If we are to learn something from the facts and statistics of the food delivery market, it is this- the number of food delivery app users increases every year. About 38% of American users used food delivery apps to order food in 2020, and it went up to 47% the following year. UberEats is a leading food delivery platform and was one of the most downloaded food delivery apps in 2023, with more than 41 million downloads. Launching a food delivery app can be profitable as data points to growing demand in the future. If you want to know how to build a food delivery app like UberEats, this blog is for you.
Here, we have detailed how to build a food delivery app like UberEats, along with the study of UberEats business and revenue models.
Why Invest in Food Delivery Apps Like UberEats?
From 1.37 billion people using online food delivery services in 2019 to about 2.85 billion using food delivery apps in 2023, the count has risen drastically in just a few years. Data shows the growth of the food delivery market will not slow down and will reach a market size of more than 3.8 billion users. So, launching a food delivery app can be lucrative, considering the growth rate.
Before we look into how to build an app like UberEats, let us study the UberEats business and revenue models.
UberEats Business Model
Launched in 2014, UberEats soon became one of the leading players in the food delivery industry. The success of the UberEats business model has encouraged many to leverage the existing popularity and regard to launching a similar app.
UberEats is a three-sided marketplace connecting consumers, restaurants, and delivery partners. It lists restaurants on the platform for customers to browse and place orders.
How UberEats Works?
Here is a breakdown of how UberEats works:
- Restaurant partners list their menus on the UberEats platform.
- Customers wanting to place orders browse for restaurants, go through the menus, and place orders. They can make their search easy by using the various filter options on the app.
- Restaurants can confirm the food availability and start with order preparation.
- UberEats assigns a delivery partner to pick up the food once it is ready for delivery.
- Customers can know the status of their order and track the delivery partner from their app.
- The delivery partner delivers the order to the corresponding customer using the in-app navigation tools.
- UberEats automatically deducts its commission after the order completion.
Customer Segments
The business model of UberEats involves three groups- restaurants, consumers, and delivery partners.
Restaurants: Restaurants partnering with the UberEats platform update their menus on the app. They can add other details, as well, like the price, availability, address, and contact information.
End Customers: Customers can choose the cuisine and food item from the listed restaurants and place their orders. They can customize their orders as per their needs and pay through the payment method of their convenience.
Delivery Partners: Delivery partners receive requests on their apps to pick up orders from restaurants and deliver them to customers. They can accept or reject requests based on their availability.
Value Propositions
UberEats offers the following value propositions for its users:
- Customers can access a wide variety of cuisines and restaurants through the platform.
- UberEats provides a convenient and reliable means of food delivery service for users.
- The UberEats app includes multiple payment options so users can select the one that best suits them.
- Restaurants can improve their visibility by listing on the platform and can grow their customer base.
- Delivery partners can work at the hours of their convenience.
UberEats Revenue Model
It has multiple revenue streams. Let us see what they are:
Delivery Fees
UberEats charges a delivery fee to customers for orders placed through the platform. Delivery fees vary based on the distance between the restaurant and the delivery address. It may also depend on other factors like the city.
Commission Fees
The UberEats revenue model takes a certain percentage of the total order amount as commission fees. UberEats charges about 15%-40% as commission charges.
Advertising Fees
Restaurants can promote their listings on the app by paying advertising fees. By doing so, they can aim to attract an extensive user base.
Subscription Fees
Customers can pay for monthly subscriptions. It enables them to enjoy many perks like free and priority delivery.
Now that we have gained insights into the UberEats business and revenue model, let us move on to learn how to build an app like UberEats.
A Step-by-Step Guide on How to Build an App like UberEats
Many steps are involved in building a food delivery app like UberEats, from the initial idea conception to launching. With a clear plan, you can design an app that will stand out and give you an edge over others. Here is a step-by-step guide on how to build an app like UberEats.
Step1: Conduct Market Research
The first step to building an app like UberEats is doing in-depth research on your competitors and target audience and understanding the latest practices in the food delivery industry. Here is a checklist that will help you when you start building a food delivery app like UberEats:
- Identify your competitors and study their offerings and business models.
