29 Nov 2022
Updated on January 10th, 2023
How Much Does It Cost To Build An App Like Grubhub?
“Unless you are Grubhub, you cannot make billions.” If this is how others treat your food delivery business, it’s time to reply to them with a boom while creating a high-graded app like Grubhub.
Today, nothing can prove more fruitful for a business than investing in its own app. So, instead of trying every approach and strategy for expanding your food delivery business, ensure to build an application of the same domain.
But how to start a food delivery app?
Don’t be worried!
We will be helping you with everything from the app development to how much does it cost to create an app like GrubHub.
It’s time to provide your consumers with their favorite lip-smacking food at the best convenience while building your own on-demand food delivery app.
Let’s move into the rest of the guide only if you are excited to be on this technology-driven ride and skyrocket your business.
What’s So Special About Grubhub?
Grubhub is the reason why 33.8 million people love lip-smacking food. Moreover, as the biggest online food delivery application in the Middle East, it inspires startups of the same domain.
Other reasons that make Grubhub a giant food delivery app are listed below:
- 31.4 million+ active users.
- 3,00,000 restaurant partners
- Spread across 4000+ cities.
- Speedy delivery within time.
- Better delivery services at reasonable prices.
- $82,176 million market volume by 2023.
More About Grubhub!
If the details above gave you shock and you now want to develop a food delivery app like Grubhub, here is an explanation of its marketplace, revenue model, and workflow:
United States and London
Restaurants and Delivery Partners
Charges commissions, prefers restaurant advertising and offers a monthly subscription plan for users.
Grubhub Revenue Model Explanation!
To get an explained picture of how the online food delivery app makes money and beats the competitive edge, you must delve deeper into this section.
The app asks for delivery fees from the users to make a convenient delivery. The charges are divided into 80:20, of which 80% belongs to the courier service and 20% to Grubhub. Other than this, distance to the user’s place influences the cost.
Ads and Marketing
As it is the time for brand marketing, Grubhub makes the most of this opportunity and uses ads and marketing as its revenue model to charge those restaurants whose advertisements are running on the app.
It’s for users who have no objection to paying a convenience fee over the delivery fee for convenient food delivery to their doorsteps. However, the charges of this category go directly to Grubhub.
Grubhub+ is a monthly subscription plan for users that lets them get unlimited free delivery on orders above $12 from restaurants registered in the platform.
It takes continuous research to determine how much does it cost to create an app like Grubhub. But you will be glad to know that this full-fledged guide is curated with all the research. So, you will find everything in one place.
Also Read – How to Choose a Mobile App Development Company?
How does the food delivery app Grubhub work?
The working principle of Grubhub is responsible for the app’s revenue in millions of figures. Move below to learn how the app works for consumers, restaurants, and couriers.
The working model of Grubhub for consumers is here:
The consumer searches for their favorite restaurants, menus, and cuisines, then moves to the next step.
Now, the user adds the picked item to the cart and the delivery address where the food will be delivered. An app like Grubhub asks for the user’s confirmation once the cart is ready.
Here, the checkout page appears where users see payment options like debit/credit cards, PayPal, or Cash on Delivery.
While the consumer waits for the food, the restaurant’s role comes into existence.
In this entire order cycle, the role that restaurants play is essential.
Restaurants receive a ‘bing’ sound notifying them about the concerned order, and they check if it is available.
They confirm the order if it is available, and the user and the nearest courier also receive a message.
Now, the restaurants prepare the order and make it ready and full-packed so that the courier can get the order quickly.
Here, the courier’s responsibility appears for picking up and delivering the order to the consumers.
Today, the food and restaurant industry depends on couriers to place their orders at the right time. So look at how a food delivery app like Grubhub works for them.
Grubhub provides notifications about the order to those couriers nearest to the restaurant so that they can manage timely delivery. Once they accept the order, do a pickup.
They go to the restaurant, get the order, and update the same in the application so that users can track their orders.
Delivery and Tips
The courier moves toward the delivery address. However, they can contact the customer to inform them about delays and get directions to the address. In addition, they receive tips from customers once the delivery is done.
While working on different components of its business, this is how a food delivery app like Grubhub generates revenue.
Pick Up Option for Users as well!
