Mobile App Development

How to Launch Your Online Food Delivery Business in 2023?

Negi

Negi

January 13, 2023
How to Launch Your Online Food Delivery Business in 2023?

Whether you are a startup or seeking to scale up your business potential, launching your online food delivery system could be a proven efficient deal. To well-turn your idea, you need to get associated with a domain expert on-demand app development partner to deploy your food delivery software solutions.

In recent years, the online food delivery concept took a lope wherein modern consumers couldn’t remain limited to buying online groceries, electronics, booking & scheduling appointments, etc. They even anticipate online food delivery for different cuisines with quick speed and quality assurance.

To start driving your online food delivery business, you need to come up with a solid idea, a strategic business plan, and a trustworthy partner to ensure a successful road map for your business. 

So, this blog is curated to ensure an end-to-end guide – how to design your online food delivery business. By the end of this blog, you will go through various facts & figures, a process model, essential features to imbibe, revenue generation, and more.

Market demand & overview

Investing in a food delivery business could be a proven profitable yet efficient deal for your business. If we consider the recent market research, we can see a continuous hike in the online food delivery domain.

When it comes to including Statista’s market research, the online food delivery market is projected to reach US$291.10 by the year 2027 with a CAGR of 6.95%.

Another stat from the same source depicts anticipated user adoption of up to 19.1% by 2027

Undoubtedly, the online food delivery business is continuously growing and reserves its secure future ahead. However, implementing the right strategic approach, a foolproof plan, and most vital selecting the right partner to develop your food ordering software can help make a difference.

How the online food delivery model works

Before indulging in this business, contemplating how the online food delivery business model works can help you understand the process flow and will also help you strategize things adequately.

Usually, the food delivery model involves three stakeholders to carry out the process. This business model enables startups/businesses to kick-start their online food delivery business. However, the restaurants also get an opportunity to expand their business capabilities as well as it opens more opportunities for delivery executives.

Further, it enables customers to order their food based on mentioned price, locations, and more while leveraging special discounts, user reviews, etc. Users are also facilitated with the option of tracking their food status in real time.

Now, let’s unfold the process flow for each stakeholder for the online food delivery business model:

Customers

  • Customers order their meals from any available restaurants while considering their menus.
  • They make payment for the order.
  • After a successful delivery, users can rate and review their ordered food.
  • They can leverage the order scheduling in advance.

Restaurants

  • Restaurants get registered with the food delivery app.
  • They create menus and include deals & discounts.
  • They get paid for the orders they receive and deliver.

Delivery Persons

  • Delivery personnel delivers food to the customers
  • They get paid for every food delivery.

In brief, the restaurants get registered on the food delivery app first and create menus. When a customer orders food and pays for the same using the app by choosing the specific restaurant and food, the restaurant gets notified about the food order. After receiving an order the restaurant can accept or reject (in case of unavailability) the order. 

After confirming the order, the restaurant prepares the order meanwhile the delivery executive is assigned to pick up the order from the restaurant and deliver it to the customer. In this process, both the restaurants and delivery personnel get paid for their significant delivery. 

To understand the earning potential of the app owner, we will come up later in this blog. First, let’s derive an end-to-end guide for how to start an online food delivery business in 2023.

How to start your online food delivery business

After getting aware of the on-demand food business process flow, it’s time to adhere to a step-by-step guide to getting started. Applying strategic practices and a logical approach can help you ensure success at every step. Here, we are suggesting the potential yet result-oriented steps to be followed:

Perform market research

Before you start your online food delivery business, performing adequate market research is essential to ensure success in your business. If you are new to the food & beverages industry, you need to study a lot. Moreover, understanding the market dynamics is crucial in terms of competitor overview, market penetration opportunities, and more.

Knowing your competitors and how your competitors are performing in the market is truly essential. For instance, what menus are being served to the customers and are in demand along with pricing practices and marketing tactics to establish your food agency in the fully competitive market.

Study all the possible cases and on the basis, seek potential opportunities, leverage your strength part, and eliminate your weak part. This will help you effectively initiate your online food delivery business model.

Know your target audience

Before you start, you need to analyze the market and know your targeted customers. In case, if you are already running your restaurant, you can start targeting your existing customers first and later can scale up your customer base with proper planning, offering quality food, and driving marketing campaigns.

If you are new to the on-demand food delivery business, you need to analyze the market to determine the targeted market, study customer preference, and evaluate the demand. This will help you to set a proven milestone for your business objective.

