It’s nearly 2:00 am. You feel your stomach grumbling. You came to the kitchen, opened the fridge only to realize that just last night you finished the last piece of brownie. But you are craving for more. You grab your phone, open Uber Eats, place an order from your favorite restaurant, and ta-da! Freshly baked chocolate brownies are right at your door-step.
That’s how on-demand food delivery apps like Uber Eats help you fulfill your late-night cravings.
But how do such apps work? How can you create a similar app line Uber Eats clone app to benefit from your ongoing food business? How can you make money out of it?
We know there must be a lot of questions in your head. Therefore, in this article, we have covered every necessary information to get you started on developing your UberEats Clone App.
Uber Eats Business Model
Uber Eats is the child of Uber Technologies born in August 2014 in the US. The original name was Uber Fresh Service which in 2015 became UberEats. Gradually, Uber Eats gained momentum by expanding its network to more than 220,000 restaurants in over 500 cities globally. The business model of Uber Eats serves as an inspiration to various food delivery startups. Moreover, in the new world of a pandemic that we live in today; on-demand mobile food delivery apps are booming to fulfill the demand of online customers.
The work ecosystem of Uber Eats is interesting. It plays a dual role- aggregator, and delivery. It follows the traditional aggregator model by providing a platform for the consumers to browse through multiple restaurants and serves as a delivery platform to partnering restaurants by giving them complete logistics support.
The Marketplace of Uber Eats Clone App
Uber Eats is a 3rd-sided marketplace business. This means it connects a driver, a restaurant owner, and a customer who uses the app. Here’s how the app works for each:
Uber Eats Clone app comes to the rescue when you are not in a mood to dine-out or need a quick meal on the go. You can browse through hundreds of local restaurants, select a cuisine you want, place an order and your food will arrive in no time.
After receiving an order through Uber Eats, restaurants prepare the food and hand it over to the delivery person. They can benefit from online visibility they gain from the app plus earn profits from online orders. Restaurants keep 70% of the profits from each sale, as Uber Eats takes a 30% commission on every order.
For Delivery Providers
Delivery providers are independent contractors who earn from deliveries. They can choose their work schedule and use their vehicle.
This 3-sided model is both efficient and cost-effective because of three reasons:
- Shared Network: Both delivery persons and riders come together to work as a delivery fleet. This reduces the efforts to set up a delivery network from scratch.
- Lesser Customer Acquisition Cost (CAC): The marketing and advertising expenses of Uber Eats is comparatively less than its competitors. This is because Uber Eats gets most of its users through cross-promotion on the Uber App.
- Savings on Logistics Costs: You can deliver multiple food orders that come from the same or nearby area in a single run. This will help save logistic costs.
Unique Selling Points of Uber Eats
- Already existing customer base- Uber rides application has blessed with millions of active customers. There are high chances of Uber users potentially being Uber Eats users.
- Quick delivery- People in this age of the internet can’t wait. You give them quick services and you win. Uber Eats promises to deliver the food within 30 minutes in almost every metropolitan city.
- No minimum value order- A quick bite or a whole meal, the platform covers every order irrespective of the value. So, users can order whatever they want without thinking of a bare minimum value.
- Building customer feedback- Ratings are crucial to build customer satisfaction and build customer retention. Uber Eats’ rating system is different from Uber. It’s binary—food/delivery is either good or bad. Moreover, Uber Eats communicates with the customers and are quick in responding to queries. If you were to scroll to their twitter feed, you will find them engaging with them. For instance, this conversation.
- Great algorithm- Uber Eats does a good job of organizing all factors in the online food delivery system i.e. order management, order allocation, and order dispatch.
Notable features of Uber Eats Clone App
1. Smart Curation & Specialization
The Uber Eats clone app makes good use of Artificial Intelligence. Users can view food photos before placing an order. Once the customer becomes a frequent user, he/she will get suggestions based on previous history and taste preferences. Each of its products relies on machine learning. Even the delivery services use AI- prediction of traffic, one-click chat for drivers, ETA prediction.
