, native apps are easy to manage and consume fewer resources.
So, hold it tight and always try to get cross-platform applications.
Evaluate Security Measures
In a recent Facebook data breach, Meta CEO Zuckerberg Loses $5.9 billion due to security breaches and system loopholes.
These figures show how important system security is.
Consequently, keep in mind your app’s security as well, it helps a lot when you have a competitive market.
Maintain Customer Service
Honest customer support may be fruitful for your food delivery app where you will deal with unsatisfactory or affected customers due to your app.
Online customer support is a way where you can keep them intact with your online business and get customer trust.
Go For Funding Rounds
If you are at the prototyping stage and need some investment to improve your service, you should have to go for investors in this sector.
It will make your application development process more accurate and the venture evolves profitably.
Hire Effective Development Agency
Hiring a mobile application development agency is not challenging these days but a company that puts unique business essence counts.
Thus, to avoid any discrepancy always hire an expert team of software developers including at Origami Studios.
Looking For Improving Your Food Delivery App?
Food delivery app development is a typical but time-rendering process. It demands a check and balance if you want to extract a featured end product.
The app should be technology-driven to fulfill the end user’s basic needs and ability to convert a visitor into a loyal customer. If you have a delivery app but lagging due to poor development.
We at Origami Studios combine experience and expertise to meet client requirements and design an avant-garde healthcare solution.
Drop us a line today! Or become witness to previous projects – In the food sector, we want to mention our huge achievement as CaterBee– CaterBee is a Sweden-based company offering a platform that brings together Stockholm’s popular catering kitchens in one place.
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