How Much Does It Cost To Build an On-Demand Food Delivery App

A decade ago, the concept of restaurant food being delivered to people's doorstep seemed far-fetched. However, thanks to the power of mobile apps, we can now order our favorite online with just a few clicks.

However, this blog doesn't tell you which food delivery app you should try. Instead, this blog discusses on-demand food delivery app development costs, dependent parameters, timeline and features of the app.

We will go over the essentials and discuss every factor in detail.

The Cost Parameters - On-Demand Food Delivery App Development

Several factors determine food delivery app development costs. For example,

• Platform to be used
• Features in the application
• Human Resource
• Testing
• Maintenance and update

Most of the online app cost estimators follow this general rule:

App Development Cost = Total Time * Hourly Rate

What is App Development Time?

The total time for on-demand food delivery app development depends on the following major factors:

• App’s features
• Platform to be used
• Human resource
• Technology stack
• Testing and publication

1. Features

A simple on-demand food delivery app should at least have the following features.

Customer Side:

• Login
• Search Menu
• Cart
• Payment Integration
• Order Tracking
• Rating and Reviews
• Customer Support

Restaurant Side:

• Login
• Menu
• Push Notification
• Checking Rating and Reviews

Delivery Side

• Registration
• Order Management
• Updating Order Status

Admin Side:

• Admin Login
• Restaurant Management
• Application Management
• Payment Management
• Discount and Offers
• Technical Assistance

Always remember that development time is directly proportional to application features and complexity. The more features you add, the longer the development cycle.

2. Platforms

You have the option of developing native or cross-platform app here.

• Native app development

Native apps are platform-specific. Hence, the development time will be more. Both native iOS and Android development take between 560 and 650 hours overall.

• Cross-platform app development

Cross-platform apps are platform-independent. The same code base is executable across Android and iOS. This shortens the project timeline and saves a lot of development hours. The entire on-demand food delivery app development takes between 470 and 550 development hours for iOS and Android.

3. Human Resource

The skill set on offer plays a significant role in determining not just the cost but the quality of the app. The individuals that work on your app are one of the most important aspects that decide its price.

Skilled and experienced developers make a significant difference in the project timeline. They may cost a little more than unskilled or inexperienced developers, but they come with higher quality and assurance.

The next step is to decide between a local and offshore mobile app development company for on-demand food delivery app development. Both of these components have a wide range of prices. While hiring in-house developers is affordable, hiring offshore developers is costly.

4. Technology Stack

Think of the technology stack as the programming tools, frameworks, guides, and methodology developers use to design, build and implement an on-demand food delivery app.

Most businesses leave the technology stack selection to their developers or the mobile app development companies to which they outsource the project.

The tech stack for a native app differs from that of a cross-platform app. As the tech stack varies in complexity and scale, so does the development time and cost.

5. Testing and Publication

The cost for testing ranges from 10% to 20% of the development cost. According to different estimates, the exact figures could range from $5,000 to $25,000 or more.

The sooner you detect and resolve a bug, the less money you'll spend on app testing. In other words, post-launch testing is extremely costly because it necessitates the redesign of entire modules.

You must also pay publication fees once your app is ready to go live. To keep an active developer account with Apple, you must pay a $100 annual fee. You must pay a one-time cost of $25 to publish apps on Google Play for Android. When you first set up your account, Google, like Apple, takes thirty percent of app sale revenue.

Local vs. Offshore App Development Company

The developer's fees significantly impact food delivery app development cost. Developers in the United States and Europe demand far higher fees than those in Asia.

To provide you with a quick overview, here are the hourly charges of software developers in different regions:

• $25-50 per hour in Europe
• $30-50 per hour in Latin America
• $18-40 per hour in Asia
• $10-30 per hour in India

Why are Food Delivery Apps Profitable?

On-demand mobile services thrive because of customer convenience. Taxis, movie tickets, food, hotel reservations, and other services may be obtained with a single swipe of your phone. This is why food delivery apps are so popular these days.

For on-demand food delivery app development, the revenue sources can be many.

- Delivery fees: Depending on the distance, delivery fees can be a percentage of the order price or a flat amount.

- Surcharges During Peak Hours: UberEats charges a surcharge during lunch and supper. UberEats restricts menus and locations during busy hours and charges an additional cost to make them available.

- Commission %: A commission percentage is another way to monetize a food delivery app. Restaurants and online food delivery apps can work together on predetermined commission rates based on order size.

- In-app Advertising: For a fee, a delivery app can advertise eateries within the app. Advertising in a delivery app can entail putting a restaurant at the top of the search results for a set amount of time.

Food Delivery App Business Model

Selecting an appropriate business model is essential in creating a food delivery app since it directly impacts product/market fit and determines if the solution will survive the competition.

We'll go over the three primary business models,

- Order and Delivery Model

In this model, business owners partner with a third-party delivery service. The delivery company can also set its prices. Food outlets register on the platform and are only responsible for food preparation while the delivery is taken care of by the delivery partners. Most popular apps like Swiggy, UberEats, Zomato, and DoorDash operate on this model.

- Integrated Model

Delivery may be managed by both the app admin and the restaurants in this model. Many restaurants already have their delivery staff and are looking for a way to bring their menus online.

This app allows eateries to use the app's delivery services or deliver their food.

This business model allows a broader range of restaurants to participate because it provides them with a self-delivery option, which saves them money on third-party delivery services. Furthermore, a more comprehensive range of food options improves the client experience.

- Inventory Business Model

The food delivery app owners are in-charge of everything under the inventory model. Everything is handled by the food delivery company, from launching the food delivery website/app to preparing orders and delivering meals to customers. The platform owner is in charge of the entire value chain. Pizza Hut, Domino's, and McDonald's use the inventory business model.

Food Delivery App Development Cost

The development cost of a complex, custom (multi-feature) food delivery app starts from $50,000. The development of an MVP could take 4-6 months (a food delivery app based on the Inventory Business Model). The average cost of developing a food app is:

• $52,250 to $59,800 for Native apps
• $46,300 to $52,000 for cross-platform apps.

Before You Go

Please remember that we haven't factored in things like app maintenance, upgrades, or hosting costs. These variables, however, differ from one service provider to the next. Don't forget to confirm these charges when hiring a food delivery app development company.

It's a good idea to acquire quotations from 5-10 different companies and then pick the one that best fits your budget and expectations. Also, do not forget to ensure that the app development company has a proven track record in the food tech business. All the best!