In light of the situation created by the Coronavirus pandemic, we would have to agree that the food delivery apps have been a life savior for the population all around the world. It is not only the doctors and healthcare providers fighting against this deadly disease but also the food delivery workers ensuring that people stay at home. The food delivery apps have made it possible for people to enjoy their favorite food or receive the daily essentials at their doorstep.
This pandemic has shown the importance of food delivery apps for every restaurant and food joint and how important it is to embrace technology. Moving with the changing technology has always resulted in a profitable situation for restaurants. As per reports, 83% of adults use their smartphones to search for restaurants in their neighborhood. More than 50% of users use the restaurant’s app to order their food.During Covid 19 time, we can also consider magic weed for all your one stop problems.
Realizing the importance of food delivery apps, the next important question is ‘how to start a food delivery app with 300% ROI profit’?
Starting a food delivery app and steering it towards success requires a few steps to be followed. Here’s a guide for you to start your own food delivery app and leverage the market opportunities.
- Shortlist a catchy name
The first step is where you decide a catchy and easy-to-remember name for your food delivery app. The name of the app should be relatable by your customers and have the potential to stay in trend for the long term. Some of the best-performing food delivery apps in the US are Grubhub, DoorDash, Postmates, UberEats, and Seamless. This app names signify something that targets the needs or demands of the customers.
- Watch out for the food delivery industry trends
To start a food delivery app with a 300% ROI profit, you need to be aware of the latest trends in the food delivery market. Your market research should be on point to understand and leverage the current food ordering trends. For instance, Dominos understood the importance of social media in the lives of their customers and therefore made it possible for them to order pizzas from their social media accounts. Similarly, the current trends in the market involve using Virtual assistants and smartwatches to enable customers to order their meals. Out of the box thinking and leveraging the latest technologies in your food delivery is what will help you maximize your ROI profits.
- Decide the business model
Understanding the market trends will help you decide which business model will be the most suitable for your food delivery app. You need to choose between the order-only model and the order and delivery model.
Under the order-only model, your app will be able to enable customers to order and restaurants to manage the order. Whereas the order and delivery model, the app would allow customers to make orders, and for you to manage orders and deliveries. UberEats and Doordash have adopted the order and delivery model.
- Finalize the monetization strategies
This step will help you maximize your ROI profit if chosen wisely. The monetization strategy can include a mix of different strategies for your food delivery app to make profits. The revenue streams include a standard delivery fee, a small order fee, an advertising fee from restaurants, and a recurring share of the revenue from restaurants.
The monetization strategy chosen by UberEats includes charging a delivery fee based on the distance between the restaurant and customer’s location, 15%-40% revenue sharing from restaurants on every order received by Ubereats, and advertising fee for promoting restaurants on its app.
- Hire a food delivery app development company
When you have decided all the necessary elements for your food delivery app, the next step is to find a food delivery app development company. It’s a little challenging to find a company that will be able to develop an app as per your expectations. The best companies can be found on recognized platforms such as Clutch, GoodFirms, LinkedIn, etc. Before finalizing one company, the business should consult several companies to find out about the cost of development and look into the background of the company.
- Select the major features of your app
The next step to starting a food delivery app requires you to select the features for the app. Advanced features such as chatbots powered by AI, GPS integration to track the delivery person, advanced search filters, etc are what customers look for in a food delivery app. Ensure that the best features are integrated within the food delivery app to make it more attractive. A feature-enriched food delivery app that attracts customers will be able to increase its ROI profit by 300%.
Some of the best features of a food delivery app are:
- Order Tracking
- Multiple Payment Gateways
- Predictive Search
- Chatbots and customer support
- Advanced search filters
- Secure checkout
- In-app chat and call facility
- Reviews and ratings
- UI/UX Design
The food delivery app development companies have a design team that handles the UX/UI of the apps. However, the food business getting the app developed should also collaborate with the development and design team to design the app as per their needs.
- Work on marketing and promotion strategies
Depending on the company’s expertise, the customizations, and the complexity of the app, the food delivery app is developed and delivered between 3-5 months. Once the app is delivered, you should utilize the marketing and promotional strategies to create visibility for the app and attract customers. Some of the best marketing techniques to promote the app are:
- Social media marketing
- Off-page and on-page SEO techniques
- Answering questions related to food delivery on platforms like Quora
- Paid advertisements of Google, Facebook, and LinkedIn
How Much Does It Cost to Start Food Delivery App?
An essential factor that influences many factors in developing a food delivery app is the cost of development. The development cost to start a food delivery app depends on several factors. Therefore, a food delivery app development company can give development cost estimates only after these factors have been finalized by you. Here are the important factors that will influence the cost of developing a food delivery app:
- Number of features
- Complexity of functionality
- Number of integrations such as payment gateways
- Complexity of design
- Developers’ hourly rates
- The reputation of the development company
With all of the above steps followed and factors taken into consideration, you can start a food delivery app with a 300% ROI profit.