A staggering 2.5 billion people will order food online by 2029.
Revenue in the global online food delivery market will reach $505.5 billion by 2030. The digital world has reshaped how we eat, and online platforms now handle 43% of all delivery orders.
Your slice of this growing market awaits. Building a successful app like Grubhub requires market insight and technical expertise. The numbers tell Grubhub's story - 19.9 million active customers spread across 2,200 US cities with mutually beneficial alliances with 115,000 restaurants.
The perfect moment has arrived to launch your food delivery app. The market continues to grow at 10.0% CAGR (2023-2032) and will hit $317.7 billion by 2032. Restaurants of all sizes adapt quickly to this trend. By 2025, delivery apps will become essential to every restaurant's profit and survival.
This piece provides a detailed roadmap to build your own Grubhub-like app. We cover everything from market research to launch strategies. You'll find valuable insights whether you're starting fresh or want to improve your existing concept in today's digital marketplace.
Step 1: Research the Food Delivery Market
A full picture of the market is vital before you start building a food delivery app. The food delivery world has changed in the last few years. The pandemic has altered the map of consumer habits and sped up how quickly people adopted these services.
Understand user behavior and expectations
The COVID-19 pandemic changed how people eat, which led to massive growth in online food delivery. The industry gained over 111 million online users in 2020, showing a 16% increase from the previous year. This wasn't just a temporary move - customer spending went up by 20% through digital platforms by 2024.
Your age determines how you use delivery apps. Gen Z and Millennials order food at least once weekly 40% of the time. Gen X orders 21.5% of the time, while Baby Boomers place orders just 10% of the time. Where you live makes a difference too. Urban residents use food delivery apps weekly 40% of the time, while rural areas show only 15.3% usage.
These user priorities matter when you plan to develop an app like Grubhub:
- Convenience rules - 70% of Gen Z says it's their main reason for using food delivery services
- Customization is vital - 75% of Gen Z modifies their orders
- Food quality must stay high regardless of delivery time
- Immediate tracking has become expected
- Users want individual-specific experiences and recommendations
Americans spend about $1,566 each year on food delivery, with orders averaging $35.42. This means they spend roughly 3.7% of their yearly income getting meals at their door.
Analyze competitors like Grubhub and Uber Eats
Success in building a food delivery app requires knowing your competition. DoorDash led the US market with 67% of observed sales by March 2024. Uber Eats followed with 23%, and Grubhub held just 8%.
DoorDash's story stands out - they climbed faster to first place while Grubhub declined in the last five years. Uber's total share hit 25% after buying Postmates, which holds 2% of the market.
Competitors make money in slightly different ways:
- Commission fees: Platforms usually take 15-30% commission per order
- Delivery fees: Customers pay $2-5 per order
- Service fees: Extra charges reach up to 15%
- In-app advertising: Brand placement based on customer data
Each platform shines in different areas. DoorDash does well in suburban areas and service quality. Uber Eats utilizes its ridesharing network effectively. Grubhub started as a paper menu replacement before adding delivery options.
Identify gaps and opportunities
The market might be mature, but new players can still find their place when building an app like Grubhub:
Emerging business models: Ghost kitchens are getting popular. These facilities focus only on delivery. CloudKitchens put $400 million into shared kitchens across the US, China, India, and UK. This approach cuts costs and boosts profit margins compared to regular restaurants.
Sustainability focus: 78% of US consumers think sustainable lifestyles matter. Your app could distinguish itself with eco-friendly packaging and lower carbon footprints.
Meal timing shifts: People just need late-night and off-hour food ordering more than ever. Remote work, flexible schedules, and night shifts drive this trend.
Health-conscious options: 49% of users prefer healthy menu choices and tend to pick plant-based meals. On top of that, it helps people in food deserts get healthier food options.
Personalization technology: AI will handle half of all restaurant customer interactions by 2025. Smart personalized recommendations could make your app stand out.
Subscription services: DoorDash's DashPass shows how well subscriptions work - 69% of users stay after one month. A good subscription model could be your next big win.
These market insights are the foundations of your app development experience. You're now ready for the next step - defining your business model.
Step 2: Define Your Business Model
The business model you pick will define your food delivery app's success. Your choice affects everything from operations to revenue and growth potential.