- Do a complete analysis of the features of their food delivery apps, strengths, and weaknesses, and craft a product based on those understandings, with feature integrations that are not present in your competitor’s app for added advantage.
- Study customer behaviors to tailor the app and include features that meet their needs.
- Understand the pain points of your audience and address them effectively.
Step2: Select the Food Delivery Model
After researching the market and identifying the target audience, you may then want to choose the food delivery model. You can select the order-only or order-and-delivery model based on your business goals.
Order-only Model
In this model, the platform receives and manages the orders from customers. The responsibility of delivering orders lies with restaurants once the platform forwards the requests to them.
Order-and-Delivery Model
In this food delivery model, the platform, in addition to receiving orders, also delivers them. Hiring delivery partners or operating with third-party delivery partners to deliver food are the two options you can choose from. As the restaurants finish preparing the food, the food delivery app sends a notification to delivery partners, who then collect the food and take it to the customer.
Step3: Choose Key Features of Your Food Delivery App
When developing a food delivery app, you need to ensure that your app has all the necessary features for a seamless app experience. Here are some of the critical features of a food delivery app like UberEats:
Customer App | Restaurant App | Delivery Partner App | Admin Panel |
User Registration | Registration & profile management | Registration & profile management | Dashboard & analytics |
Browse restaurants and menus | Menu management | Delivery management | Restaurant management |
Place order | Order management | Update Status | User management |
Real-time order tracking | Push notifications | Earning reports | Order management |
Multiple payment options | Track delivery | In-app call/ chat | Delivery partner management |
Ratings and reviews | Menu availability management | Navigation | Multiple-payment options |
Schedule delivery | Set working hours | Accept/ reject requests | Notifications |
Reorder | View customer feedback | View feedback | Promocodes |
Discounts & Offers | Analytics & Reports | Multiple deliveries management | Payment & commission tracking |
Step4: Choose the Right Technology Stack
It is a critical step in building an app like UberEats, which, with the right tech stack, enhances the app’s performance and helps ensure the app is free of glitches. The tech stack includes the programming languages, frameworks, front-end and back-end tools, APIs, etc., required for app development.
Aspect | Technology |
Native app development | Java, Kotlin, Swift, Objective-C |
Cross-platform app development | Flutter, React Native |
Backend development | Node.Js, PHP |
Database | MySQL, MongoDB |
Payment Integrations | PayPal, Stripe |
Navigation | Google Maps |
Notifications | Firebase Cloud Messaging |
Analytics | Google Analytics |
Step5: Select the App Development Method that Works for You
You can go for custom app development or ready-made solutions. They have pros and cons of their own.
Custom App Development
With custom app development, you can add uniqueness to your product, as it allows tailoring the app to meet your needs. You can integrate the features of your choice after analyzing your customers’ pain points, which helps you gain an advantage over your competitors. However, it results in higher development costs and a longer time to reach the audience.
Ready-Made Solution
These are pre-built solutions that come included with features and functionalities. An UberEats clone app is cost-effective and has a lesser development time. However, they may have limited capacity and can be challenging to meet your requirements.
Step6: Partner with the Right App Development Company
Partnering with a skilled team with several years of experience in supporting clients to build an app like UberEats for their food delivery business will help steer your venture to success. It is critical to ensure that you can rely on the UberEats clone app development company for dedicated support from app development to deployment and beyond for support and maintenance.
Cost to Build an App Like UberEats
Many factors decide the cost of building an app like UberEats, like the platform used, app design and functionality, UberEats clone app developers’ experience and expertise, and their location. The price of a basic version of an app like UberEats can range from $5000 to $10000. A complex app with advanced features can cost about $35000.
How Can Abservetech Help You Build an App Like UberEats?
We have years of experience crafting and developing food delivery apps to meet our clients’ expectations. At Abservetech, we work closely with customers to understand their requirements and design the right product that matches their demands.
Our dedicated team will support you throughout the project development and help you navigate the challenges you may face when building an app like UberEats. With cutting-edge technology and expert developers on our side, we seek to grow your brand.
If you have questions or want a demo of our product, you can connect with us at:
Email ID: [email protected]
WhatsApp No: +91 9222 47 9222
Skype ID: Abservetech
Telegram: Abservetech