The Cost Estimation to Build Food Delivery App like UberEats And Grubhub

• By Molly Cobb
• 02-06-2022
• Mobile Apps

What is this GrubHub and UberEats? They are on-demand food delivery applications. Well, there are more to this such as Zomato and Swiggy. The world is craving two things that this on-demand food delivery application can provide. The first one is Food and the second one is the ease they provide with the food.

Let me elaborate on this, like who gives you the food on-demand, of your choice and that too at your doorstep. You can order anything from anywhere from these on-demand food delivery applications. The audience of these on-demand food delivery applications is enormous.

The food delivery application has the most extensive userbase penetration with almost 650 million users. China built $27.3 of revenue in 2021 from food delivery applications. Food delivery applications like UberEats and Zomato have developed a great reputation in the market and they are now on a path to success.

So now the main question is how these applications are earning so much?

Although it is a very good business idea and a famous one too, very less amount of people are able to do the business of on-demand food delivery applications.

So let’s get to know the step-by-step to build an on-demand food delivery application. We will explain everything from its market share to the challenges and its solutions to you.

Market share for food delivery applications

Well as I said customers are at ease with the help of on-demand food delivery applications like the UberEats App. The online and offline demand for food is closing the gaps in-between. And no doubt that online demand for food will surpass the demand for offline food (Just like restaurants and bars).

Also, It is observed that by the end of this year the online food delivery market is projected to reach almost $10,196 million. Woah! Now you are starting an online food delivery app business, right? Let me tell you that it is not that easy. On-Demand Food Delivery applications are estimated to grow at a CAGR
rate of 9.5%.

The chart shows the revenue of on-demand food delivery applications in billion dollars. That's pretty huge though. Also, it is recorded that 116.1 million users were actively using the applications like UberEats and The GrubHub in 2021.

Now that you know the market value of these kinds of applications. Let us discuss further the cost of their building.

What is the actual cost to build an application like GrubHub?

I’ll say that there are several factors that affect the idea of the cost. But don’t worry we are here to help you. Such thing as the cost depends on various aspects. But the efficient cost of building an application like UberEats and GrubHub will cost you somewhere between $30,000 to $40,000.

This cost comprises everything from Mobile application design, the development of both the android and iOS versions of the application, various testing schemes of the application, and finally the app launch in the market.

The Pioneers in the game

There are numerous businesses in the field of food and restaurants. But time by time some of them became the god of the industry. And they are as follows.

GrubHub
UberEats
Zomato
Swiggy
Postmates

The market cap of the food industry divide among all these food pioneers, but still, the valuation of the industry is on a high tangent. Well, we know that you have a dream to build a food delivery application and also that you want to go on the list of these pioneers. So what features do you need for that?

Let me answer this question with a table

Must have Features to be Famous in Food

Customer side

- Login page
- Search menu
- Cart
- Payment and Order tracking
- Rating and reviews
- Customer support

Restaurant side
- Login
- Management of Menu
- Push Notifications
- Reply to the rating and reviews

Delivery Side
- Registration
- Management of Orders
- Order status

Admin Side
- Login for Admin
- Restaurant management
- App Management
- Payment methods
- Discounts and coupons
- Tech assist

Well during the building and managing you face various kinds of problems and challenges during the process. So let’s discuss what are those challenges and what could be the solution to them?

Competition
The space for this kind of business is already crowded. There are some individual leaders in this industry. Well, it is already crowded but how will you be able to stand out in this kind of industry?

You can make the process easier with your upgraded UI/UX designs. Also, you can use something that attracts the customers. Well, this is the subject of your own brainstorming. Put your brain at work and find out something creative.

Well, the competition is the one challenge but there are some other challenges like finding the partner restaurants, which can be solved by giving a great discount to them or you may first go with the low-level restaurants.

Stable UI and UX between all panels

As we know that there are 4 sides to this business idea and developing an application with all four screens is not that easy. The app design agency could be a good match for this problem.

Conclusion

The purpose is served by this kind of business is really good. While you will face many challenges, you must trust the process, since you will face many challenges along the way. Keep some of the best features of other on-demand food applications in mind and also keep their cons too. So that you can work on it and improve it in your own application.