Choose between aggregator, full-service, or niche model
The food delivery market has three main business models that offer unique benefits:
Aggregator Model (Platform to Consumer): This model connects users to multiple restaurants through a single platform. Recent data shows four major aggregators dominated the US food delivery market: DoorDash (45%), Grubhub (23%), Uber Eats (22%), and Postmates (8%). Restaurants pay commission (15-30%) while the platform manages customer engagement and logistics.
Ideal if you:
- Want quick market entry and visibility
- Prefer focusing on technology over food preparation
- Have funding for platform development and marketing
Full-Service Model: This hybrid approach combines traditional dine-in restaurants with delivery options. Customers get an uninterrupted experience whether they dine in or order delivery. You control the entire process from order to delivery.
Ideal if you:
- Own restaurants and want to expand reach
- Need complete control over customer experience
- Can manage logistics effectively
Order-Only Model: Your platform connects customers to restaurants, but restaurants handle their deliveries. This needs less infrastructure but limits delivery control.
Decide on B2C or B2B focus
Your target audience shapes how you'll build your food delivery app:
B2C (Business to Consumer) serves individual customers ordering for personal use. These customers make smaller, frequent purchases driven by impulse. An average person spends USD 314 per month on impulse buys. The sales cycle runs short and prioritizes easy-to-use interfaces.
B2B (Business to Office) serves corporate clients who need catering. These transactions involve higher order values and complex decision-making processes. The sales cycle takes 1-3 months and needs specific features:
- Systems that manage multiple user accounts
- Options for scheduled office meal deliveries
- Features for bulk ordering
- Tools for expense tracking
B2B apps also need stronger security to protect sensitive data, with features like two-factor authentication and role-based access.
Plan for scalability and future growth
Scalability drives strategic success. Your app like Grubhub should prepare for growth in these areas:
- User base expansion: Your system should handle more concurrent users without slowing down.
- Order volume handling: The platform must process increasing orders during peak times.
- Geographical expansion: The app should work in new markets with different languages and priorities.
- Feature enhancements: Your framework should support new features without disrupting services.
These technical approaches help achieve scalability:
- Build modular architecture for independent scaling
- Use cloud infrastructure that scales automatically
- Apply microservices for separate development and deployment
Market experts suggest cloud solutions like AWS or Google Cloud to manage high volumes of immediate orders and tracking. This lets you scale during busy hours without heavy infrastructure costs.
Your business model should match your current resources and future goals. The model you pick - whether an aggregator platform or niche service - will shape your investment needs and profit potential.
Turn your delivery concept into a solid plan.
Let us help you define a B2B or B2C strategy that aligns perfectly with your goals and budget before development begins.
Step 3: Choose Monetization Strategies
Your food delivery app's success depends on its revenue streams. The right monetization strategy can make or break your app's profitability when you build something similar to Grubhub.
Commission-based revenue
Restaurant commissions are the bread and butter of most food delivery platforms. These fees usually range from 15% to 30% of each order value. To name just one example, see how a $10 food order puts up to $3 straight into the delivery platform's pocket.
This pay-for-performance model works great for platforms since they make money only when restaurants sell. But high commission rates can eat into restaurant profits. As your delivery business grows, restaurant partners might lose more money to these fees.
Here's how to structure your commissions:
- Set rates that work for everyone (15-20% for standard service)
- Create tiered commission levels based on restaurant size or order volume
- Give new restaurants commission-free trial periods
Delivery and service fees
A smart delivery fee structure can boost revenue while keeping customers satisfied. These charges might look small to users but add up quickly at scale.
Delivery fees typically cost between $2.95 and $8.50 per order. These fees do several things:
- Pay drivers and cover fuel costs
- Keep operations running
- Generate profit for the platform
Service fees bring in extra money as percentages of order subtotals. Many platforms use both fixed delivery fees and percentage-based service fees at once.
Distance-based pricing makes more sense to customers. They pay based on how far their food travels instead of flat rates, which makes nearby deliveries cheaper while longer trips cost more.
Subscription models and passes
Subscription programs turn random sales into steady monthly income. Subscribers tend to order 2-3 times more often than other customers.
These subscription models work well:
- Monthly membership passes: A $9.99 monthly fee gets users unlimited free deliveries on orders over $12, saving them $50-100 yearly on fees
- Annual subscriptions: Cheaper monthly rates for yearly payments ($5.95/month for Gopuff)
- Loyalty-focused programs: Extra perks like 10% off at select restaurants and priority support
These programs boost customer value, with retention jumping up by 40%. Customers love knowing their costs upfront, while businesses enjoy steady income.
