How Much Does It Cost to Create a Food Delivery App Like UberEats or Deliveroo?
The online food delivery industry is one of the fastest growing in the world, which is evidenced by both polls (one in five Americans regularly orders food on the Internet and their number is constantly growing), as well as predictive models by Morgan Stanley, Statisa and other companies. Therefore, if you plan to create an application for online food delivery, now is the best time to do it.
The cost of creating such an application depends on three factors:
Putting it all together, the estimated cost of developing a food delivery application like UberEats or Deliveroo is as follows:
Next, we will analyze in detail all these things and indicate the estimated cost of creating all the elements of the application for online food delivery.
According to McKinsey consulting firm, all modern online food delivery apps can be divided into three categories:
Aggregator applications. Business model based on the principle of market place: the web platform provides a platform where restaurants can specify menus and prices, and users can compare them and immediately place an order. The restaurant prepares food and delivers it. The application acts as a bulletin board and financial intermediary (not always), which accepts payment from the user and transfers it to the restaurant.
New delivery services, or applications with logistic support. Similarly, aggregator applications allow customers to order food at various pizzerias, restaurants, cafes and other establishments where they cook food, but at the same time they also help with food delivery according to the Uber scheme. For restaurants, this is a real find, because new services allow any restaurant, pizzeria, cafe, and even your grandmother, who prepares the best apple pies on this side of the Mississippi, to enter the market.
Scheme of the courier in the UberEATS application
New services work according to a simple scheme: 1) the client makes an order using the application; 2) the order is sent to the restaurant; 3) the restaurant prepares food and passes it into the hands of a freelance courier; 4) the courier takes the order to the doorstep of the client. UberEATS, Foodpanda, Postmates and Caviar use this business model.
Launching such an application requires the same efforts as developing an aggregator application, plus the creation of functionality for couriers and their interactions with restaurants and customers: receiving an order, real-time chat, location tracking, financial calculations, etc.
Full delivery service on request. This scheme involves working with kitchens that work exclusively on online delivery. Such cuisines are usually called cloudy or ghostly. Cloud kitchens do not have lounges, bar counters, or windows to serve customers locally. They take orders on the Internet, prepare food and send it to the delivery address. Couriers at these web services also have their own.
The largest network of cloud kitchens is Indian Rebel Foods (called Faasos until 2018), which recently received $ 170 million in investments from McKinsey, Goldman Sachs, Coatue Management, and Gojek. In America, the cloud kitchen market plans to conquer startup Deliveroo, which has raised $ 575 million in investment under Amazon’s leadership.
The cost of hiring application developers usually depends on three factors:
Region, country. Most of all affect the hourly rate of developers, since the location largely determines the cost of training, competition, social and legislative guarantees, and more. Specific figures for countries vary depending on who considers what. So according to Codementor the distribution is as follows:
It is important to understand here that the difference in the hourly rate does not always indicate professionalism and experience. Often people from the countries of the former USSR and Asia working for $ 50 per hour show better results than American programmers at a rate of $ 150 per hour.
Specialist expertise. According to Stackoverflow, developers with up to 5 years of experience can earn about $ 40,000 in France and the UK, about $ 50,000 in Germany and Canada, and $ 75,000 in the United States. With 5 to 10 years of experience behind them, developers can ask for 100 - 112 thousand dollars in the USA, 55 - 70 thousand dollars in Canada and 50 thousand in France. American developers with experience of more than 15 years earn from 125 thousand per year.
For what money to hire people, you decide, but remember that these numbers do not always determine the quality of work. So, many modern IT giants are founded by students with little or no experience (Microsoft, Facebook, Google). At the same time, everyone knows that a significant part of the code of the products of these companies was written by programmers from India and Eastern Europe.
Focus on a specific developer - a company and / or specialist.
UI / UX application design
The development of an UberEats or Deliveroo-style food delivery application should begin with design, because it is the design that most affects the user experience. At the same time, depending on the type of service (aggregator, logistics, cloud kitchen), you need to create several design variations for different user roles.
The design development process can be divided into three stages:
Registration and work with the profile
Registration is an integral part of applications where there are payment gateways and work with personal data. Modern applications, as a rule, have several registration options:
In addition, almost all applications have the ability to register through integration with Google Play and / or the App Store. Which is very convenient for users who are used to making payments using Google Pay and / or Apple Pay.
Geolocation and service coverage
All modern applications for online food delivery are closely related to navigation. They track the user's position and display the nearest restaurants in the search, help track the location of the courier, help the courier make a route from the restaurant to the place of delivery, etc.
These features require interaction with users' GPS chips and online maps. In this case, tools for geolocation vary depending on the platform. So, iOS usually uses MapKit, Android - Google Maps, so development hours for these platforms may vary.
If the application will accept payment for orders or be an intermediary in this process, you will need integration with payment gateways. The selection of suitable services and their connection is a very serious task, as payment should be convenient and at the same time secure.
To achieve this, it is recommended to use reliable payment gateways - services that connect the web service to several payment systems at once (Apple Pay, Google Pay, PayPal, bank cards, etc.). This way you can save hundreds of hours of development, which reduces the cost of application development.
There are two types of payment gateways:
Analytical Tools Integration
This stage includes the integration of analytical tools, designing the structure of events and their arrangement inside the application. Event - any action that the user performs (opening and closing the Swype application, clicking on a button, adding a comment, spending or buying, opening a specific screen, etc).
Thanks to these tools, you will be able to track user behavior, which can be used to identify problems with usability and improve the service. Most often they use Google Analytics or Yandex (in the Russian-language part of the Internet). In addition to them, you can also use Flurry, Mixpanel or Localytics.
Communication and notifications
Notifications help users to track important events: payment of an order, delivery of food to a courier, approaching a courier to a delivery place, arrival of a courier and more. Thanks to this, you can improve your user experience and thus increase user loyalty.
Usually, two types of notifications are used for this: