How Much Does It Cost to Build a Food Delivery App Like Deliveroo?

In Europe’s culinary landscape, the food delivery industry has flourished, revolutionizing the gastronomic experiences for millions of people. This surge is driven by factors such as busy lifestyles, increasing demand for diverse cuisines, and the recent emphasis on contactless services. As consumers increasingly look for the convenience of doorstep dining, businesses entering the food delivery ecosystem find themselves at the crossroads of opportunity and innovation.

The one food delivery app that has successfully navigated the dynamic European food delivery landscape is Deliveroo. The app has positioned itself as the frontrunner of the industry, catering to consumers’ evolving demand and preferences. The app has successfully adapted to the changing needs of consumers, establishing a distinct identity by offering a wide range of culinary choices and a user-friendly platform.

If you’re a business looking to venture into the thriving food delivery industry and build an app similar to Deliveroo, the first consideration that naturally comes to mind is the cost involved in app development. To give you a rough estimate, the overall development cost to develop an app like Deliveroo can vary from $40,000 to $300,000. Understanding the intricacies of Deliveroo-like food delivery app development is crucial for making informed decisions and ensuring the success of your venture.

This blog will help you understand the Deliveroo app development cost, the factors affecting the development budget, and other strategic considerations that businesses need to take into account when embarking on the journey of building a food delivery app.

So, without further ado, let’s get right to the point.

Comprehending the Deliveroo App: A Recipe for Success in the Food Delivery Business

Deliveroo, the trailblazer food delivery app, was founded in 2013 in London. After a rapid expansion, the company now operates in multiple countries across Europe, Asia, and the Middle East. Deliveroo immediately gained popularity for its convenient and on-demand food delivery service, offering users a wide variety of options to choose from local restaurants.

With over 7.4 million users in London, Deliveroo connects users to local restaurants, especially those without delivery services, through its efficient app. This expands restaurants’ reach while customers enjoy broader options. The app further earns commissions on each order, acting as a middleman with a unique value proposition.

According to a Crunchbase report, the food delivery app has been able to bag a total funding of $1.7 billion in around 13 rounds. Solidifying its position as a major player in the food delivery industry, the company has utilized the money to expand its geographical reach, enhance technological capabilities, and invest in marketing strategies to attract a larger user base.

As per Statista, the food delivery market in Europe is expected to reach a valuation of $205.4 billion in 2028, witnessing a CAGR of 9.46% from 2024 to 2028. Thus, considering the overall success of the food delivery app Deliveroo and the budding market size, now is the right opportunity for businesses to leverage the growing trend of doorstep dining.

Understanding the Cost to Develop an App Like Deliveroo

As revealed earlier, the cost to develop an app like Deloveroo can vary from $40,000 to $300,000. Several factors can impact the overall development budget, such as the overall app complexity, the features to be integrated into the app, the location of the hired app development company, the app delivery timeline, etc.

Simply put, an app with a highly complex interface combined with an extensive feature list will ultimately cost you more than a simple app with a minimal feature list.

Let us offer you a rough cost estimate per various app complexity levels. 

Factors Affecting the Cost to Develop an App Like Deliveroo

Multiple factors come together to develop an app like Deliveroo. Understanding the intricacies involved in each will help you get an estimated idea of the cost to create an app like Deliveroo. Let’s look at the factors in detail below:

UI/UX Design

Investing in a user-friendly and visually appealing UI/UX design is absolutely crucial for the success of a food delivery app. The complexity and intricacy of the design elements, such as interactive features, intuitive navigation, and engaging visuals, will significantly impact the overall Deliveroo app development cost. By prioritizing these aspects, food delivery businesses  can ensure increased customer satisfaction and retention rates.

App Platform

The choice of an app platform, such as Android, iOS, or a cross-platform solution, plays a pivotal role in determining the development cost to build an app like Deliveroo. Each platform has distinct development requirements, and catering to multiple platforms can increase the overall development budget.

Team Size

The size and expertise of the development team directly impact the development cost to make an app like Deliveroo. For instance, a larger team with diverse skill sets, including app developers, designers, QA engineers, and project managers, may require additional expenses as compared to a simple team of 2 to 3 personnel. Understanding that a full-fledged development team can streamline your project while ensuring timely delivery and updates is vital.

Offshore/Onshore Development

Opting for offshore or onshore development services widely affects the cost to develop an app like Deliveroo. Embracing offshore app development allows businesses to leverage global talent pools, resulting in cost optimization without compromising the quality of the end product.

On the other hand, onshore development may be associated with a comparatively higher cost structure, but it offers enhanced communication. Ultimately, the choice between offshore and onshore development depends on the specific business needs and budget considerations.

Location of the Hired Development Firm

The hired app development firm’s geographic location impacts the Deliveroo app development costs. For instance, choosing firms in regions like Asia or Europe with lower operational costs and hourly development rates might be the suitable choice compared to regions like the US or UK with higher hourly development rates.

App Maintenance

App maintenance is an ongoing requirement to ensure performance, security, and functionality. The cost of maintaining the app, including regular updates, bug fixes, and enhancements, should be factored into the overall development budget.

Third-Party Integrations

Integrating third-party services, such as payment gateways, APIs, geolocation services, or restaurant management systems, can add to the cost to create an app like Deliveroo. The complexity and number of integrations required influence the overall budget.

Compliance and Security Standards

Adhering to the multiple industry standards and compliances when it comes to the food delivery sector is essential. Implementing robust security measures and ensuring compliance with data protection laws may require additional investments.

Tech Stack

The tech stack to develop an app like Deliveroo also impacts the overall cost to develop a food delivery app like Deliveroo. For instance, choosing a reliable tech stack that is backed by top-notch front-end and backend technologies, as well as a robust framework and databases, may contribute to increased complexity, thereby affecting the overall cost to develop an app like Deliveroo. However, investing in a powerful tech stack ensures better performance, scalability, and long-term sustainability.

Testing and Quality Assurance

Thorough testing is indispensable for a successful app. Investing in comprehensive quality assurance processes, including testing across multiple devices and platforms, contributes to a higher cost to build an app like Deliveroo but ensures a more reliable and bug-free application.

Location-Based Services

Implementing Location-Based Services (LBS) requires the integration of advanced geospatial technologies. These technologies greatly improve user experiences by offering features that are specific to their location. Since incorporating features like real-time tracking, personalized recommendations, and localized content is a complex process, the overall cost to develop an app like Deliveroo can be highly impacted by this.

Features and Functionality

The scope and complexity of Deliveroo app features directly impact the cost of Deliveroo-like food delivery app development. Incorporating advanced features like real-time tracking, personalized recommendations, multiple payment gateways, and customer support functionalities contributes to a higher development budget.

Features to Develop an App Like Deliveroo

An app that is similar to Deliveroo must cater to customers, restaurants, and delivery personnel, respectively. Let us look at the multiple Deliveroo app features respective to each panel.

Customer Side Panel

The customer-side panel of the food delivery app should have a user-friendly interface where customers can access a range of features to enhance their ordering experience.

Restaurant Discovery & Search: This feature allows users to browse various restaurants by using multiple filters to select their favorite cuisine, the location where they wish to deliver the food, dietary preferences, ratings, and more. Customers can further utilize advanced search filters for specific needs.

Menu Browsing & Ordering: The customer can view detailed menus with photos, descriptions, and prices. This app allows the users to add items to their cart, customize orders, and apply any available discounts.

Real-time Order Tracking: This allows the customers to track their order’s progress in real time, look at the estimated delivery time, and view the rider’s location on a map.

Reviews & Ratings: This allows the users to rate and review restaurants based on their experience, helping others make informed decisions.

Order History and Favorites: This feature allows the customers to view past orders and save favorite items for quicker reordering.

Customer Support: This feature allows the customers to chat with the customer service team for any questions or concerns.

Push Notifications: The users can stay informed about order updates, promotions, and important announcements.

[Also Read: How to Build a Push Notification Strategy For Higher Conversions]

Multi-lingual Support: This feature allows the customers to access the app in various languages for wider user reach.

Payment Options: Customers can choose from various secure payment methods, including credit cards, debit cards, e-wallets, and cash on delivery.

Restaurant Side Features

The restaurant-side panel of the food delivery app should offer restaurants a comprehensive set of tools to manage their operations efficiently and effectively.

