Atlanta Falcons missed another opener. They have this neck of losing out to the openers over the years, but food lovers did not miss a bite! You may think how so? Well, this year, NFL (National Football League) decided to go with an on-demand food delivery app Postmates as partners to serve their audiences. A tweet by the famous food blogger and editor, Christine Struble, indicates how it was exciting news!
Such a tremendous response to Postmates has been a sort of inspiration. Many businesses now look up to them and search for the best mobile app development services to recreate that magic.
If you are wondering why the on-demand food delivery apps are so popular? Here is a quick look at the market size of such apps in the US.
According to Statista, the USA’s online food delivery segment will make $26,527 million in revenues by the end of 2020. It will reach $32,325 million in revenue by 2024. The market is full of opportunities, which propels a massive demand for on-demand food delivery apps.
Now, if you are looking to cash into this market with reliable mobile app development services, here is what you need to know!
How does a food delivery app work?
Food delivery apps are known for easy to order interface and quick delivery. Whether you want to have regular fries from McDonald’s or those gourmet popsicles, an on-demand food delivery app can provide you with fresh foods within no time. But how?
There are their components that work in sync to provide an on-demand experience with the app:
Mobile App UI
Any User Interface is a gateway for your users to interact with the system. Now, when a user wants to order something, say a “fusion nachos” from the famous Yumbii, it should be easy to find.
It must help users search their favorite food, add instructions, and place the order from their choice restaurants. Mobile app development companies can help you with an easy to use UI for your app. It is the face of your business and must be designed efficiently.
It is a module to help the central admin add or delete different categories of food. They can change the menus according to the availability of the food. Here, the admin can be a restaurant owner or even an aggregator, which depends on the type of business model you choose.
Order Retrieval System
An order retrieving system module is specifically for restaurant employees and managers that fulfill orders. They retrieve the order, complete them, and update the UI. So, the baton of a race against time to reach the user is handed over to service providers or third-party delivery professionals.
Third-party service providers have a dedicated app that makes it easy for them to access all the order details. They retrieve the information and use navigation features pre-built in the app to reach your doorstep with fresh food.The entire system works in sync to provide the ultimate food ordering experience. Creating such a flawless experience needs the right mobile app development service in Atlanta and a sound business model.
The on-demand food delivery app needs to have a business model that can infuse regular cash flows because it makes the business more feasible. So, let’s discover some of the business models you can choose for your on-demand food delivery app.
Food Delivery Business Models
A business model is a kind of system flow that ensures the smooth execution of the process. The on-demand ecosystem has seen a revolution over the years in many ways. Some of these models have great potential for successful business growth.
Enterprise To Person Model
E2P or the Enterprise to person apps cater to as B2C or the Business to the Customer application. The business model helps big food enterprises like McDonald’s, Domino’s Pizza, Starbucks, and others to cater to their consumers directly.
Such a business model suits an existing food joint that has already made a name for themself. So, they only need an app’s flexibility with some logistics support to boost the business and reach new customers.
On-demand Business Model
The on-demand business model has been the most revolutionary of all the food delivery models. The reason behind the success is the ease of business growth.
It is also known as an aggregator model. Here, the aggregator facilitates the on-demand system through a tech-stack developed by mobile app development services. The tech-stack includes many different digital tools, which we will discuss later.
These tools help aggregators to offer instant/scheduled food delivery services from different restaurants. For example, you want to buy a meat-and-three meal from the famous Busy Bee Cafe of College Park. But, you are at the Hapeville, and enjoy it in no time, what will you do?
Here, an on-demand app can help you get your favorite food in no time. The tech-stack for such an on-demand business model can be developed with the help of an app development company in Atlanta. Such apps are not just for ready-made foods; you can even start an agriculture aggregator app for Atlanta’s local farmers.
Consumer to Consumer Model
It is again a complete aggregator model. In continuation of the agricultural aggregator business, you can create a marketplace. The app itself can serve to be a platform for farmers to provide fresh organic food to the customers. Similarly, you can create a hybrid platform for big giants in the food industry.
For example, McDonald’s uses the in-house delivery module called “McDelivery” while also engaging with a third-party delivery service like Ubereats. Firms and startups from the US can leverage such hybrid platforms through mobile app development services. So, they can have a dual advantage of in-house capabilities with the outreach of third-party service providers.
We discussed different models here. Next, we will discuss the technology stack that you will need for an on-demand business model.
Step-by-step guide for the on-demand-app development
There are several different types of app that you can develop like native apps, hybrid apps, cross-platform apps, and even PWAs (Progressive Web Apps).
Before we start with how to develop these apps? Let’s understand a brief difference between them for you to choose better.
Native Apps are platform-specific, like Android and iOS. They perform well in the native environment. Mobile app development on the native environments gets full support of the OS services and tools.
While cross-platform apps work across the platforms, hybrid apps combine the web and native apps to create a seamless experience. Hybrid mobile apps are quite popular among many development services.
Now that you have some knowledge of what types of apps are prevalent in the market, let’s understand how to develop one step-by-step?
