Nowadays, many people around the world use Uber Eats food delivery apps to order tasty meals from their favorite restaurants while relaxing at home. However, before the pandemic, many companies struggled to find customers, which greatly affected the industry. To meet the growing demand, many new startups have appeared. Digital orders have increased 300% faster than traditional restaurant sales. In 2024, over 111 million people used food delivery apps. This indicates that more customers are choosing to order meals online rather than dining out or cooking at home.
Also, digitalization has changed every part of our lives and how we shop. As more people choose or need to stay home, they prefer to order online. Now, they can conveniently order their favorite meals and pay with just a few taps using their credit card or e-wallet. If you’re thinking about building a food delivery app like UberEats. In this article will guide you through the market overview, development process, and cost. It will help you understand the basics and details you need to know.
Understanding the Uber Eats like Food Delivery App Market: A Brief Overview
The food delivery app market is growing quickly because people like the convenience of ordering food from their phones. Big companies like Uber Eats and DoorDash lead the market, using new technology to improve service. And then COVID-19 pandemic boosted demand, and new regulations will shape the future of the industry.
In fact, millions of people download food delivery apps each year. For instance, in 2023 alone, food delivery apps were downloaded over 800 million times globally. This indicates a strong and growing demand for these services, as customers increasingly prefer the ease and convenience of ordering food online over dining out or cooking at home. As a result, the market is becoming highly competitive, with both established companies and new startups striving to offer the best service and user experience.
Uber Eats: A Market Leader
Moreover UberEats has become the most popular food delivery mobile app globally, with 66 million downloads in 2022. Due to the pandemic, the demand for these services grew exponentially, and now, in 2024, it continues to be a leading force in the market.
Why Did Uber Eats Stand Out?
UberEats became a standout in the food delivery market for several reasons:
- Safety During COVID-19:
During the COVID-19 pandemic, UberEats used strict safety measures for food delivery. This made customers feel safe about ordering food.
- Easy to Use
UberEats made it very simple to order food online. The app’s easy to use design lets users browse menus, place orders, and track deliveries with just a few taps.
- Quick Growth
When lockdowns started, more people stayed home and ordered food. UberEats saw a 30% increase in signups for its delivery service, showing how many people relied on it.
- Strong Support from Uber:
UberEats benefited from the strong brand and infrastructure of its parent company, Uber. This helped it grow quickly and efficiently.
- New Features
UberEats kept adding new features to make the app better, like real time order tracking, customizable meal options, and different payment methods.
- Good Marketing
Effective marketing and promotions helped attract and keep customers. Special deals, discounts, and partnerships with popular restaurants made UberEats more appealing.
Success of Smaller Companies
Smaller companies that build apps like UberEats also benefited from the lockdown. Although big players like DoorDash dominated the food delivery sector, smaller startups like Glovo successfully raised millions in funding, securing $528 million. Meanwhile, Gorillas received $290 million in investment, even though the company was originally valued at $1 billion.
Market Growth and Future Prospects
The online food delivery market is expected to reach $1 trillion by 2030, up from $18.9 billion in 2020. Given this success, the future of the delivery sector seems promising. Despite a seemingly crowded market, the numbers speak for themselves:
- 55% of people in the US order a delivery service or takeout at least once a week.
- Around 30% of consumers say they spend more on non-restaurant orders than on regular restaurant visits.
- 57% of millennials say they get restaurant food delivered to watch movies and TV series at home.
With these trends, the food delivery app market in 2024 offers significant opportunities for new entrants to succeed and grow.
Deep Dive into How Uber Eats Work?
In the same way Uber Eats operates as a three way marketplace, linking restaurants, customers, and delivery agents. Further numerous restaurants showcase their brands and menus on the app. Also customers can search for local restaurants, explore their menus, and place orders. The delivery agent then collects the order from the restaurant and delivers it directly to the customer’s doorstep.
Key Players in the Uber Eats Ecosystem
Restaurants: On UberEats, restaurants control their menus and manage orders. They update what’s available to match their stock and can change their name, contact info, and hours based on when they’re open. They also set the prices for their menu items.
