The traditional way of delivering food has been completely revolutionized by on-demand food delivery services. On-demand delivery food services can be a win-win solution for startuppers. Developing an on-demand delivery app can be a profitable move for businesses, whether they choose to hire dedicated developers or outsource the work.
However, before engaging with a software development team, it's important to have sufficient knowledge of the on-demand delivery service food platform. In this blog, we'll cover the types of on-demand platforms and their pros and cons, but first, let's take a look at how the food delivery industry is faring these days.
What is Food Delivery Service
A food service delivery is a type of service where a person or a business delivers prepared food or groceries to a customer's location. This service is usually provided by restaurants, food delivery platforms, or grocery stores. The food delivery service enables customers to conveniently place their orders online or via a mobile app, and have their meals delivered directly to their doorstep. The delivery can be made by the restaurant's staff or through a third-party delivery service. This service has become increasingly popular in recent years, especially with the rise of online food ordering and the convenience it offers to customers who don't have the time or desire to cook or go out to eat.
The Increasing Popularity of Food Delivery Services
In the current US market, on-demand delivery services for food such as Grubhub, DoorDash, UberEats, and Postmates dominate the food delivery sector and have a high reputation. These companies collectively control 90% of the US food delivery market, with DoorDash valued at $13 billion, UberEats at $20 billion, and Postmates at approximately $1.85 billion.
While these food delivery companies have gained attention and praise from users and investors, the future of the sector remains unclear. The traditional model of food delivery involved customers ordering food over the phone for local delivery and waiting for the restaurant courier to deliver the food. However, advances in digital technology are rapidly changing the food market. Modern shoppers expect a convenient and minimal-human interaction experience when ordering food, and restaurants offering takeaway services must develop online ordering apps to retain customers. Digitizing food orders allow for the fast delivery of takeaway food with minimal human intervention.
Ivanna
Client Manager
Contact us, and we will share our case studies related to booking software development
Get a Free ConsultationDoorDash
Overview
With DoorDash - one of the best food delivery services, you can order a lot more than just food and groceries. The app allows you to purchase beauty products, pet supplies, and alcohol. DoorDash has partnered with over 390,000 restaurants, according to Business of Apps, ensuring that you have plenty of options to choose from.
Pros and cons
Pros
- Easy Signup Process: Signing up for DoorDash is straightforward. All you have to do is download the app, enter your personal information, upload your license and insurance card, and wait for your background check to clear. Once cleared, you can sign the delivery partner agreement, enter your bank account details, and upload your picture to the app.
- App Layout: The app layout is clear and easy to use, with everything you need on the home screen, including your ratings and earnings. The app also shows if it's busy and allows you to choose "Dash Now" if you want to go out. However, the app has zones, which can be inconvenient if you are taken out of your designated zone during delivery.
Cons
- Bank Verification and Cash Out: DoorDash's biggest drawback is the delay in payment, which can take up to two weeks from when you start delivering. Additionally, there is a $1.99 fee for daily cashouts, which is the highest among delivery apps. To avoid this issue, it is recommended to sign up for another delivery app as a backup.
Grubhub
Overview
With more than 320,000 restaurant partners in over 4,000 cities in the United States, GrubHub has established itself as the best food delivery service worldwide. The company is owned by just eat takeaway.com and generated over $2.1 billion in 2021. In addition to delivering food to customers, GrubHub also provides employment opportunities to drivers and restaurants through its platform. While a recent Grubhub survey found that approximately 85% of users are satisfied with their online ordering experience, there are still pros and cons to consider when using the platform. Let's explore them in more detail.
Pros and cons
Pros:
- User-friendly interface: The app has a simple and easy-to-use interface, which makes it easy for users to place orders and track deliveries.
- Fast and reliable delivery: Grubhub is known for its fast and reliable delivery service, with many orders arriving within 30 minutes.
- Multiple payment options: Grubhub supports multiple payment options, including credit/debit cards, PayPal, and Venmo, which makes it convenient for users to pay for their orders.
- Loyalty program: Grubhub has a loyalty program called Grubhub+, which offers members free delivery and exclusive discounts.
Cons:
- Customer support: The app's customer support can be slow to respond, and there are limited options for contacting them.
- Inconsistent quality: The quality of food and delivery can vary depending on the restaurant and the driver, which can result in inconsistent experiences for users.
- Misleading restaurant listings: Grubhub has been criticized for listing restaurants on its platform without their permission, which can be misleading for users and harmful to the restaurants.
Uber Eats
Overview
Uber Eats is a popular food delivery app that allows users to order food from their favorite restaurants and has it delivered to their doorstep. Meals can be delivered by couriers using various modes of transportation including cars, scooters, bikes, and walking. The app is available in over 6,000 cities across 45 countries.
Pros and cons
Pros:
- Wide restaurant selection: Uber Eats has a vast selection of restaurants to choose from, which gives users a wide range of options to satisfy their cravings.
- User-friendly interface: The app has a simple and intuitive interface that is easy to navigate, making it easy for users to place their orders and track their deliveries.
- Fast delivery: Uber Eats is known for its fast and reliable delivery service, with many orders arriving within 30 minutes.
- Promo codes and discounts: The app frequently offers promo codes and discounts, which can help users save money on their orders.
