Build an food delivery app: Cost Breakdown & Considerations
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It's no secret that people love ordering their favourite meals online. With 63% of customers preferring to order food online through mobile apps, the potential for growth in the Online Food Delivery Market is enormous. Valued at $180.3 billion in 2024, this market is estimated to skyrocket to $483.9 billion by 2032, presenting a significant and exciting business opportunity for restaurant owners.
Online food delivery apps have reshaped the restaurant sector. Mobile apps like DoorDash, Uber Eats, Postmates, and Grubhub exist. As of February 2024, these apps dominated the online food delivery market in the United States, with a market share of 65%.
Food delivery apps, with their highly user-friendly interfaces and a wealth of features, have gained popularity and success in the restaurant industry. Their ease of use not only benefits the end-user but also provides a promising platform for restaurant owners to expand their business.
If you want to build a mobile app, it's one of the best opportunities for business owners to grow in this business. Do you wonder how much it costs to make a food delivery app?
Certain factors could cost your food delivery app development anywhere from $25,000 to $100,000 or even more. However, you should understand different criteria to get a cost estimation for food delivery app development.
If you are ready to discover the exact cost of a food delivery app, read this blog.
Want to Build a Food Delivery App?
Incredible Market Statistics!
Here are some stats on why you should develop a food delivery app:
- With an exclusive hike from $850 million to $2.9 billion, the app has witnessed growth of 241% in the past two years.
- According to Edison Trends' survey, the food delivery app has a 45% share of the US food delivery market.
- The entire food delivery app industry is expected to reach a $165 billion market size by 2029.
- Revenue in the Online Food Delivery market is projected to reach $1.02 trillion in 2023.
- The number of users in the Meal Delivery sector is predicted to reach 2.5 billion by 2027.
Costs to Build a Food Delivery App
Food delivery app development costs $65,000.
Although it's a rough estimation, here is a more detailed cost breakdown of food delivery app development:
- A basic on-demand food delivery app - prices range between $30,000 to $50,000.
- An on-demand food delivery system with multiple features, like the DoorDash app, costs between $52,000 and $100,000.
- A Quick Service Restaurant app development like McDonald's or Subway can cost anywhere between $60,000 – $80,000.
- An advanced food delivery and marketplace app with high-end features costs $100,000 and above.
Food delivery app development relies on various factors, such as simple, advanced, and complex app designs.
Level of App Features
Features are divided into a Dasher Panel, a Restaurant Panel, and a Customer Panel. Each panel has different requirements and essential elements, including menu search, the login process, location tracking, payment management, and more.
Advanced features, like restaurant video suggestions and integration with wearable devices, make the app more user-friendly.
Costs for developing different panels:
- Customer Panel: $10,000 (single platform), $12,000 (cross-platform).
- Restaurant Panel: $20,000
- Delivery Panel: $16,000
- Admin Panel: $30,000
App Design
The design significantly impacts costs, with advanced and user-friendly interfaces attracting higher prices.
Building apps for both Android and iOS with a single codebase using tools like Flutter can reduce costs compared to developing native apps separately for each platform.
Location of the Development Agency
Development costs vary by region.
- Eastern Europe: $40-60/hour
- Western Europe: $80-100/hour
- USA: $120-150/hour
- UK: $100-130/hour
- Asia: $25-40/hour
Development Tools & TechStacks:
Advanced applications using technologies, frameworks, and custom algorithms demand higher development expenses.
Native iOS apps are more expensive than Android apps due to Swift developers' higher costs.
Cross-platform apps using tools like Flutter are the most cost-effective, providing two apps for one.
Stages of Development
Development involves several phases.
- Discovery: $2,000 – $5,000
- Design: $12,000 – $16,000
- Development: $25,000 – $65,000
- API Integration: $5,000 – $8,000
- Testing: $8,000 – $15,000
- Launch: $500 – $1,000
App Security
App security and data privacy are crucial, especially for meal delivery apps that handle sensitive user information.
Security measures, including end-to-end encryption and penetration testing, cost $1,000 to $5,000.
Revenue Models
Food delivery apps make money through commission fees from restaurants (15-30% of the order amount), delivery fees, membership services, and advertising agreements with restaurants.
Food Delivery Apps Make Money
Apps for food delivery make money through several techniques.
- Commission Fees: Charged to restaurants, typically 15-30% of the order amount.
- Delivery Fees: Charged to customers, varying based on distance and demand.
- Membership Services: Monthly fees for perks like free delivery.
- Advertising Agreements: Paid promotion and improved visibility for restaurants.
CodeSuite is here to Build a Food Delivery App!
As a leading food delivery app development company, CodeSuite delivers high-quality apps that make dining easy and food delivery efficient. Our services include:
- Restaurant Finder App Development
- Food Delivery App Development
- Food Ordering App Development
- Inventory Management Solutions Development
- Restaurant PoS Software Development
For more information about restaurant mobile app & food delivery mobile app development services, contact us!