Have you heard this before?
Grubhub has made it all possible! All users who are comfortable picking up their food by themselves can use this feature embedded in the application and enjoy their food.
Everything works the same, except users need to go to the restaurant when receiving a notification “Your order or meal is ready.”
Features that Differentiate Grubhub from Others!
You will not get the answer to how much does to cost to build an app like Grubhub unless you learn the features because they assure the utmost convenience, accuracy, and simplicity.
So, let’s uncover all the features that make it a food delivery giant in the industry.
- Seamless Registration for users to create their personal accounts.
- Filter and Sort Options to let them search for their favorite cuisines sorted by location, reviews, the price for two, or relevance.
- Personalized Menu so that they can add their preferred items.
- Order Tracking that notifies them about the exact location of the delivery partner using GPS.
- Online payment to ensure a seamless, convenient, and cashless payment.
- Ratings and Reviews out of 5 to show that you care about them.
- Contact Details of the restaurants and delivery partners so that users can quickly call them when required.
- Personal Profile that lets them manage their orders, ratings, and preferences.
- Accurate GPS Service will help them a lot to make timely delivery.
- Contact Details of consumers and restaurants to let them know about delays or find the location.
- Location-Based Notifications to pick an order placed in a restaurant nearby them.
- Delivery Status that they can update thereon rate the consumers as well. The features here are just one aspect that calculates how much does it cost to develop an app.
- Admin Panel through which the restaurants can track orders placed, inventory, and deliveries.
- Point of Sale Solution for restaurants so they can easily calculate the sum of all items purchased in an order.
- Accounting and Reports let restaurants create bills and invoices that they can send to the users and store the same. By looking at the data, restaurants learn the quarterly or monthly deliveries.
- Review section to let them go through the feedback received by the customer. This helps them enhance the services.
- Order notifications help them accept the orders coming at a time.
While integrating these significant features, you will have a robust on-demand food delivery app development. Ensure to get the assistance of high-graded developers to create a food delivery app like Grubhub.
Tech Stack to Create a Top-Notch Food Delivery Mobile App
The technology stack is the foundation of an app. So, it needs to be robust to create a power-packed solution. Consider these technologies for food delivery app development.
What is the duration for creating an online food delivery app?
App development consists of various stages, and each stage takes time that can impact the cost to build an app like Ubereats and Grubhub. If the duration for creating the application is higher, the cost is higher, and vice versa.
It is the most precious stage and takes up to 2-3 weeks because planning is essential, and without it, you cannot proceed ahead, and if you move without planning, you cannot make it to success.
In this stage, project managers, app developers, and project managers collaborate with the client to discuss the app. It can take up to 4-7 weeks.
While UX design that ensures an enhanced user interface can be done within 2-3 weeks, UI design can be done within 3-4 weeks to create a unique and attractive app appearance.
The estimated time for back-end development is 6-8 weeks. However, front-end development could require 8-9 weeks because of the app’s bug fixing and quality assurance.
Support & Maintenance
For about two weeks, the development team observes the app’s performance and ensures it works properly.
If it takes more time in any of these stages, the cost to build food delivery app will be higher.
What makes an on-demand food delivery app like Grubhub so attractive to users?
The convenience that these apps provide compels users to use them even more. However, there is a lot more!
Get into this section to learn why using food delivery apps is becoming a trend among consumers.
Quick Order and Delivery
Dining out takes more time as people have to get ready, drive down, place an order, and wait again until their order arrives. However, using such apps can make the delivery within 30 minutes. No matter whether the consumer is located, their favorite meal is delivered to them as soon as possible. That’s one reason why people love using them.
Offers and Discounts
Undoubtedly, customers attract more to offers and discounts. They quickly access the Menu or dish having 15% discounts or some off. Such a strategy works well to derive customer engagement. That’s why they become more engaged with your app.
Yes, it is cost-effective for users to use such apps because the commute cost does not include. Also, it gets even more cost-effective when discounts and offers are met.
Instead of carrying cash all the time, users can pay online in many more ways through debit/credit cards, UPI transactions, or Paypal. The level of convenience you want to provide to your user with payment options also determines food delivery app development cost.
How are restaurants increasing growth opportunities while becoming food delivery app partners?
