Food delivery apps have become an essential part of our lives. They’ve brought forth a sense of convenience. And now, we’ve come to a point where we cannot do without apps like Uber Eats, Grubhub, Zomato, and Swiggy.
Despite being a competitive space, new food delivery apps are flourishing daily because there is a great market demand for online food ordering.
This is why, in this blog, we’ll take you through developing a food delivery app like Uber Eats. At the end of this blog, you’ll have a clear understanding about the:
- Business model of apps like Uber Eats
- Know how on-demand food delivery apps generate sales
- How to build an app like Uber Eats?
- And the Cost to Develop an App Like Uber Eats
So, if you’re at the cusp of making a splash in the food delivery market with an app like Uber Eats—-you’ve come to the right place. Let’s get started!
Here’s Why You Should Develop a Food Delivery App Like Uber Eats
Who would have thought that Uber Eats, Uber’s spin-off business, would go on to dominate the online food delivery market?
Marked by Statista, Uber Eats controls 23% of the online food delivery Apps In the USA market as of January 2024.
There is absolutely no denying that the business of food delivery apps is lucrative, and there is an opportunity to scale globally.
Take a look at the soaring revenue statistics of Uber Eats:
Source: https://www.businessofapps.com/data/uber-eats-statistics/
- In 2023, Uber Eats generated $12.1 billion in revenue—a stunning 11% year-on-year increase
- Uber Eats gross bookings surpassed $67.8 billion in 2023
- Uber Eats is the most popular food delivery service globally with 88 million active users
- Over 800,000 restaurants are available on Uber Eats in more than 11,000 cities
So, if you’re looking to build a food delivery app like Uber Eats, the time to do so is now while the market is still ripe.
To help you fast-track processes, in this blog, we’re addressing one of the most pressing questions that we know is probably keeping you up at night, “How much will it cost to build a food delivery app like UberEats?”
Key Features of the Uber Eats App
Now that you’re more confident than ever that you can develop a food delivery app, let’s create a technical checklist of features needed to make it successful.
Every food delivery application has three crucial facets: consumers, restaurants, and delivery drivers.
So, when you build a food delivery app, you’re developing three unique user interfaces.
- Customer App:
Built for the consumers, this interface will allow them to register, add personal details, search for restaurants near them, order, track deliveries, and make payments.
It can also help to have an in-app chat feature and multi-language support to resolve conflicts.
- Restaurant App:
This app will be used by restaurants, cloud kitchens, dark kitchens, and even bakeries to manage their online presence and receive orders.
They can also use it to notify customers about the status of their food and meals.
Trending Push Notification Templates for your Food Delivery App
- Food Delivery Driver App:
This interface will be useful to food delivery drivers as they will be receiving delivery tasks through it.
They can also use it to navigate to the user’s address and deliver the food they’ve picked up from the restaurant.
Equipped with tools to manage their earnings, this app greatly aids the delivery processes.
- Admin Panel
The Admin panel is an interface that helps aggregators stay on top of data insights.
It helps with key business workflows like customer management, store management, delivery management, and driver management.
Further, the app can also be used to generate sales, marketing, and growth reports.
As you can see, there are a lot of moving parts here. Additionally, you’ll also need a robust back-end infrastructure to handle data processing, order management, and payment gateways.
Uber Eats Business Model
Uber Eats is an on-demand food delivery app. But what does that mean?
It means Uber Eats users can order food through the app whenever they like, and have it delivered to their doorstep in a matter of minutes.
To accomplish this feat, Uber Eats needs to partner with restaurant vendors. It is these local restaurants that offer their services to complete orders placed through the Uber Eats app. While restaurants charge customers for this service, Uber Eats charges a platform provider fee for each order.
Uber Eats cannot fulfil orders without a network of delivery partners who drive to and fro, from restaurants to consumers, in order to deliver food. Drivers have access to maps and directions. Also, their locations are tracked in real time by users and restaurants.
The Uber Eats Business Model depends on convenience and transparency. Uber Eats provides ease of access to users and fosters transparency among all involved segments.
How Apps like Uber Eats Generate Revenue
Uber Eats aims to provide fast, reliable food delivery services to its users. And this is its primary source of revenue.