- Multiple payment options: Uber Eats supports multiple payment options, including credit/debit cards, PayPal, and Apple Pay, making it convenient for users to pay for their orders.
Cons:
- Surge pricing: During busy periods, Uber Eats may implement surge pricing, which can significantly increase the cost of an order.
- Limited customer support: The app's customer support can be slow to respond, and there are limited options for contacting them.
- Inconsistent quality: The quality of food and delivery can vary depending on the restaurant and the driver, which can result in inconsistent experiences for users.
- No tipping option: Unlike other food delivery apps, Uber Eats does not have an in-app tipping option, which can be inconvenient for users who want to tip their drivers.
Postmates
Overview
Postmates operates in over 4,200 cities in the United States, making it one of the largest on-demand delivery services in the country. Customers can place orders through the Postmates app or website and track their delivery in real-time. The app allows users to customize their orders, communicate with their courier, and rate their experience.
Postmates was acquired by Uber in 2020, but the app still operates under its brand name as a subsidiary of Uber.
Pros and cons
Pros:
- Wide range of delivery options: Postmates can deliver everything from food to groceries and alcohol, which means that customers can use the service for a variety of needs.
- Large delivery network: With over 4,200 cities in the United States, Postmates has a large delivery network that makes it accessible to many users.
- Customizable orders: Postmates allows users to customize their orders, which can be helpful for those with dietary restrictions or specific preferences.
- Real-time tracking: Customers can track their delivery in real-time through the Postmates app, which can provide peace of mind and help users plan their day.
- Postmates Party: This feature allows customers to share deliveries with other nearby customers for a reduced delivery fee, which can be a cost-effective option for those who are willing to wait a little longer for their delivery.
Cons:
- High delivery fees: Postmates delivery fees can be pretty high, especially for smaller orders or those with a longer delivery distance.
- Limited availability: While Postmates operates in many cities, it may not be available in more rural areas or smaller towns.
- Inconsistent quality: As with any delivery service, the quality of service may vary depending on the individual courier and other factors outside of Postmates' control.
- Subscription required for free delivery: Postmates offers a subscription service called Postmates Unlimited, which provides free delivery on orders over a certain amount. However, this service requires a monthly or yearly fee, which may not be worth it for those who only use the service occasionally.
Instacart
Overview
Instacart is an online grocery delivery and pick-up service that allows customers to shop for groceries from their favorite stores through a mobile app or website. The company was founded in 2012 and has since grown to serve over 5,500 cities in the United States and Canada.
Instacart also partners with local retailers to offer delivery of items such as electronics, pet supplies, and home goods. Overall, Instacart aims to make grocery shopping more convenient and accessible for its users.
Pros and cons
Pros of Instacart:
- Convenience: The app allows users to shop for groceries and household essentials from the comfort of their own homes, which is especially useful for those who have busy schedules or are unable to leave their homes.
- Wide selection: Instacart partners with a variety of local retailers, so users have access to a wide selection of products. Personalization: Users can customize their orders and add specific instructions for their shoppers.
- Real-time updates: The app provides real-time updates on order status, so users can track their order and communicate with their shopper if necessary.
- Instacart Express: The subscription service provides free delivery on orders over a certain amount and can be a good value for frequent users.
Cons
- Marked-up prices: Instacart charges slightly higher fees for some items compared to in-store prices, which can be frustrating for users.
- Availability: The app may not be available in all areas, and certain items may not be available for delivery in some regions.
- Delivery times: Delivery times can be delayed during peak hours or in high-demand areas, which can be inconvenient for users who need their items quickly.
- Tip pressure: The app encourages users to leave a tip for their shopper, which can feel like pressure to some users.
How Stfalcon Can Help you to Create a Food Delivery App
Stfalcon is a software development company that can assist in creating food delivery apps. Our skilled developers are proficient in building custom mobile and web applications. Stfalcon can help design, develop, and deploy an app that meets specific requirements and provides an optimal user experience.
Additionally, we have UX/UI designers to create an intuitive and user-friendly interface and can integrate the app with various third-party services such as payment gateways and location services. Stfalcon also provides ongoing maintenance and support to improve performance, fix bugs, and add new features as needed. We can assist in creating a high-quality food delivery app to meet business needs and provide an excellent user experience.
Our Experience
AppFood
Stfalcon developed AppFood mobile applications that meet all the client’s business requirements. The AppFood eatery offers a service that enables customers to avoid any direct interaction with the staff. This is made possible by enabling customers to place and receive orders entirely through their smartphones.
Read the full case study
Balabing
Stfalcon was tasked with developing iOS and Android apps for Balabing, a food truck management company. The apps will enable users to place orders and make online payments, while the client will be able to manage certain aspects of the system using a web-based admin panel. We surpassed the client's expectations with the first iteration of the app we created.
Read the full case study
Final Thoughts
With the increasing popularity of food delivery apps and services, there is a high demand for convenient and affordable food delivery options. This presents an opportunity for entrepreneurs to enter the market and capitalize on this growing trend.
A delivery service for food can offer a flexible business model that can be tailored to fit the entrepreneur's needs. This can include offering a range of cuisine options, delivery times, and pricing models to attract a diverse customer base. Starting a food delivery service can be a good idea for entrepreneurs looking to enter a growing market, with low overhead costs and a flexible business model that can be easily scaled as the business grows. If you are interested in cooperation, just contact us.