Food delivery companies love subscription models because they create habits. Subscribers keep paying monthly fees even during months they don't order.
In-app advertising and promotions
In-app ads create high-profit revenue without annoying users. Restaurants gladly pay for better placement since most users pick from the first few options they see.
Here are some effective ad options:
- Sponsored listings: Restaurants pay to showcase menu items
- Home feed promotion: Prime ad spots at the top of the app
- Post-order experiences: Smart ad placement after checkout
These ads usually work on a cost-per-click basis - advertisers pay only when users click. Uber Eats saw their ad spending return multiply by five with their in-app system.
Beyond regular ads, platforms make extra money through special deals and brand partnerships.
Building a Grubhub-style app needs server-side ad architecture to stay fast and reliable. This setup helps you make 30-40% more from ads since ad blockers can't catch them as easily.
Step 4: Decide on Core Features
A successful food delivery app's foundation depends on its feature set. Your platform needs to work for users, couriers, restaurants, and administrators. This affects which functions you should build first.
Customer app essentials (search, order, track)
Your food delivery platform's main point of contact is the customer-facing app. Users expect a user-friendly experience that runs smoothly from login to delivery.
Quick user onboarding should take less than 30 seconds. Users can log in with phone numbers, Google/Apple accounts, or social media. The app needs AI-powered search that understands what users want (like "best pizza near me") and offers smart filters for cuisine, ratings, and delivery times.
Restaurant pages should feature:
- High-resolution food images
- Customizable add-ons for toppings and portions
- Clear pricing and delivery estimates
- Nutrition information and bestseller tags
Immediate order tracking is the most important feature for user retention. Modern tracking systems pair GPS with route optimization technology. Users can see their courier's exact location and ETA. Research shows that 95% of respondents read customer reviews before buying, which makes ratings and feedback tools crucial.
Courier app features (navigation, status updates)
Delivery partners need simplified tools that optimize efficiency without complexity. Their app needs specific features that focus on logistics.
A good courier app must include:
GPS navigation with smart routing considers traffic patterns to reduce delivery times by up to 5 times and logistics costs by 20%. Couriers manage their workflow better with order acceptance and status updates. The system notifies customers automatically when order status changes.
Earnings dashboards show delivery partners their income. Availability toggles let them choose when to work on the platform. On top of that, in-app communication tools let them contact customers and restaurants directly if problems come up.
Restaurant panel tools (menu, order management)
Restaurants need powerful yet simple tools to handle their digital presence and order flow.
The restaurant interface works as a web solution instead of a mobile app. Staff can:
- Update menu items, prices, and availability right away
- Accept or reject incoming orders based on capacity
- Track payments and settlements
- Manage promotions and special offers
Menu management drives restaurant operations. Partners add images, descriptions, and pricing while organizing items effectively. The order management system alerts staff about new orders and helps track order status during preparation.
Admin dashboard (analytics, user control)
The admin panel works as "the brain of the platform" and gives complete oversight of operations. This web-based command center brings together management of all platform parts.
The core team needs user account management for customers, restaurants, and delivery partners. Complete analytics dashboards track platform activity, including orders, deliveries, cancelations, and user performance metrics.
Payment processing tools handle transactions and refunds. Issue resolution systems take care of customer complaints. AI-powered analytics spot ordering patterns, delivery delays, and potential fraud to improve operations.
Your business model and target audience should guide which features to build first as you create an app like Grubhub. Start with core functions that provide immediate value, then grow your feature set as the platform expands.
Step 5: Select the Right Tech Stack
Your tech stack choice is crucial when building an app like Grubhub. The technology you pick will shape how fast you can develop, how well your app performs, and how easily you can scale your food delivery platform.
Frontend and backend technologies
Users see and interact with the frontend. Building cross-platform apps is the most budget-friendly way to create food delivery apps.
Your main frontend options include:
- React Native - Allows sharing 90%+ code between iOS and Android, providing near-native performance
- Flutter - Uses Dart programming language for smooth UI performance and visually rich experiences
- Swift (iOS) & Kotlin (Android) - Offer excellent performance and access to all native features, though you'll need separate codebases
The backend runs everything behind the scenes. Your backend choice determines how smoothly your app handles orders, user data, and payments.