Decide your budget

When it comes to launching your on-demand food delivery business, determining your budget is a crucial factor to consider. To analyze your actual budget, you need to consider several factors such as inventory & logistics, digitization/technology costs, licensing costs, marketing/branding costs, etc. So, let’s understand every factor one by one in brief:

Inventory & Logistics

If you are willing to set up your own kitchen, you need to avail of the location first to start with, including managing the kitchenware, inventory, interior decor, flooring, etc. However, most of the on-demand food delivery businesses do not prefer managing their own kitchen, they usually go with cloud or virtual kitchen concepts wherein you eliminate the need of managing inventory levels and logistics.

Technology

To drive your food delivery business, you need to either develop a mobile app or a web app. However, modern consumers these days prefer to leverage mobile apps when it comes to offering online food deliveries. 

To develop your application, either you can hire an internal resources/team to carry out a successful business app or can eliminate this hassle while reducing your cost by availing of food delivery software solutions from a third-party provider.

Licensing

Depending on your targeted location, you need to go with regulations and government compliance which might vary from location to location. So, you need to check with these requirements for the specific location you are willing to target for an on-demand meal-delivery business.

Marketing

To successfully establish your brand and outreach your targeted customer base, promoting your app, business, or brand is truly crucial. There could be several ways to drive marketing campaigns for your online food delivery brand including social media, banners, email, and more.

Develop a food delivery channel

To accept orders from your customers there could be several potential ways such as Whatsapp, WebApp, mobile app, and even social media. But the most trending and considerable platform is mobile apps whereby you allow your customers to place their orders, restaurants to take orders, and delivery executives to deliver the orders to the customers.

Leveraging an all-in-one platform can help you manage all of your orders, deliveries, payments, and more. To ensure so, you can either develop & launch your Android app, iOS, or native app. However, depending on the type of your costumes and level of restaurant selection, your app platform may vary. For instance, if you are serving premium customers, you need to deploy your on-demand meal delivery app on the iOS platform and vice versa.

Ensure brand promotion

Once your on-demand food delivery app gets ready to be launched in your desired marketplace, it’s time to promote your app to start outreaching targeted customers and receive their orders. To ensure so, you can ask your food delivery software provider to drive promotional campaigns for your app ensuring brand values and successful market adoption.

Monetization ways through your food ordering software

Once all are set, it’s time to understand the monetization potentials wherein you can start generating revenue. Out of the several monetization methods, you need to finalize the best suitable channels to drive profit. 

So, let’s exhibit all possible revenue-generating channels that you can leverage to start earning through your online food delivery software:

Commission from each order

For every successful meal delivery, you can charge a certain percentage from the restaurant. The more orders you will get, the more you will impact your revenue. Usually, food delivery apps charge 15 to 30% commission on every single order delivery. So, you can see how maximizing your customer base and connecting with more and more restaurants is vital to your business to acquire more profit and ensure scalability.

Delivery Fee from customers

Initially, you can offer a perk to your customers by enabling free delivery on every order they make leveraging your online food ordering software. Once you get a successful establishment in the market in terms of getting an adequate customer base and alliance with popular restaurants, you can start charging the delivery fee.

Commission from restaurant

This revenue-generating channel can be utilized once you establish yourself as a market leader. You can charge restaurants for placing their ads or featuring their menus on the top of the app. This will help them get promoted to their restaurant to receive more and more orders and will help you generate more and more revenue.

Advertisements

Once your app gets popular in the market, you start receiving ad proposals from different platforms. This is the very common way wherein related businesses ask to place their ads on the top of your app and to ensure so, you charge and earn.

Initially, you need to focus on increasing your customer base and restaurant partners to ensure driving efficiency. To ensure so, you need to provide special discounts/coupons, enabling free delivery, etc. for a certain time while ensuring quality and on-time food delivery.

Process of deploying food delivery software solutions

To start with, you need to ensure adequate market study, come up with your desired budget, decide your targeted marketplace along with your expansion plans, etc. Once you are ready with all these mentioned things, you need to launch your online food delivery software. 

To ensure so, hiring the right on-demand software solution provider can help to ensure successful deployment at the right marketplace considering your budget limitations.

Here is the process of deploying an online food delivery app at ScalaCode:

Requirement Analysis & Gathering

At this initial stage, we study your project requirements, targeted market, project budget, and deadline adherence. Considering all of your core requirements, we then come up with your project planning and preparations to be considerate while starting your project.

