How Much Does It Cost To Build A Food Delivery App Like GrubHub

When it comes to successful start-ups, the name ‘GrubHub’ strikes first in our mind. With the technology evolving almost every day, applications like GrubHub and UberEats have revolutionized the way the food industry works today. With unique features and ideas, the initiative has provided a new means of dining for everyone.

Restaurant food at the comfort of your houses, can this be any more perfect? With digital platforms rising and the changing lifestyle, GrubHub started its web services in 2004. It offers customers the option to order food from the comfort of their houses and get it delivered at their doorstep, just like online shopping. Initially, the services were provided only in Chicago. With an aim to target other cities, they started providing services in San Francisco. Currently, it is active and serving customers in more than 1700 cities in America and the UK.

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The Clone Applications

There are a number of food delivery companies which has become popular in the masses, including Zomato, Food Panda, Just Eat, Delivery Hero and much more. Every business startup wishes to come in the top list with these firms. But, as a start-up, it can be difficult for you to immediately yield results. This is why there are few things to keep in mind if you particularly wish to create a clone application for building your business empire.

Features

Registering yourself

When a user registers on the application, it is usually done through a social media platform or an email address.  The registration process should be quick and simple. It should protect the privacy of the user’s information or database.

Search results

In order to widely popular, a food-ordering app requires being flexible and adaptative. In addition to searching for a particular restaurant, customers should get the flexibility to search for their favorite dishes or cuisine and order accordingly.

Order Process

The procedure of browsing through different restaurants, picking up the favorite one and ordering dishes should be simple, efficient and effective.  With increased flexibility, users can add their items and checkout without any hassle. Applications like GrubHub also provide you with pre-order services. This means that customers can order beforehand schedule the timing when the order needs to be delivered.

The order history has proved to be quite a helpful tool for food-delivery applications. A customer can easily repeat the same food, which was ordered previously. The delivery address and payment details are saved for quick checkouts. This also helps save in time and effort

Tracking orders

One of the best reasons for the growing popularity of food-delivery applications is the tracking option. Once a customer places an order, it lets him track the order until it is delivered up to his doorstep. It also tells us the exact time it would take for your order to reach your location.

Customer Support

In the digital era, it is important to provide customer support with their order delivery or tracking status. The customer can directly use the app to get customer support regarding any query, like delay in delivery or items missing in the order.

Smart assistance

The application works to provide smart assistance to its users. It analyses the customer’s favorite cuisines and local restaurants. Based on the previous orders, it recommends the best offers in their favorite restaurants.

Location

People love using a food-delivery application is because of its recommendations. The app provides a list of hotels or cuisines which are nearby the customer’s location. The GPS helps the application analyses the best restaurants nearby. Google Maps help customers, delivery agents as well as restaurants to find an address, track the order and deliver on time.

The Costing

The cost of creating a clone application or a food delivery application like GrubHub would cost anything from $5000 to $50,000. The exact costing cannot be estimated, as it depends on the features that are to be included in the application. If you wish to add more features, it would cost more. In addition, if you create a web service for the same, the costing may go up to $70,000.

Determinants

Selection of platforms

One of the key decisive factors behind the costing of a food delivery application depends upon the platform selection. This refers to IOS and Android platforms. The cost for one platform would be relatively lower than for both the platforms. The coding changes when the same application is being designed for another platform.

Team capacity

The efficiency of the work depends on the number of people involved in the developer’s team. A small committed team towards one task seems to work better than a group with a lot of members. A larger company with more number of developers would be expensive, in comparison to a smaller company.

Type of application

As discussed earlier, the cost will largely depend on the type of food delivery application you want to build. It depends on the type of features you want in your application. There are two approaches to this. You can become a parent company, create the app and get orders from customers. The restaurant has to itself look after the delivery process. The other approach is that being a parent company, you provide delivery options. The restaurant’s work is only to prepare the food for its customers.

Examples of Clone applications

Let’s talk about some applications which act as substitutes of GrubHub.

UberEats

The application is active on both platforms – IOS and Android. It works globally, taking orders for restaurants as well as grocery shops. The standard delivery charges are $5, which may rise substantially during peak times.

Instacart

This application delivers grocery within an hour. Its delivery charges vary from $4 to $35. People may buy Instacart Express Membership to avail free delivery on their respective orders. Instacart has become an instant hit with the people because it allows them to add multiple products from different restaurants in one order.

Zomato

The company started in 2011 as a home project. Currently, it is working in more than 22 countries, worldwide. It just not delivers food to people at their homes but also has a review system. People can taste the food and review the food on the application. This helps customers understand which are the best restaurants or dishes available near their location.

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How does food delivery applications earn?

Let’s take a look at how GrubHub started. Initially, the company asked restaurants to pay a total of $140 for six months, to appear on the search list in the application. But, this did not work well for the firm. Later, the company tried a commission-based working. This meant that restaurants were required to pay a commission on every order to the firm only when the customers paid. This was a win-win situation because even if the restaurants did not get any orders, they wouldn’t have to pay for their listings. This strategy helped their business grow and flourish.

Delivery Costs

Any food delivery enterprise earns its bit by charging for its delivery services. Not all restaurants are financially able to provide with delivery services. This is why when the parent company provides delivery services; it takes an amount from the customers as delivery charges. Swiggy charges 30-35% of the order cost as delivery charges. Dooddash charges 7-15% as services fees.

Rush hours

The costs of the food items are increased during rush hours or peak timings. This means that when the demand gets higher, companies can increase the pricing while limiting the menu items. It may decrease the demand a little, but earning per order would be increased.

Advertisements

In every sector, advertisements play an important source for earning. As a parent company, you can earn easily by advertising restaurants or brands on your application. You may run a short video for your clients advertising their products. This will help firms earn revenue.

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Conclusion

In order to create a clone application for food delivery like GrubHub, the costing depends on various factors. It depends on the type of features you plan to include in your application like location, smart assistance, payment options, order status, tracking orders and much more. The rough costing would vary from $5000 to $50,000. The exact costing can only be known when the exact features and the type of platform are decided. If you have an idea in your mind regarding to your Food Delivery Mobile App Development, Talk to our Experts – We are happy to assist you.

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