Now, let’s learn why restaurants view a food delivery app as the apple of their eyes.
Restaurants were only limited to their areas before the arrival of digitization. Fortunately, they are expanding their reach, serving more customers, and bringing growth opportunities. Increased reach means enhanced revenue.
They don’t need to invest from their pockets for the delivery service. While partnered with the food delivery app, they get the service, give their parcel, and get a way to enter many customers’ hearts.
Track of Order
While accessing the app, they can get a whole track of orders received to date. So instead of spending more time in the papers, this simple access helps them manage their inventory.
Other than this, the restaurant can ask the app creator to place it on the top results to get increased orders and other numerous benefits.
Why should your business Invest in a Food Delivery App?
The demand for food delivery apps has been increasing. Look at the statistics to learn why:
These reports are enough to tell you about the influence of on-demand food delivery app development. Although, if you want to learn more about how your app can help you grow your business, get into this section.
Increase Customer Retention
An app lets you bridge the gap between you and your customer. While providing them with an instant way to get their favorite dish at their comfy places, enhanced customer services, and seamless order placement, you can make your customer visits again. That’s how it influenced customer retention.
We mainly place an order after receiving push notifications about discounts, cashback offers, and new arrivals. These notifications help build effective communication between you and your customer. Whether it be a new user or an existing user, these alerts and notifications can attract all to your food delivery app.
People today want to save time, so they prefer using the food delivery app assures faster delivery and includes GPS. You can leverage GPS for real-time tracking and dynamic UI for easier order placement. However, these two can vary the cost to build a food delivery app.
An app is meant to reach a wider audience. While you cannot approach a maximum number of customers relying only on the conventional way, a digitized way can lead you ahead. It gets easier with your application to show them your Menu with accurate descriptions, reviews, and other available options.
Customers feel more privileged when a business prioritizes their needs. Also, as the personalization trend is emerging, you can make the most of it while allowing your consumers to customize the dish and beverages that suits their whims. Instead, the integration of Artificial Intelligence can let you learn the food choices of your customers. The minute they open the app, their favorite meals appear with a ‘repeat order’ tab that they can click and get their order. It will save their time, and you will also know your customers better.
Reduce Operational Cost
The main challenges of the food and restaurant industry are operation management and income growth. Fortunately, this would not be an issue anymore with a tech-driven solution. While blending some marvelous features into your app, you can decrease the cost incurred in customer support.
Here are those features:
- Real-time tracking mechanism integration.
- Live order tracking to customers.
- Promote cashless delivery with an automated payment option.
- Quick analysis via advanced analytics dashboards and reports.
- Automated order management for the delivery personnel.
Challenges in the Food Delivery App Industry
As the food delivery industry involves different parties (restaurants and delivery partners), the challenge seems to disturb the balance between them. Therefore, before learning the cost to develop a food delivery app like Grubhub, you need to know those challenges to easily combat them in the future.
- Improve the speed of delivery and the convenience level.
- While looking for partnered restaurants, ensure you pick only the trusted ones.
- Or, it will be good to have complete control over different aspects of your business.
- Instead of looking for independent contractors, hiring drivers or partnering with a professional delivery company can help you.
- Try to deal with all types of customers.
Now that we have covered the challenges, it’s time to move into and learn about some strategies that will lead you ahead toward a successful path.
So, are you excited?
If yes, dive straight into this section!
Research and analysis on what your customers needs must be done properly. Providing Italian cuisine in a city that favors other Spanish cuisine is not a good approach. Therefore, try to learn your customers’ preferences in an area where you will make your application live.
Know your competition
To climb a successful ladder, you must know the advantages and drawbacks of your competition and try to fill the gaps with your own app. Pick a niche that is still neglected by several startups yet captures people’s interest.
Improve user retention
Just suppose that you have paid the cost to develop an on demand app, but still could not improve user retention. This will shatter all your efforts into pieces. Right, isn’t it?
Therefore, try to enhance customer retention while focusing on the main elements of the industry: customers, restaurants, and delivery partners.
App monetization helps you turn your application into a profit-generate tool.
Want to know how?
Through its different models, like:
- A delivery fee from customers and restaurants.