Step-1: The Non-tech Management
The first thing that you need is extensive market research. It will help you understand the real issues with users and define a problem. There are many food delivery service providers in the market. Diving into such a market without research can be damaging to your growth plan. Research can include market surveys, peer interviews, and expert opinions.
Every restaurant has its point of sale. An independent food delivery service or an aggregator will have a POS too. Now, the integration of the standard POS from restaurant owners can be difficult.
The on-demand business process allows the aggregator to receive revenue from the consumers and remit a portion to restaurants. A standard agreement of terms and royalty distribution becomes paramount.
Standardization is an excellent brand image. Everything from food packaging to culinary should have the company’s logo. The standardization of the partner’s front, web portal, app theme, packaging, delivery person’s uniform, and others can help increase brand awareness.
Restaurant owners have some territorial issues. For example, an established food chain like “Slutty Vegan 2.0” with a broader reach without territorial boundaries can help consumers. Simultaneously, a food joint like Ria's Bluebird near the King Memorial may have a limited serving circumference.
An aggregator like Doordash or UberEats will have to create small and large food vendors. So, there are no territorial issues. They can even take the local authorities’ help like GDA (Georgia Department of Agriculture), Georgia Restaurant Association(GRA), and FDA (Food and Drug Administration).
Food Delivery Contract:
When it comes to food delivery contract, some specific terms are necessary like
- Delivery area
- Delivery routes
- Charge for the service
- Route priorities
- Payment methods
- Calculation of the remunerations
Many aggregators have in-house delivery services. It ensures exclusivity, which may be an issue with third-party vendors. But, you can always add an exclusivity clause in the food delivery contract.
Step-2: The On-demand Tech-Stack
The core services of any on-demand food delivery business are logistics, inventory management, and vendor management. Apart from these, there is also a food delivery partner or vendor to manage.
All of these need robust technology support from a web and app development service. These services can help you create an interface to help record, analyze, and integrate essential data.
For example, you are an organic food aggregator, and you want to track the stock of meat in your inventory, what a custom mobile app development service can do is create a cloud-based ecosystem. So, the local farmers can update the new stock data that you can retrieve through the central dashboard to update the stock.
The customer’s app is the most vital part of your entire tech stack. It is the front face of your business. So, keep it simple and easy to use. The best practice is to create a user interface that helps users search their favorite food or restaurant. Another essential part is the login. You can have social login for users to access the app easily. Some other features that you can include are
- Order scheduling
- Auto-Location detection
- Real-time order tracking
- Instant conversations( with Restaurant managers)
- Call function (to connect with the delivery provider)
- Add Instruction function(Food preferences)
- Different payment options
- Payment Gateways like PayPal, Visa, and others
- Review and ratings
The restaurant’s app needs features that can help manage order requests. With top mobile app development services, you can create such an app. It can make order management more efficient. Restaurants can accept or deny an order request, manage menus, and add special food items. Some of the other features that you can add are
- Order history
- Instant notifications
- Order accept or reject
- Contact function( call with user)
- Real-time chat with users
Delivery Service Provider App:
The delivery provider’s app can have features like location tracking of the user, finding the optimal route, setting priority orders, contacting restaurant managers, and admin. The app can use innovative technologies like BLE (Bluetooth Low Energy) to send constant notifications as the delivery person reaches in the proximity of the user’s location. The app can have a feature that helps delivery personnel track the charge based on the distance to the user’s location.
The Admin panel is like a control center. It helps the aggregator to manage user profiles and manage all the activities related to the entire operation. An admin panel allows the aggregator track order requests, restaurant profiles, delivery service provider’s profile, documentation of delivery personnel, and access to history.
It can have an Artificial Intelligence based algorithm that helps admin to tag the nearest delivery personnel to the user’s location. Other vital features that the app can include are
- Revenue tracking
- Distribution of remuneration
- Royalty calculation
- Adding discounts and promotion
- Access to ratings and reviews
Step-3: Roll-out Plan
Before the final launch of your application, you must consider releasing a beta version. Here, the concept of a Minimum Viable Product can help. Mobile app development services can build an MVP with an agile approach.
App testing is an essential part of your roll-out plan. There are many forms of testing, like usability, functionality, and others. Testing will help you improve the app. App developers in Atlanta can help you create a release pipeline. Once you are confident of the app, you can have a grand launch.
Step-4: Maintenance & Support:
It is not just about launching an on-demand food delivery app and relax. You will need to keep the app performance up to the mark. Here, mobile app development services can help you with extensive technical support. The maintenance of the app and management of other version updates are all done by such services.
As the on-demand food delivery app needs data like location and other user’s information, the security is quintessential. With an expert tech partner, you can automate the app’s safety and create an app that follows the data regulations.
Unwrapping the Taste:
The pandemic has forced us to stay cautious of hanging out. Restaurant business around the world has seen an enormous decline in the revenues. An on-demand business model can help not only the aggregators but also small-scale food businesses. The ease of ordering from and the safety of eating at home will encourage more users to order from such apps.
All you need is an app development company in Atlanta that has the capability of creating innovative tech-stack. Start an on-demand food delivery business now with the flexibility of serving 24/7/365.