Uber EATS is the most used food delivery service in the US. This food delivery venture has inspired many startups to bring innovation into the food delivery industry. There’s no doubt that these food delivery services are making people’s everyday lives easier.
Uber has gained tremendous response over the course of time and the company entered the arena of food delivery service in an expansion of thier online customer service. Now, UberEats has become a worldwide legend as an On-demand app. The company has widespread its business throughout almost all the major cities and nations.
A strong base of loyal audience and an increase in sales in the restaurants proclaim the success of the app. The partnership with local restaurants and Delivery partners has made possible for the customers to almost order any cuisine they want to taste right at the doorstep.
The app recommends customers delicious food and restaurant recommendations. The users only have to go through items on the menu and place the order to be delivered. The payments are usually made online using a payment gateway or via cards.
Let’s dive into the major elements of the Uber EATS app!
The Business Model of Uber Eats
It’s no surprise, now multiple cuisines are now available at your doorstep. With the right technology and delivery services, the startups are considering the food delivery business as an innovative idea to reach out to the widely spread audience and establish their brand image.
Uber EATS business model is a unique idea that is now inspiring millions of food delivery startups. The app functions on both the Aggregator (Traditional) model and Hyper-Local On-Demand Business model.
The apps follow a unique structure that enables the user to order food from the local restaurants by listing the restaurants with customized filters set by the user, order tracking, dining or restaurant recommendations, and food delivery is handled by delivery partners who are associated as full time or freelance drivers.
An Uber Eats app is designed to handle multiple activities for a single user to attain a reputable user experience. The Functions include,
- Manage customer order and delivery process
- Build a relationship with retail stores
- Make Delivery System and Controlling delivery Provider
- Build and Manage app infrastructure
- Customer Acquisition
- Hire Delivery supplier Full-time or Free Time
How does Uber Eats make money?
The company raises its profit through three main monetization strategies. The primary partners are restaurants & Local food stations and Delivery Suppliers.
1. Delivery Charges
Uber EATS uses a pricing calculator that estimates the cost of the order fee based on the distance between the customer and restaurant.
2. Revenue sharing from Restaurants
The company charges the restaurants or local food courts from 15% to 40% fee or each order received through uber EATS.
3. Advertising via Apps (Android/iOS )
The company gets a marketing fee from the Restaurant partners for promotions in the app. It is a monetization strategy among restaurants to boost visibility by running commercials in the featured sections of the app.
The food delivery technologies are booming. It is predicted that growth is to become unstoppable in the next few years. The business model is quite stiff as the UberEats has managed to stand out from the experienced players who entered the market with them.
While numerous business has also entered the food delivery venture, by the understanding and solving the customers become one of the best players includes DoorDash, Postmates, Grubhub, and Zomato.
How To develop an app like Uber Eats?
If you want to make your food delivery app popular, you need something more than replicating the features and monetization model. We have put down the major steps you should take to develop a unique food delivery app similar to UberEats. More importantly, you should aim to improve the user experience which helps in making the food ordering app a promising investment.
1. Analyze the Food delivery industry trends
The food delivery industry is expanding rapidly, to stay ahead of the competitors you should be aware of the trends and consider applying to your App development.
Evaluate your ideas that will bring profit via the app. Consider making an app unique food ordering experience via social platforms. Domino’s Pizza was the first food brand to use this ordering option.
Another unique feature that attracting users lately is Virtual assistance. A chatbot for food ordering via messengers and inform users about the latest deals, estimated delivery time and location. As the users today are looking for a simplified food ordering experience such as real-time ordering and scheduled ordering.
Once you get familiar with the new trends it will be easy for you to update your app features according to customer’s interests.
2. Choose a Food delivery business model
In this stage, you will have to decide on which food delivery model that will suit your business, that should also meet your revenue goals. Currently, there are two main models are used in the food delivery industry.
The companies are responsible only for ordering and managing orders. The major benefit of utilizing this model is you don’t have to worry about cooking and delivery. You can receive commissions from ranging from 10% to 30% depending on the order value made via the app. For example, Eat24 and Delivery.com have adopted this model.
Order and Delivery model
The companies take the responsibility of both managing orders to delivery. UberEats has adopted this model. The monetization strategy includes Revenue sharing from restaurants, delivery fees, Marketing fees, etc. It is a successful model that has created an impact on business scaling. Other apps like Doordash and Deliveroo have also adopted this model.
3. Research your target audience
Market research is a crucial task for building a food delivery mobile app. Who is your target audience? Once you understand who will use your services, it becomes easy to build an app and functionalities around the needs of your audience.
Your target audience could be more narrow this tells that the app should be personalized according to the user’s preferences. If you need a clear overview of your target customers, you can do research on potential customer profiles, demographic details, Social characteristics, mobile usage and more rather than just competitor’s research. The success of your food delivery app relies on a better understanding of your customers.
4. Choosing a Development Team
Composing a development team is another vital move in food delivery app development. Hiring the right team can bring your food delivery app to the spotlight. The team includes experienced app developers based on the choice of platform, UX designers, backend Developers, Quality assurance team and skilled app testers.
The team will also help you choose the suitable technology stack for your app development. A qualified industry advisor will guide you in making the app profitable and makes you aware of the challenges in the journey of building a perfect solution that meets your business goals.
5. Essential features the Food Delivery App
If you looking out the develop an Uber EATS clone, It is a fact that the most popular applications are found in two predominant platforms like Android and iOS. These are three important spheres you have to consider before you start to build your online food delivery application. It includes,
- The customer side app
- The Admin Panel
- The Owner’s Dashboard
Features of the Customer Side App
- Customized Orders
- Placing the Order
- Order Checkout
- Order tracking
- Rating and Reviews
- Customer Support
- Additional features
Features of the Admin Panel
- Restaurants Management
- Application Management
- Push messages for Deals and coupons
- Technical assistance
Features of the Owner’s Dashboard
- Login Process
- Management of Restaurants & Menu list
- Order management
- Push notifications
- Control panel login
- Managing the orders
- Payment gateway
How much Does it Cost to Develop a Food delivery app?
There are numerous factors to consider to estimate the final cost of mobile app development. Here you will get an idea of how it might cost to build a food delivery app similar to UberEats.
The features you want to include in your app, the number of platforms, numbers of integration, UX/UI design, visual prototypes, and many more things should be considered in estimating the cost of an on-demand food delivery app. The development team will come up with a precise cost in the discovery phase of the development.
In terms of app development, the companies charge their clients on an hourly basis, but the price may vary from a nation to another.
The food delivery market has become much crowded now, yet undoubtedly a popular prospect to make an investment pitch. To stand unique in the industry, you should adopt the top trends and apply a perfect business model that yields more profit from your app.
With an MVP app, you can get more insights from your target audience and add more features further during the development stage. If you want to know the estimated cost you can reach our development team.
Want to know what’s the next step? Agira technologies is a leading mobile app development company. Build your online reputation with our potential solutions. Reach our mobile development experts for an app quotation or a consultation for free and get started with your on-demand food delivery app today!