Partner Registration & Management: This allows the restaurant partner to sign up, manage their profile, update menus, and set operational hours.

Order Management: This feature allows the restaurant to receive and manage incoming orders, accept or reject them, and view order details.

Rider Communication: The restaurant can communicate with riders directly through the app regarding order-related inquiries.

Performance & Insights: The restaurant can get insights into order volume, customer feedback, and performance metrics. These can help in optimizing their business constructs.

Marketing & Promotions: The restaurant can utilize promotional tools like discounts and special offers to attract more customers.

Delivery Fee Management: This feature allows the restaurant to set delivery fees based on location and distance, offering flexibility to manage costs.

Payment & Settlement: The restaurant can review and manage the payments made through secure in-app transactions.

[Also Read: Factors Under Consideration for Integrating Payment Gateway in a Mobile App]

Delivery Personnel Panel

The delivery personnel panel in the food delivery app should offer a range of features designed to streamline order fulfillment and enhance the delivery experience

Order Assignment: This allows the delivery personnel to manage their delivery orders based on proximity and workload.

Navigation and Route Optimization: This feature allows the delivery personnel to navigate and optimize routes efficiently with the help of GPS functionality.

Real-Time Updates: The riders can receive updates on order details, traffic conditions, and delivery timings.

Earnings Tracking: This feature allows the delivery personnel to access their earnings dashboard to track completed deliveries and earnings.

Availability Settings: The riders can set the availability and breaks and toggle between online and offline modes.

Delivery History: This allows the riders to access their completed deliveries and customer ratings.

How to Develop an App Like Deliveroo?

In order to develop an app like Deliveroo, it is necessary to carry out a comprehensive development process backed by robust market research and thoughtful conceptualization of core features. It is recommended to hire an app development firm with strong expertise in building food delivery apps. While hiring, ensure they understand your app vision, have a proven track record, and can provide end-to-end services from ideation to deployment.

Now let us look at the multiple steps that make up the entire Deliveroo app development process:

Market Research and Conceptualization

The Deliveroo-like app development process starts by conducting thorough market research and a competitor analysis. This will allow you to understand user needs, preferences, and the evolving market trends. Make sure to conceptualize your app’s core features and functionalities by keeping user experience a top priority.

Define App Features and Functionalities

During this phase, clearly map out the features for customers, restaurants, and delivery personnel. It is necessary to have an extensive feature set with intuitive offerings like order placement, real-time tracking, seamless payment options, restaurant management tools, and driver optimization so as to get instant traction in the market.

Choose the Right Tech Stack

It is now time to choose a suitable technology stack for your app. Make sure to consider factors like scalability, performance, and platform compatibility. During this stage, the programming languages, frameworks, and database systems required to develop a robust app must be finalized at your end.

UI/UX Design

After selecting the right tech stack, it’s now time to design an intuitive UI/UX. Ensure the stakeholders collaborate with the app designers to create an interface that guarantees a positive and intuitive experience for customers and restaurant partners.

App Development

The hired team will begin the development process by coding the app’s front-end and back-end functionalities. It is vital to ensure that the developers carefully adhere to the stringent coding standards, industry regulations, and best practices for robust and scalable app development.

Integration of Core Features

During this stage, it is necessary to integrate core features such as real-time order processing, multiple payment gateways, and GPS functionalities for customers, restaurants, and delivery riders.

Quality Assurance and Testing

The quality assurance specialists conduct thorough app testing across various devices, platforms, and scenarios in this phase. Identifying and addressing bugs, glitches, or usability concerns is vital to ensure a smooth user experience.

Deployment

Once the app is error-free, it is time to prepare it for deployment by ensuring it meets all necessary requirements. The developers then deploy the app on relevant platforms like the App Store and Google Play Store.

App Maintenance

It is vital to understand that the implementation of ongoing app maintenance is a critical aspect that determines the long-term success of your food delivery application. This involves promptly addressing user feedback, ensuring that the app aligns with user expectations, and resolving emerging issues effectively.

How Appinventiv Helped KFC Develop 7 Food Delivery Apps and Increase Conversions by 22%

Appinventiv played a pivotal role in empowering the food delivery giant, KFC, to revolutionize its digital presence and elevate the customer experience by developing 7 bespoke food delivery apps globally.