2. Scheduled Order- Sunday Brunch is set!
Uber Eats customers can place orders in advance for a scheduled delivery window. A scheduling order is a unique feature that offers comfort to customers. If you want to organize a brunch next Sunday; Uber Eats will let you place an order a week before!
3. Tracking Order- Let me Check where my Pizza is!
Order tracking is a common feature in many applications. But Uber Eats have perfected it. From checking if your food is still being prepared or which crossroad it has reached, real-time GPS tracking lets your monitor the whole process.
4. Restaurant Manager
Restaurant manager app is an initiative by Uber Eats that serves restaurants with analytics tools. It is an all-in-one hub of data, marketing, administration, and more which makes order management easy.
How Uber Eats Make Money
Uber Eats is growing like a wild forest fire. Statistics reveal Uber’s revenue grew 14% from $3.1 billion to $3.54 billion in the quarter on a year-over-year basis.
Let’s talk about their secret gold mine- the three-way revenue flow:
1. Delivery Fee/Convenience fee from Customers
The customer pays a small amount in the form of delivery charges and order cancellation charges at times to Uber Eats.
The charges fall into three categories –
- A variable delivery fee depends on the customer’s location and the availability of the couriers.
- A service fee which amounts to 15% of an order subtotal.
- A small order fee of $2 when the order amounts to less than $10
1. Revenue Share from Restaurant Partners
A restaurant that the customer chooses, pays some commission to Uber Eats for every order placed. The charge ranges from 15% to 40% on every order, depending on the maturity of the market.
2. Advertising Fee form Restaurant Partners
Uber Eats takes a marketing fee from partners for helping them attract more customers by offering brand campaigns, social media marketing, and email marketing.
This is how popular food delivery apps like Uber Eats Clone work. Before we start the step-by-step guide to building a clone app, let’s find out what is the workflow of the Uber Eats Clone App.
Uber Eats Clone App Workflow
- Browse Restaurants: Scroll through the feed and find the restaurant of your choice.
- Menu selection: Browse through the list of cuisines, tap the preferred item, and add to cart.
- Finalize your Order: Place your order, proceed checkout, and pay for the meal.
- Track Order: See the status of your order in real-time.
- Delivery: Get hot and delicious food at your doorstep
Admin earns a commission on every order—restaurant receives payment from admin—delivery staff collects from restaurant—customer receives food.
How to build Uber Eats Clone App
Step 1: Research
Would you ever go to an important job interview unprepared thinking let’s just give it a shot?
You do your homework about knowing the company’s work, job details, etc.
The same is with building an app. If you directly jump to the step of hiring a developer with no vision about what you wish to achieve; you are likely to have an oh-I-am-all-lost-let’s-quit-this moment. Therefore, consider doing some research on these three points:
1. What’s trending in the food delivery industry?
To withstand the competition and cope with changing customer demands, you should keep an eye on the latest trends. Consider the following trends while developing an app:
Order by Tweet
Domino’s Pizza was a pioneer of this concept. People can order a pizza by just tweeting a pizza emoji to the company’s Twitter account. Taking orders via social media is a good way to make your app unique.
Order with a Smartwatch
Who would have imagined that you can use a watch to buy a meal! The trend of wearable devices is increasing. That’s why food delivery platforms have integrated with Apple and Android smartwatches that allow customers to place an order from their wrist.
New ways of delivery
Companies and startups are experimenting with different ways of delivering meals. Food delivery via flying drones is soon going to be a reality. Dominos and Uber Eats have done experiments with a drone.
Blockchain technology has given rise to cryptocurrencies. By adding this as a payment method, companies can enhance customer satisfaction and prevent cyber-crimes.
2. Know your market in and out
Building an Uber Eats Clone app without knowing your target audience is a big error that you must avoid. A smart decision is to thoroughly research the market and have a clear idea about what kind of audience you want to cater to. As yourself do I want to target pizza lovers? Do I want to cater to vegan food? Do I want to target youngsters? This will help you build an app that delivers a good user experience.
3. Decide a business model
Currently, in the food delivery market, there are two popular models. You can select a model based on your goals and requirements.