Revenue From App Users:
Uber Eats charges a fixed platform service fee and a dynamic delivery fee on each order.
Service fees are about 10 to 15% of the gross order value, while delivery fees vary based on the distance and time. Uber Eats also charges a small order fee on orders less than $10.
Another source of monthly revenue for Uber Eats is its loyalty programs. Uber Eats offers premium subscriptions to its users. Subscribed users enjoy discounts, free deliveries, or free meals. The subscription fees start at $9.99/month or $96/year.
Revenue From Partner Restaurant:
Next, Uber Eats takes a big chunk of commission from restaurant vendors. As an aggregator platform, Uber Charges anywhere between 30 to 35% off the total order value.
It also charges restaurants for in-app marketing and promotion services.
How to Create an App Like Uber Eats?
Here’s a breakdown of how you, too, can create an app like Uber Eats:
Step 1: Define Your Target Audience
The food delivery landscape is competitive. Giants like Uber Eats, Zomato, and Grubhub have already demarcated their areas of operation.
Hence, to thrive in this market, you need to identify and tap into a niche that hasn’t been very well served. Hence, explore untapped, unique consumer segments.
Step 2: Choose your last-mile delivery model
Decide whether to hire your own delivery fleet or outsource last-mile logistics to a third-party delivery service provider. Employing your drivers requires a high upfront investment, while the latter is a much more economical option.
Step 3: Choose Your Tech Stack
Consult with a mobile app development company and build your technical infrastructure. This involves exploring programming languages, tech frameworks, deployment platforms, cloud-storage options, APIs, and payment gateways.
Or
You can work directly with a white-label food delivery app service provider like Deonde and skip the hassle of building an app like Uber Eats. White-label SaaS solutions are pre-built with features. All you need to do is customize and align with your brand and target audience.
Step 4: Development and Launch
Once you have a feature-rich food delivery app like Uber Eats, test it. Conduct test runs and ask your development team to debug all interfaces before the launch.
Once launched, you’ll need to boost your app promotions on social media. Partner with influencers or go for paid ads. The traffic generated will enhance brand visibility and awareness.
On the other hand, ask your tech team to focus on app sustainability and quality assurance. Update all interfaces regularly and provide new updates every month to meet user demands.
Step 5: Restaurant Onboarding
Coordinate with partnered restaurants and ensure they onboard smoothly on the vendor app. Make sure they’re aware of app functionality and know how to use them to fulfil orders.
Also, make sure they know how to leverage communication channels so as to maintain transparency.
Hence, this was a brief listing of activities involved in developing an app like Uber Eats.
Also Explore: Deliveroo vs Uber Eats: A Detailed Comparison
How Much Does it Cost to Develop an App Like Uber Eats?
Building an application from scratch normally takes 500 to 850 hours. However, working with an expert food delivery app development company can expedite this timeline.
The easiest way to find the cost estimate is to multiply your anticipated development hours by the developer’s hourly cost.
The cost of hiring a developer varies depending on where you live, but here is a country-wise guide on hourly app development costs.
| Country | Cost of Development (per hour in USD) |
| Asia (India) | $ 20 – $ 80 |
| South America | $ 30 – $ 100 |
| North America | $120 – $ 220 |
| Europe | $ 100 – $ 250 |
Recommended Reads: Top 10 Online Food Delivery Apps in India
What Factors Affect the Cost of Food Delivery App Development?
By now, you must have understood that the cost of developing a food delivery app can range anywhere from a few thousand dollars (`$10,000) to a whopping several thousand dollars (~ $215,000). Where you fall in this range will depend on a range of factors.
- How complex is your food delivery app?
The more complex your app is, the more it will cost you to build it. Complex solutions need more time to get coded, tested, and fixed.
Also, features like AI or machine learning can be resource-intensive; hence, can cost more than basic applications.
- What’s your app platform?
Are you creating your food delivery app just for Android users? Probably not.
Developing for iOS and Android platforms requires a diversion of company talent. Thus, developing for multiple platforms will cost you more.
Besides, iOS app development is more pricey than Android due to Apple’s licensing fees and rigid app development guidelines.
- Design and user interface:
A simple, user-friendly design that allows seamless navigation is probably essential to your food delivery app.