Customers: And then UberEats offers two ways to order food:
- Immediate Ordering: Before Customers pick meals from nearby restaurants listed in the app. This is great for those who want food right away.
- Scheduled Ordering: And then customers can plan ahead by choosing delivery times, addresses, and dates that suit them.
Delivery Drivers: Finally Uber Eats delivery partners are independent workers who pick up food from restaurants and bring it to customers. They decide which orders to take and can handle multiple deliveries at once. They get delivery requests based on their location relative to both the restaurant and the customer.
How does Uber Eats Generate Revenue?
Therefore Uber Eats generates revenue through several primary channels:
Delivery Partner Fees: UberEats charges delivery partners up to 25% of the total delivery fee, which includes components like distance-based charges and pickup fees. For orders below $12, a $2 “small order fee” is also applied.
Promotional Partnerships: UberEats collaborates with popular eateries like McDonald’s through exclusive advertising agreements. Restaurants pay fees for enhanced visibility and promotional efforts, which often lead to increased sales.
Commission on Orders: Restaurants pay UberEats a commission, which can reach up to 30% of the order total, for each order placed through the platform.
Surge Pricing: During peak hours, Uber Eats implements surge pricing, known as a “busy fee.” This dynamic fee is determined by factors such as delivery partner availability and order volumes in specific areas.
Additional Revenue Streams: Beyond these core streams, Uber Eats earns income through strategic partnerships, subscription services such as UberEats Pass, and various promotional initiatives aimed at expanding its market presence and profitability.
Step-by-Step Guide to Develop a Food Delivery App like Uber Eats
If you want to succeed in the competitive food delivery market, simply copying the features of UberEats or other major players won’t be enough. You need to provide a unique solution that appeals to your target audience and sets you apart from the competition.
Now, let’s explore the essential step by step to food delivery app development to create effective food delivery apps like Ubereats.
Step 1: Conduct Effective Market Research
The first step in creating a food delivery app is to conduct thorough research on your competitors, target audience, and the latest trends in the food industry. To fully understand the current market landscape, consider the following questions:
- Who are your competitors, and what services do they offer to their customers?
- What features should you include in your food delivery app to make it stand out?
- Who are your target customers?
- What are the newest trends in the online food industry?
Step 2: Selecting the Best Food Delivery Model
Second, choose the food delivery model that best suits your business. There are several models to consider:
- Order-Only Model: The app takes orders and passes them to the restaurant, which handles delivery.
- Order and Delivery Model: The app manages both the order and the delivery process.
- Fully Integrated Model: The app owns the entire process, including order taking, preparation, and delivery.
| Aspect | Order-Only Model | Order & Delivery Model | Fully Integrated Model |
| Core Functionality | Facilitates placing orders | Facilitates both ordering and delivery | Handles ordering, delivery, and sometimes logistics |
| User Interaction | Customers place orders only | User place orders and track deliveries | Customers place orders, track deliveries, and more |
| Business Focus | Primarily focuses on order management | Focuses on both order management and delivery | Comprehensive focus on end-to-end service |
| Service Offering | Limited to order placement | Includes order placement and delivery services | Extensive services including logistics management |
| Delivery Responsibility | No involvement in delivery logistics | Manages delivery logistics independently or through partners | Manages delivery logistics often internally |
| Operational Complexity | Simplified operations with fewer variables | Increased complexity due to logistics management | Highest complexity managing logistics and services |
| Examples | Online food ordering platforms like Grubhub | Food delivery platforms like Uber Eats | Integrated platforms like DoorDash, offering full services |
Step 3: Must have Features for Your Uber Eats like App
Third, identify the key features your app will offer. Essential features include:
Customer Features: User registration, restaurant listings, menu browsing, order placement, real-time tracking, multiple payment options, ratings, and notifications.
Restaurant Features: Restaurant dashboard, order management, and analytics.
Delivery Personnel Features: Profile management, order management, real time navigation, and earnings tracking.