Order-only Model- Food delivery services such as Delivery Hero, JustEat, etc. follow this model where they are only responsible for managing orders and charge 10-30% of order value. They do not have to worry about cooking and delivery. However, you must note that there is a huge competition in this space. If you are a beginner be careful!
Order & Delivery Model- Food delivery apps like Deliveroo, Doordash, and Caviar follow this model where they carry out both order management and delivery and receive 20-30% commission. With this model, you can gradually develop your company once the food delivery is in place.
Step 2: Choosing features for the app
- Resource management: A comprehensive panel of features that allows you to manage a gazillion things like buyer details, price of orders, adding or eliminating restaurants, payments, feedback, details or delivery professionals, number of orders, etc.
- Offers and Discounts: It not just allows you to create new deals, offers, and discounts but also permits the deals from the restaurant side.
- Notifications: With this feature, you can notify your customers via SMS, Emails, or App notifications.
- Dispute Management: Admin can easily manage disputes arising between users, restaurants, and delivery professionals.
- Geofencing: You can set geographical boundaries up to which your system operates. With this, you will receive a signal if the delivery professional goes beyond the set boundaries.
- Registration: Customers can register themselves using social login or email.
- Instant search: Users can search for restaurants and food items through this feature.
- Push notifications: With the help of this, users can get information about new restaurants or discounts.
- Payment modes: Customers can pay via multiple payment gateways such as Credit card, Debit card, eWallet, and other secure methods.
- Navigation: It lets customers track their order status.
- Rate and review: The user can rate the order experience and give feedback accordingly.
- Schedule later: This feature lets users schedule an order in advance.
- Filter options: Sorting options like price, delivery time, ratings, and more will provide an enhanced user experience.
- Registration and verification: It allows the driver to create a profile after providing required details for verification.
- Accept or reject requests: This feature lets the person accept or reject user requests based on distance, delivery commission, etc.
- Push notifications: The driver is immediately notified if there is some change in the current order or there is an addition of a new order.
- App chat/call: This feature allows the driver to contact the user in case of any emergency.
- Payment option: It provides a variety of payment methods to the driver.
Step 3: Knowing the technical aspects
Selecting the technology stack depends on your business model. However, we have generated a shortlist of popular technologies you will need.
API for Search and Menu
Application Programming Interface (API) is a set of protocols that allow apps to communicate with one another. Food delivery API allows you to conveniently manage delivery feet, integrate orders from all delivery platforms and combine them into a single tool, and provide data analytics tools to a restaurant. For startups and entrepreneurs, GrubHub’s API and Foursquare’s API are available.
The GrubHub developer API is semi-public and contains menu related information on more than 115,000 restaurants. While FourSquare’s API connects customers with restaurant listings.
According to statistics, the global digital payments industry in the following years will reach $4.5trn transaction value in 2023. This clearly suggests that users prefer online transactions. Secure payment integration is a must-have feature in your app that lets customers pay online. Consider using technologies like Stripe, Braintree, PayPal, Square’s API for secure payment integration.
The integration of GPS technology is necessary to determine the user’s location and check the driver’s real-time location. Some popular technologies to find location is:
- Core Location Framework
- Google Places API
- Google Maps API
Sending notifications is an effective way of engaging customers by updating them about special offers, new options in the menu, etc. You can use technologies like Amazon SNS, Urban Airship, Firebase Cloud Messaging.
Estimated Cost of Building Uber Eats Clone App
The expenditure depends on several factors like:
- Cost of app configuration and development. This will include license fees, app hosting fees, and developer charges.
- Basic and advanced app features that you decide to use.
- Building an app even requires using the latest technologies and trends.
With this, you know almost everything to build a food delivery app from scratch. Before you dive into executing your goals, we have some pro tips to share.
- Decide your business model
- Decide your budget
- Clearly know your unique selling points
- Plan your resources
- Set a realistic budget
- Choose your demography
- Do market analysis
Our team is always in action experimenting with new technologies, providing solutions. They would be delighted to share their insights with you!