However, to stand out in this competitive niche, you’ll need UX/UI that is more than the bare minimum.
A complex, visually stunning design is an extra expense but is probably worth it if it attracts more users.
- Ad hoc costs:
Mobile apps require regular post-launch support and updates. Timely servicing of mobile applications is requisite for a smooth user experience.
Ways to Minimize the Cost of your Food Delivery App like UberEats:
If you’re serious about developing an app like Uber Eats but are worried about the high initial cost, then we’ve some advice for you.
With these industry insights, you should be able to considerably bring down the cost of development.
- Keep it simple yet functional
Start with a basic version of your app and gradually add features based on user experience and feedback.
- Cross-Platform Approach
Take a look at frameworks like React Native, Xamarin, and Flutter to construct a single codebase for apps that are compatible with both Android and iOS.
- Choose an experienced web and mobile app developer:
Partner with a reputable development agency that offers competitive rates, and more importantly, has a proven track record in food delivery app development.
- Actively use Third-Party Services:
APIs are technologies that make it easier for different programs to communicate with one another. Deploying APIs rather than developing native functionality can decrease the cost and duration of development.
- Choose a SaaS-based white-label solution:
This is the most economical course of action for startups who wish to avoid heavy initial investments.
White-label food delivery suits are 100% customizable and can be edited to meet your brand requirements. They can also be rented for as little as $100 every month.
If you’re looking to kick-start your food delivery business in less than a week, we recommend you check out Deonde’s white-label Uber Eats clone app.
Utilize existing APIs for functionalities like mapping and payment processing to save substantial development time.
In a Nutshell
Uber Eats has turned out to be a promising business, and many startups are inspired to build a business like Uber Eats. Uber Eats allows users to browse and order food through their app. They partner with multiple food vendors and delivery drivers to fulfil the client’s order. In many ways, Uber Eats is an aggregator app, or a middleman, that connects app users with restaurants and delivery partners.
Building a food delivery app like Uber Eats is not easy, but it is definitely doable when you partner with the right app service provider. Otherwise, your initial investment costs will rack up to several thousand dollars. The good news is that there are several ways to manage development costs.
For instance, we strongly recommend that young startups and SMBs pursue a white-label food delivery service like Deonde. This service offers competitive pricing and knows its way around the online food delivery app niche.
Get started with Deonde’s Uber Eats Clone:
Deonde can help entrepreneurs build an app just like Uber Eats in a matter of days. Additionally, Deonde offers constant tech support, regular updates, and flexible features to support the business through thick and thin.
A white-label SaaS solution can be tailored to grow your business. We recommend starting with essential features and slowly expanding to manage costs.
Getting started with your food delivery application is the first step in this long journey. Let’s talk and get this momentum going in less than 24 hours.
Frequently Asked Questions (FAQs)
- How do apps like Uber Eats make money?
Uber Eats generates money through delivery fees, restaurant vendor commissions, in-app promotions, and subscription charges. Uber Eats also generated revenue by pursuing alternate lines of business, like grocery delivery.
- Can you name some apps that are similar to Uber Eats?
Sure. Here is a list of apps similar to Uber Eats:
DoorDash, Grubhub, Postmates, Zomato, Swiggy, Deliveroo, Just Eat, Tapingo, Gopuff, and Food Panda.
Explore the Uber Eats vs. DoorDash: A Comprehensive Comparison
- How much does it cost to create an app similar to Uber Eats?
The cost of developing a food delivery app like Uber Eats depends on several factors. Broadly speaking, it can range between $10,000 and $215,000.
- Why is Uber Eats in so much demand?
Consumer habits are drastically changing. People love the convenience of an on-demand food delivery app like Uber Eats. Uber Eats is a global brand, easily accessible from any part of the world. It offers multi-lingual support and its user interface is very intuitive.
Uber Eats has also adopted an omnichannel model for communicating with its consumers. Hence, it greatly amplifies customer satisfaction and brand awareness.
- How can Deonde help me build an app like Uber Eats?
Deonde helps food delivery startups by providing them with a customizable software platform like Uber Eats every month. This means with Deonde, you no longer need to build an app from scratch. Personalize Deonde’s Uber Eats clone and start your food delivery business.
Take the First Step with Deonde’s Uber Eats Clone App