Step 4: Selecting the Best Technology Stack
Fourth, choose the right technology stack to ensure your app is robust and scalable:
- Front-End Development: Use frameworks like React Native or Flutter for cross-platform mobile development.
- Back-End Development: Opt for reliable back-end technologies such as Node.js and Express.js.
- Database Management: Implement robust databases like MongoDB or PostgreSQL.
- Cloud Hosting: Use cloud services like AWS, Google Cloud, or Azure for hosting.
- Payment Integration: Integrate secure payment gateways like Stripe, PayPal, or Braintree.
Step 5: Finding the App Development Solution That Fits
Fifth, Choosing the right app development company starts by figuring out what you want to achieve and who will use it. Look at what similar apps do and what’s popular now to decide what features your app should have. You can choose to make an app just for iPhone or Android (native), one that works on both (cross-platform), or even a web app. Your decision should consider how much money and time you have and how you want users to feel using your app. The best choice makes sure your technology matches what you want your app to do, so it works well and people like using it.
Cost to Develop an App like Uber Eats
Developing a food delivery app like UberEats involves several factors that affect the overall cost. The total expense depends on the app’s complexity, features, design, technology stack, development team, and geographical location. Here’s a breakdown of the key cost components:
1. App Complexity and Features
The complexity and number of features directly impact the development cost. Basic apps with essential features will cost less, while advanced apps with multiple features will be more expensive. Key features include:
- User Registration and Login
- Restaurant Listings and Menus
- Order Placement and Tracking
- Payment Integration
- Ratings and Reviews
- Push Notifications
2. Design and User Experience (UX)
A well-designed app with a great user experience can significantly affect the cost. Investing in intuitive and attractive UI/UX design is crucial for user engagement and retention. Costs for design can vary based on:
- Custom Design Elements
- User Interface Complexity
- Animations and Graphics
3. Technology Stack
Choosing the right technology stack is essential for building a scalable and robust app. The cost will vary depending on the technologies and tools used for front-end and back-end development, databases, cloud services, and payment gateways.
4. Development Team
The cost of hiring a development team can vary widely based on their location, expertise, and size. Here are the typical team members involved:
- Project Manager
- UI/UX Designer
- Front-End Developers
- Back-End Developers
- QA Testers
5. Geographical Location
The cost of development varies significantly across different regions. Developers in North America and Europe tend to charge more than those in Asia or Eastern Europe. Here’s a rough estimate of hourly rates:
- North America: $100 – $200 per hour
- Western Europe: $80 – $150 per hour
- Eastern Europe: $30 – $80 per hour
- Asia: $20 – $50 per hour
6. Maintenance and Updates
Post launch, maintaining the app and providing regular updates is essential. This includes fixing bugs, updating features, and ensuring compatibility with new OS versions. Maintenance costs typically amount to 15-20% of the initial development cost per year.
Cost Estimate Breakdown
Here’s a detailed cost estimate for developing a food delivery app like Uber Eats, based on the complexity:
| App Complexity | Estimated Cost | Details |
| Basic App | $30,000 – $50,000 | Essential features with simple designBasic UI/UXLimited user base |
| Mid-level App | $50,000 – $100,000 | Advanced features with better designEnhanced UI/UXModerate user base |
| Advanced App | $100,000 – $200,000+ | Full-featured app with custom designHighly intuitive UI/UXLarge user base |
The cost to develop an app like Uber Eats can range from $30,000 to over $200,000, depending on various factors such as complexity, features, design, technology stack, and the geographical location of the development team. Investing in a well planned and executed app can lead to significant returns in the competitive food delivery market.
Build Own Food Delivery App Like Uber Eats
Developing a food delivery app like UberEats involves careful planning, thorough market research, and choosing the right technology stack. By understanding the key steps, from selecting a suitable food delivery model to incorporating essential features and finding the best development solution, you can create a robust and competitive app. Investing in quality design and ongoing maintenance is crucial for long-term success. Whether you’re targeting a small user base or aiming to scale globally, following these guidelines will help you stand out in the market. At TeamForSure, we specialize in building tailored food delivery apps to meet your unique business needs.
