Cost of Building a Food Delivery App Like Deliveroo

5 Minutes Read
cost of building a food delivery app like deliveroo
harnil-oza

Harnil Oza

Founder and CEO

May 14, 2024
A recent study says, that 86% of Americans used a food delivery app. These statistics showcase the rapid growth of food delivery apps. Developing or investing in a food delivery app will give you great benefits in this decade. However, the development cost of top food delivery apps is higher. Here are a few cost-affecting factors that you have to consider before deciding to build an app like Deliveroo.

A Secret of Success in the Food Delivery Business

Deliveroo is a trendsetter app that is widely operated in multiple countries like Europe, Asia, and the Middle East. The rapid growth of Deliveroo resulted in its success and a fair amount of profit.
 
Deliveroo has over 7.4 million users in London alone. The efficient app of Deliveroo connects the local restaurants. It gained significant importance for its convenience and on-demand food delivery service. This app enables the customer to get border options and boost the restaurant's reach.
 
According to Statista's research, the food delivery market is estimated to reach a value of $205.4 billion by 2028 in Europe alone. This settles the position of food delivery apps in the food industry as a key player. The growing market size, the success of apps like Deliveroo, and the trend of doorstep dining make this the right time to start your new delivery app.
 
Developing a food delivery app would be one of the most worthwhile investments in this decade.

Understanding the Costs of Developing an App Like Deliveroo

The overall cost to create a food delivery app like Deliveroo can vary from $40,000 to $300,000. However, diverse factors can affect the cost of developing an app like Deliveroo. The features of the app are mostly determining factors when it comes to cost.
 
The complex interface and the features will shoot up the cost. So determine the features of the app efficiently.
  • App with simple features - $40,000 to $60,000
  • App with moderate features - $60,000 to $150,000
  • App with complex features - $150,000 to $300,000
These are the approximate cost list for developing an app like Deliveroo.

Cost-affecting Factors in Developing an App Like Deliveroo

There are diverse factors that can affect the cost of app development. Understanding the complexities will give you a clearer idea about the app development process.

Design of Apps

The success of any app relies on the interactive UI/UX designs of an app. Apps like Deliveroo have to use an appealing interface for easy navigation. The app has to ensure a good user experience to make sure the customers can simply place orders and track the deliveries.
 
Such complex design features will affect the cost, but prioritizing such features will result in a better user experience.

Team Size

The size of the development team affects the costs. More developers and designers may be required for larger projects which impacts expenses.
 
However, complex features such as personalized recommendations, real-time tracking, and authentic content are mandatory to make your app stand strong among the competitors.

Location of Team

The location of the development team can affect expenses. This happens due to differences in labor rates and living costs across regions. For example, selecting teams from places like Asia and Europe will lower the expense, and hiring developers from the UK and the US will increase the development rates.

Tech-Stack

The choice of technology stack can influence the cost. This includes features such as programming languages, app development frameworks, and libraries. Some technologies may need higher licensing fees or specialized expertise.
 
However, investing in a better stack ensures better scalability and performance.

Location-Based Service

Implementing location-based services, such as GPS tracking adds more complexity to the app. Moreover, Implementing location-based services affects development costs.

Third-Party Integration

Integrating third-party services causes additional costs in licensing or subscription fees. Services such as payment gateways, mapping APIs, and restaurant management systems can add up the cost.

App Platform

Developing an app for a single platform is cheaper than Developing for multiple platforms (iOS, Android). If you are planning to release on multiple platforms, separate development and testing will be needed.

App Maintenance

For a seamless app ongoing maintenance and support are essential after the launch.  Addressing issues on time is also crucial in such apps. But these services contribute to overall costs.

Security Standards

The security standards of apps are vital for application growth. This ensures that the app meets the security standards and regulations. But this feature will add up the cost as it needs to implement encryption, secure payment processing, and compliance measures.
 
Don’t compromise on the security standards. Because customers prefer a secure app above anything.

Features

The intricacy of features and functionality has a great influence on cost. Features like order customization, real-time tracking, and customer support are vital for any app to be successful.

Testing

Testing across diverse devices and scenarios adds to development costs. Hire a reliable food delivery app development company to cut down the costs.

How Can You Make a Profit Out of Such a Delivery App?

The revenue models of food delivery apps
 
Food delivery apps can have multiple sources of revenue. Here are a few of them.

Commission based model

Apps like Deliveroo charge commissions to restaurant owners for orders they deliver.
 
The commissions can be 25-30% of each order made on the app.
 
The percentage may differ depending on factors such as restaurant size and location.

Subscription-based model

Apps like Deliveroo offer premium subscriptions with perks. The premium version has benefits such as free delivery, exclusive offers, and priority delivery.

In-app advertising

Some food delivery apps generate profits through in-app advertising. The apps may feature third-party advertising to showcase targeted ads for certain products or services that are related to the users.

Surge pricing

These apps can boost overall revenue by implementing surge pricing during peak hours. This includes such features as increasing high delivery fees for temporary periods.

Data insights

The app can offer data analytics services to restaurants for a particular price. These insights will help restaurants take a good look at customer preferences and trends to make better decisions.

Conclusion

This article explained the costs and cost-affecting features to build an app like Deliveroo. You can reduce the cost by considering such cost-affecting factors. To build an app like Deliveroo hire app developers who are knowledgeable in all aspects of app development.
harnil-oza
Harnil Oza is the founder and CEO of Hyperlink InfoSystem, one of the leading app development companies in India, USA, UK, and around the world. Being the founder of the company, he takes care of business development activities and maintains relations with clients. His charismatic and result-driven approach has benefited the company to grow and achieve this height where the company stands right now.

Harnil Oza

Founder and CEO

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