Our strategic collaboration helped the brand overcome over-reliance on aggregator platforms, fostering direct engagement with customers and driving significant business growth.

The impact of our partnership allowed KFC to witness a 22% increase in conversion rates, a 100% revenue uplift during peak holiday seasons, and a substantial 60% increase in repeat purchases.

After receiving high average ratings of 4.5 stars on both the Play Store and App Store, KFC was able to enhance the overall customer satisfaction rate. Furthermore, our robust solution enabled KFC to significantly reduce its dependency on aggregator apps from 90% to less than 50%, helping the food delivery giant achieve substantial cost savings and elevate brand presence.

Multiple Revenue Models Adopted by Food Delivery Apps Like Deliveroo

There are multiple monetization strategies for revenue generation adopted by food delivery apps. Let us look at how they can ensure sustained profitability for business in detail below.

Commission-Based Model

In this business model, the app can generate revenue by charging the restaurant partners a commission based on the value of each order. The percentage may vary depending on factors such as the size of the restaurant, its location, and the overall value of the order. Furthermore, the app can charge a delivery fee to customers to cover the delivery-related costs.

The food delivery app Deliveroo uses a commission-based model for revenue generation. The app charges an estimate of 25% – 30% commission on each order made on the app. The commission percentage further varies depending on the agreement between the restaurant partner and the food delivery app.

Subscription-Based Model

Within this business model, the app allows customers to get premium memberships that offer them attractive benefits like free delivery, priority ordering, and various exclusive perks. This revenue stream also extends to restaurants, allowing them to subscribe to plans that offer advantages such as priority listings, access to data analytics, etc., all for a fixed monthly fee.

Deliveroo food delivery app offers its users a subscription plan for Deliveroo Plus that offers them additional features and multiple advantages at a fixed cost.

In-App Advertising

Restaurants can generate revenue by integrating ads directly within the app. The app may feature third-party advertising to showcase targeted ads for products or services that are relevant to the users.

Surge Pricing

The app can implement surge pricing during peak hours to boost overall revenue. This includes increasing the delivery fees temporarily and, thus, optimizing the earnings based on increased demand.

Data Insights

The app can offer data analytics services to restaurants for a fixed price. These insights can help restaurants take a good look into customer preferences and trends to make informed decisions.

How Can Appinventiv Help You Leverage the Bustling Food Delivery Industry in Europe?

We hope our blog was able to help you understand everything related to the overall cost to develop an app like Deliveroo. By diving into the complexities of each development phase, from market research to integration of core features, we aimed to provide you with a thorough understanding of the factors influencing the development budget.

As a dedicated iOS and Android application development company, our experts can help your business navigate and capitalize on the growing demands of the food delivery sector. By creating user-friendly apps that cater to the specific needs of your business, we are the ideal partner in your journey towards digital excellence. Our experienced developers are committed to translating your business vision into a seamless and innovative mobile application.

Get in touch with our experts to turn your app ideas into reality and mark your presence in the dynamic and flourishing market.

FAQs

Q. How much does it cost to develop an app like Deliveroo?

A. The cost to develop a food delivery app like Deliveroo can vary depending on several factors, including the location of the app development agency, the complexity of features, and design considerations. To give you a rough context, the cost can vary from $40,000 to $300,000. Get in touch with our app developers to get a precise estimate based on your specific business requirements.

Q. How long does it take to make an app like Deliveroo?

A. The time required to make a food delivery app like Deliveroo depends on its complexity and the desired features. For instance, developing a complex app with advanced features may take around 9 to 12 months. On the other hand, a simpler app with basic features can be developed within a timeline of 3 to 6 months.

Q. How can a custom-built food delivery app be tailored to my business needs to enhance customer engagement and streamline operations?

A. A custom-built food delivery app is designed to enhance customer engagement through personalized features, promotions, and a user-friendly interface. By streamlining operations with tailored functionalities such as order management, delivery tracking, and integration with your existing systems, your app can ensure seamless and efficient business processes. Contact our experts to explore how a customized solution can benefit your business.

THE AUTHOR

VP- R&D