- In-app advertising for restaurants to list them at the top of your app’s listing. Grubhub charges 20% commission from the restaurants that want to appear on the top list.
- Order commission charge from every order that restaurants do via your app. Besides, a paid subscription plan can make you generate revenue.
Expand user base
Instead, expand your user base because it can create a lot more difference in your revenue ratio. However, to do so, you need to know that your app functions properly and provides a seamless experience for users. Also, keep testing and incorporating updates as per the feedback received by a user.
Keep an eye on your budget
Being in the food delivery industry is a challenge, as you may struggle to even your profits and expenses. However, with an app, you can manage this. But ensure that it is within your budget. An alliance with the tech-driven people who let you know how much does it cost to build mobile app like Grubhub can provide the best help.
What does the future hold for online food delivery app?
The food delivery industry will turn huge with the technology trends and other service diversifications coming in the future. This section will teach you about the future of online food ordering and delivery systems.
Did you ever hear of the smart restaurant?
If not, you will hear it soon as the AR/ and VR technologies are making it happen.
With only Big data, better delivery estimates and customer preferences prediction will be achieved. A food delivery app integrated Big Data can beat the competitive edge.
The industry will not only be limited to food delivery only but expand to other service diversifications such as:
- Recycle food space
- Pet food
- Healthy food and diet
This will provide more opportunities for your business to grow. Cost to build food delivery app will vary if you add any of these service diversifications to your application.
Crypto Food Ordering
Yes, you heard it right!
It’s crypto food ordering. Although a food delivery app provides various options to pay for our favorite food, when it moves to cryptocurrency payment, it gets ready to take a futuristic ride. Various famous companies named Feastly, and PizzaForCoins have already started accepting 50 cryptocurrencies.
New Delivery Option
Instead of manual delivery, we can see emerging trends in the future where the company uses robots, parachutes, and drones to deliver food.
How much does it cost to build an app like Grubhub?
Now that we have gathered a complete insight, it’s time to get the answer on how much it cost to develop a mobile app like Grubhub. The approximate cost of any app always depends on various aspects, such as:
- Tech stack
- App duration
- Platform selection (Android, iOS, or both)
- App complexity
- Team size
Features and tech stack used in Grubhub have been provided above. So you will not face trouble searching for the same. Moving on to the app duration, it lifts the development cost if the development time exceeds according to your recommendations and changes. Also, if you go for Android, it feels somewhat lighter to your pocket than the iOS platform, or you can also pick the cross-platform while taking assistance from your development partner. Finally, if there are many more complexities and the team size is small, it again lifts the cost.
Expand your food delivery business with Techugo!
Although surviving in the food delivery industry is challenging, we are ready to be on this roller coaster ride with you.
With the right approach, strategies, and terminology, you will soon hit several progressive milestones. It is just required to get the best assistance from the top mobile app development company.
So, what are you waiting for?
Give us a call today and get ready to witness abundant opportunities for your business!
Frequently Asked Questions (FAQs)
1. What are the benefits of developing a food delivery app?
If you belong to a food delivery business, an app of the same domain can expand your reach, improve customer retention, reduce operational costs, and many more.
2. What is so special about Grubhub?
Grubhub is the most significant food delivery application in the Middle East. Moreover, it provides its services to 4000+ cities with 3,00,000 partnered restaurants.
3. How much does it cost to develop a food delivery app like Grubhub?
The cost to develop a food delivery app like Grubhub can go from $10k to $100k. Also, other factors that can influence the cost are features, tech stack, app design, app complexity, and business requirements.
4. How can Techugo help me build a food delivery app?
Techugo has built over 800+ success-driven projects in every domain. Moreover, we have dedicated dmobile app development companyevelopers putting their sweat and blood into turning the dream of their clients into reality. With the diverse expertise we have, you can achieve various progressive milestones.
5. Which tech stack should I choose to build an app like Grubhub?
For Cloud- AWS, Azure
For Analytics- Google Analytics
For Restaurant Listing- Grubhub API or FourSquare API
For User Location- Core Location Framework, Google Places API
For Payment- Braintree, PayPal, Sqaure API, Stripe
For Directions- MapKit, Google Maps
For Registration- Facebook SDK Login
For Storage- Amazon Cloud Storage