Popular backend options include:
Node.js - An event-driven, non-blocking JavaScript runtime that's great at handling up-to-the-minute features like order tracking and updates. Its non-blocking design makes it ideal for handling multiple requests at once.
Python with Django - This pair comes with built-in tools for admin dashboards and user authentication, making it a great fit for managing restaurant data. Django's default admin panel gives you a quick start with backend management.
PHP with Laravel - Comes with many libraries and pre-built solutions for quick development. This combination works great for launching an MVP quickly.
Your main database options should include:
MongoDB - A document-based structure that handles data quickly, perfect for changing data like order statuses
PostgreSQL - Comes with advanced features for menu management and delivery route optimization
MySQL - Strikes a good balance between features and ease of use
Why React Native is a smart choice
React Native shines as a top pick for building a Grubhub-like app for several key reasons.
React Native lets developers share over 90% of code between iOS and Android platforms. This is a big deal as it means that development time and costs drop significantly compared to building separate native apps.
React Native turns code into native views, so your food delivery app runs almost as fast as fully native applications. This solves any worries about speed during crucial tasks like processing payments or tracking deliveries.
The component-based structure of React Native makes updates and maintenance easier. Developers can fix one component without touching the rest of the app, leading to faster updates and bug fixes.
Integrating APIs for maps, payments, and chat
A food delivery app needs to work with many external services through APIs (Application Programming Interfaces).
Maps and Location Services: You can't skip Google Maps Platform or Mapbox integration. These are needed to:
- Show restaurant locations
- Track deliveries in real-time
- Calculate delivery times
- Find the best delivery routes
Payment Gateways: Users trust apps with secure, reliable payment processing. Common choices include:
- Stripe
- PayPal
- Razorpay
These services handle encrypted payments and help with PCI compliance.
Push Notifications: Users stay informed about their orders through:
- Firebase Cloud Messaging
- Twilio for SMS alerts
Additional Integrations:
- Social login (Google, Facebook)
- SMS verification (Twilio)
- Email services (SendGrid)
- Analytics tools (Firebase Analytics, Mixpanel)
Good API setup needs careful attention to security, rate limits, and error handling. Without these, your service might fail during busy times.
Server-side caching with Redis or Memcached helps boost performance by cutting down API calls and speeding up responses. This becomes crucial as your user numbers grow.
Build a high-performance app with React Native.
Leverage our specialized teams to create a fast, cross-platform solution using the optimal tech stack for food delivery.
Step 6: Design and Develop the App
Your app's look and feel can make or break its success in today's food delivery market. A polished user experience will help you build an app that stands out like Grubhub.
Importance of UI/UX in food delivery apps
Your food delivery app connects you directly with customers. The design should be easy to use, quick, and built to convert while staying accessible to everyone. Users decide whether they like your app in seconds. They often delete it after a single poor experience.
These UI/UX elements help make food delivery apps successful:
- Easy search and filtering - Quick, smart search by cuisine, diet, or delivery time
- Personalization - Smart recommendations based on order history and time
- Up-to-the-minute tracking - GPS updates from kitchen to delivery
- Secure payment options - Multiple choices like Stripe, PayPal, and Apple Pay
Looking ahead to 2025, successful food delivery apps need smooth onboarding, smart filters, clear navigation, great visuals, and quick reordering.
Wireframing and prototyping
Wireframes let you see how users will move through your app before spending money on development. This step helps collect early feedback and saves money by spotting issues early.
Your wireframes should cover all three apps, Customer, Restaurant, and Driver. The focus should be on creating clear paths from opening the app to finishing an order. Include these in your wireframes:
- Ways to browse by category
- Detailed food pages with customization
- Screens to track orders
- Payment and checkout steps
The next step turns wireframes into detailed mockups and clickable prototypes. These prototypes show stakeholders and testers how your app will work. Tools like Figma and Adobe XD help build professional wireframes and interactive prototypes.
Agile development process with CISIN
Development sprints begin after design approval. Mobile app development company CISIN uses dedicated PODs (specialized teams) that work together, like Native Android Kotlin Pod and Java Micro-services Pod.
The agile method brings several benefits:
- Quick updates based on feedback
- Continuous updates from day one
- Core features get built first
- Easy adaptation to new requirements
CISIN tests thoroughly across devices and systems. They check functionality, performance, security, and user acceptance.