Prototyping & Designing

Once the initial requirement analysis & gathering phase gets completed, we then prepare a prototype for your food delivery app and once you finalize the prototype, we start designing your application applying all of your continuous feedback to ensure what you anticipate.

Seamless Development

After a successful app design for your meal delivery project, our development team starts developing the code applying module-by-module completion concluding all your frequent updates/feedback as we adhere to agile working wherein we ensure seamless engagement with our esteemed clients.

Payment Gateways Integration

After performing core development, we ensure secured and reliable payment gateway integration to receive payments from your customers, commission from associated restaurants, and other perks from the third-parties for placing their ads on your application.

QA & Testing

Once we are ready with your application code, our quality assurance experts perform quality assurance testing to ensure that your app is functioning well and performing as required and is completely free from bugs and any sort of interruption.

Final Deployment/Launching

Once the quality assurance phase gets over, it’s time to finally launch your app on your desired app marketplace. We ensure seamless, secure, and quality-assured deployment for your app to start receiving orders.

To ensure your app is running seamlessly while satisfying the quality-assurance part, we can keep your app in Beta mode wherein you can keep learning about your customer base, marketplace, and market penetration opportunities. 

We also provide MVP deployment wherein we design, develop, and launch your app with essential or core functionalities merely rather than going to launch the full version. After testing your app’s performance, we deploy your app with all of the functionality.

Essential features for your online food delivery software solutions

Admin features

  • Home page
  • Sign-up & sign-in 
  • Multi-admin user login
  • User analytics & sales reports
  • Customization scope
  • Revenue-generating scope/options

Customer features

  • Seamless sign-up & sign-in
  • Simplified order placing process
  • Order confirmation & order history
  • Real-time order tracking
  • User-friendly checkout
  • Restaurant options
  • Search option with discount, featured recipes, etc.
  • Restaurant Ratings & Reviews
  • Call & chat support 
  • Social sharing facility

Restaurant features

  • Manage food items categories
  • Manage menu listing
  • Managing geo locations
  • Payment gateways
  • Deals & discounts allocation
  • Ratings & reviews management

How much does it cost for your food delivery app development?

Your actual cost can be disclosed after knowing your specific project requirements. Since you could have different project requirements and a different sort of project complexity combined with customization level, third-party integration requirements, and more; after getting every detail about your project, we can quote the best yet the most competitive price for your online food ordering software development.

How ScalaCode can help in designing your online food delivery software solutions

With sturdy expertise in on-demand food delivery software solutions, we help startups and businesses to turn their online food delivery idea into reality. 

Here is what sets us apart:

Custom Development

Perceiving your core needs and reinforcing your brand values, we develop highly customized food delivery apps to start performing in the market from the very first day of launching. Considering all the potential facts and figures, we ensure high-end customization supporting your app goals and the ROI that you anticipate.

Highly Flexible

We provide flexibility to clients in every context from choosing an engagement model to selecting your preferred working time zone to real-time involvement with our clients etc. We ensure our client satisfaction at every level of involvement and every stage of project execution.

Standard Development

We adhere to standard coding development wrapped with quality assurance practices at every stage of your project development. Our agile working methodology helps our clients to get their projects navigated the way they want by introducing their frequent/module-based updates. Our expert development professionals leverage standard coding expertise to deliver seamless and scalable code to support futuristic scalability.

Transparency/Confidentiality

We believe in rolling out transparency throughout your project development. We deliver what we commit in terms of solution, quality, deadline, or anything. Keeping your project idea and related information/data safe from any third-party or unauthorized access is our responsibility. To ensure your data confidentiality, we sign a non-disclosure agreement.

Competitive Pricing

While reserving the standard coding and quality assurance part, we offer the best quote for your online food delivery software compared to other market competitors. We believe in serving the bonzer solution at highly cost-effective rates. By associating with us, you can save your cost for online food ordering software solutions up to 60%.

Fruitful Support

Providing seamless and reliable support ensures greater performance, maximized efficiency, and expected output. Our end-to-end support model helps our clients to acquire market establishment, start attaining desired results, and ensure long-lasting market sustainability.

Conclusion

Our experts comprise the required skill set and industry exposure to on-demand software solutions. We can develop either a standard food delivery platform or can deploy as customized as you need. To know how we can become your proven milestone for your food delivery software solutions, connect with our techno-functional today.