A food delivery platform has changed how people dine. Many businesses are taking advantage of the latest trends to craft their food app to stay ahead in the increasing competition as they help provide a better experience to the customer.

Food delivery apps have become a very important part of customers’ lives as they are convenient. This platform helps them get food at their doorstep without going out for dinner or taking parcels from the restaurant. The food will be at their place with just a few taps on the phone.

Many entrepreneurs want to take advantage of this and create a food delivery platform to increase their businesses’ profits. However, one question always bothers me: How much investment does it need? And how many different revenue models does it have?

If you also need clarification about these types of questions, then you are in the right place. Here, we will discuss the expense of food delivery solution development and the type of revenue models it has for the business.

Comprehending online food apps and how it benefit the business

Food delivery platforms help customers place orders from their smartphones anywhere instead of waiting at the dining place. Users can place orders by entering their addresses and adding items to their carts; the store will then receive the order and assign a delivery partner.

The app even integrates social media to let users share their experiences and content on social accounts without hassle. It shows real-time updates, and users can track drivers and select the mode of payment.

Further, the app makes the admins work effortless as they can manage the whole business and check all statistics in the dashboard. For the drivers, the app provides the option for accepting or rejecting the delivery request and managing their earned money in the app. Furthermore, the online food delivery solution has multiple benefits for the business, which are as follows:

  • The online platform is operated by multiple users around the globe, increasing the chances of more brand visibility to them. Plus, it allows the business to create its unique brand name and stand out.
  • Food apps help businesses stay ahead of increasing competition by providing a user-friendly experience to customers. They also help create strong connections with users by keeping them connected and updated about your app.
  • The convenience of a food delivery app allows users to shop or order from anywhere without any hassle or waiting in a queue. Furthermore, in this ever-changing market, convenience dominates customers’ requests.
  • It is expensive for new start-ups to manage all the business’s operational costs and boost the income simultaneously, which becomes challenging. Thus, having an online app makes it easier for the entrepreneur to tackle this problem.

How much does it cost to develop the online food delivery app

The software building phase accounts for the largest portion of the expenses of creating a custom food delivery solution, costing between $10,000 and $300,000. The price depends on the firm’s requirements and multiple elements, such as the software’s structure, attributes, development team fees, and developers’ region.

Different regions and developers charge different fees for building white label food delivery app that can help businesses reach their target audience. Plus, every company has different rates of app creation based on the OS of the software, like iOS or Android, on which the platform is being released.

If the entrepreneur wants to launch this app for both technology users, then the rate of creating software is slightly higher. This is because it requires some significant tools and expertise.

Further, engaging with a UI/UX designer with good experience will require a good investment, which is essential for a more satisfactory user experience.

Also read: ​​5 Internet Marketing Secrets For Amazing Results

Revenue models for the business of food delivery app

Different pricing structures

The business can set different pricing structures in the app for users to pay for. For example, the business takes its decided commission from all its services, with high pricing and peak timing. Plus, you can earn money by advertising other brands on their platform and charging them to display their ads.

Commission from Restaurants

The app charges a fee for each food order made at the restaurant. To keep going strong, the online food platform must ensure customers and restaurant owners have a smooth experience. 

Restaurant owners can easily check how much they make daily using the app. This setup helps the app stay afloat while providing a helpful service to both sides. It’s like a little fee for the convenience it offers everyone involved. 

Meal kit delivery model

The meal kit delivery market is growing constantly and is projected to reach a revenue of US$14.59 billion in 2024. This service sends partially cooked recipes for home-cooked food. Many people nowadays are opting for this option. This even eliminates the need for the customers to avoid planning groceries, saving precious time. It is convenient for them, as they don’t have to go shopping for cooking supplies, and they can receive the whole kit. Thus, many businesses provide meal kit delivery services.

Ghost kitchen model

It is a commercial kitchen that only prepares food for takeout, deliveries, and other purposes. It doesn’t have a storefront or a proper dining place with staff to handle and welcome customers. This type of kitchen is generally situated in an area with high demand for deliveries or near such areas.


Creating a food delivery platform requires considerable investment, but it depends upon the firm’s requirements and long-term goal. By understanding the different revenue models and how they affect the development cost, you can make an informed decision without confusion.

Posted by Raul Harman

Editor in chief at Technivorz and business consultant. I like sharing everything that deals with #productivity #startups #business #tech #seo and #marketing