This well-laid-out approach to design and development builds strong foundations for your Grubhub clone app, preparing you for testing and launch.
Step 7: Test and Launch Your App
A food delivery app needs rigorous testing before market launch. Testing serves as your safety net against bugs that could permanently drive users away.
Functional and usability testing
Your app must work flawlessly on all devices and platforms. The testing process checks menu browsing, ordering, payment processing, and account management. A complete functional test covers:
- Installing and uninstalling the application
- Testing payment integrations with multiple methods (Visa, PayPal, Google Pay)
- Checking social media integration functionality
- Testing push notifications for order updates
Beta testing with real users
Internal tests aren't enough. Beta testing with actual customers reveals issues you can't spot in controlled settings. DoorDash and Uber Eats learned this firsthand - restaurants in their beta programs provided valuable feedback that shaped the final product.
Beta testing spots:
- Performance issues during peak ordering times
- Payment gateway problems across banking environments
- Order flow challenges missed by internal testers
The feedback needs systematic collection to prioritize fixes based on their effect. Most food delivery companies run beta programs for 2-4 weeks before full launch.
Deploying to App Store and Google Play
Your app needs approval from both stores to reach maximum users. Each platform has its own rules:
App Store: Apple takes 1-3 days to review UI/UX quality, performance, and guideline compliance. Your app needs appealing screenshots, a clear description, and relevant keywords to stand out.
Google Play: Reviews typically take 1-2 days. The platform needs specific technical requirements and content policies. Add a privacy policy, explain app permissions, and optimize your store listing with relevant keywords.
Watch your analytics closely after launch. Quick action on issues helps as users start ordering through your platform.
Step 8: Promote and Scale Your App
A food delivery app launch just needs smart marketing to stand out in today's crowded marketplace. The app's promotion becomes your next priority after your Grubhub clone becomes available in app stores.
Marketing strategies for launch
The most effective marketing approach combines multiple channels to maximize visibility:
- Geo-targeted advertising - Targeted ads in specific locations help reach users near partner restaurants
- Referral programs - Customer rewards for bringing new users can boost signups by 188%
- Loyalty initiatives - Point systems where users earn rewards with each order help boost retention
Using SEO, social media, and email
Local SEO helps potential customers find your app through "food delivery near me" searches. Your Google Business Profile should have accurate details, operating hours, and photos.
Social media platforms provide incredible reach - users spent 151 minutes daily on these platforms in 2023. Engaging food content and contests that encourage users to tag your business work well.
Email marketing produces remarkable results with $36 returned for every $1 spent. Previous order data helps create tailored recommendations that bring customers back.
Collecting feedback and iterating
Customer behavior patterns emerge through data analytics. Campaign effectiveness becomes clear by tracking website traffic, app downloads, and order volume.
Reviews matter significantly - 95% of people read them before making decisions. Quick responses to both positive and negative feedback demonstrate your commitment to customer satisfaction.
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From design and development to market launch, partner with us to build a solution that stands out in a competitive market.
Conclusion
Creating a food delivery app like Grubhub needs careful planning and execution on multiple fronts. The food delivery market grows faster each day, offering a golden chance for entrepreneurs who want to head over to this digital world.
Eight essential steps form the backbone of successful app development. Market research builds your foundation and helps you learn about user behavior and spot chances even in competitive markets. Your choice of business model - aggregator, full-service, or niche - shapes everything that follows.
On top of that, smart monetization strategies determine profit or loss. Commission fees, delivery charges, subscriptions, and in-app advertising create a steady revenue model. The right features serve all stakeholders well - customers want smooth ordering, couriers need efficient navigation, restaurants manage orders, and administrators oversee operations.
Technology choices affect both development speed and future growth. React Native gives specific advantages for cross-platform development, while proper API integrations link your app to key services. Mobile app development company CISIN suggests focusing on UI/UX design since users make up their minds within seconds and often quit apps after one bad experience.
Without doubt, complete testing on different devices and scenarios prevents things from getting pricey after launch. Beta testing with real users gives an explanation no internal testing can match. Smart marketing strategies help gain initial users once you deploy to app stores - from geo-targeted advertising to referral programs.
A successful food delivery app needs dedication and attention to detail. Your app can grab its share in this booming market with the right approach and technical skills. Take the first step today - those 2.5 billion potential customers feel hungry right now!
